Annual report 2004–2005 AUSAID

Annual report 2004–2005 © Commonwealth of Australia 2005

ISSN 1032-2019 ISBN (volume 1) 1-920959-60-2 ISBN (volume 2) 1-920959-61-0 ISBN (two-volume set) 1-920959-62-9 ISBN (volume 1 online) 1-920959-63-7 ISBN (volume 2 online) 1-920959-64-5

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth, available from the Department of Communications, Information Technology and the Arts. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Intellectual Property Branch, Department of Communications, Information Technology and the Arts, GPO Box 2154, ACT 2601 or posted at www.dcita.gov.au/ip/commonwealth_copyright.

Acknowledgements AusAID editors: Mark Fleeton, Warren Turner, Matthew Bentley and Lucy Tan-Marquardt Editorial consultant: Morris Walker Pty Limited Indexer: Michael Harrington

Internet websites AusAID home page http://www.ausaid.gov.au DFAT home page http://www.dfat.gov.au AusAID annual report http://www.ausaid.gov.au/about/annrep.cfm

Distribution This report is available through Australian Commonwealth Government Bookshops, the above websites and directly from the Australian Agency for International Development (AusAID).

Comments about this report are welcome and should be directed to: Office of Review and Evaluation AusAID GPO Box 887, Canberra ACT 2601, Australia Telephone: (02) 6206 4000 Facsimile: (02) 6206 4872

Australian Business Number (ABN) 629 215 588 38

Design and Typesetting by ZOO Printing by Pirion CONTENTS

Guide to the report vi

Section 1: Overviews 1

Director General’s review 3 Agency overview 9 Role and functions 9 AusAID and enhanced whole-of-government engagement 10 Organisational structure 10 Outcomes and outputs framework 12

Section 2: Report on performance 15

Effectiveness against outcomes 16 Performance information framework 16 Effectiveness—overall achievement of outcomes 17 Performance against guiding themes 19 Governance 19 Globalisation 20 Human capital 23 Security 26 Sustainable resource management 28 Administered programs 30 Country and regional programs 30 30 Pacific 43 58 79 Africa 84 /Central Asia 86 Global programs 88 Multilateral organisations 88 Emergency, humanitarian and refugee programs 94 Non-government organisations and volunteer programs 98 Information, education and communication programs 102 Cross regional programs 105

AUSAID Annual Report 2004–2005 iii Output 1.1—Policy 108 Output 1.2—Program management 112 Output 2.1—Australia– Partnership for Reconstruction and Development management 123 Financial results 124

Section 3: Management and accountability 127

Corporate governance 128 External scrutiny 133 Management of human resources 135 Purchasing and assets 140 Consultants and competitive tendering and contracting 141 Service charter 143

Section 4: Financial statements 145

Section 5: Appendices 207

A. Ministerial responsibilities 208 B. Resources summary for outcomes 210 C. program expenditure 211 D. Staffing overview 216 E. Freedom of information 220 F. Information available on the internet 224 G. Consultancy services 225 H. Advertising and market research 228 I. Aid Advisory Council members 2004–05 229 J. Overseas accreditation 231 K. Ecological sustainable development and environmental performance 232

Section 6: Glossary and index 235

Glossary 236 Index 238

iv AUSAID Annual Report 2004–2005 Figures

Figure 1: AusAID organisational chart at 30 June 2005 11 Figure 2: AusAID outcomes and outputs framework 2004–05 13 Figure 3: Estimated total Australian ODA 2004–05 18 Figure 4: Estimated total ODA by sector 2004–05 18 Figure 5: Estimated total Australian ODA on governance 2000–05 20 Figure 6: Estimated total Australian ODA on education 2004–05 24 Figure 7: Estimated total Australian ODA on health 2004–05 24 Figure 8: Estimated total Australian ODA to PNG by sector 2004–05 31 Figure 9: Estimated total Australian ODA to the Pacific by country 2004–05 44 Figure 10: Estimated total Australian ODA to East Asia by country 2004–05 58 Figure 11: Estimated total Australian ODA to South Asia by country 2004–05 79

Tables

Table 1: Resource summary for outcomes 210 Table 2: Total Australian official development assistance (ODA) to partner countries 211 Table 3: Country and regional programs expenditure 2001–05 212 Table 4: Global programs expenditure 2001–05 214 Table 5: Employees by classification, location and gender, 30 June 2005 216 Table 6: Employees by status and attendance type, 30 June 2005 216 Table 7: Senior executive service, 30 June 2005 216 Table 8: Senior executive gains and losses during 2004–05 217 Table 9: Employees by location and gender, 30 June 2005 217 Table 10: AusAID certified agreement salary ranges, 30 June 2005 218 Table 11: AusAID SES employee salary ranges, 30 June 2005 218 Table 12: Expenditure on formal training activities 218 Table 13: Training and development in 2004–05 219 Table 14: Employees by workplace diversity category and level, 30 June 2005 219 Table 15: Summary of consultancy contracts and period offers 225 Table 16: Consultancy services let over $10 000 during 2004–05 226 Table 17: Advertising and market research expenditure 228 Table 18: AusAID diplomatic representation at posts, 30 June 2005 231

AUSAID Annual Report 2004–2005 v Guide to the report

Guide to volume two

The report of the Australian Agency for International Development (AusAID) refers to the outcome and output structure and performance information presented in the Foreign Affairs and Trade Portfolio Budget Statements 2004–05 (Part C: Agency Budget Statements—AusAID).

Section 1 contains:

• the Director General's review for 2004–05

• the agency overview, including role and functions, the enhanced whole-of-government engagement, organisational chart, and outcomes and outputs framework.

Section 2 focuses on outcomes and outputs performance information including:

• overall achievement of outcomes

• performance against guiding themes

• reports on programs—country, regional and global programs (multilateral organisations, emergency, humanitarian and refugee programs, non-government organisations and volunteer programs, information, education and communication programs, and cross regional programs)

• reports on outputs—policy, program management, and Australia–Indonesia Partnership for Reconstruction and Development management.

Section 3 reports on management and accountability systems on corporate governance, external scrutiny, management of human resources, purchasing and assets, consultants and competitive tendering and contracting, and service charter.

Section 4 contains the audited financial statements for 2004–05.

Section 5 includes appendices that give additional information and reports required under specific legislation.

Section 6 contains a glossary of abbreviations and acronyms and the index.

vi AUSAID Annual Report 2004–2005 AUSAID Annual Report 2004–2005 vii The new Parliamentary Secretary to the Minister for Foreign Affairs, Bruce Billson (right) meets the Director General of AusAID, Bruce Davis, at Parliament House Photo: AusAID/AUSPIC

Handover of water supply facility to local community group at Lower Lumse, Sikkim in April 2005 funded under the Australian-assisted Gangtok Water Supply and Sanitation Project Photo: Philip Hawes

viii AUSAID Annual Report 2004–2005 OVERVIEWS

SECTION 1

Director General’s review Agency overview Mr Bruce Davis, AusAID Director General

‘While there has been unprecedented progress made in reducing poverty, particularly in Asia, major challenges to global development remain. AusAID is clearly seen as an integral part of the broader whole-of-government approaches to international and regional challenges and is closely involved in policy dialogue and implementation.’

2 AUSAID Annual Report 2004–2005 S SECTION 1 E C T I O N

1

Director General’s review

The year in review

Events across the world and closer to home have significantly shaped the ’s overseas aid program in 2004–05. It has been, without question, a period of considerable activity. While there has been unprecedented progress made in reducing poverty, particularly in Asia, major challenges to global development remain.

Priorities for the Australian aid program in 2004–05 have included:

• responding to the Indian Ocean tsunami and other humanitarian and emergency situations in , Sudan and Southern Africa

• improving security, governance and services in and Papua New Guinea

• working with partner governments and donors to address transnational threats such as HIV/AIDS and other pandemics, organised crime and food security

• developing long-term innovative approaches to the challenges faced by fragile states in our region and beyond.

Corporately, the agency has developed a strong partnership culture, embracing contestability and specialisation and involving other government departments, academic institutions, other donors, the private sector and civil society. AusAID is also embarking upon significant upgrades in its computing and communications systems to meet the challenges of more devolved program management and varied modes of aid delivery. Rigorous accountability processes, while changing, remain a core agency focus.

The tsunami and its aftermath

AusAID took a leading role in the Australian Government’s initial response to the Indian Ocean tsunami, working with the Department of Foreign Affairs and Trade, the Australian Federal Police, Defence and other arms of government to deliver urgent humanitarian and emergency assistance. The Australia–Indonesia Partnership for Reconstruction and Development (AIPRD) demonstrates the Australian Government’s ongoing commitment to assisting reconstruction in Indonesia after the disaster. Australia will contribute $1 billion over five years—the largest single aid contribution ever made by Australia—to assist economic and social development in Indonesia,

Overviews Director General’s review 3 as well as supporting Indonesia’s program of reform and democratisation. This is in addition to the ongoing aid program which will continue to support key reforms and education programs aimed at fostering long-term growth and prosperity in Indonesia.

MTV Australia also honoured the efforts of Australian aid workers after the tsunami, presenting AusAID with the ‘Free Your Mind’ award at the first ever MTV Australia Music Awards. The award recognised the efforts of over 400 AusAID funded Australian aid workers to tsunami-affected countries, including AusAID staff, doctors, engineers, teachers and scientists who managed and delivered tsunami relief under trying and difficult circumstances.

The White Paper on Australia’s aid program and external input into the agency

In his annual address to Parliament on Australia’s aid program, the Minister for Foreign Affairs announced that he would present an aid White Paper in early 2006. The White Paper aims to provide a medium-term strategic blueprint for the Australian aid program. It will build on the foundations already in place to make the most of Australian aid, understanding that some approaches will be generic in nature while others will be country or region specific. The White Paper process will be a major, collaborative exercise that will bring together many external international development experts to work closely with AusAID and government colleagues.

While the Australian aid program has a strong record on economic and public sector governance and basic service delivery, which are essential to development, more needs to be done to promote regional and transnational stability, broad-based economic growth and sound political governance. These will be key areas for analysis and debate in the development of the White Paper. In addition to drawing on the government’s own experiences, AusAID will also seek guidance from Australian and international thinkers in development to ensure our aid engagement continues to be at the cutting edge and focused on meeting future challenges.

Earlier, in December 2004, the OECD reviewed Australia’s aid program and policies. The hands-on, whole-of-government approach to aid taken by Australia was praised. The review also recognised our unique position and interest in the region, and commended our ability to adapt to local challenges. In particular, the OECD welcomed our direct and long-term commitment to fragile states, our regional leadership on HIV/AIDS, peace building and conflict resolution, and our strong policy coherence on trade and development. The review urged Australia to articulate more strongly its approach to development which acknowledges the symbiotic relationship between national interest and poverty alleviation.

4 AUSAID Annual Report 2004–2005 S SECTION 1 E C T I O N

1 An independent review of Australia’s aid to Papua New Guinea (PNG), tabled in September 2004, found that the program is strongly supported by a wide range of stakeholders. The review recommended ways to improve performance, including better public expenditure management, more constructive bilateral engagement, encouraging PNG firms to bid for AusAID tenders, adopting a new performance framework and improving donor coordination. Australia and PNG have accepted a number of recommendations, notably further untying of aid, and are in ongoing discussion about implementing the review’s suggestions in a new PNG country strategy.

Through the Aid Advisory Council, the Australian aid program is—and is seen to be—actively engaged with fresh perspectives and views of opinion leaders from a wide range of backgrounds from around Australia. The council—which is chaired by the Minister for Foreign Affairs—was this year expanded and now includes 15 eminent and independently minded people.

To assist development in the Pacific, Australia is leading the Pacific 2020 process to analyse critically the prospects for broad-based economic growth in the Pacific, PNG and . To be published in December 2005, the Pacific 2020 report will map out practical policy options looking ahead in nine key areas essential to economic growth. There will be a Pacific 2020 conference in March 2006 that we hope will generate debate and provide policy options to Pacific governments and other key stakeholders.

Corporate structure and staffing

There have been major changes to AusAID’s corporate structure and staffing to align better the organisation and its people with new and emerging demands. AusAID also introduced internal structural changes in 2004–05 that strengthen our ability to use practical experience to develop and inform Australian Government policy.

We have, this year, made significant advances in the devolution of staff and decision- making authority to the countries in which we operate. In fact, the last 12 months has seen a 96 per cent increase in the number of personnel deployed overseas, in diplomatic and non-diplomatic roles.

AusAID also employed a cadre of seven principal advisers—internationally recognised experts in economics, education, health, capacity building, rural development, program policies and design and quality—drawn from institutions such as the World Bank, World Health Organization and the United Kingdom’s Department for International Development. The principal advisers bring access to good international development practice and are a significant investment by AusAID in aid quality and effectiveness. Principal advisers will also provide more opportunities for AusAID staff in Canberra and overseas to discuss key development issues, and will provide constructive input to ensure the Australian Government’s aid program is more developmentally effective, more analytical, more innovative and more rigorous.

Overviews Director General’s review 5 AusAID strengthened its HIV/AIDS taskforce in recognition of the ongoing priority and impact the pandemic has on development. The taskforce provides coordination, strategic input and specialist advice in implementing Meeting the challenge, Australia’s international HIV/AIDS strategy launched by the Minister for Foreign Affairs in July 2004. The taskforce also supports the work of Australia’s special representative on HIV/AIDS in leading a regional response to the pandemic, and ensuring that the consequences of HIV/AIDS in Asia and the Pacific receive appropriate global attention.

With the security, governance and economic challenges facing the region becoming more demanding and requiring more complex development responses, the newly created Fragile States Unit allows AusAID to take a more integrated and cross- government approach to addressing weak or fragile states in our region. The role of the unit is to improve the Australian Government’s understanding, analysis, and responses to existing and possible future fragile states in the Asia–Pacific region. It has grown out of mounting interest from government partners and the international donor community, which see AusAID’s significant hands-on experience working in fragile states as a source of expertise and leadership for future engagement in fragile environments. In 2005–06, AusAID will cooperate with France in progressing work on fragile states through the OECD Development Assistance Committee.

AusAID’s role in a more robust and integrated Australian Government approach

AusAID is clearly seen as an integral part of the broader whole-of-government approaches to international and regional challenges and is closely involved in policy dialogue and implementation.

The agency participates in planning and coordination of the AIPRD, Regional Assistance Mission to Solomon Islands (RAMSI) and strengthened engagement with PNG.

We have also developed several strategic partnership agreements with key government agencies. The agreements formalise the relationship between agencies as equal partners in contributing to relevant aspects of Australian Government policies in developing countries. Currently we have agreements with the Australian Federal Police, the Treasury, Department of Finance and Administration, Attorney General’s Department, Australian Public Service Commission, Department of Health and Ageing and Department of Agriculture, Fisheries and Forestry. Other such agreements are in the pipeline.

This year, the AusAID Executive created an Executive Services Group (ESG), reporting directly to the Director General. ESG acts as the cross-agency focal point to continue with the implementation of the corporate strategic plan and further develop the strategies necessary to meet our whole-of-government responsibilities.

6 AUSAID Annual Report 2004–2005 S SECTION 1 E C T I O N

1 Changes in the way we manage and deliver the aid program

Delivery

AusAID is more readily adopting innovative and flexible approaches to program delivery which bring with them the promise of greater responsiveness, sustainability and ultimately success. We are quite intentionally challenging the traditional Australian managing contractor model of aid delivery and are working with the private, public and NGO sectors to implement a range of innovative delivery options such as:

• using counterpart's own systems (PNG Health Sector Improvement Program)

• using the expertise of other government agencies (Asia–Regional Sanitary and Phytosanitary (SPS) Measures Capacity Building with the Department of Agriculture, Fisheries and Forestry)

• placing individuals from AusAID and other government departments in in-line positions in partner countries as part of a whole-of-government response (RAMSI and PNG). Activities are also being implemented whereby highly qualified individuals are working closely with AusAID and counterpart agencies to identify ongoing strategic interventions in specific sectors (Learning Assistance Program for Islamic Schools, Solomon Islands Machinery of Government, Australia Nusa Tanggara Assistance for Regional Autonomy)

• advancing significant innovations in contracting such as the development of partnering approaches ( Health Sector Improvement Program) and increased emphasis on performance and program delivery in our commercial contracts.

Management systems

This year saw the implementation of the simplified monitoring toolbox (SMT) which will gradually replace the activity monitoring brief as the agency’s principal monitoring and reporting tool. SMT is a streamlined system that allows better aggregation of information for reporting purposes.

Currently a new activity management and financial system, AidWorks, is being implemented—the first phase of which should be operational by December 2005. One of the benefits of AidWorks is that it delivers an integrated approach to budget and financial control and program administration and monitoring.

AusAID’s scholarship programs are a significant and ongoing element of the aid program. Student scholarship management has undergone significant streamlining and reform in the past 12 months. Over this time, we have implemented a new management system, SIMON, a web-based system which allows our overseas posts to directly place students with universities, facilitates electronic billing, and provides AusAID with information to assess the performance of participating universities.

Overviews Director General’s review 7 Outlook

Internationally, Australia is regarded as a flexible donor that can respond quickly to emerging issues. Domestically, AusAID’s expertise in working in developing countries is acknowledged and sought after by partner agencies. In our continually changing operating and policy environment, AusAID will need to keep up with competing and changing demands to build on our solid reputation. AusAID is well placed to respond to these challenges, and we look forward to the White Paper to ensure an aid program that guarantees Australia’s national interest and delivers development results.

Bruce Davis Director General

8 AUSAID Annual Report 2004–2005 S SECTION 1 E C T I O N

1

Agency overview

Role and functions

The objective of Australia’s overseas aid program is to advance the national interest by assisting developing countries to reduce poverty and achieve sustainable development.

AusAID advises the government on development policy and manages Australian development cooperation programs focused on achieving broad-based growth, stability and effective governance, particularly in our region. In this way, AusAID contributes to the formulation and implementation of Australia’s broader foreign policy framework.

In pursuing this role, AusAID draws upon lessons learned from three decades of official development cooperation and its:

• linkages within and across Australian government in its capacity as Australia's official aid agency

• knowledge of the social, economic and political context in developing countries, as well as machinery of government, at the national and sub-national level

• understanding of the long-term aspects of development, including approaches to strengthening the sustainability and achievements of development assistance

• knowledge of the complexities of poverty and strategies for poverty reduction

• well-established networks and relationships with partner governments, donors, and multilateral organisations, as well as civil society and the private sector in Australia and developing countries

• commitment to maximising the effectiveness of aid, including accountability for public funds

• experience in rapid and flexible responses to emerging issues and humanitarian crises, using its extensive overseas infrastructure and delivery systems.

Overviews Agency overview 9 AusAID and enhanced whole-of-government engagement

In recent years development issues have become increasingly interlinked with broader Australian regional and international policy priorities, including regional security, trade, economic integration, and the transboundary threats posed by HIV/AIDS and other communicable diseases, illicit drugs and organised crime. In this context it is essential that the full capabilities of the Australian Government are brought to bear on these challenges.

The aid program sits firmly within this broader, integrated whole-of-government approach to addressing our region’s development challenges. While AusAID continues to direct Australia’s international development efforts, the agency recognises that other government departments and agencies have unique skills and capabilities that complement and support aid initiatives. AusAID works proactively with a range of government partners, has established close strategic and operational relationships with them, and is drawing upon their skills and expertise to tackle shared objectives in a direct, practical way.

Organisational structure

AusAID is an administratively autonomous agency within the Foreign Affairs and Trade portfolio. The Director General reports directly to the Minister for Foreign Affairs and the Parliamentary Secretary for Foreign Affairs and Trade on all aspects of aid policy and operations. The Director General is responsible to the Secretary of the Department of Foreign Affairs and Trade for the administration of the agency and is a member of the department’s executive. The Director General is also responsible for the agency’s financial and personnel management.

Figure 1 shows AusAID’s organisational structure. A deputy director general was seconded to the Department of Foreign Affairs and Trade to chair the Australia– Indonesia Partnership for Reconstruction and Development (AIPRD) Secretariat in January 2005 and is expected to rejoin the agency in 2005–06.

10 AUSAID Annual Report 2004–2005 S SECTION 1 E C T I O N

1

FIGURE 1: AUSAID ORGANISATIONAL CHART AT 30 JUNE 2005

Director General White Paper Bruce Davis Secretariat Peter Versegi

Executive Services Group

Asia and Corporate Policy and Global Papua New Resources Division Programs Division Guinea, Pacific and Murray Proctor Annmaree O’Keeffe Partnerships Division Charles Tapp

Indonesia Branch Office of Review and Papua New Guinea Robin Davies Evaluation Branch Mark Fleeton Jacqueline DeLacy

East Timor, Resources Branch Pacific Branch Humanitarian and Robin Scott-Charlton* Judith Robinson Regional Programs Alan March

East Asia Branch Ministerial and Australian Partners Peter Callan Parliamentary Services Branch Unit Dereck Rooken-Smith

HIV/AIDS Task Force Development Banks and Economics Group

Public Affairs Group Adviser Coordination

* Acting in position

Overviews Agency overview 11 Outcomes and outputs framework

AusAID’s outcomes and outputs framework is shown in figure 2. Appendix B provides the resources summary for the agency’s outcomes.

Since the 2004–05 Foreign Affairs and Trade Portfolio Budget Statements were tabled, AusAID has created a new outcome and output. This new outcome was created to cover the implementation of the Australian Government’s $1 billion commitment over five years to the Australia–Indonesia Partnership for Reconstruction and Development (AIPRD) together with the administrative costs directly related to the AIPRD.

The agency’s two outcomes are:

Outcome 1—Australia’s national interest advanced by assistance to developing countries to reduce poverty and achieve sustainable development.

Outcome 2—Australia’s national interest advanced by implementing a partnership between Australia and Indonesia for reconstruction and development.

AusAID’s administered items contribute to these outcomes, as do the three agency outputs: policy, program management, and AIPRD management.

Administered items—those revenues, expenses, assets and liabilities managed by AusAID on behalf of the government—represent the bulk of the aid program (about 97 per cent of the aid program budget).

In 2004–05, five guiding themes continued to shape Australia’s efforts to assist partner countries to reduce poverty and achieve sustainable development consistent with core national interest issues:

• promoting improved governance

• assisting developing countries to maximise the benefits of globalisation

• supporting stability through the delivery of basic services

• strengthening regional security

• promoting sustainable approaches to managing natural resources.

The agency’s three outputs represent the services purchased by the government from the agency to achieve the outcomes of its aid program.

12 AUSAID Annual Report 2004–2005 S SECTION 1 E C T I O N

1

FIGURE 2: AUSAID OUTCOMES AND OUTPUTS FRAMEWORK 2004–05

AUSAID Total price of outputs: $75.476 million Total departmental outcomes appropriation: $75.087 million Total administered appropriation: $3128.646 million Total administered expenses: $2136.178 million

OUTCOME 1 OUTCOME 2 Australia’s national interest advanced Australia’s national interest advanced by assistance to developing countries by implementing a partnership between to reduce poverty and achieve Australia and Indonesia for reconstruction sustainable development and development Total price: $73.844 million Total price: $1.632 million Dept outcome approp: $73.455 million Total admin approp: $2127.816 million Dept outcome approp: $1.632 million Administered expenses: $2127.494 million Total admin approp: $1000.830 million Administered expenses: $8.685 million

OUTPUT 1.1 OUTPUT 2.1 Policy Australia–Indonesia Partnership for Reconstruction and Development Total price: $14.548 million management Dept output approp: $14.471 million Total price: $1.632 million Dept output approp: $1.632 million

OUTPUT 1.2 ADMINISTERED ITEMS Program management Australia–Indonesia partnership program Total price: $59.296 million Appropriation: $1000.830 million Dept output approp: $58.984 million Expenses: $8.684 million Capital injection (cash): $4.8 million Capital injection (Cash): $0.112 million

ADMINISTERED ITEMS Australia’s aid program Appropriation: $2127.816 million Expenses: $2127.494 million Capital injection (cash): $90.765 million

Overviews Agency overview 13 Queuing for food, Kasab Camp, north Darfur, Sudan Photo: Marcus Prior/WFP

Loading boats with sandbags to take to outer islands. The sandbags are for stemming the rising water levels. Boats are the main source of transport in the Photo: Will Salter

14 AUSAID Annual Report 2004–2005 REPORT ON PERFORMANCE

SECTION 2

Effectiveness against outcomes Performance information framework Effectiveness—overall achievement of outcomes Performance against guiding themes

Administered programs Country and regional programs Global programs

Output 1.1—Policy Output 1.2—Program management Output 2.1—Australia–Indonesia Partnership for Reconstruction and Development management Effectiveness against outcomes

PERFORMANCE INFORMATION FRAMEWORK

The performance information framework for the 2004–05 AusAID annual report is set out in the 2004–05 Foreign Affairs and Trade Portfolio Budget Statements. The agency also created a new outcome and output since the Portfolio Budget Statements were tabled. This covered the implementation of the Australian Government’s $1 billion, five-year commitment to the Australia–Indonesia Partnership for Reconstruction and Development (AIPRD).

AusAID aggregates information on the quality and quantity of aid program activities to assess performance of the agency’s outcomes, including the following key components:

• outputs against the five guiding themes: governance, globalisation, human capital, security and sustainable resource management

• assessment of quality and significant outputs of each program funded by administered appropriations including country and regional programs, multilateral organisations, emergency, humanitarian and refugee programs, non-government organisations (NGOs) and volunteer programs, and information, education and communication programs

• assessment of the quality, significant outputs and price of the agency’s three outputs funded from departmental appropriations: policy, program management and AIPRD management.

Performance information on the quality of the aid program is collected in a range of ways depending on the program or aid delivery mechanism. Following an extensive process of trial, review and evaluation, the simplified monitoring toolbox (SMT) was adopted in November 2004 to gradually replace the activity monitoring brief (AMB) as the principal monitoring and reporting tool for the annual report and is now a key component of broader monitoring and evaluation frameworks for country and regional programs. The agency uses other tools, including the non-government monitoring brief and the multilateral assessment framework, to measure performance of global programs.

The quality indicators in the performance information framework specify a target of 75 per cent or more of funded activities or organisations with a rating of satisfactory overall or higher. This approach is consistent with that adopted by the World Bank which has the same target.

16 AUSAID Annual Report 2004–2005 Activities are rated using a five-point quality rating scale of weak, marginally unsatisfactory, satisfactory overall, fully satisfactory and good practice. The reliability of the ratings is assessed through a variety of approaches, although there are intrinsic limitations to using a five-point scale to capture the complexity of aid activities. However, the ratings and their target constitute a simple way to summarise performance. S SECTION 2 E C T I

EFFECTIVENESS—OVERALL ACHIEVEMENT O N

OF OUTCOMES 2

Program quality and quantity

Outcome 1—Australia’s national interest advanced by assistance to developing countries to reduce poverty and achieve sustainable development.

AusAID achieved its overall quality target with more than 75 per cent of activities receiving a quality rating of satisfactory overall or higher. All administered programs individually met their quality target. Within country and regional programs, quality ratings did not vary greatly by region or sector, though activities in governance, health and rural development exceeded average overall performance.

In relation to quality attributes, management rated the highest and sustainability the lowest. Monitoring of country and regional programs also identifies strengths and weaknesses of the activities. In 2004–05, the most common strength related to the degree of support from partner governments. The most common weakness was the extent to which outcomes planned for the period were actually completed.

In 2004–05, the aid program provided a total of $2127.5 million in development assistance to achieve this outcome including $1033.1 million for country and regional programs and $1093.7 million for global programs.

Outcome 2—Australia’s national interest advanced by implementing a partnership between Australia and Indonesia for reconstruction and development.

Foreign and economic ministers from Australia and Indonesia held the inaugural AIPRD Joint Commission meeting in March 2005 and agreed on the eight guiding principles that will inform the work undertaken through the partnership. Officials from both governments are developing a Partnership Framework to guide the selection of priority activities.

By the end of 2004–05, more than $175 million of AIPRD grant funding had been allocated to activities across Indonesia. Total expenditure was $8.7 million. Activities funded under the partnership will be assessed in 2005–06 against the 75 per cent quality performance target in line with other aid programs.

Performance Effectiveness—overall achievement of outcomes 17 Total Australian official development assistance

Figure 3 shows total estimated Australian official development assistance (ODA) in 2004–05 across major regions. The estimated sectoral breakdown of Australian ODA is shown in figure 4. Appendix C provides a more detailed breakdown of Australia’s expenditure on overseas aid.

Estimates of total Australian ODA to developing countries are taken from Australia’s overseas aid program 2005–06—the aid budget statement. ODA consists of aid flows from AusAID’s country, regional and global programs, the Australian Centre for International Agricultural Research and other Australian Government departments.

FIGURE 3: ESTIMATED TOTAL AUSTRALIAN ODA 2004–05

Papua New Guinea and Pacific 32%

East Asia 28%

South Asia, Africa and other 11%

Multilaterals and other ODA 29%

FIGURE 4: ESTIMATED TOTAL ODA BY SECTOR 2004–05

Health 11%

Governance 32% Education 10%

Infrastructure 9%

Rural development 10% Multisector* 11%

Humanitarian and emergency relief 17%

* Multisector includes direct expenditure on cross cutting issues such as gender, environment and food security

18 AUSAID Annual Report 2004–2005 PERFORMANCE AGAINST GUIDING THEMES

Five guiding themes link individual aid activities with the aid program’s poverty reduction framework and focus on broad-based economic growth. These themes also relate Australia’s aid responses to core national interest issues: S SECTION 2 E

• promoting improved governance C T I

• assisting developing countries to maximise the benefits of globalisation O N

• supporting stability through the delivery of basic services 2

• strengthening regional security

• promoting sustainable approaches to managing natural resources.

Governance

Governance cuts across the development agenda and plays a pivotal role in achieving long-term development outcomes. Experience in our region and globally shows that effective economic and public sector institutions, the rule of law and a strong civil society are essential for partner governments to sustain broad-based growth and meet the needs of their poorest and most vulnerable citizens.

The aid program promotes improved governance and stability by focusing assistance on strengthening economic and financial management, building the capacity of law and justice systems, increasing public sector effectiveness, tackling corruption, and strengthening democratic processes including civil society. Improved governance enables partner countries to use their resources more effectively to improve service delivery and reduce poverty, and helps yield better returns on aid investments.

In 2004–05, Australia provided an estimated $703.0 million for governance activities, representing 32 per cent of total Australian ODA. Key achievements included:

• developing with other donors the Public Expenditure Review and Rationalisation exercise in Papua New Guinea (PNG) to provide a framework for improving public sector performance

• establishing a Government Partnership Fund under the AIPRD to help Indonesia address major reform challenges in the areas of economic, financial and public sector management

• contributing to significant improvements in law and order and the basic functioning of government in Solomon Islands through the Australian-led Regional Assistance Mission to Solomon Islands (RAMSI), as well as working with the Solomon Islands government to reinvigorate the economy

• establishing the Pacific Governance Support Program to support a higher standard of governance in the Pacific by building institutional capacity and strengthening links between Australian Government agencies and their Pacific counterparts

Performance Against guiding themes 19 • assisting to implement key governance reforms in fiscal management and social security through a new governance program that also enhances strategic linkages between key Chinese and Australian Government agencies

• establishing a five-year church partnership program in PNG to build on the existing strengths of PNG churches in meeting the needs of their communities, and to improve their capacity through engagement with Australian church partners.

FIGURE 5: ESTIMATED TOTAL AUSTRALIAN ODA ON GOVERNANCE 2000–05

ODA on governance As % of total Australian ODA 700 35

600

500 30 400

300 PER CENT $ MILLION 25 200

100

0 20 2000–01 2001–02 2002–03 2003–04 2004–05*

* 2004–05 is estimated expenditure

Globalisation

Economic growth has been the main driver for reducing poverty. By liberalising trade and investment and accessing the global community, developing countries have grown much faster than those that do not. The World Bank estimates that further trade liberalisation through the Doha Round of world trade negotiations could increase real incomes in developing countries by as much as $US350 billion by 2015 and lift an additional 140 million people out of poverty.

The aid program is helping partner countries to introduce reforms that reduce the costs of doing business and provide a sound economic platform to maximise the benefits of global trade and investment. In collaboration with regional and multilateral partners, Australia is providing technical expertise and training and investing in information and communication technologies. As a member of the Cairns Group, Australia is also leading negotiations to liberalise global agricultural trade and increase market access and income opportunities for the rural poor. Australia has provided tariff and quota free access for all products from the Least Developed Countries since 2003.

20 AUSAID Annual Report 2004–2005 In 2004–05, Australia’s trade-related assistance totalled an estimated $32 million. In addition, an estimated $193.8 million was provided for essential infrastructure. Key achievements included:

• contributing to the World Trade Organization Global Trust Fund to assist developing country members to participate in the Doha Round, bringing Australia’s total S SECTION 2

contribution to the fund to more than $2.2 million since 2002. More than E C

2700 people received trade-related training across the region T I O

• supporting the Pacific Regional Trade Facilitation Program to help Pacific N

island nations implement reforms in customs, quarantine, and standards and 2 conformance to facilitate greater regional and global trade

• promoting use of electronic information and communication technologies by partner countries through the Virtual Colombo Plan, a joint initiative between the Australian Government and the World Bank

• establishing a $2 million Transport Technical Support Fund to support transport reform in the Pacific region

• completing 31 joint research studies under the Association of Southeast Asian Nations (ASEAN)–Australia Development Cooperation Program to strengthen economic integration in areas such as food and agriculture, intellectual property rights, customs, transport, energy and telecommunications

• maintaining more than 2100 kilometres of PNG’s national roads in 11 provinces, representing around 25 per cent of its national roads, to improve market access and economic efficiency, particularly for rural communities.

Performance Against guiding themes 21 International year of microcredit 2005

The United Nations proclaimed 2005 as the international year of microcredit to raise the profile of microenterprise development in reducing poverty and improving the livelihoods of the poor who have limited access to the formal financial system.

AusAID supports microcredit and other microfinance products to enable the poor to make better use of their resources, increase their incomes and participate in and benefits from economic growth. In 2004–05, AusAID provided an estimated $13.5 million to support microfinance activities through bilateral, regional and non-government organisation programs. This support helped more than 67 000 people in the Asia–Pacific region to gain control of their financial future. Key achievements included:

• supporting the five-year, $5.5 million Capital Aid Fund for Employment of the Poor, which has more than 17 000 clients, 80 per cent of whom are women with limited access to the formal system. Loans, which average US$200, are used to establish or expand a range of microenterprises such as animal husbandry and waste recycling

• supporting the Consultative Group to Assist the Poor, a consortium of public and private agencies sponsored by the World Bank, to build a stronger pro-poor microfinance industry worldwide and expand access to financial services in developing countries

• mobilising a public affairs campaign to raise awareness of the United Nations Association of Australia’s microcredit conference in August 2005.

