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Australia’s Bilateral Aid Program in Papua New Guinea Department of Foreign Affairs and Trade Submission to the Australian Senate Standing References Committee on Foreign Affairs, Defence and Trade April 2015 Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea Creative Commons With the exception of the Commonwealth Coat of Arms and where otherwise noted all material presented in this document is provided under a Creative Commons Attribution 3.0 Australia (http://creativecommons.org/licenses/by/3.0/au/) licence. The details of the relevant licence conditions are available on the Creative Commons website (accessible using the links provided) as is the full legal code for the CC BY 3.0 AU licence (http://creativecommons.org/licenses/by/3.0/au/legalcode). Cover image: A young child at Gerehu Market in Port Moresby. Photo: Ness Kerton/DFAT. Page | 2 Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea Table of Contents Executive summary ............................................................................................................................ 5 List of Acronyms ................................................................................................................................ 8 Australian Aid to PNG: The Context ................................................................................................. 11 Figure 1: Australian goods and services trade with PNG 2008-14 ................................................. 11 Figure 2: PNG Real economic growth 2007-19 (projected) ........................................................... 12 Table 1: Australian Official Development Assistance to PNG, 2011-12 to 2014-15 ...................... 14 Table 2: Official Development Assistance disbursements to PNG by Top 10 Donors, 2011-13 .... 14 Table 3: Australian Official Development Assistance expenditure, 2013-14 ................................. 15 Figure 3: DFAT Official Development Assistance (%) to PNG, 2013-14 ......................................... 16 Highlight #1: Aid Results in 2013-14 .............................................................................................. 16 Australian Aid to PNG: A New Direction ........................................................................................... 17 Figure 4: Proposed DFAT Official Development Assistance (%) to PNG 2014-15 .......................... 17 Figure 5: Proposed Strategic Framework for the PNG aid program .............................................. 19 Highlight #2: A New Direction for Australian Aid to PNG: Refocusing Australian Aid to Help Unlock PNG’s Economic Potential ................................................................................................. 20 Australian Aid to PNG: Investments ................................................................................................. 21 Health and HIV/AIDS .............................................................................................................................. 21 Investment Example #1: Tuberculosis Control Initiatives in Western Province and the National Capital District ............................................................................................................................... 22 Investment Example #2: Medical Supply Reform in PNG .............................................................. 23 Education ................................................................................................................................................ 23 Investment Example #3: Australia Awards and the New Colombo Plan ....................................... 25 Transport Infrastructure ......................................................................................................................... 25 Investment Example #4: PNG Incentive Fund ............................................................................... 27 Law and Justice ....................................................................................................................................... 27 Economic and Democratic Governance .................................................................................................. 29 Investment Example #5: PNG Governance Facility ........................................................................ 30 Investment Example #6: A New Precinct for Public Sector Reform and Education....................... 31 Australian Aid to PNG: An Enhanced Focus on the Private Sector .................................................... 32 Highlight #3: Aid for Trade ............................................................................................................. 33 Figure 6: Australian Government: Private Sector Development Framework for PNG 2014-18 .. 34 Australian Aid to PNG: Gender Equality and Women’s Empowerment ............................................ 35 Investment Example #7: Pacific Women Shaping Pacific Development - PNG ............................. 36 Australian Aid to PNG: Disability-Inclusive Development ................................................................. 36 Australian Aid to PNG: The Autonomous Region of Bougainville and Manus Province.................... 37 Page | 3 Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea Bougainville ............................................................................................................................................ 37 Manus Province ...................................................................................................................................... 38 Australian Aid: A Strong Whole-of-Government Approach .............................................................. 39 Attorney-General’s Department ............................................................................................................. 39 Australian Centre for International Agricultural Research ..................................................................... 40 Australian Electoral Commission ............................................................................................................ 40 Australian Federal Police ........................................................................................................................ 40 Australian National Audit Office ............................................................................................................. 41 Australian Public Service Commission .................................................................................................... 42 Australian Taxation Office ...................................................................................................................... 42 Australian Trade Commission ................................................................................................................. 43 Commonwealth Ombudsman ................................................................................................................. 43 Department of Finance (Finance Australia) ............................................................................................ 44 Department of Immigration and Border Protection ............................................................................... 45 Investment Example #8: Government-to-Government Support ................................................... 46 Department of Infrastructure and Regional Development ..................................................................... 47 The Treasury ........................................................................................................................................... 48 Australian Aid: Delivery Partners in PNG ......................................................................................... 49 Table 4: DFAT Official Development Assistance to PNG by partner type, 2011-12 to 2013-14 .... 49 Non-Government Organisations ............................................................................................................. 50 Multilateral Organisations ..................................................................................................................... 51 Partnering with the Private Sector ......................................................................................................... 52 Australian Aid: Making Performance Count ..................................................................................... 54 Australian Aid: Learning and Applying Lessons ................................................................................ 55 Governance in PNG ................................................................................................................................. 55 Learning from other countries ................................................................................................................ 57 Thematic Strategies - The Health Sector in PNG, a case study ............................................................... 58 Annex 1 – Senate Committee Letter to Mr Peter Varghese AO, Secretary, DFAT ............................. 61 Annex 2 – Links to key documents ................................................................................................... 63 Page | 4 Department of Foreign Affairs and
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