Alotau is the capital of Milne Bay Province, in the far south-east of Papua New Guinea, on the tip of the Papuan Peninsula. It is located on the …Alotau is the capital of Milne Bay Province, in the far south-east of Papua New Guinea, on the tip of the Papuan Peninsula. It is located on the northern shore of Milne Bay and the township is conveniently situated within the Alotau Urban LLG.