A local woman dries fish in the midday sun, Phu Xuan Commune, Vietnam Photo: Will Salter

22 AUSAID Annual Report 2004–2005 Human capital

Strengthening basic service delivery systems in the areas of education, health and water and sanitation helps to build human capital in developing countries. Providing good basic education and protection against easily preventable diseases lays the S SECTION 2

foundation for more productive populations that can participate more fully in society. E A healthy and well-trained workforce is also critical for developing countries to compete C T in the global economy, whereas the failure to provide effective basic services can I O undermine public confidence in government and have a destabilising effect. N

2 In 2004–05, Australia provided an estimated $221.3 million for education activities and $231.6 million for health activities. An estimated $91.6 million was also provided for a range of water related development activities including water supply and sanitation systems, flood management, agricultural water allocation and water policy reform initiatives. Key achievements included:

• increasing access to quality basic education through initiatives such as the new 10-year national education plan in PNG and partnerships with more than 800 Islamic schools in Indonesia. Access to primary and secondary education was improved for more than 12.4 million children, and more than 48 200 schools were built or provided with upgraded facilities across the aid program

• providing training and materials to more than 208 500 teachers and training a further 206 600 people through short-term, non-scholarship programs

• awarding scholarships for about 1000 students from 37 countries to study at Australian academic institutions and supporting 649 students to study at institutions in the Pacific

• providing basic health care equipment and supplies, such as mosquito bed nets, vaccinations and antenatal care kits, to more than 23 400 people

• supporting the sub-national emergency immunisation campaign in Indonesia, including assistance to help contain the spread of polio following the April 2005 outbreak in western Java. Immunisations of more than 3.5 million children were facilitated across the aid program

• building or upgrading 509 hospitals, clinics and health outreach services, including the Zainoel Abidin Hospital in Banda Aceh and Sanglah hospital in Bali

• providing more than 38 400 people in the region with assistance to treat and prevent HIV/AIDS and other communicable diseases

• publishing a safe water guide for improving the quality of drinking water and addressing the critical clean water shortages experienced by more than 1.1 billion people in developing countries. AusAID helped more than 1.7 million people gain access to improved water sources and around 11 000 people with access to improved waste removal and sanitation facilities.

Performance Against guiding themes 23 FIGURE 6: ESTIMATED TOTAL AUSTRALIAN ODA ON EDUCATION 2004–05

Basic education 17%

Scholarships 46% Technical and vocational training 7%

Secondary and higher education 5%

Other education 25%

FIGURE 7: ESTIMATED TOTAL AUSTRALIAN ODA ON HEALTH 2004–05

STD control including HIV/AIDS 30% Basic health care 37%

Other population policies and reproductive health 7% Medical education, Health governance 22% research and services 4%

24 AUSAID Annual Report 2004–2005 Meeting the HIV/AIDS challenge

HIV/AIDS is a global emergency and threatens to undermine regional stability and reverse the development gains achieved by many countries. Today, almost

40 million people are living with HIV/AIDS. Over eight million of these live in S SECTION 2 E the Asia–Pacific region, which is now experiencing the fastest growing HIV/AIDS C T epidemic in the world. I O N

Australia is taking a leadership role in addressing the rapid spread of HIV/AIDS. 2 At the second Asia–Pacific Ministerial Meeting on HIV/AIDS in Bangkok in July 2004, the Minister for Foreign Affairs launched Australia’s international HIV/AIDS strategy, Meeting the challenge. It aims to reduce the spread of HIV/AIDS, particularly in the Asia–Pacific region, and commits $600 million in assistance by 2010. AusAID Deputy Director General, Ms Annmaree O’Keeffe, was appointed Australia’s Special Representative for HIV/AIDS to encourage greater political, business and community attention to the HIV/AIDS threat in our region.

Under the strategy, AusAID is implementing major bilateral HIV/AIDS programs in PNG and Indonesia, drawing on Australian expertise to deliver a range of prevention and care initiatives with local governments, civil society organisations and the business sector. Consistent with Australia’s broader drug control efforts, AusAID is also funding measures through the Asia Regional HIV/AIDS project to reduce the risk of HIV transmission associated with intravenous drug use in Burma, China and Vietnam.

Australia funds a number of multilateral institutions. In 2004–05, this included a further $25 million to the Global Fund to Fight AIDS, Tuberculosis and Malaria and $4 million to UNAIDS, including $1 million to the Asia–Pacific Leadership Forum on HIV/AIDS.

In collaboration with partner countries, Australia also supports research programs such as the sub-regional HIV/AIDS initiative investigating the epidemiological, social, economic and security risks posed by HIV/AIDS in PNG, Indonesia and East Timor.

Mr Alexander Downer, Minister for Foreign Affairs (second from left) at the second Asia–Pacific Ministerial Meeting on HIV/AIDS in Bangkok, , July 2004 Photo: AusAID

Performance Against guiding themes 25 Security

The peace, security and prosperity of all countries are increasingly interlinked. The Australian Government is strengthening the capacity of partner countries to improve law and order, prevent and recover from conflict, and manage a range of transnational threats to security such as people trafficking, illicit drugs, HIV/AIDS and communicable zoonotic diseases. Terrorism also has the potential to undermine stability and development in the region.

In 2004–05, the aid program continued to support practical, targeted security related and counter-terrorism activities in the areas of basic policing, legislative reform, detection of terrorist financing, transport security, customs and border protection. Key achievements included:

• supporting conflict prevention and peace building initiatives in collaboration with 143 national and local government agencies and 10 NGOs across the region, directly benefiting more than 37 600 people

• implementing the Bougainville law and justice strategy and continuing to support the post conflict recovery process including the province’s first elections to establish an autonomous government

• strengthening policing in the region including police forces in East Timor, PNG and and commencing the Pacific Regional Policing Initiative. More than 6900 police officers were trained across the aid program

• doubling counter-terrorism assistance to Indonesia and the to tackle organised crime and money laundering and strengthen border control and port security

• strengthening the capacity of law and justice institutions in Solomon Islands to conduct high court trials

• supporting the transition towards stability and democracy in and through electoral assistance and the deployment of election monitors. More than 28 000 election monitors were deployed across the aid program.

26 AUSAID Annual Report 2004–2005 Engaging with fragile states

Australia is at the forefront of donors engaging with countries that face particularly stark poverty and development challenges and are vulnerable to further decline. Weak governance, failed institutions, instability or conflict S SECTION 2 E result in dismal growth prospects and the failure of essential services to C T reach populations, particularly the poor. With many countries in our region I O

experiencing aspects of fragility, the aid program, in collaboration with other N

Australian Government agencies, is ensuring an effective, integrated approach 2 to these problems.

Ongoing practical assistance is helping East Timor, Solomon Islands, PNG, Vanuatu, Fiji, and other Pacific island countries to avoid state failure and build a stronger economic, social and security foundation for longer-term development. Australia also participated in a number of cooperative research and policy initiatives including:

• leading international debate at the Senior Level Forum on Development Effectiveness in Fragile States in January 2005, where Australia and Solomon Islands shared their experiences under RAMSI

• developing with other donors the Principles of Good International Engagement in Fragile States and, together with New Zealand, putting in place arrangements to pilot these principles in RAMSI activities in 2006

• leading the OECD’s fragile states research and dialogue initiative and, with France, initiating a new research project focused on coherence and whole-of-government approaches in fragile states

• jointly funding fragile states focused research with the World Bank and United Nations with particular attention to the Pacific.

Building on these activities, the Australian Government announced a new fragile states initiative to further integrate development, security, economic and political perspectives from across government and boost Australia’s capacity to engage with fragile states at strategic and operational levels.

Performance Against guiding themes 27 Sustainable resource management

The majority of the world’s poor live in rural areas and rely on agriculture and natural resources to generate income and improve their livelihoods. The aid program helps partner countries to develop sustainable use of natural resources, increase agricultural productivity, stimulate rural non-farm employment and reduce the vulnerability of rural communities to natural disasters.

In 2004–05, Australia provided an estimated $206.8 million for rural development. In addition, an estimated $134.0 million was provided to address environmental problems in developing countries. Key achievements included:

• providing agricultural and resource management training, guidelines and other basic resources to more than 178 000 people across the aid program

• improving approaches to managing natural resources in ’s central dry region, with 60 village groups participating in the reforestation of about 30 hectares of land

• developing a flood forecasting system for the Yangtze Water Resources Commission, as well as training 20 engineers in flood management, to better manage China’s annual flood season

• supporting the Forestry Department of Solomon Islands to implement sustainable logging practices and increase community participation in reforestation, resulting in about five per cent of rural households owning small scale forest plantations

• training more than 24 000 primary school children and more than 500 teachers in flood response and safety awareness to mitigate risks associated with severe floods in Vietnam’s Quang Nai province

• assisting 13 Pacific island nations to manage and destroy stockpiles of persistent organic pollutants and supporting ongoing monitoring of sea levels and climate change to reduce vulnerability to natural disasters

• supporting key multilateral environment agreements through contributions to the Global Environment Facility, Montreal Protocol Multilateral Fund and United Nations Environment Programme.

28 AUSAID Annual Report 2004–2005 Supporting the Millennium Development Goals

The aid program’s poverty reduction framework and focus on broad-based economic growth is contributing to the achievement of the Millennium

Development Goals (MDGs). S SECTION 2 E C T

In September 2000, representatives of 189 countries, including Australia’s I Prime Minister, unanimously adopted the Millennium Declaration. This included O N

a set of ambitious goals designed to focus national and international efforts on 2 the major challenges facing developing countries—eradicating poverty, hunger, disease and gender inequality, and achieving universal education, health and environmental sustainability.

Australia’s aid is guided by the needs and priorities of its partner countries to meet these challenges. By delivering practical, integrated assistance programs across the five guiding themes, Australia, working with development partners, is focusing on the prerequisites for progressing towards the MDGs—economic growth, good governance and stability—while investing directly in health, education and other sectors articulated in the goals.

In particular, Australia is committed to working with its immediate neighbours to implement the policies required to meet the MDGs by 2015. The Asia–Pacific region contains a quarter of the world’s Least Development Countries and many small island developing states that face unique constraints and challenges. Australia’s overall approach to the MDGs and contribution to developing a global partnership for development—goal eight—is outlined in a report prepared by AusAID for the United Nations Summit in September 2005.

Mr Alexander Downer, Minister for Foreign Affairs with Mr Kofi Annan, United Nations Secretary- General at a ministerial meeting on HIV/AIDS in Bangkok, Thailand, July 2004 Photo: AusAID

Performance Against guiding themes 29 Administered programs

COUNTRY AND REGIONAL PROGRAMS

Summary of performance

Indicator Result 75 per cent of activities receive a quality The aggregated quality ratings for country rating of satisfactory or higher; significant and regional programs in 2004–05 met the activity outputs within guiding themes. 75 per cent quality performance target. Significant achievements by individual programs are reported below.

Papua New Guinea

Australia remains committed to helping Papua New Guinea (PNG) address its critical development challenges. Health, education and infrastructure services are in serious decline and the increasing prevalence of HIV/AIDS is a major concern. Poor political governance, ongoing law and order problems and instability, particularly in the Southern Highlands are all difficult and long-term challenges.

During the year, PNG’s macroeconomic position improved through a combination of a favourable external environment, including buoyant commodity prices, good weather and fiscal restraint. Increased foreign reserves and a strengthened kina also helped inflation and interest rates to remain low. Despite the improved economic outlook, the PNG economy remains vulnerable to external influences as it is largely dependent on international commodity prices for export earnings. With mining and petroleum sector production forecast to decline from 2006, a major challenge will be to expand the non-mining sector and ensure economic stability by continuing political and economic reforms.

In 2004–05, AusAID’s country program aid to PNG totalled $307.1 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total official development assistance (ODA) to an estimated $366.6 million.

30 AUSAID Annual Report 2004–2005 FIGURE 8: ESTIMATED TOTAL AUSTRALIAN ODA TO PNG BY SECTOR 2004–05

Health 15% S SECTION 2 E C T I O N Infrastructure 16%

Governance 49% 2

Multisector* 2% Rural development 3%

Education 15%

* Multisector includes direct expenditure on cross cutting issues such as gender, environment and food security

Country strategy objectives

Australia’s strategy for development cooperation with PNG is focused on overcoming the major constraints to PNG’s stability and development—poor governance, poor service delivery and low rates of growth. To achieve this goal, the aid program works through PNG government agencies and systems wherever possible to ensure better use of its own resources to strengthen economic management, deliver essential services and improve law and order.

Key objectives of the PNG program are to:

• protect the vulnerable and create the preconditions for growth by providing health and education services, an effective and robust law and justice system and serviceable transport infrastructure

• create an environment conducive to private sector growth

• support democratic change by promoting debate on PNG’s development choices, building regulatory frameworks and the capacity of non-government agencies, and supporting a free and fair electoral system.

In response to PNG’s changing environment, coupled with lessons learned from the program’s interventions in a range of sectors, Australia is working closely with other major donors to develop a new medium-term strategy for engagement with PNG. This approach will be consistent with Australia’s engagement with fragile states and underlines the importance of strengthening political governance and targeting corruption, building sustainable government institutions, exploiting opportunities to stimulate sustainable economic growth, and maintaining delivery of services to minimise the impact of system failures on the poor.

Performance Country and regional programs 31 The new strategy will identify further opportunities to develop approaches more closely aligned with PNG government systems, continue to support improved public expenditure management and key PNG reform initiatives, and focus on improved donor harmonisation to reduce the administrative burden of aid delivery and improve aid effectiveness.

Governance

In 2004–05, Australia provided an estimated $167.7 million for governance activities in PNG.

Economic and public sector performance

PNG’s economy needs to grow at a faster rate to improve living standards. The strategy for development and economic growth is set out in the PNG Medium-term Development Strategy 2005–10. To enable this growth, the public service needs to facilitate access to markets and deliver basic services, especially for the vast majority of people living in rural areas.

Economic management has improved over the last two years due to improvements in external market conditions complemented by some positive developments in budget management. Australia has helped PNG capitalise on these favourable conditions to progress reforms, including through the Enhanced Cooperation Program (ECP) which was established in June 2004 to help PNG re-establish investor confidence and provide an enabling environment for broad-based development.

The Public Expenditure Review and Rationalisation exercise jointly developed by Australia, the World Bank and Asian Development Bank provides the framework for continued Australian Government support to improve public sector performance. Support has been provided to improve the functioning of the core machinery of government, particularly budget processes, payroll management, corporate planning and performance management.

A total of 37 Australian Government officials were deployed under the ECP in 2004–05, bringing the total number to 43. The package of assistance also included deployment of Australian Federal Police. Due to a challenge in the Supreme Court of PNG in August 2004, the Australian Government was unable to deploy the full number of anticipated officials. The court’s decision on 13 May found that several aspects of the ECP treaty and legislation were inconsistent with the PNG constitution. Subsequently, nearly all Australian assisting police were withdrawn. However, the 43 officials remained in PNG in advisory roles. At the time of preparing this report, both governments were in discussions regarding the future of the program.

Key achievements included progressing public sector reforms by:

• helping develop a debt management strategy (2005–08) that improves the government’s ability to manage its domestic debt and reduce the cost of borrowing

32 AUSAID Annual Report 2004–2005 • strengthening financial management trainer capacity and providing resources to train more than 2000 national, provincial and district government officials

• supporting the PNG Public Service Commission and the Department of Personnel Management to develop basic human resource management systems for the appointment and management of senior public servants S SECTION 2 E • working with the PNG Department of Personnel Management and other areas of C T

government to assist in the roll-out of the new public service human resource I O

payroll system. N

2 Civil society

Australia provided an estimated $43.2 million to support civil society initiatives in PNG during the year and to help build a stronger community constituency leading to greater demand for accountable and transparent government. Civil society makes a significant contribution to peace, stability and nation building by delivering essential services and representing the voices of ordinary citizens.

Key achievements included:

• holding two successful by-elections under PNG’s new preferential voting system, with less violent political competition, more representative elections and a greater voice for women voters

• raising community debate on electoral issues by funding an audit of by-elections by Transparency International and the Institute for National Affairs

• supporting about 250 community development and capacity building projects to deliver essential services in poor and remote areas, including water supply, income generating activities, literacy training and HIV/AIDS awareness

• establishing coordination, communication and planning mechanisms for building the capacity of PNG churches through a partnership of seven major Australian church agencies working with PNG churches (see box)

• establishing a new media partnership between the Australian Broadcasting Corporation and the PNG National Broadcasting Corporation to strengthen its role in disseminating information and promoting debate on development issues, as well as improving the accessibility and content of public radio broadcasting

• supporting microfinance institutions to provide much needed financial services to the poor and business support services to the informal sector. The top seven institutions trained in microfinance serve more than 30 000 borrowers and 81 000 savers nationwide

• establishing provincial family and sexual violence action committees in all but one province, and a national committee of 80 government and non-government partners working together to reduce the incidence of family and sexual violence.

Performance Country and regional programs 33 Church partnership program

Churches in PNG have unique strengths, which make them well suited to contribute to development and social stability. They have extensive experience in meeting the needs of their communities, particularly in providing health and education services in rural areas, and have widespread networks across the country that reach from the village up to the highest levels of government. While the churches lack financial and administrative capacity and have an underdeveloped role in policy dialogue, they recognise the need to provide strong leadership and deliver essential services to the people of PNG as they face the HIV/AIDS epidemic.

In its first year of implementation, the five-year $23.7 million church partnership program built on the existing strengths of the PNG churches and improved their capacity through the engagement of Australian church partners that provided funds, expertise and technical assistance.

At a meeting in Port Moresby in March 2005, the benefits of the partnership were clearly evident. About 30 representatives of seven PNG churches— Anglican, Baptist, Catholic, Lutheran, Salvation Army, Seventh Day Adventist and United Church—participated in an exercise designed to develop greater knowledge sharing of approaches to development.

A market place was set up with each church establishing a stall to ‘sell’ its development programs, resources and expertise. Representatives looked around the market to see what they could ‘buy’ to fill gaps in their own programs. There was a great buzz in the room as negotiations began. ‘Deals’ included the Seventh Day Adventists installing Baptist water pumps, the Salvation Army training United Church congregations in HIV/AIDS awareness, and Anglican staff signing up to conduct financial management training with staff of the Catholic Church.

Meeting of the church partnership program, Port Moresby, March 2005 Photo: Lisa McMurray, Anglican Board of Mission

34 AUSAID Annual Report 2004–2005 Globalisation

The aid program continued to support PNG’s integration into the global community by helping achieve sustainable growth in the agriculture, forestry and fisheries sectors, improve economic competitiveness through key public sector reform initiatives S SECTION 2

and infrastructure development, and create an enabling environment for private E sector growth. C T I Key achievements included: O N

• assisting PNG to implement recommendations by the Foreign Investment Advisory 2 Service on streamlining investment regulations and processes to remove impediments to foreign direct investment

• supporting a partnership between the Australian Centre for International Agricultural Research and PNG agricultural research and commodity institutions both in the government and private sectors. The partnership supports research extension activities in key agricultural sectors and export related commodities, including an ongoing program of seedling distribution to sustain forest resources and the promotion of PNG's participation in the international bio-security debate

• supporting transport infrastructure development including the maintenance of the Highlands Highway, the coastal trunk road and development of wharves in Bougainville to promote stability, agricultural growth and mobility of people and goods.

Human capital

Health

In 2004–05, Australia provided an estimated $52.5 million to improve health outcomes in PNG. The mid term review of PNG’s current health plan for 2001–10 showed key health indicators have either stagnated or declined over the last five years. During the year support was directed at sector-wide issues, particularly those impacting on effective governance of the health sector. Greater coordination between other development partners and PNG government agencies was achieved by commencing biannual health summits focusing on sector-wide priorities and strategies.

Support to the health sector is increasingly through PNG health systems to develop capacity at all levels. While project support continues to contribute to positive health outcomes, this new mode of engagement addresses institutional constraints to effective governance and delivery of health services. In 2004–05, AusAID reduced the number of stand-alone projects by incorporating work into a broader health program with greater participation and leadership by PNG agencies and incentives for provinces to increase their non-salary appropriations to the health sector.

Performance Country and regional programs 35 AusAID’s support continued to improve planning, priority setting and budgeting and the delivery of essential services in rural areas. Key achievements included:

• procuring and distributing 7000 health centre pharmaceutical kits, 10 million male latex condoms and 40 000 mosquito bed nets

• expanding the provision of health advisors to Bougainville, New Ireland, Enga and Southern Highlands provinces to support the implementation of health sector activities

• supporting strategic planning and senior executive management development in the National Department of Health, as well as providing management training and advice in provincial health offices and hospitals throughout the country

• supplying and installing biomedical equipment to 14 hospitals and providing training on its use

• rolling out high frequency radios to health centres in five additional provinces, with a total of 236 radios installed over the past year through the national Health Services Radio Network

• refurbishing the Mendi General hospital in the Southern Highlands

• supporting immunisation programs by providing equipment and advice, including training under the Extended Program of Immunisation and through supplementary immunisation activities in partnership with United Nations agencies

• upgrading six hospital pharmacies and providing equipment to nine others including dispensary equipment, reference textbook materials, safety equipment and computers

• beginning a 12-month bridging course to skill 25 pharmacy technicians to diploma level.

HIV/AIDS

The HIV/AIDS epidemic in PNG continues to escalate with 2004 figures estimating a median prevalence of 1.7 per cent in 15 to 49 year olds and suggesting that up to 69 000 people may be infected. AusAID continued to support HIV/AIDS education and behaviour change initiatives, clinical, counselling and care services and capacity building of PNG government agencies. A new program is being designed that builds on the strengths and lessons learned from the current five-year $60 million national HIV/AIDS support project. The new program is expected to commence in late 2006.

Key achievements included:

• negotiating High-Risk Setting partnership agreements between the National AIDS Council and three mining sector companies, two oil palm companies and the PNG defence force

36 AUSAID Annual Report 2004–2005 • engaging churches in activities to train and support clergy of all denominations as influential community leaders who can help address barriers to behavioural change

• funding additional care centres that offer palliative care and support to people with AIDS, bringing the total number of centres established to 18 S SECTION 2

• implementing phase four of the national HIV/AIDS social marketing campaign to E reduce stigma and discrimination. A preliminary evaluation showed that after the C T

campaign, the number of people who believed ‘that people living with HIV/AIDS I O

deserved what they get’ had reduced from 70 to 58 per cent N

2 • publishing a standard management manual for health workers on sexually transmitted infections including HIV/AIDS

• conducting a social mapping initiative in 19 provinces looking at sexual behaviour and people’s understanding of, and attitudes towards, HIV/AIDS

• convening the second PNG national consensus workshop for 80 participants to review data on the occurrence of HIV/AIDS, sexually transmitted infections and related social and behavioural factors, and to estimate the number of people currently living with HIV/AIDS.

Former Australian rugby league captain Mal Meninga in PNG to highlight the risk of HIV/AIDS Photo: Rocky Roe

Performance Country and regional programs 37 Education

In 2004–05, Australia provided an estimated $51.7 million in education support to PNG. Assistance focused on teacher training, the implementation of a new school curriculum and support for improved administration, particularly in relation to the teachers’ payroll. The development of a new 10-year national education plan was also supported to increase access to basic education for the growing number of children in PNG and improve the overall quality of education. The plan will strengthen links between the National Department of Education and PNG’s central budgetary agencies.

Key achievements included: • supporting the National Department of Education to undertake a comprehensive review and restructure of national education organisations and helping the department develop an HIV/AIDS policy for the education sector

• saving the government $4 million through support for improved management of the payroll for PNG’s 34 000 teachers

• distributing 8000 packages of curriculum materials to elementary and primary schools across the country, and providing learning materials to more than 1300 elementary schools

• supporting 320 trainers at the district level to train teachers across the country in the new elementary and primary curriculum

• training and sponsoring 85 district facilitators to help school boards of management prioritise school maintenance requirements

• providing 130 new scholarships for Papua New Guineans to study at Australian universities.

Transport infrastructure

Access to transport infrastructure is important to economic welfare in PNG. Investment in infrastructure improves the provision of health and education services and access to markets, and increases economic efficiency and fosters economic growth. The importance of roads to PNG’s economic welfare is illustrated by the fact that 52 per cent of the population live within five kilometres of a national highway and 70 per cent live within 15 kilometres. In 2004–05, Australia provided an estimated $55.2 million to the infrastructure sector to maintain PNG’s national roads and airfields.

Key achievements included: • maintaining more than 2100 kilometres of national roads in 11 provinces, representing more than 25 per cent of PNG’s national roads, and more than 100 bridges

• implementing a new $50 million five-year Highlands Highway project in partnership with the PNG Department of Works to instil the institutional, administrative and technical expertise necessary for road network maintenance

38 AUSAID Annual Report 2004–2005 • funding $6 million for ongoing maintenance of the 600 kilometre main trunk road in Bougainville, providing a continued identifiable peace dividend for Bougainville

• completing maintenance at 19 of PNG’s 22 major national airports

• implementing a successful public sector reform strategy which resulted in the S SECTION 2

Department of Works being downsized and the government doubling its funding E commitment to national road maintenance C T I • establishing a partnership between the Australian Department of Transport and O N

Regional Services and the PNG Department of Transport and Civil Aviation on 2 safety, security and governance reform in the aviation and maritime sector.

Disaster management

PNG is highly susceptible to a range of natural hazards including volcanic eruptions, severe floods, earthquakes and tsunamis. In 2004–05, Australia helped PNG prepare and respond to natural disasters by:

• providing more than $870 000 through the PNG Red Cross, World Vision and CARE Australia to respond to the needs of 10 000 Manam islanders evacuated to the PNG mainland following the January 2005 eruption of Manam volcano

• supporting the Rabaul Volcanological Observatory to provide reliable early warning of destructive volcanic events

• establishing a strategic engagement plan with the Australian Red Cross to reduce disaster vulnerability and build capacity within the PNG Red Cross to respond to humanitarian crises

• providing adviser assistance to PNG’s National Disaster Management Office to help it perform its core functions

• launching the Prepared Communities Grants Account with the National Disaster Management Office to support local non-government organisations (NGOs) and PNG government agencies with disaster management preparedness.

Security

Law and justice

PNG’s national law and justice policy sets out a vision for a ‘just, safe and secure society’ which strongly aligns with the Australian Government’s focus on improving stability and growth in PNG. In 2004–05, Australia provided an estimated $31.8 million to help the PNG government strengthen the rule of law and continue to progress reforms that improve service delivery in the law and justice sector.

Performance Country and regional programs 39 AusAID’s law and justice sector program continued to provide practical, targeted funding and technical support. AusAID also continued to support the Justice Advisory Group to provide high-level policy advice to the Australian and PNG governments and play an integral role in monitoring sector performance.

Key achievements included:

• developing a strategic framework and monitoring and evaluation system to improve planning, budget preparation, transparency and resource allocation across the sector

• providing financial and high-level technical assistance for the PNG-led review of the Royal PNG Constabulary, the recommendations from which have been endorsed by the PNG National Executive Council as the blueprint for police reform

• completing a fraud and corruption report for the law and justice sector

• implementing the Bougainville law and justice strategy, including re-establishing the Bougainville police service and national court circuits, and assisting the reinvigoration of community justice initiatives. This support played a significant role in the peaceful conduct of the Bougainville elections in 2005 (see box)

• building stronger linkages between the formal justice agencies and the community, including support for community crime prevention and a landmark community crime survey in Port Moresby and Bougainville

• supporting the law and justice agencies’ response to HIV/AIDS, including raising awareness through village courts and correctional services

• assisting the village courts secretariat to draft a gender plan that promotes the rights of women and children and aims to increase the number of female village court magistrates.

Sustainable resource management

Rural development

Semi-subsistence agriculture constitutes the majority of informal economic activity in PNG, particularly for the 85 per cent of Papua New Guineans who live in rural areas. AusAID is working with PNG to support sustainable growth in agricultural production and marketing to increase income-earning opportunities for the rural poor and strengthen food security.

During the year, Australia provided an estimated $10.6 million to the agriculture, forestry and fisheries sectors to improve PNG’s capacity to conduct relevant, targeted agricultural research and deliver results to farmers, as well as to improve governance practices for sustainable resource management.

40 AUSAID Annual Report 2004–2005 Key activities included:

• providing 228 mini cocoa dryers to smallholder farmers in Bougainville to enable them to process cocoa crops and sell them at higher prices

• supporting more than 700 students to receive certification in post-harvest handling S SECTION 2

and commercial fishery management from the National Fisheries College E C

• supporting advisors in the National Forestry Authority to strengthen public sector T I governance and corporate management practices O N

• supporting the development of a national agricultural information system to 2 increase agricultural research and information sharing within PNG

• providing assistance to the Agricultural Innovations Grant Facility which awards grants for agricultural research and extension to smallholder farmers across PNG. In 2004–05, initiatives included improving village-based poultry production and increasing vanilla growers' incomes through management practices that enhance the international competitiveness of the PNG vanilla industry.

Mr John Davidson, Minister Counsellor (Development Cooperation, AusAID) with Sir Rabbie Namaliu, PNG Minister for Foreign Affairs, at the opening of the Kokopo—Rabaul Road Photo: Rocky Roe

Performance Country and regional programs 41 Progressing autonomy in Bougainville

With the support of Australia and other development partners, Bougainville is consolidating the gains of the peace process and moving forward in establishing a self-reliant and autonomous government.

In 2004–05, Bougainville finalised the weapons disposal process, a key agreement under the peace process, adopted a constitution, and successfully held the province’s first election to establish an autonomous government. Australia supported these processes by channelling about $1 million to the Governance and Implementation Fund, Australia’s primary financing mechanism for implementing autonomy and restoring public administration in Bougainville. New Zealand also made a significant contribution to the fund.

A major step along the way to Bougainville’s successful post conflict recovery were the elections held in April and May, culminating in the inauguration of an autonomous Bougainville government on 15 June. Australian support for these elections included financial assistance and the deployment of electoral advisers and information technology experts.

The PNG Electoral Support Program was also established to:

• support future electoral activities including capacity building in the PNG and Bougainville electoral systems

• raise community awareness and voter education

• support a review of electoral legislation and the introduction of preferential voting in Bougainville.

Voting in the Bougainville elections, April–May 2005 Photo: Gorethy Kenneth

42 AUSAID Annual Report 2004–2005 The Pacific

Australia has strengthened its efforts to help Pacific partners address the fundamental challenges to their economic and social futures. Despite their diversity, many Pacific island nations face similar constraints to development including their small size, S SECTION 2

remoteness from major trade and commercial sectors, rapidly growing populations, E fragile governance frameworks and vulnerability to natural disasters. Economic C T gains have been weak, volatile and unequally distributed, and hampered by social I O instability. The aid program helped Pacific nations build their capacity to implement N

sound domestic policies, create environments for private sector investment, overcome 2 financial mismanagement and corruption, promote stability and provide appropriate services to their people.

Low levels of donor coordination in the past risked reducing aid effectiveness. In 2004–05, Australia responded to this challenge by exploring ways to adopt common strategic approaches, undertake common work programs, and engage in joint policy dialogue with other Pacific donors. Australia’s aid program to the was harmonised with New Zealand.

Where appropriate, opportunities to pool regional resources were identified for better service delivery and improved administration. Regional approaches involved greater use of key Australian Government agencies in priority areas including economic governance and law and justice. The placement of experienced Australian public servants within Pacific bureaucracies enables long-term institutional linkages and enhances the quality of Australia’s engagement.

In 2004–05, expenditure on AusAID’s country and regional programs to the Pacific totalled $254.4 million. Other Australian assistance through AusAID’s global programs and through other government departments brought total ODA to an estimated $352.1 million.

Regional strategy objectives

Australia’s Pacific Regional Aid Strategy 2004–09, launched by the Minister for Foreign Affairs in December 2004, provides a framework for Australia’s long-term development cooperation in the region. The strategy outlines how Australia will help Pacific island nations maximise their development and self-reliance and build policies, institutions and capacities to better manage governance challenges. Four outcomes are most critical to the foundations of poverty reduction, stability and peaceful development:

• stronger broad-based economic growth

• more effective, accountable and democratic government

• improved law and justice and security

• enhanced service delivery of basic health care, education and infrastructure.

Performance Country and regional programs 43 FIGURE 9: ESTIMATED TOTAL AUSTRALIAN ODA TO THE PACIFIC BY COUNTRY 2004–05

Samoa 5% Nauru 5% Regional and other 18% 3%

Tonga 4%

Vanuatu 8%

Fiji 8%

Solomon Islands 49%

Governance

Broad-based growth

A priority for the aid program during the year was promoting stronger broad-based growth. Assistance focused on strengthening the enabling environment for private sector development through legislative and administrative reform, and policies aimed at improving economic competitiveness and expanding the productive sectors that drive broad-based growth. Key achievements included:

• providing training by the Australian Securities and Investments Commission to Pacific securities regulators

• supporting the Pacific Enterprise Development Facility to improve access to finance, particularly the facility’s work with the Central Bank of Solomon Islands that is rejuvenating access to affordable finance in rural areas

• commencing work on the Pacific 2020 report that will provide regional policy makers with a better shared understanding of interventions to drive growth in key areas where there is no clear policy path.

44 AUSAID Annual Report 2004–2005 Effective, accountable and democratic government

Australia’s engagement encouraged more effective, accountable and democratic government by supporting economic and public sector reform, and strengthening democratic institutions and the machinery of government. Key achievements included: S SECTION 2

• supporting the development of a credible Solomon Islands 2005 national budget E C T

• implementing the Generic Voter Registration System in in collaboration with I O

the Australian Electoral Commission to ensure accurate voter registration N

• strengthening public sector capacity through work attachments in Australia, 2 an annual public service commissioners’ conference and developing emerging public sector leaders in the region

• delivering a program of civic and voter education in the lead up to the 2006 national elections in Solomon Islands through the Solomon Islands Civic Education Project.

Law and justice

In 2004–05, Australia’s aid program improved systems and structures for law and justice by supporting police and legal institutions that underpin adherence to the rule of law. Key achievements included:

• developing a model of best practice orders and procedures under the Pacific Regional Policing Initiative which was trialled in Palau, and Fiji

• implementing a pilot program for non-custodial sentencing options for juvenile offenders in Fiji resulting in an increase in probation and community work sentences

• placing experienced lawyers and justice officers in Solomon Islands to build the capacity of local staff and ensure court proceedings are carried out effectively and fairly

• supporting the Australian Transaction Reports and Analysis Centre to implement financial intelligence databases in the Cook Islands, Fiji, Marshall Islands, Palau, Samoa, Tonga and Vanuatu.

Globalisation

Australia continued to assist Pacific island nations to open their trade and investment flows through technical assistance, capacity building and policy dialogue. Key achievements included:

• supporting the Pacific Regional Trade Facilitation Program to help Pacific island countries with trade facilitation in areas of customs, quarantine, and standards and conformance, and reduce practical impediments to trade

Performance Country and regional programs 45 • supporting the World Trade Organization Global Trust Fund to provide trade-related capacity building programs to Pacific members, and training and assistance for non-members in the process of accession

• providing technical support to the Solomon Islands government through the Foreign Investment Advisory Service, resulting in the preparation of amendments to its foreign investment legislation

• supporting the development of a Trade and Investment Promotion Unit in Samoa.

Human capital

The aid program continued to invest in initiatives that strengthen service delivery systems in the Pacific, including education, health, water and sanitation. Enhanced service delivery is essential to help Pacific island nations build skilled and productive populations, and ensure that the poor can expand their choices, improve productivity and participate more fully in society. Key achievements included:

• integrating sexual and reproductive health into training college curricula for teachers and nurses

• rehabilitating critical road links in the Malaita Province of Solomon Islands to increase market access

• supporting scholarships, curriculum development, teacher training and facility improvements at the Vanuatu Institute of Technology

• launching a $2.3 million targeted competitive grants program across nine countries to address HIV/AIDS and respond to national HIV/AIDS strategic plans.

Mr Bruce Davis, AusAID Director General (right) with Premier Moli at the opening of the Gwaiau Clinic, North Malaita, Solomon Islands Photo: Trisha Gray

46 AUSAID Annual Report 2004–2005 Security

During 2004–05, Australia’s aid to the Pacific promoted peace and security through regional security initiatives that addressed instability and the structural causes of conflict at the grassroots level. Key achievements included: S SECTION 2 E

• supporting analytical work by the International Peace Academy and the United C

Nations Development Programme to explore the security-development nexus, define T I conflict risks and identify opportunities to support conflict prevention activities O N

• strengthening local, community-level systems of dispute resolution through a pilot 2 program with the Vanuatu National Council of Chiefs

• funding the Solomon Islands National Peace Council to continue its successful weapons-free village campaign in response to community demands. The National Peace Council also provided trauma counselling, mediation, conflict resolution and reconciliation, peace building initiatives, community education and support for traditional systems of governance.

Sustainable resource management

The Pacific region is vulnerable to a range of natural disasters and human activities which impact on the sustainable use of natural resources. The aid program supported practical initiatives to reduce vulnerability including assisting 13 Pacific island countries catalogue and package stockpiles of persistent organic pollutants for collection and safe destruction in Australia, and supporting ongoing monitoring of sea levels and climate throughout the region.

Sustainable resource management was also improved through the aid program’s continued support of the Secretariat of the Pacific Community, the Pacific Islands Forum Fisheries Agency, the South Pacific Applied Geoscience Commission and the South Pacific Regional Environment Program. In 2004–05, these organisations assisted the region by:

• supporting regional participation in the establishment of the new fisheries management organisation, the Western and Central Pacific Fisheries Commission, which held its inaugural meeting in December 2004

• promoting sustainable fishing by improving monitoring, control and surveillance of fishing fleets, developing national legislation and administering regional fisheries arrangements

• coordinating regional participation in developing a new regional strategy for disaster management and risk reduction

• coordinating development of a climate change framework for the Pacific which identifies key priorities and actions over the next 10 years

• strengthening the capacity of Pacific island countries to engage with and manage multilateral environment agreements.

Performance Country and regional programs 47 Bilateral programs

Solomon Islands

Solomon Islands has seen significant improvements in law and order, economic governance and basic government functions since the arrival of the Australian-led Regional Assistance Mission to Solomon Islands (RAMSI) in July 2003. Now that the security situation has stabilised, RAMSI is working with the Solomon Islands government on longer-term social and economic challenges. These include supporting the transition to self reliance by the Royal Solomon Islands Police, continuing improvements in law and justice, supporting affordable and accountable government, and reinvigorating the economy. Long-term economic recovery also depends on building sustainable livelihoods and income opportunities for the 85 per cent of the population living in rural areas.

AusAID’s existing aid program continued to complement RAMSI and play a vital role in strengthening assistance to Solomon Islands. In 2004–05, AusAID’s country program aid to Solomon Islands totalled $92.6 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $171.5 million.

Support continued for economic reform, the criminal justice system, peace building, community development and restoring basic services. New initiatives in 2004–05 included supporting high profile High Court cases, the Financial Management Strengthening Program and new programs to repair and review the machinery of government, including public accountability institutions.

A key feature of Australia’s strengthened assistance was the effective coordination between AusAID and other Australian Government agencies. AusAID worked closely with officials from a range of departments including the Treasury, Department of Finance and Administration, the Australian Federal Police, Attorney General’s Department, Customs, the Australian Electoral Commission, the Australian Tax Office and the National Archives of Australia.

Key achievements included:

Governance

• Supporting the passage of a credible 2005 national government budget which built on the improvements to economic and fiscal management in 2004 when government revenue grew by about 40 per cent.

• Helping to re-establish the Institute of Public Administration and Management which undertook a public service training needs analysis and conducted three public service training courses during the year.

48 AUSAID Annual Report 2004–2005 • Co-financing the Parliamentary Support Project with the United Nations Development Programme to strengthen the Parliamentary Secretariat and the representative role of Solomon Island parliamentarians, and increase representation of women and gender perspectives in governance.

• Strengthening the operational capacity of the Solomon Islands Electoral S SECTION 2

Commission. E C T I Human capital O N

• Helping to strengthen the operational and management capacity of the Ministry 2 of Health, the National Medical Stores and the National Referral Hospital, and to improve the provision of basic medical supplies and service delivery to tackle health issues including HIV/AIDS.

• Undertaking critical road rehabilitation work in Malaita province to improve market access for the poor.

• Supporting the disaster management capacity of Solomon Islands through targeted programs in disaster preparedness, mitigation and management.

• Funding Australian NGOs and churches to work with Solomon Islands partners to strengthen civil society, empower women and youth, and promote peace and unity, including in remote communities.

Community consultations on domestic violence and equality for women are taking place in Solomon Islands Photo: Elise Howard/IWDA

Performance Country and regional programs 49 Security

• Assisting high court trials in Solomon Islands by building the capacity of the Public Solicitor’s Office and the Office of the Director of Public Prosecutions, and funding additional judges from the Pacific region to ensure proceedings are carried out effectively and fairly.

• Funding infrastructure upgrades to the High Court premises to strengthen security and increase the court’s capacity to hear concurrent cases, refurbishing key justice sector offices and improving IT capabilities for the Ministry of Police, National Security, Justice and Legal Affairs.

• Supporting improvements to justice and corrections infrastructure in Honiara and Auki (Malaita province) to help the prison service meet international standards.

Sustainable resource management

• Supporting core land management services by building the capacity of the Department of Lands. Approaches for converting peri-urban housing plots in Honiara to fixed term estates and for registering customary owned land were also trialled.

• Supporting the Forestry Department to maximise revenue from logging activities through strengthened compliance and monitoring functions, while also continuing to support community demands for reforestation. About five per cent of all rural households now own small-scale forest plantations.

Vanuatu

Vanuatu remains one of the poorest countries in the Pacific, with 40 per cent of the population living in poverty. Australian assistance in 2004–05 continued to support efforts to strengthen economic and financial management and reform key central and service delivery agencies. Assistance also helped strengthen Vanuatu’s law and justice institutions, including the police force, and to improve governance in the country. Vanuatu’s commitment to good governance was re-affirmed in the statement of principles signed by the Vanuatu Prime Minister and Australian Minister for Foreign Affairs in December 2004.

In March 2005, the Australia–Vanuatu Joint Development Cooperation Strategy 2005– 10 was formally adopted. Australia’s assistance, in line with Vanuatu’s own prioritised action agenda, supports long-term stability by accelerating development, promoting broad-based growth and improving the welfare of the general population by extending basic services such as health and education to people in greatest hardship.

In 2004–05, AusAID’s country program aid to Vanuatu totalled $20.9 million. Other Australian assistance through AusAID’s regional and global programs

50 AUSAID Annual Report 2004–2005 and through other government departments brought total ODA to an estimated $28.7 million. Key achievements included:

• strengthening the operational capacity of the police force through improvements to operational procedures and practices, as well as improved administrative capacity S SECTION 2

• providing assistance to three public legal offices to strengthen legal and E administrative capacity, improve legal practice and reduce case backlogs C T I • supporting the Vanuatu Institute of Technology to improve technical and vocational O N

training by developing curricula and facilities and training teachers 2 • assisting the government to improve accounting and budgeting processes, resulting in its revenue collection and national account production being recognised by the International Monetary Fund as best practice in the region

• initiating new strategic partnerships with two key civil society groups—the traditional authority structure (the Malvatumauri Council of Chiefs) and youth in urban informal settlements (through Wan Smolbag community group).

Fiji

Australia’s aid program to Fiji in 2004–05 focused on supporting the Fiji government’s efforts, in line with its strategic development plan, to strengthen the administration of law and justice, and improve the delivery of basic services such as health and education. Australian assistance is developed through joint planning and within existing government systems and structures. This included supporting the positions of police commissioner and deputy public prosecutor and undertaking initial planning for future assistance in public sector reform and economic governance.

In 2004–05, expenditure on AusAID’s country program to Fiji totalled $17.4 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $28.0 million. Key achievements included:

• developing a law and justice sector strategy to help the government take a more coordinated and efficient approach to strengthening law and justice

• enhancing case management processes in magistrates courts and reducing the backlog of cases from five months to two-and-a-half months

• working with local communities to provide children in 18 primary schools with education in sustainable enterprises such as beekeeping

• supporting the implementation of a new diploma of primary teaching at Lautoka Teachers’ College benefiting 155 new students in 2005

• providing solar power and radio telecommunications for rural health facilities which helped the Ministry of Health staff all nursing stations in Fiji’s northern division.

Performance Country and regional programs 51 Samoa

Developing the private sector is a high priority for Samoa, to provide employment opportunities and stimulate the economy. Improving service delivery and community participation, particularly in relation to education and health, also remains a priority. During 2004–05, the aid program continued to provide support for policy and management reforms to strengthen public sector efficiency and service delivery.

AusAID is preparing a new country program strategy jointly with the governments of Samoa and New Zealand. The strategy will seek to improve the opportunities for employment and investment in the formal and informal sectors and enhance the well- being of Samoans through improved service delivery and community development.

In 2004–05, AusAID’s country program aid to Samoa totalled $12.5 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $18.6 million. Key achievements included:

• launching a tripartite partnership between the governments of Samoa, Australia and New Zealand to improve the capacity of Samoa’s public service, support national development and public sector reform priorities, and build a strong, cooperative whole-of-government approach

• supporting improved law and order by strengthening the Samoa police service through a new recruit selection process and training course, increased support for community policing, and a new general policing division and policing policy

• establishing a pilot program of contracting out extension delivery services using farmers and other non-government local providers

• implementing a new patient information system to improve patient management and the Ministry of Health’s ability to analyse information for efficiency gains and policy development. The management of National Health Service delivery was devolved

• strengthening Samoa’s border management, including passport readers that streamline processing and add a higher level of scrutiny to population movements.

Tonga

Australian assistance helped Tonga reduce its vulnerability to poverty and address core development needs, including capacity strengthening and streamlining within the public sector, improving returns from productive and revenue earning sectors, and creating more effective delivery of essential services. Australia worked closely with Tongan central agencies to improve governance, stimulate key economic sectors and raise community living standards. Initiatives included support to the Ministry of Finance to strengthen budgeting, revenue and fiscal management systems, and improve financial and human resource management in the health system.

52 AUSAID Annual Report 2004–2005 In 2004–05, AusAID’s country program aid to Tonga totalled $9.2 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $12.8 million. Key achievements included:

• strengthening community-based development by constructing a health clinic at S SECTION 2

‘Uiha in the Ha’apai group, building 145 cement water tanks on Tongatapu and E C

36 on Ha’apai, and providing 23 composting toilets on Mo’unga’one T I O

• providing essential infrastructure by strengthening the recycling industry, funding N

90 small projects for sorting waste, composting and community education, and 2 supporting the new Waste Management Authority to manage waste collection, recycling and disposal in Tonga

• supporting enhanced fisheries management in Tonga to integrate development and resource management which sought to increase fish catches in the industrial fisheries sector and promised higher income opportunities for fishing communities in remote island groups

• helping Tonga to strengthen compliance with fishing laws resulting in two prosecutions and one out-of-court settlement, and to form a new Export Fisheries Association as an advocacy body to promote fishing industry policy

• supporting better use of financial resources in the health sector through improved review and information management systems, and tighter drug control and expenditure

• helping to introduce tax reform, including consumption tax on 1 April 2005, and to implement key revenue reform legislation

• supporting human resource development by providing 11 undergraduate awards to study at regional institutions and three postgraduate awards in Australia.

Kiribati

Australia’s aid program provided targeted support for public sector capacity building and service delivery in Kiribati, particularly for education. Funding was also provided through the Pacific Regional Policing Initiative to help improve professional standards, operational capacity and management of the Kiribati police. This helped build better relations between the police and community groups and supported efforts to address alcohol abuse and improve road safety. Harmonisation efforts progressed through the Kiribati, Australia and New Zealand joint review of Australia and New Zealand’s aid programs. The review, finalised in April 2005, recommended a joint country aid strategy for Kiribati be prepared in 2005–06.

Performance Country and regional programs 53 In 2004–05, AusAID’s country program aid to Kiribati totalled $7.5 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $10.9 million. Key achievements included:

• improving Kiribati’s education system by increasing access to educational facilities, printing over 300 000 books for primary schools, upgrading the Kiribati Education Management Information System, and assisting the Ministry of Education, Youth and Sport's planning processes, including by developing a five-year strategic plan

• funding public sector capacity building in financial management and community policing, upgrading the customs management system and providing training

• partnering with UNICEF to provide 95 per cent of children aged 12 months to 15 years with one supplementary dose of measles vaccine and protecting women of child bearing age against rubella

• improving management of water resources in partnership with the World Bank, including village water supplies, through infrastructure upgrades, monitoring ground water quality and improving sanitation to reduce ground water pollution.

Nauru

Nauru has a challenging institutional and operating environment, including degraded infrastructure and limited management, administrative and policy capacity within the government. Phosphate mining, which was the main economic resource for Nauru, no longer generates enough income to meet the development needs of the country. Australia responded by providing assistance focused on economic and governance reforms, strengthening law and justice and promoting more sustainable resource management. The aid program also continued to support delivery of essential services, including in health, education and power and water services.

In 2004–05, expenditure on AusAID’s country program to Nauru totalled $13.7 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $18.2 million. Key achievements included:

• working in collaboration with the Asian Development Bank and Pacific Islands Forum Secretariat to assist the Nauru government develop a strategy for its long-term future

• deploying a team of Australian Treasury and Finance officials to help develop and implement a fiscally responsible budget, and begin the process of state-owned enterprise reform

• strengthening law and order with Australian Federal Police undertaking the roles of Director of Police and police advisers, and commencing a training program to build the skills of Nauru police

54 AUSAID Annual Report 2004–2005 • consolidating improved inventory management and ordering procedures to improve the efficiency of pharmaceutical supply and reduce the cost of provision closer to the regional average

• helping to improve educational standards by providing a Director of Schools, and assisting with curriculum reform and training workshops to update teaching S SECTION 2

techniques. E C T I O

Tuvalu N

2 The aid program to helped the government manage its development challenges within the constraints of size, isolation and resource endowment. It provided regular contributions to the Tuvalu Trust Fund, scholarships, support for vocational training and primary education, and targeted assistance to the Tuvalu public sector to improve management and coordination of its resources.

In 2004–05, Australia’s country program aid to Tuvalu totalled $2.9 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $4.5 million. Key achievements included:

• enhancing government capacity for economic and public sector financial management with funding and advisory support to the Tuvalu Trust Fund

• strengthening the capacity of the People’s Lawyers Office with a two-year appointment of an Australian legal advisor

• harmonising pre-award processes for scholarship programs with New Zealand to reduce administrative burden and transaction costs for the Tuvalu government.

Other Pacific island nations

Australia provided support to a number of other Pacific island nations in 2004–05. The aid program to these nations, including the Federated States of , Marshall Islands, Palau, , and the Cook Islands, totalled $4.0 million. Assistance targeted vocational education and scholarships, outer island infrastructure, human resource development, governance reforms, the Pacific Regional Policing Initiative and small grants schemes for community organisations.

Key achievements included:

• progressing harmonisation by implementing a delegated cooperation program with the New Zealand aid program to the Cook Islands to reduce administrative burden and harness the benefits of a larger combined program

• supporting the Cook Islands following cyclones Meena, Nancy, Olaf and Percy during February 2005 and developing a harmonised emergency and rehabilitation response policy with New Zealand.

Performance Country and regional programs 55 Pacific regional program

Australia is a strong supporter of collective, regional responses to development challenges in the Pacific and greater pooling of resources among Pacific partners. The Pacific regional program complements bilateral activities by adding regional dimensions to Australia’s engagement in line with the Pacific Regional Aid Strategy 2004–09. AusAID’s regional program aid totalled $44.6 million for the year.

In 2004–05, Australia supported the development of the Pacific Plan for Strengthening Regional Cooperation and Integration being led by the Pacific Islands Forum Secretariat. The plan will identify areas where Pacific island nations can strengthen national capacities to support their people by pooling resources of governance, sharing public goods and aligning laws and policies.

At the 2004 Pacific Islands Forum, Australia’s Prime Minister announced the $2 million Transport Technical Support Fund to promote implementation of the Forum Principles on Regional Transport Services agreed by leaders. Recognising the importance of good governance and commercial sustainability in achieving regular, reliable and efficient air and shipping services in the Pacific, Australia’s support under the fund included assistance to Samoa to assess a joint venture arrangement with Pacific Blue, help for the Government of Tonga in its liquidation of Royal Tongan Airlines and assistance to the Secretariat of the Pacific Community for its Regional Maritime Program.

Australia and New Zealand worked together to design a new Pacific regional law and justice program, due to commence in early 2006. As a sector-wide approach, the program helps create regional institutional linkages for judicial development and complements law and justice activities being undertaken bilaterally.

Work commenced on the Pacific 2020 report, with delivery of the final report due in December 2005. Drawing on a wide range of regional and international experience, the report will examine long-term development challenges including the Pacific’s poor growth record. It will provide policy makers with a better and shared understanding of interventions to drive growth in key areas where there is no clear policy path.

Australia’s support for economic governance reform in the Pacific to create an enabling environment for private sector development continued in 2004–05. Assistance for a number of regional activities was provided, including the Pacific Enterprise Development Facility, the Foreign Investment Advisory Service and the Pacific Islands Trade and Investment Commission.

The regional program supports a range of health activities through the Secretariat of the Pacific Community to address communicable and non-communicable diseases, reproductive health and HIV/AIDS. The Pacific Regional HIV/AIDS Strategy was endorsed at the 2004 Pacific Islands Forum and highlights the importance of political leadership in the fight against the pandemic.

56 AUSAID Annual Report 2004–2005 Regional organisations supported in 2004–05 included the Forum Secretariat, the Secretariat of the Pacific Community, the Forum Fisheries Agency, the South Pacific Applied Geoscience Commission, the University of the South Pacific, the South Pacific Regional Environment Program, the Fiji School of Medicine and the South Pacific Board for Educational Assessment. S SECTION 2 E C T

Pacific Governance Support Program I O N

Australia recognises that good governance is fundamental to the future stability 2 and prosperity of the Pacific region. Our strengthened engagement with the Pacific on governance issues is leading to enhanced Pacific policy development and program implementation by an array of Australian Government agencies.

In 2004–05, a new regional initiative, the Pacific Governance Support Program (PGSP), was launched to strengthen links between Australian Government agencies and their Pacific counterparts. With funding of $6 million in 2004–05, the PGSP seeks to support higher standards of governance in Pacific states by building institutional strength and capacity, developing public sector expertise and supporting shared regional governance approaches. This is being achieved through personnel exchanges and secondments, training and mentoring programs, institutional capacity building and technical assistance. PGSP funds implementation of both short-term and multi-year programs.

In 2004–05, 20 activities implemented by 16 government agencies in a range of key sectors were funded under PGSP. They included:

• enhancing maritime and aviation security

• streamlining electoral processes and judicial administration

• improving customs compliance and financial intelligence capacity

• increasing capacity to comply with international taxation regulations

• strengthening the role of ombudsmen

• establishing networks to build expertise in health and therapeutic goods administration

• strengthening environmental management and disaster warning services

• improving the governance of fisheries resources.

In 2005–06, among a range of new and ongoing activities, PGSP will fund capacity building to strengthen tsunami early warning systems in the Pacific.

Performance Country and regional programs 57 East Asia

East Asia continues to display high levels of economic growth, having recovered from the 1997 Asian financial crisis and other shocks such as Severe Acute Respiratory Syndrome (SARS) and Avian Influenza outbreaks. According to the World Bank, growth in the developing countries of East Asia topped eight per cent in 2004. This growth has been the main driver of poverty reduction, with over 35 million people lifted out of poverty in 2004 alone.

Despite these successes, challenges remain to East Asia’s security, prosperity and development. An estimated 159 million people in the region still live in absolute poverty on less than US$1 a day. Within the strongly performing economies of China, Thailand, and Vietnam, there is rural poverty and areas of concentrated urban poverty. and have shown some progress but Burma remains largely disengaged from the world economy. The Philippines has experienced reasonably rapid growth but has significant ongoing problems.

Australia’s regional and bilateral relationships with East Asian countries are among our most politically and economically significant. Australia’s aid program responded to the region’s challenges during the year by continuing to focus on improving governance and service delivery, advancing economic integration, trade liberalisation and opportunities for broad-based growth, addressing transboundary threats, and reducing vulnerability to natural disasters.

In 2004–05, AusAID’s country and regional programs to East Asia totalled $372.8 million. Other Australian assistance through AusAID’s global programs and through other government departments brought total ODA to an estimated $638.3 million.

FIGURE 10: ESTIMATED TOTAL AUSTRALIAN ODA TO EAST ASIA BY COUNTRY 2004–05

Vietnam 12% Philippines 10%

China 8% Regional and other 7%

Cambodia 6%

Thailand 2%

Laos 3%

East Timor 10% Indonesia 42%

58 AUSAID Annual Report 2004–2005 Asia regional program

In 2004–05, AusAID provided $31.8 million for regional programs in East Asia. A new strategy for Asia Regional Programs 2005–09 was developed and focuses Australia’s regional engagement on promoting economic and trade integration, S SECTION 2

strengthening political governance, tackling corruption, and addressing transboundary E threats such as organised crime, terrorism, illicit drugs and HIV/AIDS and other C T communicable diseases. I O N

Development cooperation with the Association of Southeast Asian Nations (ASEAN) 2 and Asia–Pacific Economic Cooperation (APEC) continued to be a key feature of the regional program. Through the five-year, $45 million ASEAN–Australia Development Cooperation Program, the agency supported initiatives to help developing countries realise the benefits of trade liberalisation and participate effectively in and join the World Trade Organization.

A further contribution was provided to the Regional Trade and Financial Security Fund to help developing APEC economies build regional counter-terrorism capacity. AusAID made the first payment of the three-year, $3 million commitment to the APEC Support Fund, an Australian-led initiative to assist developing economies to gain from APEC’s goal of achieving free and open trade and investment. In addition, AusAID continued to provide support, valued at about $3 million, to other Australian Government agencies through the Public Sector Linkages Program to increase trade liberalisation and harmonise customs processes across the region.

At the APEC Leaders’ Meeting in Santiago in November 2004, Australia’s Prime Minister joined other leaders in endorsing the APEC Course of Action on Fighting Corruption and Ensuring Transparency. Corruption is now recognised widely as a key constraint for developing economies, increasing the costs of doing business and acting as a powerful disincentive for foreign investors. Australia committed $3 million over three years to support anti-corruption activities in developing countries in the region and build on existing bilateral programs.

Key achievements included:

• developing a three-year $6 million regional initiative due to start in July 2005 to help combat emerging zoonotic diseases such as Avian Influenza

• assisting with data and information management and basin planning to improve the River Commission’s capacity to manage the Mekong River Basin

• training 56 government officials, judges and lawyers in international trade law issues associated with market access for agricultural and industrial products, and realising the benefits of economic integration and trade liberalisation

Performance Country and regional programs 59 • completing 31 joint research studies under the ASEAN–Australia Development Cooperation Program on economic integration in areas such as energy, customs, food and agriculture, intellectual property rights, labour, transport and telecommunications

• supporting up to 45 partnership agreements between ASEAN and Australian organisations in both public and private sectors in pursuit of economic integration and enhancing competitiveness

• providing training for over 300 senior officials from civilian, police and military agencies in ASEAN countries in counter-terrorism recognition and multilateral collaboration for combating terrorism

• providing training for 28 ASEAN delegates to develop a common framework for sharing information on cyber-security threats and vulnerability

• supporting the establishment of a reference laboratory for the Southeast Asian Foot and Mouth Disease Control Program

• supporting graduates of the Asia Regional HIV/AIDS Project’s train-the-trainer program to conduct 24 training sessions across China, Burma and Vietnam on preventing HIV transmission associated with injecting drug use. The program supports 15 small projects which have trained and are now employing 112 peer educators and outreach workers

• providing training for 19 health staff in surveillance and epidemiology, and 34 health volunteers and community planners under the Vietnam–Cambodia Dengue Project. The project achieved an 85 per cent reduction in dengue larvae levels for 7000 Cambodian villagers.

Bilateral programs

Indonesia

Despite the devastating impact of the Indian Ocean tsunami, Indonesia’s economic prospects remain relatively stable. The World Bank estimates that the tsunami will cause national GDP growth to fall by 0.1 to 0.4 per cent during 2005. In the past year, the Indonesian economy grew by five per cent and there was progress in key areas of economic and governance reform. Successful democratic parliamentary and presidential elections were held in 2004, a further consolidation of Indonesia’s democratic transition. The Indonesian government prepared a national medium-term plan to build on these developments and create a peaceful and secure Indonesia, build fair and democratic institutions and improve public welfare.

60 AUSAID Annual Report 2004–2005 While confidence is growing in Indonesia, significant development challenges remain. The growth rate remains below levels needed to provide enough jobs for the expanding work force. Unemployment in the formal economy reached 9.3 per cent in 2004. While poverty levels in Indonesia are declining (the percentage of people below $US1 a day fell to 7.2 per cent in 2003), growth has been unequally distributed, and making major inroads into poverty remains a challenge. The poor still lack access to health S SECTION 2 E and education services and recent outbreaks of malnutrition and polio have highlighted C T systemic weaknesses in some areas. Investment in human capital and infrastructure I O

from domestic, foreign, government and private sources continues to be insufficient to N

support a sustained higher rate of growth. Conflict affects several areas of the country 2 and the threat of terrorism, despite increasingly effective action by the Indonesian police, remains a considerable challenge.

Australia has a strong interest in a stable, prosperous and united Indonesia. The $1 billion, five-year Australia–Indonesia Partnership for Reconstruction and Development (AIPRD), announced by the Prime Minister in January 2005, and the existing Australia Indonesia Development Cooperation Program (AIDCP) support this objective. The AIPRD builds on Australia’s tsunami response and demonstrates Australia’s long-term commitment to reconstruction and development in Indonesia, both in tsunami affected areas and throughout the country (see box). The AIDCP continues to focus on improving economic management, supporting Indonesia’s democratic transition, enhancing security and stability and improving quality and access to basic services.

In 2004–05, country program aid to Indonesia totalled $119.6 million and a further $43.1 million was provided in response to the tsunami and through AIPRD. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $270.3 million, a rise of 70 per cent on last year.

Inaugural meeting of the Joint Commission of the Australia–Indonesia Partnership for Reconstruction and Development, 17 March 2005 Photo: AUSPIC

Performance Country and regional programs 61 Australia–Indonesia Partnership for Reconstruction and Development

The announcement of $1 billion for the Australia–Indonesia Partnership for Reconstruction and Development (AIPRD) brings Australia’s total aid commitment to Indonesia to almost $2 billion over the next five years.

The AIPRD supports Indonesia’s reconstruction and development efforts, both in and beyond tsunami-affected areas, through sustained cooperation focused on the Indonesian government’s programs of reform, with an emphasis on economic and social development.

A Joint Commission, consisting of the foreign and economic ministers from the two countries, is the peak decision-making body of the partnership. The first meeting of the Joint Commission in Canberra in March 2005 confirmed the commitment of both governments to successfully implement the partnership. Management, tendering arrangements and initial priorities for expenditure were all agreed. To foster a cooperative and genuine partnership between Australia and Indonesia, only Australian, Indonesian and New Zealand firms will be eligible to bid for AIPRD activities.

By the end of 2004–05, more than $175 million of AIPRD funding had been allocated to activities across Indonesia including:

• $50 million for the long-term Aceh Rehabilitation Program to rehabilitate hospital, health, education and local government services in Aceh province

• $50 million to assist Indonesia improve economic, financial and public sector management through a government partnerships fund

• $15 million to help Indonesia improve emergency preparedness and response capabilities and to respond to other recent disasters

• 600 new scholarships to enable Indonesian post-graduate students to study in Australia.

AIPRD funding is in addition to the $34 million spent in Aceh and North Sumatra by the Australian Government on initial tsunami relief and rehabilitation.

62 AUSAID Annual Report 2004–2005 Key achievements included:

Governance

• Establishing a five-year, $50 million Government Partnership Fund under the

AIPRD. This initiative helps Indonesia address major reform challenges by building S SECTION 2 E

long-term institutional linkages between key Australian public sector institutions C

and their Indonesian counterparts in the areas of economic, financial and public T I sector management. O N

• Assisting a high-level delegation from the Indonesian Regional Representatives 2 Council to visit the Australian Senate in May 2005, meet Australian parliamentarians and observe the senate estimates process. This was part of a broader program of assistance providing skills training to the newly formed council.

• Establishing a two-year framework of support between the Chief Justices of the Australian Federal Court and the Indonesian Supreme Court for the Supreme Court’s long-term reform program.

• Supporting a high-level delegation from the Family Court of Australia to Indonesia to agree a program of cooperation with the Indonesian Religious Courts including in the areas of court processes and mediation.

• Assisting the Indonesian government to consolidate economic, political and legal reforms by: — supporting reform of the non-bank financial sector, and Indonesia’s program to monitor the state banks and improve financial performance — assisting the directorate general of taxation to design, conduct and analyse a taxpayer survey for the Large Taxpayer Office — training prosecutors and investigators on anti-corruption cases in evidence handling — assisting the National Human Rights Commission to finalise its strategic plan, enabling it to better respond to human rights concerns.

• Commencing the Australia–Nusa Tenggara Assistance for Regional Autonomy, a $30 million, five-year, flexible, demand-driven approach to regional development, including initiatives in local economic development and food security.

Globalisation

• Strengthening Indonesia’s capacity to respond to the possible transmission of Avian Influenza to humans through training in field investigation, providing surveillance guidelines and purchasing antiviral medicines and essential laboratory equipment.

Performance Country and regional programs 63 • Providing assistance to Indonesia for trade facilitation, including support for small enterprise trade, export promotion training, a program to assist small and medium- sized enterprises in Eastern Indonesia and trade-related technical assistance through the ASEAN–Australia Development Cooperation Program.

Human capital

• Continuing Australia's package of assistance in response to the Bali bombing in October 2002, with support for specialised training and post graduate scholarships, and support for medical services. The 12 October Australia Memorial Centre at Sanglah Hospital was opened in June 2004 and construction on the Australia–Bali Memorial Eye Centre in Denpasar is expected to start shortly.

• Assisting the Indonesian Health Department to contain the spread of polio, after the April 2005 outbreak in western Java, by helping to finance the delivery of a sub-national emergency immunisation campaign.

• Supporting the Indonesian National AIDS Commission and National Narcotics Agency to host a national harm reduction conference in Jakarta in February 2005—the first conference of its type ever held in Asia which has galvanised government and community action on harm reduction strategies for injecting drug users.

• Supporting the Provincial AIDS Commission in Papua to develop a province-specific HIV/AIDS education campaign, prepare local regulations for 100 per cent condom use in commercial settings and improve care, support and treatment approaches.

• Working with other donors to help establish the Indonesia Partnership Fund for HIV/AIDS—a practical application of the ‘three ones’ concept to create one action framework, one AIDS authority and one monitoring and evaluation system.

• Establishing a new Australian Partnership Scholarships program under the AIPRD, agreed to by the Indonesian President and Australian Prime Minister in March 2005. This program will provide up to 600 new post graduate scholarship awards to Indonesian students over the next two years.

• Supporting the Nusa Tenggara Timur Primary Education Partnership on Flores in Eastern Indonesia to change teacher recruitment and placement practices including promoting 17 new female principals in three districts and mapping schools to help districts better match teacher placements to school needs.

• Increasing support for English language teaching and learning including: — expanding Kang Guru Radio English which, following its establishment in 1989 at the request of the government, broadcasts each week to close to 80 stations throughout Indonesia with a registered listener base of 17 000 people — placing 15 Australian volunteer English teachers to work with teachers in Islamic boarding schools in East Java to improve their English and language teaching abilities.

64 AUSAID Annual Report 2004–2005 • Establishing the $50 million long-term Aceh Rehabilitation Program under the AIPRD which includes: — assistance to the Zainoel Abidin Hospital (jointly with the German Government) in Banda Aceh, including refurbishment of the emergency department building and pharmacy, rehabilitation of the water supply system and waste water S SECTION 2

treatment, and training for all clinical services and the drug supply system E C

— the Health Assistance Rehabilitation Aceh Program, providing health workforce T I training, operational management support for district health systems and O N

the Provincial Health Office, and clinical support services in areas such as 2 pharmacy, infection control blood bank and public laboratories — the Education Rehabilitation in Aceh Program, providing teacher support in training and counselling, management training at the provincial, district and sub-district levels of government, reconstruction of schools and supply of school materials — help to restore essential local governance systems and services, anticipated to include capacity building for local government and community leaders, support for community-based land ownership and restoration or rebuilding of community infrastructure.

A child being vaccinated against polio by Ann Kempe, Australian Immunisation Consultant to AusAID/WHO in Jakarta, Indonesia, May 2005 Photo: AusAID

Performance Country and regional programs 65 Security

• Supporting victims of the Indian Ocean tsunami in Aceh through a $33 million emergency relief package which included Australian civilian medical teams, disaster management expertise and more than 1000 tonnes of food, water and medical supplies, as well as assistance to improve health, water and sanitation.

• Providing emergency relief to schools in Aceh and North Sumatra through funds to UNICEF’s school-in-a-box program, and support for learning materials and equipment to Islamic madrasah schools and the State Islamic Tertiary Institute through the LAPIS Emergency Support Unit.

• Providing emergency relief in response to the earthquake that devastated the islands of Nias and Simeulue in March 2005 including medical teams to provide urgent treatment, funding to distribute emergency relief supplies, and mobilising teams of engineers to assess structural damage and assist with clearing debris.

• Establishing an AusAID standing emergency response capacity in Jakarta, which includes standby rapid deployment arrangements with providers of emergency medical, procurement and transport services, capacity to coordinate with the Australian Defence Force and other national responses, and funding arrangements with the International Federation of Red Cross and Red Crescent Societies to facilitate rapid response to disasters.

• Providing a $10 million package of assistance under the AIPRD to further develop Indonesia's systems for managing and responding to the impact of emergencies and natural disasters, including support to build the response capacities of local organisations and a closer partnership between Indonesia's disaster coordination authority, BAKORNAS, and Emergency Management Australia.

• Assisting the Indonesian victims of the bombing outside the Australian Embassy in Jakarta in September 2004 with medical care in Indonesia, Singapore and Australia, and a program of support for families of the victims.

• Supporting nutritional rehabilitation and improved food security through the World Food Programme for more than 700 000 vulnerable people in areas most affected by poverty and malnutrition.

• Doubling AusAID’s counter-terrorism assistance with an additional $10 million over five years. Key achievements of the initial commitment include: — establishing an Indonesian transnational crime centre which opened in Jakarta in July 2004, and helping the Indonesian police to prevent, identify and dismantle transnational crime, including terrorism — assisting Indonesia to tackle money laundering, including the establishment of an operational Anti-Money Laundering watchdog and financial intelligence unit which reports directly to the Indonesian President.

66 AUSAID Annual Report 2004–2005 • Supporting the special travel security fund program with other Australian agencies to strengthen airport, immigration and customs control capabilities. This included installing a border management and alert processing system in four airports, improving security policy and procedures at Jakarta and Denpasar international airports and enhancing management of high-risk sea cargo and vessels. S SECTION 2 E

Sustainable resource management C T I • Supporting the Indonesian government, in collaboration with the World Bank, O N

to develop a policy for implementing community-based water supply and environment services. 2

• Strengthening environmental management agencies in East Java through a five-year program, ending in August 2005, which helped establish partnerships between government institutions and the community to address environmental management. Key successes under this program included: — supporting the establishment of the East Java Environmental Board — attaining provincial budget increases for environmental management — raising community awareness of environmental issues and encouraging active participation by the community in finding solutions — incorporating environmental education into the high school curriculum.

Left: Australian Defence Force water purification and distribution station, Banda Aceh after the Indian Ocean tsunami Photo: Bob Walker Right: School children in Banda Aceh learn about tsunamis Photo: AusAID/LIPI

Performance Country and regional programs 67 Building partnerships with mainstream Islam in Indonesia

Almost 90 per cent of Indonesians identify themselves as Muslim and mass- based Islamic organisations have a long history of providing basic services such as health and education to communities, particularly where government services are inadequate or unaffordable. With networks throughout the country, these organisations have the trust of the community, and unparalleled credibility and influence within a large portion of Indonesian society. Islam, is therefore, a major force for development in Indonesia.

AusAID recognises the important role mainstream Islamic organisations play in the provision of basic services and in the development of a democratic and religiously tolerant society in Indonesia. Partnerships with these organisations are being integrated into the existing aid program and new activities are being developed.

In 2004–05, funding for programs with mainstream Islamic organisations in Indonesia totalled $7.5 million. Achievements included:

• implementing the Learning Assistance Program for Islamic Schools to improve the quality of basic education. In its first 12 months the project mapped the immediate and longer-term needs of more than 800 madrasah schools and provided support to meet some immediate needs

• co-hosting, with the Indonesian government, the International Dialogue on Interfaith Cooperation in Yogyakarta in December 2004. Faith leaders from around the region joined discussions on the role of religion in addressing the issues of religiously diverse communities, including peace and conflict prevention

• supporting JPPR (the People’s Voter Education Network), a domestic election observer organisation, during Indonesia’s Presidential elections to promote community support for a tolerant, secular and pluralistic democracy, and enhance confidence in the election process

• supporting Aisyiyah, the women’s arm of the Islamic welfare organisation Muhammadiyah, to implement a program of immediate and longer- term welfare assistance to Indonesian victims and their families of the September 2004 bombing outside the Australian Embassy in Jakarta.

68 AUSAID Annual Report 2004–2005 Vietnam

Vietnam has achieved remarkable economic success since the doi moi (renovation) process began in 1986, especially over the last decade. However, benefits from the economic policy reforms are being challenged by external competitive pressures, and are creating new challenges to maintain high growth and reduce poverty. Australia’s S SECTION 2 E

2003–07 country strategy for Vietnam provides a framework for integrating bilateral, C T regional, multilateral and NGO programs to reduce poverty and achieve broad-based I O

economic growth. The strategy aims to strengthen the governance of the institutions N

required for a competitive market economy and improve productivity and links to 2 markets for the rural poor in the Mekong Delta and Central Coast regions.

During the year, the Vietnam aid program delivered activities to assist international economic integration, enhance rural development including through water supply and sanitation, and strengthen measures to prepare for and mitigate natural disasters. Scholarships for post-graduate study in Australia remained a key component of the program. AusAID also worked with other Australian Government departments on transboundary challenges, including with the Department of Health and Ageing to assist the government of Vietnam prepare for, and respond to, Avian Influenza.

In 2004–05, AusAID’s country program aid to Vietnam totalled $55 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $74.4 million. Key achievements included:

• developing river basin management systems to mitigate and better manage risks associated with severe floods in Quang Ngai province. Safety awareness and flood response training was provided to more than 24 000 primary school students and more than 500 primary and kindergarten teachers. Five shore-based marine radios and over 2700 lifejackets were also provided to vulnerable fishing communities

• locating and removing more than 4000 items of unexploded ordnance and mines and clearing 27 hectares of land

• rehabilitating four complete sluices to manage water resources in North Vam Nao Island, An Giang province. Ninety new water-seal toilets were built, waste management for an area covering 2400 households was improved, and 600 poor households benefited from training to improve income generation

• improving water supply in Sa Dec province to provide an additional two mega litres of water a day for an extra 6000 people. An additional 1200 people were connected to the new high-pressure system, 619 households benefited from new septic tanks, 33 biogas plants were built, and more than 3700 school children and teachers benefited from school sanitation improvements

• enabling disbursement to more than 25 000 active borrowers in semi-urban areas of Ho Chi Minh City to support micro enterprise development such as animal husbandry and waste recycling

Performance Country and regional programs 69 • supporting 173 Vietnamese students to complete degrees under the Australian Development Scholarships program, with a further 170 due to graduate in 2005. In 2004–05, 176 new scholarships were awarded with an emphasis on study in governance and rural development

• helping to draft the commercial and anti-dumping laws, both key steps in Vietnam’s goal of World Trade Organization accession and part of its overall economic reform agenda which aims to maximise opportunities arising from trade liberalisation and regional economic integration.

Philippines

Remittances from overseas Filipino workers and a favourable international environment helped the economy grow by more than six per cent in 2004. This is expected to slow to less than five per cent in 2005 as a result of high oil prices and weaker export demand. Some progress was made in addressing long-standing economic issues, with taxes on alcohol and tobacco increased and the value added tax system modified. Despite these successes, government, social and investment spending remains heavily constrained since one-third of the national budget goes into debt service, another third to public sector wages and much of the remainder to other non- discretionary and operational expenses. High population growth is putting enormous strain on the government’s financial resources and its ability to deliver basic services and economic opportunities, particularly among the youth where unemployment is very high.

The fragile security situation is another major concern. Peace talks between the Moro Islamic Liberation Front and the Philippines government offer some hope of an eventual peace accord for Mindanao, but timing remains uncertain and other violent episodes—banditry, kidnap, terrorist incidents, communist insurgency—show little sign of abating. The Philippines also remains vulnerable to natural disasters. In December 2004, a series of typhoons and landslides affected about 3.3 million people, with more than 1000 confirmed dead and 40 000 homes destroyed.

Development cooperation efforts continued to focus on implementing the 2004–08 country strategy objectives to improve economic governance, security and stability, and rural living standards. A new partnership for economic governance reforms commenced in 2005, focusing on priority reforms including public expenditure management. The Australian Government committed to doubling the counter-terrorism capacity building package to $10 million over five years, building on assistance currently being provided in areas such as law enforcement, border control, port security and sub- regional cooperation. Australia also announced a further $17 million for a new phase of multi-donor program in support of peace-building, conflict prevention and economic development in Mindanao. Strong support for education and training continued, with further basic education assistance in Mindanao, preparation for a new activity in the Visayas and assessment of issues in the technical-vocational training sector.

70 AUSAID Annual Report 2004–2005 In 2004–05, AusAID’s country program aid to the Philippines totalled $46.1 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $62.5 million. Key achievements included:

• training more than 5500 school heads, 331 district supervisors and 164 division S SECTION 2

monitors in Mindanao on school improvement planning. The Philippines E C

Department of Education is considering adopting this training model across the T I

whole nation. In addition, three tribal learning centres were established in remote O N

areas of Mindanao and administrators of 22 Islamic schools underwent basic training in school management and prepared school improvement plans 2

• contributing to UNICEF’s Fifth Country Program for Children allowing it to further expand access to early childhood care and development as well as scaling up the child friendly school system, thanks in part to widespread support from community and religious leaders. The network of child-friendly schools in the 10 focus areas assisted by Australia increased by 53 per cent in 2004

• contributing significantly to the reduction of malaria and dengue mortality in remote hospitals and improved treatment of malaria cases in clinics through training of health workers, as part of the World Health Organization’s Roll Back Malaria program in Mindanao

• establishing one-stop-shops for land titling in pilot locations, which improved transparency of government interactions, reduced petty corruption and improved trust between public and officials

• training law enforcement agency staff with new counter-terrorism skills, such as bomb data analysis, allowing them to contribute to investigation of recent terrorist incidents in the Philippines

• building the capacity of the Bureau of Immigration, resulting in the production of formal evidentiary reports and the referral of nearly 400 fraudulent travel documents to the Australian-funded document fraud laboratories for examination

• providing emergency relief to typhoon-affected areas of Luzon, including relief goods for 300 families, housing materials for 30 families, basic school supplies for about 10 000 pupils, books and furniture for 10 elementary schools and materials for 15 day care centres

• supporting completion of Australian postgraduate courses by 72 Filipino scholarship holders, and providing 32 training courses to 869 participants in areas such as monitoring and evaluation, environmental management, NGO leadership and public service delivery.

Performance Country and regional programs 71 China

China’s rapid economic growth and significant reduction in the number of people living in poverty has not been without cost. Extensive environmental degradation and growing inequalities between rural and urban areas and coastal and inland provinces continues. China’s economic strength and influence in the region continues to grow and will increasingly shape regional dialogue and cooperation in East Asia. In response, Australia’s new country strategy 2006–10 extends cooperation with whole-of-government partners, particularly in governance, environment and health, and on working jointly with China in the region. The strategy builds on the strategic linkages between Chinese and Australian government agencies established through Australia’s response to the SARS and Avian Influenza outbreaks in 2004.

In 2004–05, AusAID’s country program aid to China totalled $40.7 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $49.8 million. Key achievements included:

• initiating a program of activities with the China Central Party School—the organisation responsible for training high and middle cadre officials from national and provincial levels of the Chinese government

• mobilising a major new governance program to assist China implement key governance reforms in fiscal management, trade-related and social security reform, and enhance strategic linkages between key Chinese and Australian government agencies

• completing the first phase of a vocational education and training project in Chongqing, which helped five pilot schools in five industries develop and implement new curricula for vocational education and training. The Ministry of Education will use the project to help inform a Chinese government national conference in September 2005

• hosting a conference in Xinjiang highlighting the range of locally implemented leadership initiatives supported through the Xinjiang HIV/AIDS Prevention and Care project

• providing a fully developed flood forecasting system and a related decision support system to the Yangtze Water Resources Commission for trial in the annual flood season. This included training for 20 Chinese engineers in flood management, decision-making and hydrologic and hydraulic forecasting

• completing the Chongqing Comprehensive Poverty Alleviation Project, which improved water supplies for more than 100 000 people, provided enterprise training for about 30 000 farmers, and introduced simple environmental planning and management tools to help reduce the impact of local infrastructure on the local environment.

72 AUSAID Annual Report 2004–2005 East Timor

East Timor has made significant progress in building capacity across the public and private sectors since independence in May 2002. Despite this, the social indicators for East Timor remain among the lowest in the world. Poverty, instability and weak governance are major threats to development. The Australia Government is helping S SECTION 2 E

East Timor build effective national institutions and public administration. During the C T year, support to the Ministry of Planning and Finance helped it to develop effective and I O

sustainable economic governance, leading to improved budget planning and financial N

management. Other governance assistance included support to the multi-donor 2 Transition Support Program to help bridge East Timor’s finance gap and maintain essential government functions.

AusAID is working in partnership with a number of other Australian Government agencies to ensure development assistance is effective. In July 2004, in collaboration with the Australian Federal Police, AusAID started a $32 million initiative to build the capacity of the East Timor police force and support a peaceful, prosperous, well-governed and democratic East Timor.

In 2004–05, AusAID’s country program aid to East Timor totalled $28.5 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $64.2 million. Key achievements included:

• providing training and equipment for a national program of village elections, resulting in the democratic selection of 306 individual village chiefs across 11 districts. Elections for 137 villages in the remaining two districts will be conducted by the end of 2005

• improving water supplies to an additional 1700 households in rural areas, benefiting over 11 000 people

Village level elections in East Timor Photo: Augusto Pereira

Performance Country and regional programs 73 • supporting a comprehensive train the trainer program to strengthen the police force’s capacity in crime prevention, operational procedures, investigative techniques and management and administration systems and processes

• awarding an additional eight scholarships to study at Australian educational institutions, bringing the total number of scholarships since 1999 to 115

• helping to improve health services through the National Oral Health project which conducted training for 29 nurses and four dentists and provided 8500 people with oral health treatment

• supporting the National Directorate of Land and Property to prepare formal land titling to increase social stability through optimum and lawful use of state and private land.

Cambodia

A decade of increasing stability and macroeconomic growth has advantaged some sectors of the Cambodian economy, but the benefits have not been evenly distributed, leaving 35 to 40 per cent of the population below the poverty line and social indicators amongst the worst in the region. The international community is working with the recently formed government to progress wide-ranging governance and economic reform, to address corruption, and combat zoonotic disease and transnational crime, including terrorism, people smuggling, narcotics and child sex tourism. At the December 2004 Consultative Group meeting in Phnom Penh, the Australian Government stressed that the nature and levels of its future assistance will be provisional upon the Cambodian government’s commitment and actions to achieving agreed reform outcomes.

In 2004–05, AusAID’s country program aid to Cambodia totalled $22.5 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $38.2 million.

Through the Australia–Cambodia Development Cooperation Strategy 2003–06, Australia contributed to poverty reduction and sustainable economic growth by increasing productivity and incomes of the rural poor, strengthening the rule of law and reducing the vulnerability of the poor to natural disasters.

Key achievements included:

• educating 2540 prison inmates and staff in three Cambodian prisons (232 women and 2308 men) through health programs designed to reduce HIV/AIDS and contagious diseases in prisons and on release of prisoners into community

• introducing 36 crime prevention and community safety pilot programs in Kandal province, directly addressing youth crime and safety issues at district level

74 AUSAID Annual Report 2004–2005 • supporting 282 farmers to grow high quality rice seed for local sale. Two thousand tonnes of seed were also sold to about 100 000 farmers, providing potential for increased rice yields to some 57 000 hectares of land

• supporting 400 people with HIV/AIDS to participate in a two-year program of ground-breaking research into the use and adherence patterns of antiretroviral S SECTION 2

therapy E C T

• supporting community driven resource and agricultural production planning I O

processes in 98 communes, and establishing 61 farmer groups comprising N

1800 farmers, half of whom are women 2

• supporting three integrated landmine action programs, which provided more than 20 000 villagers with agricultural training to grow crops and care for their stock. The programs also cleared more than 610 000 square metres of mine contaminated land so that it can be returned to the Cambodian people for safe and productive use

• supporting more than 28 600 vision-related consultations, about 6200 cataract and other eye operations in Cambodian hospitals and assisting more than 11 000 people through the community-based rehabilitation program.

Mr Bruce Billson, Parliamentary Secretary for Foreign Affairs and Trade (centre) at Landmine Action Week, May 2005 Photo: Simon Kaldy

Performance Country and regional programs 75 Thailand

Thailand’s strong economic achievements and its desire to become a regional aid donor have resulted in Australian assistance reducing in scale and range. AusAID’s country program aid to Thailand declined to $2.3 million in 2005–04. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $13.4 million. Australia’s assistance is helping build Thailand’s capacity to address economic and public sector governance issues.

Assistance provided through the Public Sector Linkages Program developed institutional linkages between Australian and Thai government agencies, building their capacity to address issues such as regional economic integration and cross border animal, plant and health issues. Under the Asia regional program, Australia also helped address other transnational threats such as people trafficking, HIV/AIDS, counter-terrorism and illicit drugs.

Australia responded quickly to Thailand’s request for assistance following the devastating Indian Ocean tsunami by providing emergency medical teams, assisting local and international disaster victim identification efforts and deploying an AusAID officer to work in the United Nations Disaster Assessment and Coordination team in Phuket. Continuing assistance is being provided in the area of post-tsunami coastal zone environmental rehabilitation.

Key achievements included:

• strengthening institutional capacity in government agencies in the areas of macroeconomic data collection and analysis, securities regulators, and anti-money laundering, judicial cooperation and training

• building capacity of the Community Development Department to strengthen planning, budgeting, monitoring and evaluation processes

• opening up income generating opportunities for 85 new and existing community organisations and helping to develop strong networks and linkages between these organisations and the Community Development Department.

Laos

Laos has increased its engagement with the East Asian region and internationally. It joined ASEAN in 1997, hosted the ASEAN Summit Meeting in November 2004 (attended by the Australian Prime Minister) and is in the process of accession to the World Trade Organization. AusAID’s country strategy for Laos focused on building human capital, particularly through basic and tertiary education initiatives, fostering regional integration and promoting the growth of a market economy, as well as reducing the vulnerability of poorer communities to disasters and unexploded ordnance.

76 AUSAID Annual Report 2004–2005 In 2004–05, AusAID’s country program aid to Laos totalled $12.5 million. Other Australian assistance through AusAID’s regional and global programs brought total ODA to an estimated $19.4 million, ranking Australia in the top five of 20 bilateral donors to Laos. Key achievements included:

• providing 40 new scholarships to Lao students to study in Australia and supporting S SECTION 2

an additional 64 to study at the National University of Laos. This brought the total E C

number of scholarship students during the year to 228 T I O

• training 160 ethnic minority students as qualified teachers N

2 • promoting the market economy in Laos by improving access to private land by registering 104 000 land parcels in nine provinces throughout the country

• improving the livelihoods of more than 1000 farmers in 120 villages by developing forages and livestock technologies.

Burma

In contrast to some of its neighbouring countries, Burma remains an isolated and impoverished country with poor economic and social policies which have severely weakened its economic and social infrastructure, particularly in areas such as health care and education. The difficult political environment remains unchanged, with key leaders including Aung San Suu Kyi, continuing to be held in detention.

Australian assistance to Burma is primarily humanitarian, targeting vulnerable populations, especially women and children in border areas, children and youth in conflict with the law and Burmese refugees on the Thai–Burma border. Assistance is predominantly delivered through United Nations agencies and local, international and Australian NGOs to address needs at the community level.

In 2004–05, AusAID’s country program aid to Burma totalled $3.1 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $11.3 million. Key achievements included:

• helping establish and manage community forestry plots, savings and loan groups for women and basic health services and information for more than 10 000 mainly Rohingya households in northern Rakhine State

• providing relief to victims of flooding in Ayeyarwaddy Division in September 2004

• building the capacity of communities in several states and divisions in HIV/AIDS prevention, care and support

• providing food and shelter to about 140 000 refugees on the Thai–Burma border.

Performance Country and regional programs 77

Over the last decade Mongolia has made steady progress in the transition to a modern market-based economy and is increasingly focused on developing strategies for longer- term social and economic development. Australia’s aid program continued to support this transition by building Mongolia’s skills base in areas such as public sector financial management, government administration, education and employment policy, social welfare and legal and judicial fields.

AusAID’s country program aid to Mongolia totalled $1.9 million in 2004–05. Other Australian assistance through AusAID’s regional and global programs brought total ODA to an estimated $3.0 million. Key achievements included:

• supporting five Mongolian students to successfully complete Masters level degrees and return to fill key positions in government. Seventeen awards, including one by distance education, will be offered in the 2005 academic year

• providing 10 small grants to NGOs for poverty and community development work through the capacity building and small activity facility, bringing to 28 the total number of small grants awarded since the program commenced in 2003.

From left, Mongolia Capacity Building and Small Activities Facility (CaBSAF) Deputy Director, Yu Tsetsgee, Ms Semjidmaa of the Mongolian Union of Business Women for Vulnerable Groups, Peter Jensen, AusAID Counsellor (Development Cooperation), and Enkhee Lunden, CaBSAF Program Officer, gathering for public health training supported by CaBSAF Photo: Jane Daniels

78 AUSAID Annual Report 2004–2005 South Asia

South Asia has recorded impressive economic growth over the last decade. It is the second fastest-growing region in the world with an average annual growth rate of over five per cent. Despite the improved economic record, South Asia remains one S SECTION 2

of the world’s poorest regions where half of the population lives below $US1 a day. E Human deprivation remains entrenched, particularly for disadvantaged populations and C T children. It has the world’s highest illiteracy rate at 44 per cent and accounts globally I O for one third of all maternal deaths. N

2 The Indian Ocean tsunami had a tragic impact on the region. Prompt and targeted Australian assistance, particularly to Sri Lanka and the Maldives, helped meet the unprecedented post-disaster needs. Beyond this and other emergency responses, such as the Bangladesh floods of July 2004, Australian assistance to the region is focused on improving basic service delivery and strengthening governance reforms.

In 2004–05, AusAID’s country and regional programs to South Asia totalled $52.8 million. Other Australian assistance through AusAID’s global programs and through other government departments brought total ODA to an estimated $113.4 million.

FIGURE 11: ESTIMATED TOTAL AUSTRALIAN ODA TO SOUTH ASIA BY COUNTRY 2004–05

India 15%

Bangladesh 29% 5%

Nepal 4%

Regional and other 12% Sri Lanka 35%

Bangladesh

Since gaining independence in 1971, Bangladesh has made significant gains towards improving its human and social indicators of development. Health and education levels have improved and absolute poverty has declined. It is close to achieving self sufficiency in food production, and in recent years it has strengthened its capacity to

Performance Country and regional programs 79 manage disasters such as cyclones and floods. However, Bangladesh remains one of the poorest countries in the world, with a per capita annual income of just $US351, and gaining access to sufficient food for all the population remains a challenge.

In 2004–05, AusAID’s country program aid to Bangladesh totalled $19.8 million. Other Australian assistance through AusAID’s regional and global programs brought total ODA to an estimated $32.9 million. The aid program contributed to improving governance, increasing growth in the rural development sector and improving basic service delivery. Key achievements included:

• assisting more than 153 000 families in northwest Bangladesh, the poorest part of the country, in collaboration with the government and the World Food Programme, to improve their food security and nutrition status and engage in income generation activities by providing food, training and access to micro-credit

• providing nutrition support to more than 166 000 school-children to help them overcome chronic malnutrition, increase school attendance and enhance their learning capability

• supporting 39 700 primary schools in 38 districts in collaboration with UNICEF and the government to improve teaching-learning quality, monitor learning achievements and improve local level planning and management. Support benefited approximately 10.3 million children and more than 150 000 teachers

• providing microcredit services in collaboration with BRAC, the largest local NGO, to more than 22 500 poor women of northwest Bangladesh to help them engage in income generation activities.

Young men collecting food aid in Bangladesh Photo: Eugene Rodrigues

80 AUSAID Annual Report 2004–2005

Supported by wide-ranging reforms, India’s economic growth averaged six per cent in the last decade. This has led to significant improvements in the well-being of the Indian people. India’s infant mortality rate has dropped and average life expectancy at birth increased from 49 years in 1970 to the current 63 years. S SECTION 2 E C T

India maintains bilateral aid programs with only six major donors, which excludes I Australia. India’s response to the Indian Ocean tsunami demonstrated its desire O N

to move from a net aid-recipient to a net aid-donor. Despite significant loss of life 2 and extensive damage to its coastal communities in the south-east, the Indian government did not request emergency assistance. Rather, it provided significant support to neighbouring countries including Sri Lanka and Indonesia. Australian development assistance to India continued to be phased-down, with an emphasis on delivering aid through multilateral organisations, targeted predominantly at the poorer north-east states.

In 2004–05, AusAID’s country program aid to India totalled $12.0 million. Other Australian assistance through AusAID’s regional and global programs brought total ODA to an estimated $17.2 million. Key achievements included:

• strengthening capacity of government and civil society institutions in the north-eastern cities of Gangtok and Shillong to more effectively manage urban water supply and sanitation, including improved planning and more effective revenue collection

• improving sanitation and drinking water supply to secure better health prospects for 18 000 school children in Gangtok

• reducing the number of out-of-school primary age children in six districts in India by more than 500 000, of which 40 per cent were girls.

Sri Lanka

Sri Lanka’s investment in human capital and gender equity has allowed it to make advances in health and education more akin to high-income countries. These investments helped Sri Lanka maintain robust economic growth despite the devastating 20-year civil conflict between the government and the Liberation Tigers of Tamil Elam (LTTE). If the current tentative peace process between the government and LTTE breaks down, these important gains could be lost. Accordingly, Australia continued to work strongly with key partners during the year, particularly multilateral agencies and NGOs, on activities that build peace, stability and social equity. Australia also provided emergency assistance following the Indian Ocean tsunami.

In 2004–05, AusAID’s country program aid to Sri Lanka totalled $6.6 million and a further $20.4 million was provided in response to the tsunami. Other Australian assistance through AusAID’s regional and global programs and through

Performance Country and regional programs 81 other government departments brought total ODA to an estimated $39.8 million. Key achievements included:

• delivering emergency assistance following the Indian Ocean tsunami, including providing and distributing clean drinking water and medical relief to more than 146 000 affected people

• working with the United Nations Development Programme and UNICEF in conflict affected areas, providing rehabilitation and reconstruction support for 52 health clinics and 14 hospitals, improving water supply and toilet facilities in more than 200 schools, delivering catch-up education for 26 000 students, and improving agricultural production for 3700 returnees

• supporting mine action in Sri Lanka which has removed more than 9000 anti personnel mines and cleared more than 285 000 square metres of land for resettlement and rehabilitation

• improving approaches to managing natural resources in central Sri Lanka, with an estimated 30 hectares reforested with community participation and 60 village groups engaged in microfinance and livelihood development programs.

Mr Alex Knox, AusAID Development Program Specialist visiting demining activities in Jaffna Photo: Chandrika De Alwis

Nepal

Nepal remains one of the world’s poorest countries, with an average life expectancy of less than 60 years and an adult literacy rate of about 45 per cent. Ongoing internal conflict and political turmoil culminated recently with the King of Nepal dismissing the government. A deepening climate of violence and volatility has required Australia to increasingly shift aid delivery through multilateral and regional mechanisms such as UNICEF and wind down bilateral activities.

82 AUSAID Annual Report 2004–2005 In 2004–05, AusAID’s country program aid to Nepal totalled $4.5 million. Other Australian assistance through AusAID’s regional and global programs brought total ODA to an estimated $4.8 million. Key achievements included:

• strengthening the governance of community forestry activities in partnership with other donors, benefiting over 12 000 forest users directly, with indirect benefits S SECTION 2

flowing to more than 110 000. The Ministry of Forest and Soil Conservation E C

is implementing gender, equity, social inclusion and livelihood issues into its T I

programming and monitoring systems O N

• helping avert an estimated 35 000 child deaths by strengthening the community- 2 based management of childhood health and providing vitamin A supplements in collaboration with donor partners. Vitamin A deficiency amongst children under five in Nepal decreased from 2.4 per cent in 1993 to 0.3 per cent in 2002

• building the capacity of health systems at the district and village level, including providing approximately 10 000 female community health volunteers with health care materials and training more than 60 000 health workers in primary health care methods.

Pakistan

Pakistan has achieved robust economic growth in recent years including more than eight per cent in 2004–05. Government spending increased on human capital, particularly in health and education, but continued governance reforms and even greater investment in service delivery is needed to translate the benefits of growth into poverty reduction. In most social indicators Pakistan lags behind countries with comparable per capita income. Gender inequity also remains a challenge with males on average completing twice as many years of schooling as females. Australian assistance, delivered primarily through multilateral organisations and NGOs, contributed to improved health and education outcomes and continued to support Pakistan’s economic governance reforms.

In 2004–05, AusAID’s country program aid to Pakistan totalled $2.5 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $5.2 million. Key achievements included:

• supporting upgrades to 19 district ophthalmic units and training 19 district ophthalmologists, helping the number of annual average cataract surgeries to exceed 350

• providing training in modern teaching and learning methods for 442 newly recruited female teachers from rural Balochistan which balanced the teacher-student ratio at over 400 schools

• supporting 15 master-level scholarships for Pakistani citizens in the fields of education, health, agriculture, environment and governance.

Performance Country and regional programs 83 Africa

Sub-Saharan Africa continues to face major challenges in addressing severe poverty, notwithstanding consistently strong economic growth by more than a dozen countries during the past decade. Poor governance, lack of food security, conflict and the spread of HIV/AIDS have all constrained overall development. The number of people in Africa living in extreme poverty has almost doubled since 1981.

In 2004–05, AusAID provided $33.0 million in regional program aid primarily to southern and eastern Africa. Other Australian assistance through AusAID’s global programs and through other government departments brought total ODA to Africa to an estimated $75.0 million. This included $32 million in humanitarian relief to meet the urgent needs of Sudan, Chad, West Africa, Ethiopia, Eritrea, Uganda and southern Africa.

Australian assistance is delivered through a strategically targeted program to countries in eastern and southern Africa. Drawing on partnerships with multilateral institutions, NGOs and regional mechanisms such as the Africa Governance Facility, the program continued to focus on promoting good governance by strengthening basic service delivery and responding to humanitarian needs. Through the Africa Governance Facility, AusAID supported democratisation, trade liberalisation and emerging issues of mutual concern to Australian and African governments. Cooperation between the Australian Government, Australian NGOs and their African counterparts continued to address HIV/ AIDS and other communicable diseases, food security and water supply and sanitation.

Australia responded to the ongoing crises in Sudan with humanitarian assistance totalling $28 million in 2004–05, bringing the total commitment since May 2004 to $40 million. AusAID cooperated closely with NGOs, United Nations and other international agencies, as well as relevant agencies within the Australian Government.

Key achievements included:

Promoting effective governance

• Producing five handbooks for use in South African local authorities, addressing disaster management, economic development, financial budgeting, asset management and public participation.

• Enhancing the quality of 14 electoral administrators from electoral commissions in six countries to strengthen and supervise democratic electoral processes.

• Training 20 trade and economic officials from nine countries in trade in services.

• Training 20 people from the Malawian Human Rights Commission and the Malawian Human Rights Resource Centre to conduct impartial research and investigations into human rights abuses.

• Training 400 people from southern African countries to develop national sports frameworks and local sports initiatives to strengthen community development.

84 AUSAID Annual Report 2004–2005 Improving health

• Training 680 community vaccinators and 200 extension workers and strengthening surveillance and investigation capacity in 53 animal disease monitoring centres in Malawi, Mozambique and Tanzania, to support control of Newcastle disease in village poultry. S SECTION 2 E • Increasing knowledge and awareness of sexually transmitted infections such as C T

HIV/AIDS through peer education programs in 24 companies throughout Zimbabwe. I O N

Responding to humanitarian needs 2

• Helping to reduce the mortality rate in severely malnourished children receiving therapeutic feeding at Nyala hospital, South Darfur, Sudan, from 19.6 per cent in August 2004 to 11.8 per cent by February 2005.

• Providing access to clean water for 850 000 internally displaced people in camps in Darfur by drilling 84 borewells with handpumps, installing 17 submersible pumps with generators and piping, and rehabilitating 61 hand pump schemes.

• Constructing an additional 15 800 latrines over a four month period for more than 300 000 internally displaced people in camps in Darfur.

Mr Bruce Billson, Parliamentary Secretary for Foreign Affairs and Trade with Gethwana Makhaye, Coordinator of Targeted AIDS Intervention (TAI), the local partner to at a launch of an HIV/AIDS initiative in South Africa Photo: Vincent Sheehy

Performance Country and regional programs 85 Middle East/Central Asia

Iraq

Australia continues to support Iraq’s transition to a stable democratic society with an open market-based economy. Since 2003 Australia has provided over $126 million in humanitarian and reconstruction assistance to Iraq.

The agriculture sector is the main focus of Australia’s assistance. In 2004–05, Australia deployed senior agricultural advisers to Iraq’s Ministry of Agriculture to assist its efforts to modernise agriculture after more than 20 years of neglect. Training was also provided in Australia for 50 senior Iraqi officials in modern agricultural practices and policies. Planning activities were completed to train more officials at the International Centre for Agricultural Research in Dry Areas in Syria to improve Iraq’s crop productivity.

Australia supported Iraq’s transition to democracy through governance initiatives in critical areas such as electoral assistance, police training, capacity building and institutional strengthening of key ministries, human rights, criminal justice and the rule of law. Key achievements included:

• supporting the January 2005 elections in Iraq through the United Nations Iraq Trust Fund. Assistance was provided to the International Mission for Iraqi Elections and Iraq’s Independent Electoral Commission, as well as monitoring support for out-of-country voting for Iraqis in Australia

• conducting a human rights study tour and training program in Australia for five officials from Iraq’s Ministry of Human Rights, as well as providing training in Canberra for 10 officials from the Iraqi Foreign Ministry

• deploying Australian police trainers to the Jordan International Police Training Centre to help train Iraqi police recruits

• training judges and prosecutors of the Iraqi Special Tribunal in conjunction with the United Kingdom

• deploying a senior Australian adviser to head the electricity sector program and direct a total budget of $5.6 billion. This work helped to improve the capacity of Iraqi power generation and distribution systems, and create local employment opportunities for almost 20 000 Iraqis.

86 AUSAID Annual Report 2004–2005 Afghanistan

Australia plays a vital role in joint international efforts to support Afghanistan’s transition from conflict to a peaceful and democratic society. Since September 2001, Australia has pledged a total of $110 million in aid, including about $19.7 million for

Afghanistan’s humanitarian and reconstruction priorities in 2004–05. This pledge was S SECTION 2 E fully met by June 2005. C T I The aid program to Afghanistan focused on the return and reintegration of displaced O N

Afghans, building the capacity of national institutions to manage a successful 2 transition to a democratic government, and responding to humanitarian needs. Australia continued to support the delivery of essential services through the Afghanistan Reconstruction Trust Fund, and provided assistance to Australian NGOs to undertake small-scale activities enhancing the livelihoods of rural communities.

Key achievements included:

• providing $5 million for governance and electoral support, contributing to the success of the October 2004 presidential elections and preparations for the parliamentary elections in late 2005

• supporting the Afghan government and international community to tackle opium cultivation and trafficking, including funding the newly established United Nations Counter-Narcotics Trust Fund.

Palestinian territories

Australia provided an estimated $11.5 million in aid to the Palestinian territories and Palestinian refugees in the surrounding region in 2004–05. Assistance was delivered primarily through multilateral agencies and NGOs to provide humanitarian relief and help reduce the vulnerability of Palestinians to poverty and conflict.

Key achievements included:

• providing $4.2 million to the United Nations Relief and Works Agency for basic services including education, health care and social services. A further $2 million was channelled through the agency’s 2005 emergency appeal to provide emergency shelter and employment

• contributing $3.5 million to the World Bank Reform Trust Fund to strengthen the Palestinian authority’s reform program

• supporting Australian and local NGO community support activities to help build the capacity of Palestinian institutions and organisations.

Performance Country and regional programs 87 GLOBAL PROGRAMS

Multilateral organisations

Summary of performance

Indicator Result 75 per cent of organisations receive a rating Performance for multilateral programs met of satisfactory overall or higher in terms of the 75 per cent quality performance target efficiency; significant activity outputs within in 2004–05. Significant achievements are guiding themes. highlighted below.

Multilateral organisations are an important part of Australia’s efforts to support poverty reduction and sustainable development. Australia provides direct support to multilateral organisations that demonstrate effectiveness and efficiency in pursuing their objectives. Multilateral agencies are also the preferred delivery mechanism within some bilateral programs. The specialist mandates of many multilateral agencies often provide the best means for achieving development outcomes.

To ensure the effectiveness of Australian multilateral funding, AusAID uses the multilateral assessment framework (MAF) as the main tool for monitoring the quality and performance of United Nations and other multilateral organisations. In 2004–05, MAFs were completed on several key multilateral institutions including UNICEF, UNAIDS, the World Health Organization and World Food Programme.

AusAID also continued to assess its engagement with the World Bank and the Asian Development Bank. Through monitoring and collaboration on a range of program and policy initiatives, the agency continued to identify areas for better engagement and increased focus by the banks.

United Nations organisations

The aid program provided $61.7 million in core funding during the year to the following United Nations development and humanitarian organisations:

• World Food Programme

• UNICEF

• United Nations High Commissioner for Refugees

• United Nations Development Programme

• United Nations Relief and Works Agency

• United Nations Population Fund

88 AUSAID Annual Report 2004–2005 • International Atomic Energy Agency

• United Nations Office on Drugs and Crime

• United Nations Development Fund for Women

• United Nations Environment Programme S SECTION 2 E C

In 2004–05, AusAID continued to engage strategically with key United Nations T I agencies to support joint objectives and, through targeted non-core contributions, was O able to address high priority needs in the Asia–Pacific region. Australia also continued N to be a strong supporter of the United Nations reform process through its policy 2 dialogue with key United Nations agencies, recognising that more needs to be done to meet today’s global challenges.

Key achievements for the year included:

• establishing two partnership agreements with UNICEF covering engagements in South Asia and the Pacific, and conducting the first regional AusAID–UNICEF meeting in Bangkok in March 2005

• strengthening Australia’s relationship with the United Nations Office for the Coordination of Humanitarian Affairs to improve the effectiveness of humanitarian response

• seconding an AusAID officer to the World Food Programme regional office in Bangkok to focus on regional responses, including the Indian Ocean tsunami.

Mr Charles Tapp, Senior Associate, AusAID with Mr Kul Gautam, Deputy Executive Director of UNICEF at the AusAID Central Office in Canberra, Australia Photo: Dominic Morice

Performance Global programs 89 Commonwealth organisations

In 2004–05, the aid program provided $12.1 million in core funding to Commonwealth organisations for Commonwealth developing countries. AusAID targeted its contributions to agencies promoting poverty reduction, strengthened governance, growth stimulating reforms and trade liberalisation including:

• the Commonwealth Fund for Technical Cooperation, the principle mechanism by which the Commonwealth delivers development assistance

• the Commonwealth Trade and Investment Access Facility, to provide technical assistance and training services to developing countries to manage the impacts of trade liberalisation

• the Commonwealth Foundation to strengthen civil society in the achievement of Commonwealth priorities

• the Commonwealth Youth Program to encourage the participation of youth in decision-making and development.

World Bank

In 2004–05, the aid program contributed $98.1 million to the International Development Association (IDA), the World Bank’s concessional lending facility. The World Bank is an unparalleled source of development expertise and makes a unique contribution through economic and policy research and the implementation of specialist programs. Australia continued to work closely with the bank on a range of activities with a strong Asia–Pacific focus and close attention to the development needs of fragile and small states in the region. Australia participated in negotiations on the 14th IDA replenishment, which concluded in February 2005, and agreed to contribute a further $389.2 million over nine years. Key outcomes from the negotiations included greater engagement with small and fragile states and increased attention to the sustainability of debt for developing nations.

Support continued for the Heavily Indebted Poor Countries (HIPC) initiative with a $2.9 million contribution in 2004–05. The additional $34.8 million announced in the 2005–06 Budget increases Australia’s total commitment to more than $110 million.

Operationally, AusAID continued to collaborate with the World Bank on a number of co-financed activities to complement Australia’s IDA contribution. Specific achievements included:

• contributing $11.5 million to the World Bank Pacific Facility to facilitate greater use of the bank’s expertise in analytical work and dialogue in the Pacific

• establishing a $500 000 trust fund to finance additional research by the bank on fragile states following the Senior Level Forum on Development Effectiveness in Fragile States

90 AUSAID Annual Report 2004–2005 • collaborating on a number of country-focused co-financing activities such as the bank’s Iraq Reconstruction Trust Fund, work on property rights and land titling in Laos, and water and sanitation projects in Indonesia.

Australia also contributed to a number of new World Bank strategies for the

Asia–Pacific region including the country assistance strategies for Cambodia, Laos S SECTION 2 E

and the Philippines, the interim strategy note for PNG and the regional engagement C framework for the Pacific. T I O N

Asian Development Bank 2

In 2004–05, the aid program provided a $95.1 million contribution to the Asian Development Fund (ADF), the concessional loan facility of the Asian Development Bank. The Asia–Pacific focus of the bank makes it an important partner for Australia in promoting growth and stability in our region. Australia is the bank’s fifth largest shareholder with shares valued at US$3.2 billion (A$4.1 billion) or 5.9 per cent of the total subscribed capital.

The bank lent US$5.3 billion to developing countries during 2004, provided technical assistance worth US$196 million and administered grants totalling US$99 million. It continued to engage in Australia’s immediate region, delivering technical assistance to PNG and contributing to the PNG Public Expenditure Review and Rationalisation process, the guiding framework for PNG’s program of reform. In November 2004, the bank also released a new Pacific strategy for 2005–09, outlining its commitment to increasing access to basic services for the poor and promoting opportunities for private sector development.

Australia’s contribution to the eighth replenishment of the ADF was formalised in January 2005. The commitment of $295.4 million (to be paid over 10 years) was the third largest among donors. A program of reforms was agreed including stronger engagement with weakly performing states, grants-based programs for countries that are under severe debt stress or emerging from conflict, and greater efforts to combat HIV/AIDS and other communicable diseases. Australia also encouraged the bank towards initiatives to improve human resource management, strengthen its results focus and contribute more to regional cooperation and integration efforts.

In 2004–05, Australia and the Asian Development Bank cooperated on a number of co-financed activities including provincial financial management training in PNG, primary education work in Laos and strengthening information management systems in Kiribati.

Performance Global programs 91 International health programs

Strategic partnerships with multilateral health organisations are developed under AusAID’s international health program to complement Australia’s bilateral efforts to improve health in Asia and the Pacific.

In 2004–05, a total of $44.8 million was provided in support of multilateral health programs focusing on HIV/AIDS, tuberculosis and malaria, three of the world’s most devastating diseases. This included a further $25 million to the Global Fund to Fight HIV/AIDS, Tuberculosis and Malaria as part of the government’s $75 million commitment to the Global Fund, and $4 million to UNAIDS. AusAID’s assistance supports the purchase of commodities such as pharmaceuticals, mosquito bed nets and other medical supplies, improves diagnostic and treatment facilities and provides additional training for health professionals.

AusAID also provided $7.5 million to support the work of the World Health Organization in the Asia–Pacific region in priority areas of communicable and non-communicable disease prevention and treatment, and strengthening health systems. It included a further $1 million to strengthen regional and global health security through the World Health Organization’s Global Outbreak Alert and Response Network and Global Influenza Program.

Key achievements in 2004–05 included:

• supporting the Global Polio Eradication Initiative which has helped reduce polio cases to the extent that the goal of global polio elimination is now within reach. Australia’s four-year support through Rotary International concluded in 2004–05

• providing $2.8 million to the United Nations Population Fund (UNFPA), including $300 000 for UNFPA’s program to address the debilitating childbirth injury obstetric fistula

• establishing a sub-regional framework agreement between the Australian Government and UNAIDS on thematic support to priority areas in South Asia

• assisting the International Planned Parenthood Federation with a further $2 million for initiatives targeting adolescents and HIV/AIDS in the Asia–Pacific region

• supporting the International Council for the Control of Iodine Deficiency Disorders in the Asia–Pacific region where the need for iodised salt is greater than anywhere else in the world

• establishing a three-year agreement with the Centre for Health and Population Research of the International Centre for Diarrhoeal Research in Bangladesh to support its core programs as well as specific research activities on HIV/AIDS.

92 AUSAID Annual Report 2004–2005 International environment programs

The international environment program operates within a whole-of-government response to pressing environmental concerns such as climate change, loss of biological diversity, depletion of the earth’s ozone layer, land degradation, persistent S SECTION 2

organic pollutants and degradation of international waters. E C T

Australian assistance under key multilateral environment agreements included the I Convention on Biological Diversity, the United Nations Framework Convention on O N

Climate Change, the United Nations Convention to Combat Desertification and the 2 Stockholm Convention on Persistent Organic Pollutants.

In 2004–05, the aid program contributed $17.8 million to the Global Environment Facility, the largest funder of projects in the six focal areas of biodiversity, climate change, international waters, ozone, land degradation and persistent organic pollutants. Negotiations for the fourth replenishment of the facility also commenced during the year.

The aid program provided $4.0 million to the Montreal Protocol Multilateral Fund to help developing countries phase-out ozone depleting substances. Negotiations for the fund’s sixth replenishment also started in 2004–05. In addition, $550 000 was provided to the United Nations Environment Programme.

Ms Annmaree O’Keeffe, AusAID Deputy Director General with Mr Peter Piot, UNAIDS Executive Director signing the Australia–UNAIDS South Asian framework agreement, 3 June 2005 Photo: Natasha Smith

Performance Global programs 93 Emergency, humanitarian and refugee programs

Summary of performance

Indicator Result 75 per cent of emergency, humanitarian and In 2004–05, the emergency, humanitarian refugee activities receive a quality rating and refugee programs exceeded the 75 per of satisfactory overall or higher; significant cent quality performance target and achieved activity outputs within guiding themes. a number of significant outputs. Significant achievements are highlighted below.

Australia provided $206.2 million for humanitarian, emergency and refugee assistance in 2004–05 to mitigate the adverse impact of conflict and natural disasters on vulnerable populations. The year was highlighted by the Australian Government’s timely and effective response to the Indian Ocean tsunami in December 2004. By 30 June 2005, a total of $68 million in immediate humanitarian assistance had been spent in the affected areas (see box).

Australia’s Humanitarian Action Policy, launched in January 2005, provides the donorship principles and cutting-edge practice needed to guide Australia’s response to new circumstances and emerging humanitarian needs. AusAID’s continued support for and participation in humanitarian research further developed the agency’s strategic vision to improve the effectiveness of humanitarian action.

Australia strengthened its relationship with the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) to enhance the coordination, policy and advocacy of humanitarian issues. AusAID’s funding increased the presence of OCHA in the Asia–Pacific region and built the region’s capacity to respond effectively to major disasters. In addition to retaining a Pacific regional disaster response advisor in Suva, in 2005 OCHA established an Asia regional office and placed a disaster response advisor in Bangkok.

AusAID continued to assess conflict and disaster vulnerability, identifying new peace- building and disaster risk reduction strategies for the Asia–Pacific region. A peace, conflict and development learning package was developed for staff within the agency and other whole-of-government partners. Its roll-out commenced with a joint agency workshop with the German Technical Cooperation in Manila. A number of conflict vulnerability analyses were conducted, and peace and conflict impact assessment tools developed for country programs. These are designed to help aid program activities take account of the peace and conflict environment and adjust accordingly to achieve a positive impact.

94 AUSAID Annual Report 2004–2005 As part of Australia’s commitment to reduce natural disasters and raise the profile of disaster risk reduction in development planning and practice, Australia participated in the World Conference on Disaster Risk Reduction in Kobe in January 2005. The Hyogo Framework for Action 2005–15 was adopted at the conference as a systematic approach to reduce vulnerabilities and build the resilience of nations and communities to disasters. S SECTION 2 E C

During the year, a further $15 million was contributed to AusAID’s International T I Refugee Fund to support the activities of international agencies aimed at helping O N

improve conditions, alleviate suffering and maintain the dignity of refugees and 2 internally displaced people. In addition, through support to the International Committee of the Red Cross, Australia is contributing to the protection of victims of armed conflict and those displaced by crises.

Key achievements in 2004–05 included:

• coordinating Australia’s $68 million immediate emergency and humanitarian response to Indonesia, Sri Lanka, the Maldives, Seychelles, Thailand and India following the Indian Ocean tsunami

• responding to the ongoing humanitarian crisis in Darfur with $28 million to NGOs, the United Nations and international agencies to help protect and meet the immediate humanitarian needs of vulnerable populations in the face of widespread violence and human rights abuse

• supplying 67 000 tonnes of Australian wheat to vulnerable populations in Bangladesh following the chronic floods in July 2004

• supporting the United Nations Joint Logistics Centre and the United Nations Humanitarian Air Services to develop and maintain a strong humanitarian coordination and logistical capacity for the international humanitarian community. This will ensure its ability to respond to natural disasters and complex emergencies

• providing timely food, shelter, water and sanitation to communities affected by hurricanes Ivan and Jeanne in the Caribbean

• enhancing the capacity of the Pacific to respond to natural disasters by supporting training and development for United Nations Disaster Assessment and Coordination members from the Pacific region

• providing $350 000 to assist with emergency relief efforts in Iran following the earthquake in February 2005

• working collaboratively with New Zealand to repair substantial damage caused by cyclones Olaf and Nancy in the Cook Islands

• strengthening efforts to improve the effectiveness of humanitarian action in the Asia–Pacific region through support for the Humanitarian Accountability Partnership International and the Active Learning Network on Accountability and Performance.

Performance Global programs 95 Australia’s response to the Indian Ocean disaster

Immediately after the tsunami struck on 26 December 2004, the Australian Government activated its emergency response mechanisms and committed a total of $68 million for humanitarian assistance to Indonesia, Sri Lanka, the Maldives, Seychelles, Thailand and India. Australia’s tsunami response embraced government partners—Foreign Affairs and Trade, Defence, Finance, Health and Ageing, Prime Minister and Cabinet, Emergency Management Australia, as well as state government agencies, business entities and community groups.

By 30 June 2005, a total of $68 million in immediate humanitarian assistance had been spent. Additional reconstruction funds, including the $1 billion Australia–Indonesia Partnership for Reconstruction and Development, are progressively being committed against longer-term reconstruction priorities. Rebuilding countries impacted by the single biggest peace-time disaster will take time.

Australia’s assistance also drew on the flexible relationships Australia’s aid program maintains with implementing partners. Australian NGOs received just over $12 million to provide services, supplies and support to tsunami-affected communities, while $23.5 million was committed to the United Nations to support its vital role in providing relief and coordinating the international humanitarian action.

Australia’s well-targeted and timely humanitarian support focused on the urgent need for food, shelter, water and sanitation, medical assistance and the issues of public health, education and the environment. Australian efforts also helped coordinate the international humanitarian response in the field and military and civilian organisations through the deployment of AusAID staff and support to logistical Part of the AusAID emergency response program: an aid truck arrives at a camp near Mutur, Sri Lanka relief operations. Photo: Lorrie Graham

96 AUSAID Annual Report 2004–2005 Indonesia

Australia immediately committed funds to Indonesia for medical relief, water supply and sanitation, child protection and logistical support during the emergency phase of the humanitarian response. Seven civilian medical teams S SECTION 2 and critical medical supplies were mobilised to Northern Sumatra to provide E C urgent medical assistance. Water purification plants and water containers T I providing millions of litres of clean water were delivered to Banda Aceh to O N

prevent secondary loss of life. 2

Sri Lanka

Australia’s relief efforts to Sri Lanka focused predominantly on providing and distributing clean drinking water and medical relief. The Australian health team provided urgent medical relief and advised the national health authorities on immediate measures to avoid major outbreaks of infectious disease. Small grants were also provided to families affected by the disaster to help them buy crucial household necessities.

Maldives and Seychelles

Australia’s assistance to the Maldives and Seychelles included the mobilisation of two Australian environmental assessment teams to assess damage to the islands’ coral reefs and ecosystems. The teams recommended measures to strengthen the monitoring and protection of these economically and environmentally important assets.

AusAID is conducting an agency-wide evaluation of the relief effort to identify lessons learned and to improve the quality of Australia’s humanitarian response measures.

The devastation in Aceh Province, Indonesia after the Indian Ocean tsunami Photo: Robin Davies

Performance Global programs 97 Non-government organisations and volunteer programs

Summary of performance

Indicator Result 75 per cent of activities receive a NGO programs exceeded the performance quality rating of satisfactory overall or target in 2004–05 with more than 90 per higher; significant activity outputs within cent of activities receiving a satisfactory guiding themes. overall or higher rating. Significant outputs are highlighted below.

Non-government organisations (NGOs)

Australian NGOs play a valuable role in strengthening links between Australian and partner country communities and organisations. By working with effective NGOs, AusAID is able to achieve quality development outcomes and extend the reach of the aid program to communities with which Australian NGOs work. In 2004–05, the AusAID–NGO Cooperation Program (ANCP) provided $26.7 million to support Australian NGOs and to supplement funds provided by the Australian community.

ANCP funding is provided to accredited NGOs. AusAID’s accreditation process is considered international best practice and ensures the government is funding professional, well-managed, community-based organisations. In 2004–05, AusAID started cluster evaluations of NGO programs, focused on geographic regions and sectors, as part of an integrated approach to improving performance information. A cluster evaluation of NGO programs in Cambodia began in June 2005.

During the year, AusAID entered into two new NGO cooperation agreements for programs in Cambodia and the Palestinian territories bringing the total number of cooperation agreements with NGOs to seven. Cooperation agreements provide AusAID and NGOs with a framework within which selected NGOs can implement multi-year activities aligned with AusAID’s country program objectives.

AusAID continued to engage with Australian NGOs on development and performance issues through regular executive-level consultations, the Committee for Development Cooperation, and frequent dialogue with the Australian Council for International Development.

98 AUSAID Annual Report 2004–2005 Reporting on tsunami relief activities

As part of the Australia’s response to the Indian Ocean disaster, more than $13 million was provided to NGOs with a proven track record of working in emergency situations and established partnerships with affected communities. Joint reporting

processes were agreed between AusAID, five major NGOs and the Australian Council S SECTION 2 E

for International Development to ensure transparency and accountability in managing C tsunami-related aid. AusAID’s first quarterly report for the period up to 15 April 2005 T I set out Australia’s achievements in the immediate aftermath of the disaster and how O N

the original commitment of $60 million in emergency relief funds were allocated during 2 this period. The agency continues to work with NGOs to provide regular feedback on how tsunami aid funds are being used.

First report on Australia’s response to the Indian Ocean tsunami. Front Row (L to R): Mr Robert Tickner, Secretary General of Australian Red Cross; Mr Bruce Billson, Parliamentary Secretary for Foreign Affairs and Trade; Mr Alexander Downer, Minister for Foreign Affairs; Mr Paul O’Callaghan, Executive Director, Australian Council for International Development. Back Row (L to R): Mr Jack de Groot, National Director, Caritas Australia; Mr Andrew Hewett, Executive Director, Oxfam Australia; Mr Tim Costello, Chief Executive Officer, World Vision Australia; Dr Robert Glasser, Chief Executive Officer, CARE Australia Photo: AusAID

Performance Global programs 99 Volunteer programs

In 2004–05, a total of $19.2 million was provided to support the placement of volunteers overseas, $8.0 million of which went to the Australian Youth Ambassadors for Development program.

The volunteer program aims to improve the quality and development impact of overseas volunteers supported by the government. AusAID’s new overseas volunteer policy, Volunteers and Australian development cooperation, provides a framework for building capacity at the individual, organisational and community levels, and promotes community participation and enhanced partnerships. The policy also aligns volunteer and aid program priorities.

To maximise quality volunteer placements, AusAID tendered for a number of volunteer service providers to administer volunteer programs. Volunteer service providers deliver diversified development partnerships as well as opportunities for Australians to volunteer overseas either on short or long-term assignments. The volunteers’ role as a quality aid mechanism is assessed through robust monitoring and evaluation at placement, program and management levels.

Australian volunteers work in a wide range of sectors. They are making tangible contributions to the fight against the HIV/AIDS epidemic at the policy and grassroots level, building the capacity of, and partnerships with, individuals, organisations and communities. More than 35 volunteers funded through the aid program are currently working on HIV/AIDS initiatives in PNG, Fiji, Kiribati, Sri Lanka, Thailand, Vietnam, Bangladesh, Cambodia, Indonesia, Swaziland, Malawi and South Africa.

Key achievements by NGOs and volunteer programs included:

• placing a total of 625 Australian volunteers, including 259 youth ambassadors, in overseas development assignments

• training more than 88 000 people in basic literacy and numeracy

• installing safe and reliable water and sanitation facilities to benefit more than 10 000 families

• providing more than 20 000 people with training in preventing sexually transmitted diseases and HIV/AIDS

• conducting disaster preparedness programs in nine Pacific countries.

100 AUSAID Annual Report 2004–2005 Australian Youth Ambassadors for Development program expands

The Australian Prime Minister announced in August 2004 an additional $24.5 million for the Australian Youth Ambassadors for Development program over the next four years. S SECTION 2 E C T

This innovative program funds talented and highly skilled young Australians I to undertake short-term assignments in developing countries in Asia and the O N

Pacific. It facilitates partnerships between Australian organisations and those 2 in partner countries and includes participation from the Australian business, education, community and government sectors.

Youth ambassadors exchange skills and knowledge with local counterparts to strengthen the capacity of overseas partner organisations. They have the opportunity to forge friendships and associations, which in turn strengthen the people-to-people links so important to cultural understanding and good foreign relations.

In 2004–05, funding for the program increased to $8.0 million, enabling the placement of 259 youth ambassadors in 17 countries in the Asia–Pacific region. By 2006, the number of placements will increase to about 400. Since its inception in 1998, the program has funded 1258 youth Volunteer coordinator Florence with patient Appolonia and ambassadors in 20 partner Australian Youth Ambassador Karen Borschmann at Senta Bilong Helpim, PNG countries in the region. Photo: Rocky Roe

Performance Global programs 101 Information, education and communication programs

Summary of performance

Indicator Result Effective programs which ensure the aid The communication, education and information program remains identifiably Australian, program effectively emphasised the supports the government’s communication on Australian identity of Australia’s with the parliament and community, and assistance and supported the government’s enhances community understanding of the aid communications with relevant aid aid program. program stakeholders. Significant activity outputs in key result areas: More than 15 000 primary, secondary and student teachers participated in development — number of teachers participating in education training. development education training More than 30 000 curriculum documents were — number of curriculum documents distributed during the year, an increase of purchased by target groups 22 000 on last year. — average monthly number of hits on the The program achieved significant growth internet site. to the AusAID website with a total of 1.46 million visits for the year, an increase of 44 per cent over the previous year.

AusAID’s information, education and communication programs aim to increase public awareness of, and support for, Australia’s overseas aid program among rural, regional and metropolitan audiences. In 2004–05, AusAID placed particular emphasis on high-quality interactive information displays and high-visibility media coverage. Special attention was given to the role played by Australians in response to the Indian Ocean tsunami and to Australia’s commitment to meeting the challenge of HIV/AIDS in the Asia–Pacific region.

The programs delivered results in five key public information areas: media, community engagement, global education, internet and publications.

Media

AusAID supported the Minister for Foreign Affairs and the Parliamentary Secretary for Foreign Affairs and Trade in communicating aid program initiatives to the Australian community and people in partner countries. In Australia, the agency issued 111 media releases and assisted with 26 speeches. In partner countries, AusAID issued 329 media releases and assisted with or presented 274 speeches.

102 AUSAID Annual Report 2004–2005 Australia’s response to the Indian Ocean disaster was promoted through media visits to Indonesia, the Maldives and Sri Lanka. Visits were also undertaken in Nias to promote Australia’s response to the earthquake, and Bali for the opening of the Australia Memorial Centre at Sanglah Hospital. During the year, AusAID worked with The Footy Show to raise awareness of HIV/AIDS and highlight AusAID’s work to combat the disease in PNG. S SECTION 2 E C

Support was provided to a parliamentary delegation that visited Indonesia in June T I 2005. Significant support was also provided to whole-of-government initiatives with O N

media releases, speeches, broadcast quality footage and public relations specialists. 2

Community engagement

AusAID continued to engage with the Australian community through 21 activities with a combined audience of 2.85 million people across rural, regional and metropolitan Australia.

An interactive display highlighting Australia’s response to the Indian Ocean disaster was launched at the Sydney Royal Easter Show in April 2005. The display detailed Australia’s achievements and how emergency relief funds were allocated.

The positive.negative HIV/AIDS photographic exhibition began a two-year nation wide tour of rural and regional Australia in August 2004, visiting 28 towns in three states with an estimated audience of 22 000 by the end of June 2005. The exhibition was also displayed in Qantas Club lounges in Sydney, Melbourne and Brisbane where there are an average 4000 visitors a day.

Other major activities included support to 17 International Women’s Day events around Australia, reaching more than 4000 women, participation in the Burnet Institute World AIDS Day concert held in Federation Square in Melbourne, and representation at the second Asia–Pacific Ministerial Meeting on HIV/AIDS in Bangkok.

Through the Certificate of Appreciation Program, AusAID assisted 141 Members of Parliament to present certificates to 830 volunteers in recognition of their overseas development work.

Global education

In 2004–05, AusAID helped train more than 15 000 primary, secondary and student teachers across Australia in development education. New curriculum materials were developed and more than 30 000 curriculum documents were distributed. The global education website was also popular with 126 908 visits up to May 2005. Electronic publications included 20 global issues topics, 27 country profiles, 31 case studies and 103 teaching activities.

Performance Global programs 103 Internet

The AusAID website attracted more than 1.46 million visitors for the year, an increase of 44 per cent over 2003–04.

A new website design was developed to provide easier access to information for visitors and to better reflect the new strategic direction of the agency. The site’s hot topics section provided up-to-date information on Australia’s responses to the Indian Ocean tsunami, the earthquake in Indonesia and the humanitarian crisis in Sudan. New information resources were also added including AusAID commissioned research reports and information on AusAID’s country programs.

AusAID responded to more than 4000 public requests for information through the website, while about 100 000 downloads of AusAID publications were recorded each month. Further information on AusAID’s website is provided in appendix F.

Publications

Focus, AusAID’s flagship publication, appeals to a wide range of audiences. Four editions of Focus were produced and distributed to individual subscribers, professional waiting rooms and reception areas around Australia. Focus was also widely distributed to rural, regional and metropolitan audiences through community engagement activities. Subscriptions increased by seven per cent and now stand at more than 21 000. The magazine highlights how Australia is working through development assistance to make a difference in the region. Themes included democratic transition in Indonesia, women’s worth (gender), the Indian Ocean disaster special edition and fragile states.

All publications were made available on AusAID’s website. AusAID responded to 802 requests for hard copy publications, a 22 per cent increase over last year. Further information on publications is at appendix E.

Mr Phil Hollins at the AusAID tsunami display at the Sydney Royal Easter Show, March 2005 Photo: Simon Kaldy

104 AUSAID Annual Report 2004–2005 Cross regional programs

Human Rights Fund

AusAID’s $1.4 million Human Rights Fund contributes to the promotion and protection S SECTION 2 of human rights through practical initiatives to reduce poverty, promote improved E C governance and strengthen democratic processes. The fund complements activities T I delivered through AusAID’s bilateral, regional and NGO programs. In 2004–05, O N

targeted funding was provided for: 2 • 10 small grants supporting grassroots organisations in the Asia–Pacific region such as women’s organisations in Solomon Islands and Tonga that provided non- party specific support to women candidates in national elections

• the Office of the United Nations High Commissioner for Human Rights for its national institutions project and to establish a sub-regional presence in Suva

• publishing the outcomes of the Human Rights and Good Governance Seminar held by the United Nations Development Programme in Seoul in September 2004

• the Asia Pacific Forum of National Human Rights Institutions to hold consultations with government and civil society representatives in the Pacific, conduct its ninth annual meeting in Seoul, and provide a range of advisory and training services to its developing country members

• a representative from Solomon Islands to attend the United Nations Commission on Human Rights meeting in April 2005 to present recent experiences in Solomon Islands. Australia also co-hosted a side event at the meeting on practical approaches to good governance and human rights.

Centre for Democratic Institutions

In 2004–05, the aid program provided $800 000 to the Centre for Democratic Institutions based at the Australian National University. The centre provides short intensive training courses to improve governance processes, particularly in Melanesian countries, Indonesia and East Timor. Key achievements during the year included:

• completing a total of 1871 training days, including 18 projects and 458 participants

• conducting workshops on good governance and corruption prevention in Solomon Islands

• participating in a United Nations Development Programme regional workshop for Pacific island countries on strengthening parliamentary democracy

• conducting a political governance forum for newly elected members of parliament in Vanuatu.

Performance Global programs 105 AusAID development research program

AusAID supported focused, practical and high quality research with funding totalling $900 000 in 2004–05 through the development research program.

Research partnerships were established with a number of research centres of excellence on topics of strategic importance to Australia’s aid program. A partnership with the United Nations University’s World Institute for Development Economics Research allowed greater economic expertise to focus on the development challenges faced by fragile states in the region. The Australian Water Research Facility partnership helped strengthen the quality and impact of integrated water resource management approaches. The program also provided funding to RMIT University to study the impact of foreign aid in Melanesia.

Scholarship programs

Australian development scholarships

Australian development scholarships play a critical role in Australia’s aid relationships with partner countries. As of March 2005, there were 2476 scholarship students in Australia, 80 per cent of whom were enrolled in postgraduate courses. One-third of students were studying governance-related fields in line with Australian and partner government program priorities. Gender balance was achieved. About 1000 students from 37 countries, primarily in the Asia–Pacific region, commenced scholarships in Australia, while about 900 students successfully completed their studies and returned home where their skills will contribute to the development efforts of their countries.

The scholarship information management online system was launched in February 2005 to deliver a more streamlined and efficient approach to managing Australian development scholarships.

Five scholars undertook a three week leadership program during August 2004 as Commonwealth Youth Leadership Award recipients. The award offers opportunities to young postgraduate students from eligible Asian and Pacific Commonwealth countries to prepare for leadership roles in their home country.

A review of Australian development scholarships management commenced in late 2004 to examine future directions of the scheme and to ensure that scholarships remain relevant to the changing needs and priorities of Australia and partner countries.

Australian regional development scholarships

The Australian regional development scholarship program helps meet the human resource development needs of Pacific island countries. In 2004–05, 649 students were studying post-secondary degrees at education institutions located within the Pacific including governance, banking and finance, law, resource management, policy studies, marine science, environment, engineering technology and medicine.

106 AUSAID Annual Report 2004–2005 Virtual Colombo Plan

A joint initiative between the Australian Government and the World Bank, the Virtual Colombo Plan aims to reduce poverty and increase development outcomes through greater use of electronic information and communication technologies. The Australian S SECTION 2

Government has committed $200 million to the initiative between 2001–06. E C T

The new Australian Development Gateway website was launched in November 2004 to I promote knowledge sharing between development professionals. The new site provides O N a wider range of information resources and interactive features. Since its launch, 2 monthly visitors have increased by 43 per cent, information resources by 53 per cent, and registrations of individuals and organisations by 84 per cent.

Other key achievements included:

• commencing a study on the potential for pooling regulatory resources and harmonising policies for telecommunications in the Pacific region

• supporting the establishment of a distance learning centre in Ho Chi Minh City as part of the World Bank's Global Development Learning Network

• using the Global Development Learning Network to hold a series of high-level consultations with Pacific island countries to enhance regional cooperation in areas of public–private partnerships, aviation and telecommunications regulation.

Performance Global programs 107 Output 1.1—Policy

Summary of performance

Indicator Result Ministerial/Parliamentary Secretary General satisfaction. satisfaction. Number of submissions, briefs, questions AusAID provided 327 submissions and on notice, possible parliamentary questions, 121 briefs. It assisted with or presented submissions to parliamentary committees, 26 speeches in Australia and 274 speeches correspondence, press releases and in partner countries. AusAID responded to speeches. 84 parliamentary questions on notice and 23 questions taken on notice in the course Number of program strategies prepared of five parliamentary inquiries. AusAID or reviewed. prepared 111 media releases in Australia and 329 media releases in partner countries. 2012 items of ministerial correspondence were received. More than 25 responses to possible parliamentary questions were current for each parliamentary sitting period. AusAID prepared four new country and regional program strategies, three global program strategies, and reviewed four existing strategies. Within programs, three major sector strategies were prepared.

Providing policy advice and support to the Minister for Foreign Affairs and Parliamentary Secretary for Foreign Affairs and Trade on development issues is a key function of AusAID. Key policies published during the year included:

• Australian aid: an integrated approach. Thirteenth annual statement to parliament on Australia's aid program—outlines the policy, program and partnership priorities for Australia’s aid program aimed at strengthening political governance, stimulating broad-based economic growth, and addressing constraints to development, particularly for fragile states

• Humanitarian action policy—articulates the donorship principles and cutting-edge practice to guide Australia’s response to emerging humanitarian needs

• Meeting the challenge: Australia's international HIV/AIDS strategy—outlines Australia’s international response to the spread of HIV/AIDS

• Safe water guide for the Australian aid program 2005: a framework and guidance for managing water quality—provides an overview of the approach adopted by AusAID for managing water quality

108 AUSAID Annual Report 2004–2005 • Volunteers and Australian development cooperation—provides a framework for supporting volunteers placed overseas to build capacity and promote community participation and enhanced partnerships.

In 2004–05, AusAID prepared new strategies for Australia’s development cooperation

with China, Vanuatu and the Pacific, and for Asia regional programs. AusAID also S SECTION 2 E

reviewed four existing country program strategies. Within programs, major sector C strategies were prepared in areas including HIV/AIDS and law and justice. T I O N

Ministerial/Parliamentary Secretary satisfaction 2

The Minister for Foreign Affairs expressed general satisfaction with the agency’s performance during the year in meetings with AusAID senior executives and staff and in comments on written submissions. The agency responded flexibly and in a timely manner with policy advice on the development aspects of broader foreign policy issues. In particular, The Minister commented favourably on:

• the agency’s coordination of Australia’s response to the Indian Ocean tsunami and earthquake in Indonesia, including the swift delivery of much-needed emergency aid in the immediate aftermath. AusAID was presented with MTV Australia’s Free Your Mind award, designed to raise awareness of key social issues, to honour the efforts of Australian aid workers

• the formation and management of the Australia–Indonesia Partnership for Reconstruction and Development (AIPRD)

• the development of the White Paper, which will outline a medium-term strategic blueprint for the aid program in the region

• Australia’s regional response to HIV/AIDS, particularly the strengthened ties with international and regional organisations combating the disease in our region

• the delivery of effective reconstruction assistance to such challenging environments as Iraq and Afghanistan.

The Parliamentary Secretary for Foreign Affairs and Trade was also satisfied with the quality of advice and briefings provided by the agency.

In addition to providing policy advice and support to the Minister and Parliamentary Secretary, the agency responded to correspondence on a range of issues, including the Indian Ocean disaster and Australia’s response to other humanitarian and emergency crises overseas, especially in Africa and Sri Lanka, support for the Global Fund, debt forgiveness for developing countries, the Millennium Development Goals, and the overall level of funding for the aid budget. The level of correspondence received in 2004–05 increased by 66 per cent over the previous year.

More than 70 staff attended various training courses in ministerial and parliamentary services, including preparing ministerial submissions, correspondence and possible parliamentary questions, as well as managing requests for information under the Freedom of Information Act and Privacy Act.

Performance Output 1.1—Policy 109 Representation at international forums and involvement with other government departments

The Director General attended a range of high-level meetings during the year including the Tidewater Meeting of Donors in Sweden, the World Bank Consultative Group on Indonesia Infrastructure Summit, and two OECD Development Assistance Committee (DAC) meetings in Paris: the annual high-level meeting and the DAC review of Australia’s aid program.

Other significant international forums where AusAID was represented included the second Asia–Pacific Ministerial Meeting on HIV/AIDS in Bangkok, Senior Level Forum on Development Effectiveness in Fragile States, Paris High Level Forum on Harmonisation and Aid Effectiveness, Pacific Islands Forum, World Conference on Disaster Reduction in Kobe, Japan, ASEAN–Australia Forum and APEC Ministerial Meeting.

AusAID engaged with other Australian Government departments at the policy level during the year. Besides working in close partnership at the broad policy level with the Department of Foreign Affairs and Trade and the Department of Prime Minister and Cabinet on many aspects of Australian development assistance, AusAID worked closely with:

• both the Department of Health and Ageing and the Department of Agriculture, Fisheries and Forestry to develop and implement a policy on managing Avian Influenza and other zoonotic diseases in East Asia

• the Department of Transport and Regional Services on aviation and maritime security in PNG

• the Treasury and Department of Finance and Administration on policy relating to public finance management in PNG

• the Department of Health and Ageing on HIV/AIDS related issues including closer engagement on policy issues pertaining to the cross-border region of Australia and PNG

• the Treasury, Department of Finance and Administration, the Australian Defence Force, the Australian Federal Police and the Attorney-General's Department on developing and implementing policy on Australia's engagement in the Pacific, particularly Solomon Islands, Nauru and Vanuatu

• the Australian Electoral Commission to develop policy on electoral reform in PNG

• the whole-of-government Philippines Policy Forum to discuss Australian priorities for action in the Philippines

• an interdepartmental committee on corruption led by the Attorney-General's Department

• the Australian Federal Police and the Australian Defence Force to forge stronger links when engaging in conflict and unstable conditions such as Afghanistan and Iraq.

110 AUSAID Annual Report 2004–2005 Strategic partnership agreements with other government departments

While AusAID is the government agency responsible for managing and delivering S SECTION 2

Australia’s aid program, the agency recognises the benefits of drawing upon the E C

skills and expertise of a wide range of Australian Government agencies to meet T I

the region’s development challenges. To this end, the agency has established O formal strategic partnerships agreements with key government partners to N ensure the effectiveness and coordination of joint initiatives. 2

In 2004–05, agreements were established with the Australian Federal Police, the Attorney-General’s Department, the Department of Finance and Administration, the Australian Public Service Commission and the Department of Health and Ageing. These build on the existing partnerships with the Treasury and the Department of Agriculture, Fisheries and Forestry.

Agreements identify the shared strategic priorities for each agency and recognise the individual skills and strengths each brings to the partnership. They formalise arrangements to ensure that AusAID and its partners work together in a cohesive and practical way, at both the strategic and operational levels, to maximise the effectiveness of Australia’s international development efforts.

A combined patrol of police from Australia and Solomon Islands on duty in Honiara Photo: Rick Rycroft/AP

Performance Output 1.1—Policy 111 Output 1.2—Program management

Summary of performance

Indicator Result All major programs carried out in All major programs were carried out in partnership with key stakeholders. partnership with key stakeholders, including partner governments, other donors, the Australian community and other Australian Government agencies. Continuous improvement of tools and AusAID developed new corporate guidance on processes to ensure management of innovative forms of aid. a high quality program that reflects The simplified monitoring toolbox was adopted government priorities. to improve the efficiency and effectiveness of AusAID’s performance information system. Case studies on aid delivery continued to be added to AusAID’s Knowledge Warehouse. Other Australian Government partner agencies became increasingly involved in AusAID’s peer review processes. Continuous improvement in contracting AusAID continued to enhance and update its processes and capabilities, number of contracting processes and practices to ensure contracts terminated or subject to litigation compliance with Australian Government policies or serious disputation. and legislation, support improved contract management and outcomes for the aid program, and promote opportunities for and relationships with businesses in Australia and overseas. The level of litigation and serious contract disputes remained very low relative to the total quantity of contracts managed. Number of activities and number of 1386 new contracts and agreements were new contracts signed and ongoing entered into with a total value of approximately contracts managed. $821.5 million. At 30 June 2005, AusAID was managing approximately 2000 contracts and agreements with a total value of around $3.4 billion.

112 AUSAID Annual Report 2004–2005 Partnerships for development

In March 2005, Australia, together with more than 100 other donors and developing countries, committed to implementing the 2005 Paris Declaration on Aid Effectiveness. The declaration emphasises the importance of harmonisation, alignment and partner S SECTION 2

country ownership to achieving effective development outcomes. Harmonisation of E donor activities reduces duplication and inefficiency and eases the burden on partner C T countries. The alignment of aid activities between donor and partner government I O systems decreases the demand on the often scarce resources required to manage N

and coordinate aid. 2

Partner governments

Australia’s aid program is guided by the needs and priorities of our partner countries. Assistance is increasingly aligned with partner government processes and systems such as national planning frameworks or development plans including poverty reduction strategies. Where appropriate, AusAID is delivering aid through a range of programming approaches such as partner country sector-wide or thematic-based programs instead of stand-alone projects. Alignment of aid activities develops the capacities of partner countries and promotes ownership of development strategies and policies.

Partnerships with other donors and international organisations

Australia’s harmonisation efforts are most advanced in the Pacific. Greater harmonisation, particularly with the New Zealand aid program, was achieved through a co-financed trust fund in Niue, trilateral annual aid consultations in Samoa, Pacific regional scholarship programs and the delegated cooperation program with the Cook Islands. All donor activities in Vietnam use a monitoring and evaluation system that Australia helped to design. Further harmonisation and alignment is also being pursued in the aid program to Africa, and in the agriculture and water sectors in Cambodia.

The aid program continued to strengthen relations with other donors and international and regional organisations. AusAID pursued regular high-level policy consultations with key donor partners. Key achievements included:

• conducting high-level discussions with New Zealand, Japan, European Union, United States of America, United Kingdom, Asian Development Bank and the World Bank

• supporting staff secondments, including with the Secretariat of the Pacific Community, the United Kingdom’s Department for International Development, World Food Programme, Asian Development Bank and the World Bank

• supporting an Asia–Pacific regional workshop on harmonisation and alignment in Bangkok

Performance Output 1.2—Program management 113 • instituting a quarterly high-level harmonisation dialogue between the European Union and Australia on development cooperation in the Pacific

• engaging strategically with the OECD’s Development Assistance Committee work program.

OECD review of Australia’s aid program

The OECD routinely reviews its members’ aid programs to monitor international aid policies and programs, assess aid effectiveness, identify best practice and foster coordination in the donor community. The policies and practices of each member are examined critically by a team comprising fellow Development Assistance Committee (DAC) members and representatives from the DAC Secretariat. In 2004–05, Australia was reviewed by the United Kingdom and Ireland.

The review commended Australia for making significant advances since the last review in 1999 in adapting to the new challenges faced by the Asia–Pacific region. It recognised Australia’s leading role, particularly on issues such as HIV/AIDS, approaches to fragile states, conflict resolution and peace building. The review acknowledged that Australia’s geographic location provided particular challenges in terms of the number and proximity of countries afflicted by poverty, weak governance and political instability.

Australia’s hands-on approach and long-term commitment to helping fragile states to improve governance and ensure the stability and security necessary for economic growth and poverty reduction was welcomed. The review highlighted this as an area where Australia had significant experience to share with other donors, particularly the whole-of-government approaches to Papua New Guinea and Solomon Islands. The review also supported Australia’s significant financial and other commitments in the region.

The coherence between Australia’s aid and trade policies was acknowledged, as was its excellent record in providing rapid support for the victims of humanitarian crises, both within our region and globally. In particular, the DAC commended Australia’s new policy on humanitarian action and its commitment to the Principles and Good Practice of Humanitarian Donorship. On aid effectiveness, the review recognised efforts to untie aid, harmonise support with other donors and align aid activities with partner government systems.

The review urged Australia to articulate more strongly its approach to development and recommended that AusAID continue to play a proactive role in wider government decision-making on development issues. It also recommended that AusAID continue to invest in development education in order to foster a better informed public debate on international development issues.

114 AUSAID Annual Report 2004–2005 Australian Government partners

The aid program is fostering stronger institutional linkages between Australian Government agencies and their counterparts in the Asia–Pacific region. In 2004–05, the agency worked with a number of government agencies including the Treasury, S SECTION 2

Department of Finance and Administration, the Australian Federal Police, Attorney E General’s Department, Customs, the Australian Defence Force, the Australian Electoral C T

Commission, the Australian Public Service Commission, Department of Health and I O

Ageing, Department of Agriculture, Fisheries and Forestry and Emergency Management N

Australia. Key areas of collaboration included: 2

• responding to the Indian Ocean tsunami and other humanitarian crises

• supporting governance initiatives across the region

• combating the spread of HIV/AIDS and communicable zoonotic diseases in East Asia

• helping partner countries to access the benefits of trade and investment

• supporting conflict prevention and peace building initiatives.

Australian community partners

The aid program is an important link between Australian community organisations and the people of developing countries. Australia’s non-government organisation (NGO) sector is critical to delivering Australian aid as well as the key vehicle through which many Australians interact with the developing world.

During 2004–05, AusAID entered into new cooperation agreements with Australian NGOs for the implementation of programs in Cambodia and the Palestinian territories. Cooperation agreements enable AusAID to engage with Australian NGOs and their partners to provide longer-term support targeted at achieving specific AusAID country program outcomes, particularly at community level, within an accountable and contestable framework.

Australian and international industry partners

AusAID continues to enjoy a sound working relationship with Australian industry while strengthening its engagement with international contractors. As providers of expertise in identifying, designing and implementing aid activities, AusAID values Australian and international industry very highly. The agency communicates regularly with industry via the ConsultNet email bulletin system and AusAID’s business website, and incorporates industry feedback in its continual improvement of tender and contract procedures and documentation. It also holds forums on tendering and contract management issues with industry representatives, and regularly briefs relevant stakeholders on major tendering opportunities.

Performance Output 1.2—Program management 115 Improving program management

Evaluating systems and programs

Thirteen evaluation and review studies were begun or completed during the year by AusAID’s Office of Review and Evaluation.

The Quality at entry review 2004 was a rapid desk assessment of the quality of 16 innovative aid activities approved for implementation. It examined program approaches, facilities, whole-of-government approaches and co-financing activities (see box on page 118 for more information and key findings).

A number of HIV/AIDS activities were assessed to better inform the implementation of Australia’s international HIV/AIDS strategy. This included an evaluation of the PNG National HIV/AIDS Support Project and a review of management and implementation models for AusAID’s major HIV/AIDS projects which commenced towards the end of the financial year.

Support was also provided for an impact evaluation of the Thailand–Australia HIV/AIDS Ambulatory Care Project, which was previously evaluated towards its completion in 2001. The 2004 evaluation assessed whether benefits were still evident three years later. It found that activities were successful and continue to provide benefits for Thai people. Systems developed as a result of the project were largely intact, often being modified, improved and built upon in response to changing circumstances.

The report, Capacity building in public finance: an evaluation of activities in the South Pacific, was published during the year and assessed the performance and methods of five activities in three Pacific Island countries (see box on page 119 for more information and key findings).

AusAID provided financial assistance for a joint evaluation of general budget support by a core group of DAC member countries. The final report is expected to be released in 2006. Under the auspices of the DAC Network on Development Evaluation, Australia took the lead with Denmark to develop standards for evaluations. Agreement on a set of standards is expected in 2005–06 and will facilitate joint evaluations by donors and partner governments.

Improving systems and processes for aid management

The simplified monitoring toolbox (SMT) was adopted in November 2004 after an extensive process of trial, review and evaluation. The SMT is a routine monitoring and reporting tool designed to improve the efficiency and effectiveness of AusAID’s performance information system. There has been a gradual transition process, with approximately one third of all AusAID activities now using the SMT as a component of broader monitoring and evaluation frameworks. The toolbox is being expanded to accommodate the specific demands of new approaches to aid delivery.

116 AUSAID Annual Report 2004–2005 In 2004–05, AusAID developed new corporate guidance on innovative forms of aid. These involve flexible, rather than fixed, work programs and the integration of Australian aid activities and aid funds into the systems and programs of developing country governments. New written guidance was made available to staff and will be incorporated in AusGuide, AusAID’s central reference manual for the development and delivery of high quality aid initiatives. S SECTION 2 E C

Case studies on a range of aid delivery topics continue to be added to AusAID’s T I Knowledge Warehouse—an IT-based system for presenting key documents to all O N

AusAID staff. The system now contains more than 700 documents in nine categories, 2 and enables staff to quickly search and access information that is directly related to quality improvement of aid activities. Many of these documents can also be accessed through AusAID’s website.

A draft framework for integrating accreditation, performance information and aid effectiveness was developed for activities undertaken through the AusAID–NGO Cooperation Program (ANCP). In 2004–05, there was an increased focus on improving performance information for NGO programs, and more specifically ANCP. As part of this work, AusAID conducted a series of cluster evaluations of NGO programs. A Cambodian cluster evaluation commenced in June 2005 which will explore the implementation integrity of the aid activities, the impact of those activities against their stated objectives and review the NGO self-assessment in light of data generated by the evaluation.

Performance Output 1.2—Program management 117 Quality at entry review

The Quality at entry review 2004 used rapid desk assessment techniques as its methodology. Panel members followed a standard questionnaire and made professional judgements about the quality of key activity documents and design processes. The judgements were then tested through systematic panel discussions and supplemented by interviews with key activity personnel, including those from outside AusAID. Types of activities reviewed were:

• programmatic approaches—a collection of activities that are progressively identified and implemented over a longer period than the three to five years that typify stand-alone projects

• facilities—flexible funding mechanisms used to support small-scale technical assistance initiatives

• whole-of-government approaches—activities involving other Australian Government agencies

• co-financing—funding arrangements whereby aid agencies join together to fund activities.

Key findings included:

• of the 16 activities reviewed, nine (or 56 per cent) had a quality at entry rating of satisfactory or better. The sample was large enough to be representative of the wider program

• nine of 12 (or 75 per cent) AusAID-designed activities rated satisfactory or better. This excludes the four co-financed activities designed by other multilateral agencies

• in general, activities were either consistently strong or consistently weak across the seven indicators of quality at entry

• for each indicator, analysis of the common strengths and weaknesses across the 16 activities showed significant parallels with earlier reviews, suggesting that implementation of previous quality improvement recommendations has been uneven.

118 AUSAID Annual Report 2004–2005 Capacity building in public finance in the Pacific

The report, Capacity building in public finance: an evaluation of activities in the South Pacific, was published in September 2004. The evaluation had two objectives: to assess the relevance, efficiency, effectiveness, impact and S SECTION 2 E sustainability of five financial management capacity building activities in Samoa, C T

Tonga and Vanuatu; and to identify effective methods to build capacity in the I O

public finance sector in Pacific island countries. N

2 Key findings included:

• four of the five activities were rated as satisfactory overall or better. The factors most affecting sustainability and impact were the effectiveness of management and the availability of suitable counterparts

• project management was professional for all five activities. The greater the partner agency involvement in activity management, the more closely the project was linked to organisational objectives. All projects benefited from regular oversight visits by independent technical advisory groups or program monitoring groups

• on-the-job training was the most effective mode of capacity building and was well regarded by senior managers and project teams in all three countries. This was especially the case where training needs were determined in a participatory process with the partner agency, and adult education principles were applied to subsequent training

• manuals were found to be useful as both reference sources and for operational learning, but only if they were simple, developed using participatory methods and available early enough in the project’s life to support training

• collocation of advisers and counterparts built rapport and established an adviser’s operational credibility. It helped advisers learn more about the working environment and the challenges facing their counterparts and encouraged advisers to provide continuous informal coaching.

The report is a valuable resource for Australian Government personnel and industry partners working on the development and implementation of aid activities in Papua New Guinea and the Pacific. Many of the lessons learned from the evaluation are equally applicable to non-finance capacity building initiatives.

Performance Output 1.2—Program management 119 Contract services

Contracts let and managed

A total of 1386 new contracts and agreements were entered into during the year with a value of approximately $821.5 million. AusAID let a larger number of smaller value contracts and agreements compared to last financial year, and the vast majority of new contracts were with small and medium-sized enterprises. At 30 June 2005, AusAID was managing approximately 2000 contracts and agreements, with a total value of approximately $3.4 billion.

Service orders issued under AusAID’s period offers made up 37 per cent of these new contracts and agreements. Period offers are panel agreements with individuals and organisations to provide short-term specialist advice and services on an as- needed basis for set fees. There are currently more than 271 agreements in place providing access to about 1033 contractors across 22 development sectors. Period offers enable the rapid deployment of a broad range of personnel with expertise for activities such as technical advisory groups, project design and sector studies, activity monitoring, evaluation and technical appraisal. An open tender process is used to assess personnel for technical quality and value for money. Period offer deeds normally have a three-year duration.

Details of AusAID contracts valued at more than $10 000 are published in the Commonwealth Gazette and, in accordance with the Senate Order for Departmental and Agency Contracts, all contracts let over $100 000 are listed twice a year on AusAID’s website.

Continuous improvement in contracting

AusAID continued to enhance and update its contracting processes and practices to ensure compliance with Australian Government policies and legislation, support improved contract management and outcomes for the aid program, and promote opportunities for and relationships with businesses in Australia and overseas.

Revised Commonwealth Procurement Guidelines

AusAID conducts all procurement in accordance with the guidelines and legislation that interacts with procurement. Revised guidelines came into effect on 1 January 2005 and AusAID updated its procurement policies and procedures to ensure compliance. The revised guidelines required three main changes:

• as of 1 July 2005, annual procurement plans are now published on the AusTender website, www.tenders.gov.au

120 AUSAID Annual Report 2004–2005 • a greater emphasis on competitive processes and non-discrimination

• mandatory procedures for most departmental procurements over a value threshold of $80 000 for non-construction procurements and $6 million for construction procurements. S SECTION 2

From 1 July 2005, the agency also elected to apply the mandatory procedures to aid E C

program procurements above a value threshold of $500 000 for non-construction T I

procurements and $6 million for construction procurements, with limited exceptions. O

This application offers suppliers a more consistent and equitable process aligned N to general government procurement requirements without representing a significant 2 change to existing practices.

Changes to AusAID eligibility criteria

Australia’s bilateral technical cooperation was untied to recipient country firms. As of 1 January 2005, AusAID adopted an in-principle policy of allowing recipient country firms to participate in tenders for implementation services contracts under the Australian bilateral technical assistance aid program in their country. There may be occasions where the nature of the activity requires AusAID to restrict tendering to Australian and New Zealand suppliers. Such activities will be clearly identified in the relevant request for tender issued by AusAID.

Specific eligibility criteria were also established for activities under the Australia– Indonesia Partnership for Reconstruction and Development (AIPRD). The Australian and Indonesian governments established the AIPRD in response to the devastation in Indonesia caused by the Indian Ocean tsunami. To engender a cooperative and genuine partnership between Australia and Indonesia, eligibility for AIPRD activities was limited to firms carrying on business in Australia and New Zealand, and firms carrying on business in Indonesia with majority local Indonesian ownership.

Staff training and development

Procurement documentation continued to be improved and refined during the year in response to the revised Commonwealth Procurement Guidelines and to enhance the consistent application of procurement policies and practices.

Following the devolution of activity management to in-country staff, extensive training and mentoring was provided to locally engaged staff to strengthen skill sets and communication with Canberra-based staff.

The capability of AusAID’s contracting staff was also strengthened with the successful pilot of a Certificate Level IV in Government (Procurement and Contracting), with the majority of participants also completing the Working in the Public Sector module.

Performance Output 1.2—Program management 121 Enhanced contractor performance system

AusAID’s contractor performance system, which includes rigorous annual assessments of the seven largest commercial contractors by value, continued to support quality contract outcomes. The system was enhanced with the implementation of the simplified monitoring toolbox (SMT)—an electronic tool partly designed to increase the quality of contractor performance assessments and availability of performance data. The SMT enables AusAID to provide constructive feedback to contractors and report performance information at a range of levels.

Contractor relations and feedback

The relationship between AusAID and industry remains strong. In 2004–05, AusAID hosted a forum with industry to discuss relevant development issues in an open and informative manner. Contractors to AusAID increased their engagement with other Australian Government agencies involved in the delivery of Australian aid. Six state seminars were also delivered across Australia on ways to access opportunities under the aid program. Contract policies and procedures were disseminated to industry through the Consultnet email bulletin system and the AusAID business website was also improved.

A complaint handling procedure was implemented for the conduct of, and outcomes from, agency procurement exercises. The procedure reflects AusAID’s desire to, where possible, manage and resolve all complaints internally through communication and conciliation with suppliers. The procedure is available on AusAID’s business website.

Business website updates

AusAID’s business website at www.ausaid.gov.au/business/ aims to promote opportunities under the aid program and contains information on current and future tenders as well as successful tenderers. Request for tender documentation can also be downloaded. Developments to the site during the year included:

• introducing a new two-way feedback loop into our relations with design consultants to improve the development effectiveness, acceptability and quality of designs

• developing an electronic lodgement tender system due for implementation in 2005–06

• including a link to AusAID’s annual procurement plan in accordance with the Commonwealth Procurement Guidelines.

122 AUSAID Annual Report 2004–2005 Output 2.1—Australia–Indonesia Partnership for Reconstruction and Development management S SECTION 2 E C T I Summary of performance O N

Indicator Result 2 All major programs carried out in partnership The joint management framework will ensure with relevant stakeholders: all activities are carried out in partnership. — program management tools and processes Management arrangements involve that ensure a high quality program officials from both countries in design and reflecting partnership priorities tender processes. — accountable, open and transparent Australian, Indonesian and New Zealand firms contracting and tendering processes. are eligible to bid for all activities.

This output was created during the year to cover AusAID’s management of the Australian Government’s $1 billion, five-year commitment to the Australia–Indonesia Partnership for Reconstruction and Development (AIPRD).

At the inaugural AIPRD Joint Commission meeting in March 2005, foreign and economic ministers from Australia and Indonesia agreed on the eight guiding principles that will inform the work undertaken through the partnership. Officials from both governments will develop a Partnership Framework to guide the process of identifying priority activities for funding under the AIPRD.

Australia’s commitment to the AIPRD includes $500 million in grant assistance which will be managed in accordance with the existing development cooperation agreement, and $500 million through a highly concessional loan program. Major funding proposals will be considered and endorsed by the Joint Commission.

By the end of 2004–05, more than $175 million of AIPRD grant funding had been allocated to activities across Indonesia. These included restoring health, education and local government services in Aceh, providing urgent rehabilitation assistance to other areas of Indonesia, improving disaster preparedness and response capabilities, and establishing a new Government Partnerships Fund.

Consistent with the guiding principles, activities will be jointly managed and implemented by the Australian and Indonesian governments and will be developed to complement Australia’s existing development cooperation program. Eligibility for AIPRD activities was limited to Australian, Indonesian and New Zealand firms to foster a cooperative and genuine partnership.

Performance Output 2.1—Australia–Indonesia partnership 123 FINANCIAL RESULTS

The Australian National Audit Office was unqualified in its opinion that AusAID’s 2004–05 financial statements are fairly stated and presented.

Departmental financial performance

AusAID’s departmental outcome for the year ended 30 June 2005 was an operating surplus of $4.9 million—a $3.8 million improvement on the previous financial year’s operating surplus.

Budget and additional Actuals Actuals estimates 2004–05 2003–04 2004–05 Departmental operating statement ($’000) ($’000) ($’000) Operating revenue Outcome 1 73 844 72 295 73 455 Operating revenue Outcome 2 1 632 0 1 632 Operating expense Outcome 1 69 006 71 212 73 455 Operating expense Outcome 2 1 491 0 1 632 Operating result 4 979 1 083 0

Cash reserves are reflected in cash on hand at 30 June as well as the appropriation receivable, totalling approximately $12.4 million. Cash reserves increased in 2004–05 as a result of the operating surplus and recognition in contributed equity of capital appropriation for the new activity management system (AidWorks). Capital funding projects consists of upgrades to the legacy software to increase efficiencies in aid delivery and implementation in 2005–06 of AidWorks.

Administered financial performance

Total overall administered expenses in 2004–05 were $2136.178 million, with 99.99 per cent of the agency’s regular appropriation for the aid program being expensed.

124 AUSAID Annual Report 2004–2005 Budget and additional Actuals Actuals estimates 2004–05 2003–04 2004–05 Administered expenses and liabilities ($’000) ($’000) ($’000) S SECTION 2

Outcome 1 2 127 494 1 305 263 2 127 816 E C

Outcome 2 8 684 – 1 000 830 T I Total expenses 2 136 178 1 305 263 3 128 646 O N

Total liabilities 1 440 489 931 026 1 419 870 2

Outcome 1—Australia’s national interest advanced by assistance to developing countries to reduce poverty and achieve sustainable development.

Administered expenses were $2127.494 million. Specific additional appropriation measures for Solomon Islands Regional Assistance Mission and Tsunami Emergency Relief were fully expensed.

The main difference between administered expense and cash flows (detailed in section 4) arises from recognition of multiyear commitments to multilateral development institutions which are expensed in the year the agreement is signed and discharged over following financial years. New multilateral replenishment agreements with the Asian Development Fund (ADF), the International Development Association (IDA) and IDA’s Heavily Indebted Poor Countries initiative (HIPC) were entered into in 2004–05 for $295.4 million, $389.2 million and $34.8 million respectively.

AusAID’s multilateral agreements are generally funded through Bill 1 appropriations. However, with the introduction of accrual accounting, existing multilateral agreements were recognised on the balance sheet via an adjustment to liabilities and owners equity. Annual funding for these existing replenishments has been met through cash injections from Bill 2 appropriations since 1 July 1999. In 2004–05, the replenishments below were sourced from the respective annual appropriation bills.

Bill 1—ADF 8 and 9, IDA 13 and 14, IFAD 5, GEF 3, MPMF 6 Bill 2—ADF 7, IFAD 4, IDA 11 and 12, GEF 1 and 2, Nauru settlement

Outcome 2—Australia’s national interest advanced by implementing a partnership between Australia and Indonesia for reconstruction and development.

Administered expenses were $8.684 million. The full appropriation of $1 billion for AIPRD together with directly related administrative costs was received through the portfolio supplementary additional estimates and has been credited to two special accounts—one for grants and one for loans.

Performance Financial results 125 AusAID representative Stephanie Doust talks to year 10 students at Majeediyya School in Male about the Australian team of teachers sent to the Maldives to assist schools affected by the Indian Ocean tsunami Photo: Will Salter

Nusa Tenggara Timur Primary Education Partnership: primary school on the island of Flores in NTT, Indonesia Photo: Jason Brown

126 AUSAID Annual Report 2004–2005 MANAGEMENT AND ACCOUNTABILITY

SECTION 3

Corporate governance External scrutiny Management of human resources Purchasing and assets Consultants and competitive tendering and contracting Service charter Corporate governance

Governance structures

Executive Committee

Bruce Davis Director General Annmaree O’Keeffe Deputy Director General—Policy and Global Programs Murray Proctor Deputy Director General—Asia and Corporate Resources Charles Tapp Senior Associate with responsibility for Papua New Guinea, Pacific and Partnerships

Audit Committee

The Audit Committee is key to AusAID’s corporate governance framework and helps the Director General meet his responsibilities to promote the effective, efficient and ethical use of Australian Government resources. The committee reviews, monitors and, where necessary, recommends improvements to AusAID’s internal controls and management performance systems. It also oversees ongoing development and implementation in risk management, fraud control, compliance and performance. The Audit Committee charter requires that its structure include a chairperson and four other members including an external member. The Australian National Audit Office attends in an observer capacity.

Sub-committees of the Executive

The Executive is informed by two sub-committees on key management issues:

• the People Management Advisory Group oversees people management issues to strengthen AusAID's culture of high performance and learning. It advises on integrating and aligning human resource issues with agency priorities and directions including initiatives associated with implementing AusAID's people management strategy

• the Information Management Advisory Group advises on implementing the agency's information management strategies, including the appropriateness of the internal electronic services system and coordination of the knowledge management information system.

128 AUSAID Annual Report 2004–2005 Aid Advisory Council

The Aid Advisory Council provides the Minister for Foreign Affairs and the Parliamentary Secretary for Foreign Affairs and Trade with independent, expert views on planning, positioning and delivering Australia’s aid program. The council helps ensure the aid program reflects the values of the wider Australian community and plays an important role in informing the aid program of new approaches to development.

Distinguished Australians from academia, the private sector, non-government organisations (NGOs) and community groups are members of the council. It is chaired by the Minister with the Parliamentary Secretary as deputy chair. In addition to ministerial meetings, the council meets with AusAID in seminar and workshop style sessions. Membership at 30 June 2005 is outlined in appendix I.

Topics covered by the council in 2004–05 included the development of the White

Paper on Australian aid, broad-based economic growth and development, particularly S SECTION 3 E

in East Asia, regional pandemics, the role of emerging donors in development, and C current issues and challenges facing donors in 2005. T I O N

Committee for Development Cooperation 3

The Committee for Development Cooperation is a joint AusAID–NGO advisory and consultative body made up of 12 members, six each from the NGO sector and AusAID. The committee meets three times a year to discuss policy relating to the accreditation of Australian NGOs, review the operations of the AusAID–NGO Cooperation Program and comment on the applications of NGOs seeking accreditation. In 2004–05, two new NGOs achieved accreditation status.

Governance processes

Review and evaluation functions

Increasing the availability of accurate and credible information on the outcomes and impact of Australian aid is the role of AusAID’s Office of Review and Evaluation. The office, which supports AusAID’s internal governance processes, also strives to make innovative approaches and tools available to AusAID personnel and partners who deliver Australia’s aid program. It seeks to maximise the use of AusAID’s knowledge and experience to improve the overall quality of aid programs, and disseminates Australian knowledge to help development in the region.

Management and accountability Corporate governance 129 Peer review

The peer review process is now an established quality enhancing tool within the agency. Peer reviews are held at the concept stage of an activity and during the appraisal of a draft design. The process is important for reducing implementation risks and in promoting greater development impact. Peer reviews also strengthen in-house expertise in selecting and designing activities which are critical to effective aid outcomes. An important quality assurance function of the Office of Review and Evaluation is to provide guidance on the conduct of peer reviews.

Governance stocktake and business planning

During 2004–05, a stocktake of governance processes was undertaken across the agency which found generally sound governance structures, systems and processes appropriate for a public sector governance environment. The agency’s financial management and stakeholder relations processes and the effectiveness of the Audit Committee were particularly strong.

The stocktake confirmed that the agency’s corporate strategic plan remained a sound and effective working document. Opportunities to strengthen AusAID’s business planning processes, and to better align them with the corporate strategic plan and performance planning and review processes, were also identified.

All branches within the agency developed business plans outlining key priorities, new directions, annual work programs, analytical agendas, risk management assessments and approaches to whole-of-government engagement.

In response to the stocktake findings, an enhanced business planning process was developed for implementation in 2005–06. Business plans will identify the purpose, role, functions, strategic context and key deliverables for individual business units, and detail the financial and human resources required to meet agreed outcomes. Improved documentation and reporting will inform decisions on resource allocation, program implementation and agenda setting.

Corporate strategic plan

AusAID’s corporate strategic plan, released in December 2001, remained the agency’s primary planning reference document during the year. The strategic plan aims to improve AusAID’s effectiveness within a rapidly changing and increasingly complex international environment and has three main objectives: to improve the quality of programs; to enhance policy and analytical capacity; and to improve people management and corporate systems.

130 AUSAID Annual Report 2004–2005 The plan was an invaluable tool during the year, which was characterised by unprecedented requirements for rapid and large-scale changes in direction for the agency. International and regional political developments and the enormous impact of the Indian Ocean tsunami prompted a review of the plan which identified three new areas of focus:

• an increased emphasis on the role that development cooperation plays in advancing the national interest, and a strengthened focus on effective whole-of-government engagement

• the imperative for the agency to explore and apply emerging best-practice on new forms of aid

• the importance of applying lessons learned from the agency’s two years of experience in strategic plan implementation, particularly in relation to devolution of activity management offshore. S SECTION 3 E

A new corporate strategic plan will be developed during 2005–06 to coincide with the C release of the White Paper on Australia’s aid program. T I O N

Performance review and internal audit 3

AusAID’s Performance Review and Audit Section facilitates effective, efficient and ethical management of the delivery of Australia’s aid program by providing assurance to senior management about the quality and adequacy of management performance and internal controls.

In 2004–05, the annual audit program focused on several key areas:

• compliance auditing of internal functions, commercial contractors and NGOs

• performance auditing of program administration

• updating risk and fraud management policies and procedures, including guidance on, and monitoring of, annual risk and fraud management plans

• upgrading audit systems, processes and procedures.

Sixteen major compliance audits were completed during the year by professional accounting firms under contract to AusAID and supported by internal audit personnel. In January 2005, a strategic alliance agreement was signed with a single accounting firm to provide audit, accountancy and business process services. This alliance is expected to improve service delivery to the internal audit function.

Performance audits of the North Asia and Samoa programs were carried out during the year resulting in recommendations for several improvements to AusAID’s management practices. Twelve core performance indicators are used to test the efficiency and effectiveness of key business processes and management practices.

Management and accountability Corporate governance 131 The Performance Review and Audit Section continued to undertake research and analysis and provide advice and guidance to business areas within AusAID on risk management, fraud control, compliance and performance.

Risk management and fraud control

AusAID’s risk and fraud management policies and procedures were updated and a revised fraud control policy and a new information brochure produced. Regular review and upgrading of systems, processes and procedures is undertaken to ensure AusAID compliance with the Commonwealth Fraud Control Guidelines (May 2002).

All AusAID programs are required to submit an annual risk and fraud management plan to report on major risks. Regional training workshops are held to support the implementation of these plans.

Ethics and values

AusAID continues to maintain high standards of conduct underpinned by the ethics and values contained in:

• the Australian Public Service Values and Code of Conduct as set out in the Public Service Act 1999

• AusAID's Certified Agreement 2003–06

• a range of official internal policies and circulars.

The corporate strategic plan reinforces the role of ethics and values in the workplace including:

• responsiveness and initiative in work performance

• effective communication and consultation in determining priorities and expectations

• openness to innovation and to contestability of ideas

• expertise in and commitment to international development

• professionalism and integrity in carrying out duties

• a collegiate and cooperative approach to work

• continued development of skills, management capabilities and leadership

• a workplace that is free from discrimination and encourages diversity.

AusAID employees are made aware of the need to maintain high ethical standards in the course of their work through regular communications on the agency intranet, induction courses for new employees and briefings for employees selected for overseas postings. Fraud awareness training is provided as part of the induction program for new staff, and to in-country personnel.

132 AUSAID Annual Report 2004–2005 External scrutiny

Australian National Audit Office activity

No Australian National Audit Office (ANAO) reports dealing exclusively with AusAID’s performance were tabled during the year.

In conjunction with other agencies, AusAID contributed to the following ANAO Audit Reports in 2004–05:

• Performance Management in the Australian Public Service (August 2004) S SECTION 3

• the Senate Order for Departmental and Agency Contracts (Calendar Year 2003 E Compliance) (September 2004) C T I • Commonwealth Entities’ Foreign Exchange Risk Management (October 2004) O N

• Superannuation Payments for Independent Contractors Working for the Australian 3 Government (October 2004)

• Financial Management of Special Appropriations (November 2004)

• Workforce Planning in the Australian Public Service (June 2005).

Senate Order for Departmental and Agency Contracts

In accordance with the Senate Order for Departmental and Agency Contracts of 20 June 2001, details of all contracts and agreements administered by AusAID to the value of $100 000 or more were placed on the AusAID business website at www.ausaid.gov.au/business

Judicial scrutiny

There were no judicial decisions or decisions of administrative tribunals that had, or may have, a significant impact on the operations of the agency.

Ombudsman

No formal investigations were conducted by the Commonwealth Ombudsman on AusAID’s activities during the year.

Management and accountability External scrutiny 133 Privacy Commissioner

No investigations were conducted by the Privacy Commissioner in 2004–05.

Parliamentary committees

In 2004–05, AusAID appeared before and made written submissions to the following parliamentary committees:

• Joint Standing Committee on Foreign Affairs, Defence and Trade: inquiry into Australia’s Human Rights Dialogue Process (submission provided in June 2004, appeared on 14 March 2005)

• Senate Foreign Affairs, Defence and Trade Committee: inquiry into Australia’s relationship with China (submission provided 5 April 2005, appeared on 14 June 2005).

During the year, AusAID appeared before the following parliamentary committees without a written submission:

• Senate Foreign Affairs, Defence and Trade Legislation Committee: consideration of 2004–05 additional budget estimates (17 February 2004)

• Senate Foreign Affairs, Defence and Trade Legislation Committee: consideration of 2005–06 budget estimates (2 June 2005)

• Joint Standing Committee on Treaties: inquiry into the Joint Agreement on Enhanced Cooperation between Australia and Papua New Guinea (7 March 2005).

134 AUSAID Annual Report 2004–2005 Management of human resources

AusAID’s people management strategy for 2002–06 was put in place to ensure a close alignment between people management and the agency’s strategic directions. The agency continues to strengthen key aspects of people management and to promote a culture of high performance and continuous improvement at all levels. In 2004–05, efforts were focused on:

• strengthening leadership and management skills among the senior management group through a program of 360 degree individual performance assessment and executive coaching focused on personal needs

• enhancing selection panel processes, including implementing new processes to S SECTION 3 E

improve outcomes from recruitment and placement activity C T I

• establishing a flexible human resource model to enable enhanced responsiveness O

to deploying resource needs in Canberra and overseas. N

3 Performance management

AusAID continued to promote a strong performance culture amongst its employees. The People Management Advisory Group focused on agency performance management during 2004–05, and provided advice, direction and coaching for managers. The guiding principles underpinning performance management in AusAID are:

• continuous improvement in performance

• integration with key organisational planning processes and corporate decision-making

• frequent, frank and constructive feedback

• support for capability development and strengthening performance

• rigour, personal accountability and responsibility for outcomes

• fairness, consistency and transparency

• administrative simplicity.

Management and accountability Management of human resources 135 Certified agreement

The agency began researching industry best practice for agreements during the year. The 2003–06 certified agreement, which expires early in 2006–07, sets out the terms and conditions of employment for AusAID employees and provides access to annual salary increases and performance payments.

The 2003–06 certified agreement upholds the two key themes of the previous agreement. The first is a commitment to continuous improvement in work practices to achieve greater efficiency and effectiveness. The second is the extension of flexible workplace arrangements that allow employees to meet personal responsibilities and interests, while also meeting the agency’s operational needs.

The remuneration strategy provides an annual productivity increase for all employees and a payment based on performance in recognition of productivity gains to be achieved during the life of the agreement. A 4.2 per cent increase was paid in August 2004 and a further 4.3 per cent will be payable in September 2005. An additional two per cent performance payment is available to employees rated effective as part of an annual performance assessment. Statistics on pay scales under the certified agreement can be found in appendix D.

Non-salary benefits under the certified agreement and Australian workplace agreements (AWAs)

The certified agreement provides an overseas conditions of service package for employees who are posted overseas which may include an overseas living allowance, special provisions for employees at difficult posts, assistance with education and health care for dependants and family reunion visits.

Employees also have a range of flexible working conditions such as flextime, time off in-lieu and scope for accessing part-time and home-based work. Other benefits include recreation leave, personal leave, provision for carer’s leave and half-pay maternity leave. The certified agreement includes paternity leave, the ability to purchase additional leave, adoption leave, expanded maternity leave and free flu vaccinations.

Non-salary benefits covered in the AWAs for senior executive service (SES) employees include performance pay bonuses, a vehicle and fuel card, mobile phone, airline club membership and home access to office systems.

Senior executive remuneration

Remuneration for SES employees is determined through AWAs which provide annual increases in salary together with an annual performance pay bonus for those employees rated as ‘fully effective’ or above. Statistics on the salaries received by SES employees in 2004–05 can be found in appendix D.

Performance pay bonuses paid to SES employees and advisers totalled $156 985 for the year. These figures are not disaggregated further to protect individual privacy.

136 AUSAID Annual Report 2004–2005 Staffing level

At 30 June 2005 the agency had a total of 514 actual staff, compared with 508 at the same time last year. This number included 212 males and 302 females, but does not include inoperative staff. Eighty-nine new ongoing employees were engaged during the year while 64 left the organisation. Exit interviews were offered to all departing employees. Breakdowns of employees by status, classification, gender and location can be found in appendix D.

Training and staff development

The agency provides wide-ranging learning and development services to help AusAID staff and in-country Program Support Unit personnel improve their professional and personal skills. In 2004–05, expenditure on learning and development in Australia,

excluding salary costs, amounted to $980 735. The main focus for learning and S SECTION 3 E development included: C T I

• activity design and management O N

• corporate and financial management 3

• management and coaching

• post preparation and operating overseas.

AusAID supported staff in Australia and overseas with a range of learning activities aimed at enhancing performance including:

• training for Program Support Unit personnel at overseas posts, particularly to support in-country activity management

• strengthening the language skills of staff posted overseas

• study support assistance for staff to undertake tertiary studies in disciplines relevant to the aid program.

Further details of AusAID’s learning and development activities are shown in appendix D.

Human resource development specialists are engaged to design and deliver learning activities tailored to agency priorities. AusAID also uses a range of learning and development services and programs provided by the Australian Public Service Commission.

All internally delivered learning and development activities are evaluated to determine the extent to which specific learning outcomes are achieved. In 2004–05, AusAID achieved participation evaluation satisfaction rates in excess of 90 per cent and consistently met training quality targets.

Management and accountability Management of human resources 137 Occupational health and safety

Information in this part of the report is provided in accordance with section 74(1) of the Occupational Health and Safety (Commonwealth Employment) Act 1991.

AusAID’s occupational health and safety (OHS) policy

AusAID is committed to providing a healthy and safe work environment for all employees, including third parties and contractors. The agency’s existing OHS agreement sets out the responsibilities of all parties and establishes the structure and procedures within which all parties may be involved in protecting employees from exposure to hazards in the course of their employment.

During the year, staff within specified designated work groups nominated and elected eight health and safety representatives. OHS consultative mechanisms are implemented through the OHS committee, whereby management, staff and union representatives report on OHS issues.

Measures taken during the year to ensure the health, safety and welfare of employees, contractors and third parties included:

• conducting 72 ergonomic workstation assessments for staff to ensure workstations were set-up correctly

• implementing posture and flexibility classes as well as pilates and yoga classes for all staff

• initiating pre and return overseas posting counselling debriefs through the Employee Assistance Program

• incorporating OHS awareness in the orientation program for new starters

• vaccinating 164 staff as part of the influenza vaccination program.

Reporting requirements under the Act

There were no incidents during the year that required a Section 68 notice to Comcare. No notices were issued under Section 29, Section 46 or Section 47. No directions were given to the Department of Foreign Affairs and Trade under Section 45, and no investigations were conducted.

138 AUSAID Annual Report 2004–2005 Commonwealth Disability Strategy

AusAID continues to adhere to the principles embodied in the Commonwealth Disability Strategy ensuring that the workplace is free from discrimination. Practices and procedures for employment, employee management and training and development are considerate of the needs of people with a disability.

Some of the ways in which AusAID implements the principles of reasonable adjustment to underpin the strategy include:

• managing cases in partnership with individuals to assess specific requirements

• providing specialised equipment as required

• making referrals to appropriate health professionals

• offering appropriate support to employees, managers and supervisors. S SECTION 3 E C T

Workplace diversity I O N

AusAID’s workplace diversity program focuses on outcomes and integrates equity 3 and diversity principles into corporate planning processes, performance management systems and general human resource planning. It also provides a key focus for management and staff development.

The program focuses on five areas:

• promoting equity and diversity principles in AusAID

• balancing work, lifestyle and family

• reducing discrimination, harassment and bullying

• targeted employment strategies, including indigenous employment, disability employment and the mature workers strategy

• improving accountability through better reporting.

Activities undertaken during the year included promoting national and international events and days of significance such as NAIDOC Week and International Women’s Day and the development of the new AusAID Workforce Diversity Program 2005–08.

Data relating to the diversity of AusAID’s workforce can be found in appendix D.

Management and accountability Management of human resources 139 Purchasing and assets

Purchasing

AusAID is one of the Australian Government’s major purchasers of goods and services. Suppliers play a substantial role in delivering the aid program and provide AusAID with access to specialist expertise and implementation capability. AusAID purchases a wide range of goods and services for the aid program, including construction procurement and services for the feasibility, design, implementation, appraisal, monitoring and evaluation of aid activities. Other purchases include those let for food aid and consultancies.

Purchaser–provider arrangements

AusAID purchases services for its overseas posts from the Department of Foreign Affairs and Trade. The services are provided on a user-pays basis and include personnel, residential and office accommodation, information technology infrastructure support, secure networks and telecommunications. A new service level agreement between AusAID and the department came into effect on 1 July 2004 for a three year period.

AusAID also provided payroll services to the Australian Centre for International Agricultural Research during the year.

Assets

AusAID assets include information technology, furniture and equipment held in Canberra and at overseas posts. The accounting treatment of assets was in accordance with Australian Accounting Standards.

140 AUSAID Annual Report 2004–2005 Consultants and competitive tendering and contracting

Consultants

In 2004–05, 33 new consultancy contracts were entered into with expenditure totalling $623 900. In addition, 15 ongoing consultancy contracts were active with a total value of $238 820. Data on consultancies including the details of each new consultancy worth $10 000 or more is provided in appendix G.

All consultancies were procured in accordance with Commonwealth Procurement S SECTION 3

Guidelines. Of the new consultancy contracts, three were service orders under E C

AusAID’s period offers, two were openly tendered, 15 were appointed under select T I tender and 13 were directly sourced from a restricted tender to one or more suppliers. O N

3 Competitive tendering and contracting

AusAID market tested and outsourced its photocopying services in 2002. A new tender was completed during 2004–05 and a new contractor appointed to commence business from 1 July 2005.

In May 2005, AusAID outsourced its archival and storage services to ensure storage facilities meet the National Archives’ security requirements. AusAID entered into a five-year outsourced contract valued at $548 900.

AusAID’s procurement policies and practices

AusAID conducts all procurement in accordance with the Commonwealth Procurement Guidelines. Revised guidelines came into effect on 1 January 2005 and AusAID updated its procurement policies and procedures to ensure compliance. The agency’s procurement practices aim to achieve value for money by encouraging competition, efficient, effective and ethical use of resources, transparency and accountability. Procurement practices are non-discriminatory in that they are not inconsistent with AusAID’s eligibility criteria.

Australia’s aid program procurements are exempt from the mandatory procedures outlined in the revised Commonwealth Procurement Guidelines. From 1 July 2005 however, the agency elected to apply the mandatory procedures to program procurements above a value threshold, with limited exceptions, to adopt best practice policies and procedures.

Management and accountability Consultants and competitive tendering and contracting 141 In 2004–05, most major procurements were publicly advertised in the Weekend Australian and other major capital city newspapers where appropriate, on the AusTender website, and on AusAID’s business website.

AusAID’s tender documentation defines the tender conditions, requirements, assessment procedures and selection criteria for each procurement. In accordance with Commonwealth Procurement Guidelines, preferred tenderers are selected on the basis of value for money. In the majority of instances, value for money is assessed based on a total score that combines a technical score against weighted selection criteria and a price score using a like-for-like price assessment of the financial proposals. Alternatively, value for money may be based on a combined technical and price assessment, using a range of tools including price sensitivity analyses. The past performance of tenderers may also be considered.

Contractor performance reports are maintained to keep track of the quality of service being provided and remain current for 12 months. Probity advice is sought, where considered necessary, and tenderers may request a written debrief on their bids.

AusAID’s in-house legal advisor and, where appropriate, external legal advisors, ensure that the contracts AusAID enters into are clear, enforceable and comply with all relevant legislative instruments.

142 AUSAID Annual Report 2004–2005 Service charter

AusAID’s contracts charter articulates the agency’s approach to partnerships with contractors and improved delivery quality of aid activities. The charter describes AusAID’s expectations of contractors and what contractors can in turn expect from AusAID.

The principles, practices and expectations described in the charter are helping to ensure aid activities are implemented in a professional, efficient, transparent and accountable manner. The charter can be found at www.ausaid.gov.au/business/contracting

The introduction of the procurement related complaints handling process builds S SECTION 3 E on the principles outlined in the contracts charter. C T I O

Contract disputes N

3

AusAID’s contracts charter states the agency’s intention that (with the exception of fraud, bribery and corruption allegations which are immediately referred to the appropriate authorities) disputes with contractors will be approached in a constructive, efficient and accountable way. AusAID’s contracts call for negotiation and alternative dispute resolution procedures, and the majority of issues are resolved through direct negotiation.

No litigation claims arose or were settled during the year and no contracts were terminated.

Management and accountability Service charter 143 School based management training in East Kalimantan under the AusAID supported Learning Assistance Program for Islamic Schools (LAPIS) Photo: Elis Anisah

Australian Youth Ambassadors at World AIDS Day Concert and Celebration 2004 in Port Moresby Photo: Jo Elsom

144 AUSAID Annual Report 2004–2005 FINANCIAL STATEMENTS

SECTION 4 146 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 147 148 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 149 150 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 151 152 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 153 154 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 155 156 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 157 158 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 159 160 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 161 162 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 163 164 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 165 166 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 167 168 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 169 170 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 171 172 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 173 174 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 175 176 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 177 178 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 179 180 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 181 182 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 183 184 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 185 186 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 187 188 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 189 190 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 191 192 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 193 194 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 195 196 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 197 198 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 199 200 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 201 202 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 203 204 AUSAID Annual Report 2004–2005 S SECTION 4 E C T I O N

4

Financial statements 205 Post-tsunami relief efforts in Aceh, Indonesia Photo: Robin Davies

Post-tsunami damage in Aceh, Indonesia Photo: Robin Davies

206 AUSAID Annual Report 2004–2005 APPENDICES

SECTION 5 A. Ministerial responsibilities

Minister for Foreign Affairs, The Hon. Alexander Downer, MP

Mr Downer has overall responsibility for the portfolio, including the department’s administration and management, and all non-trade international political, multilateral and legal issues (including the treaty-making process), consular and passport functions, and development assistance matters. In addition, he is responsible for all human rights, arms control and disarmament issues, peacekeeping, and the non-trade related aspects of the UN system. Mr Downer shares responsibility for international security issues with the Minister for Defence and is also responsible for taking the lead on international efforts to combat terrorism. International environment issues, while primarily the responsibility of the Minister for Foreign Affairs, in many cases also fall within the responsibility of the Minister for the Environment and Heritage. Mr Downer has primary carriage of non-trade related public affairs activities and questions of protocol. He also has responsibility for the administration and management of AusAID, the Australian Secret Intelligence Service, the Australian Safeguards and Non-Proliferation Office, the Australian Centre for International Agricultural Research, and the Australia–Japan Foundation.

Minister for Trade, The Hon. Mark Vaile, MP

Mr Vaile is responsible for all trade matters—bilateral, regional and multilateral—and has responsibility for Austrade (including TradeStart and the Export Market Development Grants Scheme) and the Export Finance and Insurance Corporation (EFIC). Bilateral responsibilities include free trade agreements and other trade and economic agreements with important trading partners. Regional responsibilities include APEC and ASEAN Free Trade Area—Australia–New Zealand Closer Economic Relations Trade Agreement (AFTA–CER) arrangements. Multilateral responsibilities include the World Trade Organization (WTO) and Organisation for Economic Co-operation and Development (OECD). In the WTO context, Mr Vaile chairs the 17-member Cairns Group of fair agricultural trading nations. WTO rules cover trade in goods (both agricultural and non-agricultural products), trade in services, trade-related intellectual property rights, as well as the dispute settlement system for managing trade disputes between WTO members. When travelling overseas to promote and advance Australian trade and commercial interests, Mr Vaile often leads industry missions.

208 AUSAID Annual Report 2004–2005 Parliamentary Secretary for Foreign Affairs and Trade, The Hon. Bruce Billson, MP

Mr Billson is responsible for the day-to-day management of issues related to the aid program, and provides assistance to Mr Downer in carrying out his responsibility for aid policy. He also assists Mr Vaile with outreach and advocacy on trade and development issues. Mr Billson works actively with members of the public, non-government organisations, the business community, academia and other key stakeholders to build an understanding of Australia’s official aid program. He promotes recognition of the efforts of Australian volunteers in developing countries. Mr Billson is the Government’s Special Representative on Mine Action, chair of the Consultative Council of the Centre for Democratic Institutions and Deputy Chair of the Aid Advisory Council. Mr Billson actively promotes the portfolio’s consular and passports functions by raising community awareness about travel advisory services and building partnerships with the travel industry, including through the Charter for Safe Travel and the Smartraveller Consultative Group.

Further information about the Ministers and the Parliamentary Secretary is available from the department’s website at http://www.dfat.gov.au/minister. S SECTION 5 E C T I O N

5

Appendices A. Ministerial responsibilities 209 B. Resources summary for outcomes

TABLE 1: RESOURCE SUMMARY FOR OUTCOMES

Budget plus Variance additional between budget estimates Actuals plus additional Budget 2004–05 2004–05 estimates and 2005–06 $’000 $’000 actual $’000 $’000 Administered Outcome 1 2 127 816 2 127 494 (322) 1 553 015 Outcome 2 1 000 830 8 684 (992 146) 2 109 Total administered 3 128 646 2 136 178 (992 468) 1 555 124 Price of departmental outputs Output 1.1—Policy 14 177 14 548 (371) 14 669 Output 1.2—Program management 59 278 59 296 18 59 793 Output 2.1—AIPRD management 1 632 1 632 0 3 913 Revenue from government appropriations for departmental outputs 75 087 75 087 0 78 375 Revenue from other sources 327 389 62 329 Total price of outputs 75 414 75 476 62 78 704 Total for outcomes 3 204 060 2 211 654 (992 406) 1 633 828

2003–04 2004–05 Average staffing levels (numbers) 475 485

210 AUSAID Annual Report 2004–2005 C. Aid program expenditure

TABLE 2: TOTAL AUSTRALIAN OFFICIAL DEVELOPMENT ASSISTANCE (ODA) TO PARTNER COUNTRIES

Estimated outcome1 Partner countries/regions 2004–052 PAPUA NEW GUINEA & PACIFIC Papua New Guinea 3 366.6 Solomon Islands4 171.5 Vanuatu 28.7 Fiji 28.0 Samoa 18.6 Tonga 12.8 Kiribati 10.9 Regional Pacific 5 68.1 Total PNG & Pacific 705.2 Nauru Additional 6 13.5 EAST ASIA Indonesia (Ongoing program) 259.5 Indonesia (AIPRD) 8.7 Vietnam 74.4 East Timor 64.2 Philippines 62.5 China 49.8 Cambodia 38.2 Laos 19.4 Thailand 13.4 Regional East Asia 5 46.1 Total East Asia 636.2 SOUTH ASIA, AFRICA & OTHER

Sri Lanka 39.8 S SECTION 5 E

Bangladesh 32.9 C T

India 17.2 I O 5

Regional South Asia 23.5 N

Africa 75.0 5 Middle East and Central Asia 7 59.9 Total South Asia, Africa & Other 248.3 REST OF WORLD Other government departments8 (not attributed to country/region) 204.1 Core contributions to multilateral organisations, other ODA9 446.4 Reconciliation of expenses to cash -2.9 Total ODA (cash) 2 250.8

Source: Australia’s overseas aid program 2005–06—the aid budget statement

Appendices C. Aid program expenditure 211 TABLE 3: COUNTRY AND REGIONAL PROGRAMS EXPENDITURE 2001–05

Country Expenses ($m) 2001–02 2002–03 2003–04 2004–05 PAPUA NEW GUINEA 297.7 296.6 292.4 294.1 Retirement benefits 14.1 13.7 13.5 13.0 Subtotal PNG 311.8 310.4 305.9 307.1 PACIFIC Solomon Islands 19.1 24.0 79.2 92.6 Vanuatu 13.0 13.4 14.7 20.9 Fiji 12.3 13.9 14.4 17.4 Samoa 11.2 11.8 12.1 12.5 Tonga 8.8 9.6 9.0 9.2 Kiribati 8.2 8.3 7.9 7.5 Tuvalu 2.6 2.8 2.7 2.9 Micronesia1 1.4 1.9 1.5 1.6 Cook Islands 1.3 1.0 1.2 1.2 Niue and Tokelau 0.8 0.9 5.0 1.2 Nauru 0.2 0.2 0.3 0.2 Pacific regional 54.5 58.8 54.2 73.7 Subtotal Pacific 133.4 146.6 202.2 240.9 Nauru additional 2 18.8 21.3 15.5 13.5 EAST ASIA Indonesia (Ongoing program) 97.3 104.1 125.2 119.6 Indonesia (AIPRD) – – – 8.7 Vietnam 59.7 61.3 61.3 55.0 Philippines 56.0 55.7 41.6 46.1 China 40.5 42.5 40.8 40.7 East Timor 28.6 33.6 26.2 28.5 Cambodia 24.4 24.6 23.6 22.5 Laos 14.4 13.5 12.9 12.5 Burma 1.6 2.2 2.9 3.1 Thailand 11.0 10.6 6.1 2.3 Mongolia 2.7 2.6 2.1 1.9 East Asia regional 23.7 20.9 27.0 31.8 Subtotal East Asia 359.9 371.6 369.7 372.8

212 AUSAID Annual Report 2004–2005 Country Expenses ($m) 2001–02 2002–03 2003–04 2004–05 SOUTH ASIA Bangladesh 23.7 20.2 18.8 19.8 India 12.8 10.3 11.8 12.0 Sri Lanka 4.1 5.7 5.9 6.6 Nepal 5.1 5.2 4.8 4.5 Pakistan 3.0 4.5 4.2 2.5 Maldives 2.0 2.0 1.5 1.6 0.8 0.9 0.9 1.0 South Asia regional 3.9 7.3 6.7 4.9 Subtotal South Asia 55.4 56.1 54.6 52.8 OTHER Africa 35.4 35.0 32.6 33.0 Palestinian territories 2.1 3.2 3.2 3.0 Subtotal other 37.6 38.2 35.8 36.0 CROSS REGIONAL PROGRAMS 21.6 19.5 15.2 18.7 TOTAL COUNTRY AND REGIONAL PROGRAMS 938.5 963.6 998.9 1 041.8 S SECTION 5 E C T I O N

5

Appendices C. Aid program expenditure 213 TABLE 4: GLOBAL PROGRAMS EXPENDITURE 2001–05

Expenses ($m) 2001–02 2002–03 2003–04 2004–05 EMERGENCY, HUMANITARIAN AND REFUGEE AID 91.2 151.6 154.7 206.2 MULTILATERAL REPLENISHMENTS1 ADF 0.0 0.0 0.0 295.4 IDA 0.0 342.0 0.0 389.2 IFAD 0.0 0.0 0.0 0.0 Heavily Indebted Poor Countries Initiative 13.7 18.0 0.0 34.8 GEF 0.0 68.2 0.0 0.0 MPMF 0.0 14.2 0.0 0.0 Subtotal 13.7 442.4 0.0 719.3 OTHER INTERNATIONAL ORGANISATIONS United Nations agencies 85.9 69.2 56.3 61.7 of which: WFP 50.4 40.5 26.0 31.0 Commonwealth organisations 11.6 12.2 12.1 12.1 Other international programs2 12.6 20.2 29.0 43.0 Subtotal 110.1 101.7 97.4 116.8 COMMUNITY PROGRAMS Non-government organisations 25.8 26.6 29.4 27.5 Volunteer programs 13.8 14.9 12.8 11.2 AYAD 5.3 6.2 6.7 8.0 Subtotal 44.9 47.7 48.9 46.6 COMMUNICATION, EDUCATION AND INFORMATION Public information / development education 2.3 2.7 2.7 2.8 Development research 0.6 1.0 1.4 0.9 Seminar support 0.9 0.9 0.8 1.2 Subtotal 3.8 4.7 4.9 4.8 TOTAL GLOBAL PROGRAMS 263.7 748.1 305.9 1 093.7

214 AUSAID Annual Report 2004–2005 Notes to tables

Table 2 1. Shows total expenses, minus expenses to new multi-year liabilities (for example, IDA or the HIPC initiative), plus cash payments for these multi-year liabilities. 2. Estimated ODA for 2004–05 represent expected outcomes as estimated at May 2005. 3. PNG estimated expenses in 2004–05 includes ODA eligible expenditure by other government departments (OGDs) related to the Enhanced Cooperation Program of $43.7 million. 4. Solomon Islands estimated expenses in 2004–05 includes OGD expenditure related to the Regional Assistance Mission to Solomon Islands of $72.2 million. 5. Regional Pacific, Regional East Asia and Regional South Asia include multi-country and regional activities and small bilateral programs. 6. Nauru additional represents additional funding appropriated to AusAID through new budget measures agreed by the Australian Government. 7. Middle East and Central Asia includes Palestinian territories, Afghanistan and Iraq. 8. OGD not attributed to country/region includes ODA eligible expenditure by OGDs/agencies that has not been allocated to a specific geographic area. 9. Core contributions to multilateral organisations, other ODA expenditure includes expense payments that cannot be attributed to a particular country/region such as payments to some UN and Commonwealth organisations, and departmental expenditure. The ODA eligible components of cash payments to IDA, ADF, IFAD, GEF, HIPC and the MPMF are also included in this line item.

Table 3 1. For the purposes of this table, Micronesia includes the Federated States of Micronesia, Palau and the Republic of the Marshall Islands. 2. Nauru additional represents additional funding appropriated to AusAID through new budget measures agreed by the Australian Government.

Table 4 1. New commitments to the multilateral development banks, MPMF and GEF are recorded as expenses at the time of commitment. 2. Other international programs include the International Tropical Timber Organisation, Global Fund to Fight Aids, Tuberculosis and Malaria, and other international health programs. S SECTION 5 E C T I O N

5

Appendices C. Aid program expenditure 215 D. Staffing overview

TABLE 5: EMPLOYEES BY CLASSIFICATION, LOCATION AND GENDER, 30 JUNE 2005

Female Male Australia Overseas Australia Overseas Total staff APS 1 3 3 APS 2 3 4 7 APS 3 26 7 33 APS 4 13 8 21 APS 5 20 1 16 1 38 APS 6 94 13 55 5 167 EL 1 80 15 65 8 168 EL 2 21 8 26 8 63 SES 4 1 7 2 14 Total 264 38 188 24 514

Note: includes employees paid against departmental budget on 30 June 2005. Does not include unpaid inoperative staff.

TABLE 6: EMPLOYEES BY STATUS AND ATTENDANCE TYPE, 30 JUNE 2005

Ongoing Non-ongoing Full-time Part-time Sub-total Full-time Part-time Sub-total Total Male 195 7 202 10 10 212 Female 263 30 293 7 2 9 302 Total 458 37 495 17 2 19 514

Note: includes employees paid against departmental budget on 30 June 2005. Does not include unpaid inoperative staff.

TABLE 7: SENIOR EXECUTIVE SERVICE, 30 JUNE 2005

Female Male Total staff Australia Overseas Australia Overseas SES Band 1 2 2 4 2 10 SES Band 2 1 2 3 SES Band 3 1 1 Total 4 2 6 2 14

Note: includes employees paid against departmental budget on 30 June 2005. Does not include unpaid inoperative staff.

216 AUSAID Annual Report 2004–2005 TABLE 8: SENIOR EXECUTIVE GAINS AND LOSSES DURING 2004–05

Category Number of staff Commencements 1 Separations 2

TABLE 9: EMPLOYEES BY LOCATION AND GENDER, 30 JUNE 2005

Male Female Total Australia 188 264 452 Posts Apia 1 1 Bangkok 11 Beijing 1 2 3 Colombo 1 1 Dhaka 11 Dili 2 1 3 Geneva 1 1 Hanoi 2 1 3 Ho Chi Minh City 1 1 Honiara 55 Jakarta 5 3 8 Manila 3 3 New York 1 1 Nuku‘alofa 1 1 Paris 11 Phnom Penh 2 2 Port Moresby 4 13 17 S SECTION 5

Port Vila 1 1 2 E C

Pretoria 1 1 2 T I O

Suva 33 N

Tarawa 1 1 5 Vientiane 1 1 Sub-total 24 38 62 Total 212 302 514

Appendices D. Staffing overview 217 TABLE 10: AUSAID CERTIFIED AGREEMENT SALARY RANGES, 30 JUNE 2005

Staff level Salary band APS 1 $31 376 – $33 962 APS 2 $35 627 – $38 563 APS 3 $40 284 – $42 750 APS 4 $45 168 – $47 933 APS 5 $50 185 – $52 212 APS 6 $55 331 – $61 090 EL 1 $68 904 – $73 121 EL 2 $83 305 – $93 814

TABLE 11: AUSAID SES EMPLOYEE SALARY RANGES, 30 JUNE 2005

Band Salary Range No of persons SES Band 1 $118 000 – $126 000 10 SES Band 2 and 3 $126 000 – $190 000 4

TABLE 12: EXPENDITURE ON FORMAL TRAINING ACTIVITIES

Training and development programs $385 532 Cross regional training $403 555 Language training $63 361 Study support scheme $128 287 Total $980 735 Average training expenditure per person* $1 908

* Based on a total of 514 staff in the agency at 30 June 2005.

218 AUSAID Annual Report 2004–2005 TABLE 13: TRAINING AND DEVELOPMENT IN 2004–05

Program No of participants Activity and program management 203 Corporate and financial management* 493 PSU bi-annual program 36 Operating overseas 112 Other 35 Total 879

* Includes financial management, contract management, management and coaching, policy development, induction and written communications.

TABLE 14: EMPLOYEES BY WORKPLACE DIVERSITY CATEGORY AND LEVEL, 30 JUNE 2005

Culturally and linguistically Aboriginal and Total diverse Torres Strait People with Level staff Female backgrounds Islanders* disabilities* No % No % No % No % APS 1 3 3 100% 1 33% 0 0% 1 33% APS 2 7 3 43% 2 29% 0 0% 1 14% APS 3 33 26 79% 3 9% 1 3% 1 3% APS 4 21 13 62% 4 19% 0 0% 0 0% APS 5 38 21 55% 6 16% 1 3% 1 3% APS 6 167 107 64% 27 16% 1 1% 0 0% EL 1 168 95 57% 21 13% 0 0% 0 0% EL 2 63 29 46% 15 24% 0 0% 2 3% SES 14 5 36% 0 0% 0 0% 1 7% TOTAL 514 302 59% 79 15% 3 1% 7 1%

* Only identifies people who have volunteered information. S SECTION 5 E C T I O N

5

Appendices D. Staffing overview 219 E. Freedom of information

This statement is provided in accordance with section 8 of the Freedom of Information Act (FOI) 1982 and is correct to 30 June 2005.

The FOI Act extends the right to obtain access to documents in the government’s possession. Access is limited only by exemptions that, for example, protect essential public interests and the private and business affairs of people about whom departments and statutory authorities collect and hold information.

Eight requests for information under FOI were received during 2004–05. Two were concluded with access granted to the information requested with exempt materials deleted as they contained personal information and information relating to a current investigation. Two requests were withdrawn as the applicants failed to respond to the Notice of Liability letters after 30 days. One request sought documents that were not held by AusAID but a private company. Three requests received in June 2005 are still under consideration.

Members of the public seeking access to documents should lodge a formal FOI request. This must be made in writing, be accompanied by a $30 application fee, and include a contact name, an address to which notifications can be sent, a telephone number and a fax number (if available). The Ministerial and Parliamentary Services Unit manages FOI matters for the agency. All enquiries should be directed to:

Freedom of Information Coordinator Ministerial and Parliamentary Services Unit AusAID GPO Box 887 Canberra ACT 2601 Tel (02) 6206 4617 Fax (02) 6206 4613

AusAID levies the applicable fees and charges imposed under the FOI regulations. Such fees and charges may be remitted, reduced or not imposed if grounds for financial hardship or general public interest can be established.

220 AUSAID Annual Report 2004–2005 Powers

AusAID exercises the following decision-making powers and administrative functions:

• authorising expenditure on Australia’s overseas aid program including: — support to international organisations — contracts for the supply of goods and services under the aid program — support to accredited non-government organisations (NGOs) and community groups — programs to send Australian volunteers overseas to undertake development — cooperation activities.

• managing development cooperation activities and programs including: — maintaining systems of program management and accountability, including systems of performance information monitoring, analysis and reporting — administering the management and outcomes of appraisals, reviews and evaluations of development cooperation activities — accrediting NGOs and administering funding to NGOs (as well as assessing Australian NGO applications for tax deductibility under the Overseas Aid Gift Deduction Scheme) — inviting tenders and selecting and managing contractors to provide services to implement development cooperation activities — monitoring the performance of contractors that receive funding through Australia’s aid program — overseeing the scholarship management program.

Participation and consultation

AusAID consults and seeks the participation of a wide range of people through various forums and activities. These include:

• the Aid Advisory Council, chaired by the Minister for Foreign Affairs, which draws S SECTION 5 E

members from academia, the private sector, NGOs and community groups. C T

The council meets twice a year to provide independent views to the Minister I on aid and development issues O N

• global education (including development education) in schools and universities, 5 which is supported by the agency through professional teacher training and a specialist global education website

• a proactive media strategy to develop media opportunities to promote the aid program

Appendices E. Freedom of information 221 • consultations with the community including the AusAID–NGO Committee for Development Cooperation, NGOs and the Australian Council for International Development

• a targeted program of events, displays and activities to engage the community and generate awareness of the aid program amongst Australians in metropolitan, regional and rural areas

• consultations with Australian and international industry partners including through the ConsultNet email bulletin system and business website, industry forums on tendering and contract management issues and regular briefing sessions with stakeholders on major tendering opportunities.

AusAID documents

AusAID produces a range of documents on administration of the aid program including:

• submissions to portfolio ministers, the Parliamentary Secretary for Foreign Affairs and Trade, AusAID’s Director General and executive, and other government agencies

• Cabinet submissions

• records of parliamentary related business, such as responses to parliamentary questions on notice, briefings for parliamentary delegations and parliamentarians, possible parliamentary questions, written submissions to parliamentary committees and responses to questions from parliamentary committee inquiries

• replies to ministerial and departmental correspondence

• texts of speeches and press statements

• briefs, reports and documents on international and Australian aspects of aid policy issues

• treaties, memorandums of understanding and other agreements between the Australian and partner governments

• documents relating to program and financial management, contracts and tenders

• reviews, evaluations and audit reports on management systems, controls, and the efficiency and effectiveness of aid programs and activities

• guidelines, policies and procedures relating to strategies and corporate planning, project planning and implementation, including risk assessment and fraud prevention policy and strategies

• materials relating to staff development, training, personal management and general administration.

Much of this information is available on AusAID’s website at www.ausaid.gov.au

222 AUSAID Annual Report 2004–2005 AusAID publications

AusAID produced a range of publications to increase community awareness and understanding of the aid program during the year. They included:

• Focus—four issues of the news and features magazine aimed at increasing awareness of and building support for Australia’s aid program among a wide range of audiences

• Australian aid: an integrated approach, Thirteenth annual statement to parliament on Australia’s aid program

• Australia's overseas aid program 2005–06—the aid budget statement

• Statistical summary 2003–04—Australia’s international development cooperation

• Australia's response to the Indian Ocean disaster—report for the period 26 December 2004 to 15 April 2005

• People trafficking and child exploitation. Australia’s aid program response

• Safe water guide for the Australian aid program 2005, a framework and guidance for managing water quality

• Humanitarian action policy

• Meeting the challenge: Australia's international HIV/AIDS strategy

• Volunteers and Australian development cooperation

• Philippines–Australia development cooperation strategy

• Pacific regional aid strategy 2004–09

• fact sheets on a wide range of topics, including the Papua New Guinea program

• a range of program profiles, information brochures and evaluation reports

• biannual publication on the AusAID business website of details of contracts and agreements over $100 000 that were current in the preceding months. S SECTION 5

AusAID publications are available on its website at www.ausaid.gov.au/publications E or from: C T I O

National Mailing and Marketing N

Tel (02) 6269 1050 5 Fax (02) 6260 2770 Email: [email protected] Mailing address: PO Box 7077, Canberra BC ACT 2610

Appendices E. Freedom of information 223 F. Information available on the internet

AusAID’s website provides a comprehensive information service on the Australian Government’s overseas aid program. Major corporate publications available on the site include the AusAID annual report and aid budget statement, corporate strategic plan and a range of subject specific publications about the aid program.

The site also provides details on country program activities, information on Australia’s response to humanitarian crises and major online information resources including the NGO Package of Information and AusGUIDE—a guide to aid project preparation and implementation.

Information provided to the Australian business community includes details on current and future tender opportunities, notification of successful tenderers, advice on AusAID business processes and how to tender for aid program contracts and other funding opportunities. The website also includes ministerial media releases, speeches and statements, details on the Youth Ambassadors for Development and Scholarships for Development programs, curriculum materials on global issues for Australian primary and secondary teachers and employment opportunities in AusAID.

Visitors to the website can subscribe to a range of email news and information alerts.

Internet and disability access

AusAID’s website conforms to all Australian Government Information Management Office guidelines and World Wide Web Consortium (WC3) web content accessibility guidelines. It has been nominated by Vision Australia as a best practice website for visitors with disabilities.

224 AUSAID Annual Report 2004–2005 G. Consultancy services

TABLE 15: SUMMARY OF CONSULTANCY CONTRACTS AND PERIOD OFFERS

2003–041 2004–05 AusAID consultancy contracts2 AusAID consultancy contracts2 Financial Financial Number limits of new Number limits of new of new contracts 2003–04 of new contracts 2004–05 contracts awarded expenditure contracts awarded expenditure awarded ($’000)4 ($’000)4 awarded ($’000)4 ($’000)4 Contracts 2 457 142 33 1585 817 Period offer service orders3 19 415 232 2 88 46 Total 21 872 374 35 1673 863

Notes to table 15

1. Trend data is reported for two years only as AusAID’s consultancy reporting policy changed in 2003–04. This change recognised that contracts and agreements for the aid program are non-consultancy contracts. Consultancy contracts for the agency are only procured in the delivery of AusAID’s departmental outputs. AusAID intends to report trend data in a three-year format from next financial year. 2. The details of each new consultancy let for $10 000 or more during 2004–05 is provided in table 16. AusAID also publishes details of contracts and agreements in excess of $100 000 in accordance with the Senate Order for Departmental and Agency Contracts on its business website at www.ausaid.gov.au/business/ 3. Period offers are standing offers with contractors for the provision of short-term technical advice in a wide range of sectors on an as required basis. Contractors are awarded period offers through a competitive tendering process, normally for up to three years. 4. All figures are GST inclusive. Figures originally published in the 2003–04 annual report were exclusive of GST. Expenditure figures include total expenditure on new and ongoing consultancies during the relevant financial year. S SECTION 5 E C T I O N

5

Appendices G. Consultancy services 225 TABLE 16: CONSULTANCY SERVICES LET OVER $10 000 DURING 2004–05

Contract Selection Consultant Name Description price1 process2 Justification3 Acumen Business Provision of Great Plains $110 000 Select tender B Solutions Pty Ltd support and maintenance Alliance Consulting Provision of IT technical $148 500 Select tender B Group services—Application development— Quality assurance Altis Consulting Pty Ltd Student Datamart $286 990 Select tender B development AustraliaNet IT Pty Ltd Intranet re-design $35 200 Select tender B T/a CanberraNet Australian Government Probity advice regarding $33 000 Open tender B Solicitor AusAID Accommodation Project Australian Government Legal advice regarding $44 000 Open tender B Solicitor AusAID Accommodation Project Computer Associates Provision of IT services— $34 155 Select tender B Pty Ltd Enhancement of Unicentre Service Plus Service Desk Computer Associates Service Management $83 195 Select tender B Pty Ltd System—CA Unicentre Service Desk ConSolve Pty Ltd Provision of IT technical $13 200 Direct sourcing B services—Application development—Finance Scoping Adviser Daryl Jackson Alastair Prepare tender requirement $55 000 Direct sourcing B Swayn Pty Ltd brief for AusAID Accommodation Project Exceed Systems Development of an MSI $13 200 Select tender B Integration Pty Ltd based installer package Gartner Australasia IT Staff Audit & $55 000 Select tender C Pty Ltd Benchmarking Review Jason Reynolds Corporate Risk $16 000 Direct sourcing A Management Plan KPMG Chartered Investigation of alleged $11 000 Direct sourcing C Accountants fraud LogicaCMG Pty Ltd IT Threat and Risk $44 275 Select tender B Assessment and Security Policy

226 AUSAID Annual Report 2004–2005 Contract Selection Consultant Name Description price1 process2 Justification3 Margaret Stewart Review and report on $96 800 Select tender C AusAID’s whole-of- government engagement Microsoft Pty Ltd Microsoft consulting $26 400 Select tender B services—Sharepoint Portal server assistance Morris Walker Pty 2003–04 Annual Report $13 640 Direct sourcing B Limited editing consultancy Project Concept and Recommend lease $137 012 Direct sourcing B Management Pty Ltd arrangements and options for AusAID Accommodation Project The Winding Staircase Leadership / management $69 810 Direct sourcing B Pty Ltd development Unique World Pty Ltd Provision of IT technical $13 860 Select tender B services—Applications development—Sharepoint Verossity Pty Ltd Provision of IT technical $210 364 Select tender B services—Application development— Business support Walter Turnbull Pty Ltd Advice on Business $55 000 Panel B Continuity Plan Wright Consultancy Professional business $24 200 Panel B planning services WT Partnership Aust Advice on AusAID $22 000 Direct sourcing B Pty Ltd Accommodation Project budget costings

Notes to table 16

1. All figures are GST inclusive. S SECTION 5

2. Explanation of selection process terms: E C

Open tender: a request for tender is published widely and all submissions received before the deadline are accepted from any potential T

suppliers who satisfy the conditions for participation. I O Select tender: an invitation to tender is issued to potential suppliers from a short list. N

Direct sourcing: a form of restricted tendering in which an agency may invite a potential supplier or suppliers of its choice to make a 5 submission because of their expertise or their special ability to supply the goods or services sought. Panel: an invitation to tender is issued to a panel of potential suppliers (who have pre-qualified) established by the agency to supply to the government. 3. Justification for decision to use consultancy: A—skills currently unavailable within agency B—need for specialised or professional skills C—need for independent research or assessment

Appendices G. Consultancy services 227 H. Advertising and market research

TABLE 17: ADVERTISING AND MARKET RESEARCH EXPENDITURE

Agencies/organisations Description Amount Advertising agencies HMA Blaze Pty Limited Recruitment advertising $157 195* Australian Public Service Commission Recruitment advertising $5 034* Advertising agencies HMA Blaze Pty Limited Tender advertising $142 539 Market research organisations Colmar Brunton Social Research Community attitudes survey and report $34 691* Polling organisations Newspoll Community attitudes survey and report $47 005* Direct mail organisations National Mailing and Marketing Processing and mailing AusAID publications $202 729 Media advertising Nil Total $589 193

* Note: these figures do not include GST.

228 AUSAID Annual Report 2004–2005 I. Aid Advisory Council members 2004–05

Chair

The Hon. Alexander Downer MP Minister for Foreign Affairs

Deputy Chair

The Hon. Bruce Billson MP Parliamentary Secretary for Foreign Affairs and Trade

Members

Mr Kim Bredhauer Managing Director GRM International Pty Ltd

Mr Tim Costello Chief Executive Officer World Vision Australia

Professor Ron Duncan Executive Director Pacific Institute of Advanced Studies in Development and Governance University of the South Pacific

Mr John Eales AM Ambassador to Australian Rugby Union

Mr Tony Eggleton AO CVO S SECTION 5 E

Chairman C T

CARE Australia I O N

Mr Jack de Groot National Director 5 Caritas Australia

Ms Gaye Hart AM Director Hunter Institute TAFE NSW

Appendices I. Aid Advisory Council members 2004–05 229 Professor Rob Moodie Chief Executive Officer Vic. Health Promotion Foundation

Mr Alan Morris Chairman of Commonwealth Commission Economic Policy Advisor to Samoa and Papua New Guinea

Dr Mary O’Kane Executive Chair Mary Kane and Associates Pty Ltd

Mr Andrew Stoler Executive Director Institute for International Business, Economics and Law University of Adelaide

Dr Jane Thomason Director JTA International

Dr Meryl Williams Chair ACIAR Board

Professor Elizabeth Woods Executive Director of Research and Development Queensland Department of Primary Industries and Fisheries

Ex-officio members

Mr Michael L’Estrange Secretary Department of Foreign Affairs and Trade

Mr Bruce Davis Director General AusAID

Paul O’Callaghan Executive Director Australian Council for International Development

230 AUSAID Annual Report 2004–2005 J. Overseas accreditation

AusAID employees at posts maintain important relationships with recipient governments, international donors, multilateral organisations and development banks.

TABLE 18: AUSAID DIPLOMATIC REPRESENTATION AT POSTS, 30 JUNE 2005

Country, international organisation or regional body Post responsible Type of post Bangladesh Dhaka High Commission Cambodia Phnom Penh Embassy China, People’s Republic of Beijing Embassy East Timor Dili Embassy European Office of the United Nations Geneva UN Permanent Mission Fiji Suva High Commission Indonesia Jakarta Embassy Kiribati Tarawa High Commission Laos Vientiane Embassy OECD Paris OECD Delegation Papua New Guinea Port Moresby High Commission Philippines Manila Embassy Samoa Apia High Commission Solomon Islands Honiara High Commission South Africa Pretoria High Commission Sri Lanka Colombo High Commission Thailand Bangkok Embassy Tonga Nuku’alofa High Commission S SECTION 5

UN Permanent E

United Nations New York UN C Mission T I

Vanuatu Port Vila High Commission O N

Vietnam Hanoi Embassy 5 Ho Chi Minh City Consulate General

Note: in 2004–05 the total departmental expenses of Australia’s overseas posts was approximately $13 262 million, excluding the costs for residential and chancery accommodation.

Appendices J. Overseas accreditation 231 K. Ecologically sustainable development and environmental performance

AusAID ensures that environmental concerns are mainstreamed within the aid program. AusAID’s environmental management system, as described in the Environmental management guide for Australia’s aid program 2003, ensures that the agency meets its legal and policy obligations under the Environment Protection and Biodiversity Conservation Act 1999 and that aid activities continue to be based on internationally recognised best practice principles of environmental assessment and management.

In 2004–05, no projects required referral to the Department of the Environment and Heritage under the Act.

232 AUSAID Annual Report 2004–2005 S SECTION 5 E C T I O N

5

Appendices K. Ecologically sustainable development and environmental performance 233 A seaweed farmer bringing in a raftload of seaweed for harvesting. He belongs to a community of poor seaweed farmers in Nusa, Indonesia Photo: Robin Davies

Community activities under the Small Grants Scheme of Gangtok WSSP, India Photo: Philip Hawes

234 AUSAID Annual Report 2004–2005 GLOSSARY AND INDEX

SECTION 6 Glossary

ACFID Australian Council for International Development

ADF Asian Development Fund

AIDCP Australia–Indonesia Development Cooperation Program

AIPRD Australia–Indonesia Partnership for Reconstruction and Development

AMB Activity monitoring brief

ANAO Australian National Audit Office

ANCP AusAID–NGO Cooperation Program

APEC Asia Pacific Economic Cooperation

ASEAN Association of Southeast Asian Nations

AWA Australian workplace agreement

DAC Development Assistance Committee of the OECD

ECP Enhanced Cooperation Program

EFIC Export Finance Insurance Corporation

ESG Executive Services Group

FOI Freedom of information

GDP Gross domestic product

GEF Global Environment Facility

HIPC Heavily Indebted Poor Countries initiative

HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome

IDA International Development Association

IFAD International Fund for Agricultural Development

JPPR People’s Voter Education Network

LTTE Liberation Tigers of Tamil Elam

MAF Multilateral Assessment Framework

MDG Millennium Development Goal

MPMF Montreal Protocol Multilateral Fund

236 AUSAID Annual Report 2004–2005 NAIDOC National Aboriginal and Islander Day Observance Committee

NGO Non-government organisation

OCHA United Nations Office for the Coordination of Humanitarian Affairs

ODA Official development assistance

OECD Organisation for Economic Cooperation and Development

OHS Occupational health and safety

PGSP Pacific Governance Support Program

PNG Papua New Guinea

RAMSI Regional Assistance Mission to Solomon Islands

SARS Severe Acute Respiratory Syndrome

SES Senior executive service

SMT Simplified monitoring toolbox

SPS Sanitary and Phytosanitary measures

UNAIDS Joint United Nations Program on HIV/AIDS

UNFPA United Nations Population Fund

UNICEF United Nations Children’s Fund

WFP World Food Programme

WHO World Health Organization

WTO World Trade Organization S SECTION 6 E C T I O N

6

Glossary 237 Index

A AIDS, see HIV/AIDS ABC, 33 AidWorks, 7 Aboriginal and Torres Strait Islander staff, AIPRD, see Australia–Indonesia Partnership 219 for Reconstruction and Development accountability, see governance; airports, 39 management and accountability air services, see aviation Aceh, 65, 66 Aisyiyah, 68 ACIAR, 35 AMB, 16 Active Learning Network on Accountability An Giang province, 69 and Performance, 95 ANAO, 124, 128, 133 activity monitoring brief, 16 ANCP, 98, 117 administered programs, 12, 17, 30–107, animal diseases, 60, 85 124–5 zoonotic, 59, 63, 110 see also program expenditure annual statement to Parliament on advertising and marketing research, 228 Australia’s aid program, 108 advisory groups, 5, 98, 129, 229–30 anti-personnel mines, 69, 75, 82 Afghanistan, 87 APEC, 59 AFP, see Australian Federal Police APS Code of Conduct, 132 Africa, 84–5, 113, 211, 213 archival and storage services, 141 agency overview, 9–13 ASEAN, 60 agricultural research, 35, 41 ASEAN–Australia Development Cooperation agriculture Program, 59, 60, 64 Afghanistan, 87 Asia, 58–83, 86–7, 211, 212–13 Africa, 85 Asia Pacific Economic Cooperation, 59 Cambodia, 75, 113 Asia Pacific Forum of National Human China, 72 Rights Institutions, 105 Iraq, 86 Asia–Pacific Leadership Forum on HIV AIDS Laos, 77 Asia–Pacific Ministerial Meeting on HIV/ Pakistan, 83 AIDS, 25 Papua New Guinea, 35, 41 Asia Regional HIV/AIDS Project, 60 Sri Lanka, 82 Asian Development Bank, 54, 91, 113, 125 see also rural development; food and Asian Development Fund, 91 nutrition; forestry assets, 140 Aid Advisory Council, 5, 129, 229–30 Association of Southeast Asian Nations, aid program expenditure, see program see ASEAN expenditure Attorney-General’s Department, 110 AIDCP, 61 Audit Committee, 128

238 AUSAID Annual Report 2004–2005 audits, 124, 131, 133 Australian Public Service Values and Code Auki, 50 of Conduct, 132 AusAID development research program, Australian Red Cross, 39 106, 214 Australian regional development AusAID–NGO Cooperation Program, 98, 117 scholarships, 106 AUSTRAC, 45 Australian Securities and Investments Australia–Bali Memorial Eye Centre, Commission, 44 Denpasar, 64 Australian Transaction Reports and Analysis Australia–Cambodia Development Centre, 45 Cooperation Strategy 2003–06, 74 Australian Water Research Facility, 106 Australia Indonesia Cooperation Program, Australian workplace agreements (AWAs), 61 136 Australia–Indonesia Partnership for Australian Youth Ambassadors for Reconstruction and Development Development (AYAD), 100, 101, 214 (AIPRD), 10, 61, 62, 123, 210 Avian Influenza, 63, 110 Aceh Rehabilitation Program, 65 aviation, 39, 56 Australian Partnership Scholarships security, 39, 67 program, 64 awards, 103 emergency management systems AusAID, 4 development, 66 Ayeyarwaddy Division, 77 firm eligibility criteria, 121

Government Partnership Fund, 63 B quality and quantity indicators, 17 BAKORNAS, 66 Australia–Nusa Tenggara Assistance for Bali, 64, 103 Regional Autonomy Program, 63 Balochistan, 83 Australia–Vanuatu Joint Development Banda Aceh, 65 Corporation Strategy 2005–10, 50 Bangkok, 94 Australian aid: an integrated approach, 108 Bangladesh, 79–80, 92, 95, 211, 213 Australian Broadcasting Corporation, 33 basic education, see education Australian Centre for International Agricultural Research, 35 bed nets, 36 Australian Council for International Bhutan, 213 Development, 98, 99 bio-security, 35 Australian Defence Force, 110 bird flu, 63, 110 Australian Development Gateway website, border management systems, 52, 67 107 Bougainville, 36, 42 Australian development scholarships, see cocoa driers, 41 scholarships law and justice strategy, 40 Australian Electoral Commission, 45 transport infrastructure, 35, 39 Australian Federal Court, 63 Boxing Day Indian Ocean tsunami, see Australian Federal Police, 32, 54, 73, 110 tsunami Australian National Audit Office, 124, 128, BRAC, 80 S SECTION 6

133 E C T I O N

6

Index 239 branch business plans, 130 certified agreement, 136, 218 bridges, PNG, 38 children, 92 briefs, 108 Indonesia, 23 broadcasting, 33, 64 Nepal, 83 AusAID, 103 Papua New Guinea, 40 Burma, 60, 77, 211, 212 see also education Burnet Institute World AIDS Day concert, China, 58, 60, 72, 134, 211, 212 103 China Central Party School, 72 business planning, 130 Chinese Ministry of Education, 72 business website, 122, 133 Chongqing, 72 churches, 34, 37 C Solomon Islands, 49 Cairns Group, 20 civil aviation, see aviation Cambodia, 74–5, 91, 113 civil society, 90 Dengue larvae, 60 India, 81 NGO programs, 98 Papua New Guinea, 33 program expenditure, 58, 74, 211, 212 Solomon Islands, 45, 49 capacity building Vanuatu, 51 Burma, 77 see also elections and electoral East Asia region, 59 processes; human rights; peace East Timor, 73 building Kiribati, 54 classifications of staff, 216–19 Mongolia, 78 climate change, 47 Nepal, 83 cocoa driers, 41 Pacific region, 47 code of conduct, 132 Palestinian territories, 87 Comcare, 138 Papua New Guinea, 33, 38 Committee for Development Cooperation, Samoa, 52, 119 98, 129 Solomon Islands, 45, 49 Commonwealth Disability Strategy, 139 Thailand, 76 Commonwealth Ombudsman, 133 Tonga, 53, 119 Commonwealth organisations, 90, 214 Tuvalu, 55 Commonwealth Procurement Guidelines, 120–1 Vanuatu, 51, 119 Commonwealth Youth Leadership Awards, Capital building in public finance, 119 106 CARE Australia, 39 communicable diseases, 23, 59, 92 Caribbean, 95 Africa, 85 cash reserves, 124 Cambodia, 60 Centre for Democratic Institutions, 105 Indonesia, 23, 36, 63 Certificate Level IV in Government Philippines, 71 (Procurement and Contracting), 121 see also HIV/AIDS; influenza Certificate of Appreciation Program, 103

240 AUSAID Annual Report 2004–2005 community development curriculum and curriculum development, 46, Africa, 84 103 Bangladesh, 80 Indonesia, 66, 67 Mongolia, 78 Kiribati, 54 Papua New Guinea, 33, 40 Nauru, 55 Sri Lanka, 82 Papua New Guinea, 38 Thailand, 76 Vanuatu, 46 Tonga, 53 customs operations, 54, 59, 67 see also rural development cyber-security threats, 60 community engagement, 103 cyclones, 55, 95 competitive tendering and contracting, 141–2 D see also purchasing Darfur region, Sudan, 84, 85 complaints, 133–4 debt management/relief, 90, 125, 214 compliance audits, 131 Papua New Guinea, 32 condoms, 36, 64 delivery of aid program, 7 conflict prevention, see peace building demining, 69, 75, 82 consultants, 141, 225–7 democratic systems, strengthening of, consultation and participation, 98, 115, 63, 105 129, 221–2, 229–30 see also community development; Consultative Group to Assist the Poor, 22 elections and electoral processes; ConsultNet email bulletin system, 115 governance continuous improvement, 120–2 dengue larvae, 60, 71 contract services, see purchasing Denpasar, 64, 67 contracts charter, 143 dental health, 74 Cook Islands, 45, 55 Department of Agriculture, Fisheries and Forestry, 110 corporate governance, 128–32 Department of Finance and Administration, corporate strategic plan, 130–1 54, 110 corruption, see fraud and corruption Department of Foreign Affairs and Trade, costs, see finance 110 counter-terrorism, see terrorism Department of Health and Ageing, 110 country and regional programs, 17, 18, Department of Prime Minister and Cabinet, 30–87, 211–13 110 strategies, 109 Department of Transport and Regional court decisions, 133 Services, 39 Papua New Guinea, 32 Department of the Treasury, 54, 110 courts, see law and justice deputy director generals, 10, 25, 128 cross regional programs, 105–7, 213, 218 Development Assistance Committee, culturally and linguistically diverse 114, 116 backgrounds, staff from, 219 development banks, see Asian Development

Bank; World Bank S SECTION 6 E C T I O N

6

Index 241 development/global education, 103 East Timor Ministry of Planning and development research program, 106, 214 Finance, 73 diarrhoeal disease, 92 East Timor National Directorate of Land and direct mail organisations, 228 Property, 74 Director General, 10, 110, 128 East Timor National Oral Health project, 74 review by, 3–8 Eastern Indonesia, 64 disabilities, people with, 224 ecologically sustainable development and environmental performance, 232 staff, 139, 219 economic and public sector performance disaster management, 95–7, 100, 103 China, 72 Cook Islands, 55 East Timor, 73 Indonesia, 66 Indonesia, 62 Pacific region, 47 Kiribati, 54 Papua New Guinea, 39 Nauru, 54 Solomon Islands, 49 Pacific region, 44–5 South Africa, 84 Papua New Guinea, 32–3, 36, 39, 40, 41 see also emergency, humanitarian and refugee programs; tsunami response Samoa, 52 discrimination against people living with Solomon Islands, 48–9 HIV/AIDS, 37 Thailand, 76 distance education, 107 see also financial management; law and diversity, workplace, 139, 219 justice documents, 222 education, 18, 23, 24, 100 see also publications Bangladesh, 80 Doha Round, 20, 21 Fiji, 51 domestic violence, 33 global/development education, 103 drinking water, see water supply and India, 81 sanitation Indonesia, 23, 64, 65, 66, 67–8 drug crop cultivation, 87 Kiribati, 54 drug supply kits, 36 Laos, 77 drug users, 60, 64 Nauru, 55 Pacific region, 57 E Pakistan, 83 early childhood development, 71 Papua New Guinea, 31, 38 earthquakes, 66, 95, 103 Philippines, 71 see also tsunami response Sri Lanka, 82 East Asia, 18, 58–78, 131, 211, 212 Tuvalu, 55 East Asia Regional Trade and Financial Vietnam, 69 Security Fund, 60 see also training; scholarships East Java, 64, 67 Education Rehabilitation in Aceh program, East Timor, 58, 73–4 65

242 AUSAID Annual Report 2004–2005 educational infrastructure, 23, 66 Executive Committee, 128 effectiveness, 17–18 Executive Services Group, 6 elections and electoral processes, 26, 105 exhibition on HIV/AIDS, 103 Afghanistan, 87 Extended Program of Immunisation, 36 Africa, 84 external scrutiny, 133–4 Bougainville, 42 eyes and vision, 64, 75, 83 East Timor, 73 Indonesia, 68, 105 F Iraq, 86 Family Court of Australia, 63 Papua New Guinea, 33, 42 family violence, 33 Solomon Islands, 45 females, see women Tonga, 45, 105 Fiji, 44, 45, 51, 57, 211, 212 electricity supplies, 86 Fiji Ministry of Health, 51 elementary education, see education finance, 124–5, 134, 146–205, 210 eligibility criteria, 121 staff remuneration, 136, 218 emergency, humanitarian and refugee staff training expenditure, 218 programs, 18, 89, 94–7, 114, 214 see also program expenditure; purchasing Africa, 84, 85 financial management Burma, 77 Cook Islands, 55 Indonesia, 66 East Timor, 73 Palestinian territories, 87 Indonesia, 63, 91 Papua New Guinea, 39 Kiribati, 54 Philippines, 71 Nauru, 54, 55 see also disaster management; tsunami Papua New Guinea, 32–3, 34, 38, 110 response; food and nutrition Samoa Emergency Management Australia, 66 Solomon Islands, 48 Enga province, 36 South Africa, 84 English language training, 64 Tonga, 53, 119 Enhanced Cooperation Program, 32 Tuvalu, 55 environment, 93 Vanuatu, 51, 119 see also sustainable resource financial services, see microfinance management financial statements, 124, 146–205 environmental education, 67 fiscal management, China, 72 environmental management system (EMS), fisheries, 41, 47, 53 232 floods and flood mitigation, 69, 72, 77 essential infrastructure, see infrastructure Flores, 64 ethics and values, 132 flu, see influenza ethnic minorities, 77 Focus, 104 European Union, 113, 114 food and nutrition, 66, 80, 95 evaluation, see review and evaluation S SECTION 6 E C T I O N

6

Index 243 foot and mouth disease control, 60 globalisation (trade and investment), The Footy Show, 103 20–1, 90 Foreign Affairs and Trade Portfolio Budget Africa, 84 Statements, 16 China, 72 Foreign Investment Advisory Services, 35 East Asia region, 59–60 forestry Indonesia, 63–4 Burma, 77 Pacific region, 45–6 Nepal, 83 Papua New Guinea, 35 Papua New Guinea, 35, 41 Tonga, 53 Sri Lanka, 82 Vietnam, 70 Solomon Islands, 50 governance, 18, 19–20, 105 fragile states, 27, 90, 106 Africa, 84 Fragile States Unit, 6 AusAID, 128–32 France, 27 China, 72 fraud and corruption, 110 East Asia region, 21, 59 APEC Course of Action, 59 East Timor, 73 AusAID controls, 132 India, 81 Indonesia, 63 Indonesia, 63 Papua New Guinea, 40 Iraq, 86 Philippines, 71 Pacific region, 44–5, 56, 57 ‘Free Your Mind’ award, 4 Pakistan, 83 freedom of information, 220–3 Palestinian territories, 87 full-time staff, 216 Papua New Guinea, 31, 32–4 functions and role, 9 Solomon Islands, 44, 48–9, 105 Vanuatu, 50, 51, 105 G Vietnam, 70 Gangtok, 81 see also economic and public sector gender and gender equity, 40, 49, 83 performance; financial management see also women and girls guiding themes, 19–28 gender of staff, 137, 216, 217 Germany, 65, 94 H global/development education, 103 Ha’apai, 53 Global Development Learning Network, 107 harmonisation, 113–14 Global Environment Facility, 93 health, 18, 23, 24, 25, 92 Global Fund to Fight AIDS, Tuberculosis and Africa, 85 Malaria, 25 Burma, 77 Global Influenza Program, 92 Cambodia, 60, 74, 75 Global Outbreak Alert and Response East Timor, 74 Network, 92 Indonesia, 23, 63, 64, 65, 66 global programs, 18, 88–107, 108 Nauru, 55 Global Trust Fund, 21 Nepal, 83

244 AUSAID Annual Report 2004–2005 Pakistan, 83 Ho Chi Minh City, 69, 107 Papua New Guinea, 31, 35–7 Honiara, 50 Samoa, 52 hospitals, see health infrastructure Solomon Islands, 49 human capital, 23–5 see also animal diseases; communicable Indonesia, 64–5 diseases; food and nutrition; water Pacific region, 46 supply and sanitation Papua New Guinea, 35–8 health and safety, occupational, 138 Solomon Islands, 49 Health Assistance Rehabilitation Aceh see also disaster management; Program, 65 education; health; infrastructure health education and training, 100 human resources, see staff East Asia region, 60 human rights, 105, 134 Indonesia, 63, 64, 65 Africa, 95 Nepal, 83 Indonesia, 63 Pacific region, 46, 57 Iraq, 86 Papua New Guinea, 36 Papua New Guinea, 37 Zimbabwe, 85 see also women and girls health infrastructure, 23 Human Rights Fund, 105 Fiji, 51 Human Rights and Good Governance Indonesia, 64, 65 Seminar, 105 Papua New Guinea, 31, 36, 37 Humanitarian Accountability Partnership Sri Lanka, 82 International, 95 Tonga, 53 Humanitarian Action Policy, 94, 114 see also water supply and sanitation humanitarian relief, see emergency, Heavily Indebted Poor Countries (HIPC) humanitarian and refugee programs Initiative, 90, 125, 214 hurricanes, 55, 95 high school education, 67 Hyogo Framework for Action 2005–15, 95 higher education, see scholarships Highlands Highway, 38 I HIV/AIDS, 25, 92, 100, 103, 110, 116 immunisation and vaccination, 23, 36, Africa, 85 54, 85 Burma, 77 staff, 138 Cambodia, 74, 75 income generation China, 60, 72 Bangladesh, 80 East Asia region, 60 Iraq, 86 Indonesia, 64 Papua New Guinea, 33, 41 Pacific region, 46, 56 Samoa, 52 Papua New Guinea, 33, 34, 37, 38, 40, Thailand, 76 103: evaluation, 116 Tonga, 53 Solomon Islands, 49 Vietnam, 69

HIV/AIDS taskforce, 6 see also microfinance S SECTION 6 E C T I O N

6

Index 245 India, 79, 80, 211, 213 internal audit, 131–2 Indian Ocean tsunami, see tsunami internally displaced persons, 85 Indigenous staff, 219 International Centre for Agricultural Indonesia, 60–8, 91, 97, 103 Research in Dry Areas, 86 Islamic schools, 23, 64, 66, 68 International Centre for Diarrhoeal Disease polio immunisation campaign, 23 Research, 92 program expenditure, 58, 61–3, 211, International Committee for Red Cross, 95 212 International Council for the Control of see also Australia–Indonesia Partnership Iodine Deficiency, 92 for Reconstruction and Development International Development Association, 125 Indonesia Partnership Fund for HIV/AIDS, International Dialogue on Interfaith 64 Cooperation, 68 Indonesian Health Department, 64 international environment programs, 93 Indonesian Large Taxpayer Office, 63 international fora, 95, 110 Indonesian Learning Assistance Program for international health programs, 25, 92 Islamic Schools, 68 international industry partners, 115 Indonesian National AIDS Commission, 64 International Mission for Iraqi Elections, 86 Indonesian National Human Rights International Monetary Fund, 51 Commission, 63 international organisations, see multilateral Indonesian National Narcotics Agency, 64 organisations Indonesian Regional Representatives International Peace Academy, 47 Council, 63 International Planned Parenthood Indonesian Religious Courts, 63 Federation, 92 Indonesian Supreme Court, 63 International Refugee Fund, 95 Indonesian transnational crime centre, 66 International Women’s Day, 103 infectious diseases, see communicable international year of microcredit, 22 diseases Internet, 104, 224 influenza, 92 Australian Development Gateway website, avian, 63, 110 107 staff vaccinated, 138 business website, 122, 133 information, education and communication ConsultNet email bulletin system, 115 programs, 102–4 global education website, 103 Information Management Advisory Group, investment, see globalisation 128 iodine deficiency, 92 infrastructure, 18 Iran, 95 China, 72 Iraq, 86, 91 Iraq, 86 Iraq Foreign Ministry, 86 Papua New Guinea, 35, 38–9 Iraq Independent Electoral Commission, 86 Solomon Islands, 46 Iraq Ministry of Human Rights, 86 see also health infrastructure Iraq Special Tribunal, 86 injecting drug users, 60, 64 Ireland, 114 Institute for National Affairs, 33 Irian Jaya (Papua), 64

246 AUSAID Annual Report 2004–2005 Islam, 68 Lautoka Teachers’ College, 51 Indonesia, 63: schools, 23, 64, 66, 68 law and justice, 26 Philippines, 71; schools, 71 Cambodia, 74 East Asia region, 59 J East Timor, 73, 74 Japan, 113 Fiji, 45, 51 Jakarta, 66, 67 Indonesia, 63 Indonesian Embassy bomb victims, Iraq, 86 66, 68 Kiribati, 54 Java, 23, 64, 67 Nauru, 54 joint parliamentary committees, 134 Pacific region, 45, 56 Joint United Nations Program on HIV/AIDS Papua New Guinea, 39–40 (UNAIDS), 92 Philippines, 71 Jordan International Police Training Centre, Samoa, 45, 52 86 Solomon Islands, 45, 50 JPPR, 68 Thailand, 76 judicial scrutiny of AusAID, 133 Tuvalu, 55 judicial systems, see law and justice Vanuatu, 51 Vietnam, 70 K Least Developed Countries, 20 Kandal province, 75 legal systems, see law and justice Kang Guru Radio English, 64 linguistically and culturally diverse Kiribati, 44, 53–4, 91, 211, 212 backgrounds, staff from, 219 Kiribati Ministry of Education, Youth and literacy, see education Sport, 54 local government services, Aceh, 62 Knowledge Warehouse, 117 location of staff, 216, 217 Luzon, 71 L laboratories, 60, 65 M laboratory equipment, 63 MAF, 88 land tenure and administration Malaita Province, 49, 50 East Timor, 74 malaria, 36, 71, 92 Laos, 77, 91 Malawi, 84, 85 Philippines, 71 Maldives, 97, 103 Solomon Islands, 50 male staff, 137, 216, 217 landmines, 69, 75, 82 management and accountability, 128–43 language training, 64 aid program, 112–22, 210 staff, 218 management systems, 7 Lao National University, 77 Manam, 39 Laos, 58, 76–7, 91, 211, 212 maritime security 39, 67

LAPIS Emergency Support Unit, 66 S SECTION 6 market research organisations, 228 E C T I O N

6

Index 247 Marshall Islands, 45 N measles vaccination, 54 natural disasters, see disaster management media, 102–3 natural resource management, see media advertising, 228 sustainable resource management medical services, see health Nauru, 44, 54–5, 211, 212 medical supplies and equipment, 36, 63, Nepal, 79, 82–3, 211, 213 66 Nepal Ministry of Forest and Soil Meeting the challenge: Australia’s Conservation, 83 international HIV/AIDS strategy, 6, 25 New Ireland, 36 Mekong River Basin, 59 New Zealand, 27, 56, 62, 113 Melanesia, 106 Kiribati, 53 men staff, 137, 216, 217 Samoa, 52, 113 Mendi General hospital, 36 Tuvalu, 55 microfinance, 22 Newcastle disease, 85 Bangladesh, 80 Nias, 66, 103 Burma, 77 Niue, 113 Papua New Guinea, 33 non-English speaking backgrounds, staff Solomon Islands, 44 from, 219 Sri Lanka, 82 non-government organisations (NGOs), 26, Vietnam, 69 98–9, 115, 117, 129 Middle East/Central Asia, 86–7, 211, 213 Bangladesh, 80 Millennium Development Goals (MDGs), 29 Darfur, 95 Mindanao, 70, 71 expenditure on, 98, 99, 214 mines (military), 69, 75, 82 Mongolia, 78 ministerial correspondence, 108, 109 Papua New Guinea, 39 Ministers/Parliamentary Secretary, 10, Solomon Islands, 49 102, 109, 208–9 non-ongoing staff, 216 money laundering, 66, 76 non-salary benefits, 136 Mongolia, 78, 211, 212 North Sumatra, 66, 97 Montreal Protocol Multilateral Fund, 93 North Vam Nao Island, 69 Moro Islamic Liberation Front, 70 nurse education and training, 46, 74 mosquito bed nets, 36 Nusa Tenggara, 63, 64 Mo’unga’one, 53 nutrition, see food and nutrition Mozambique, 85 Nyala hospital, 85 MTV Australia, 4 multilateral assessment framework, 88 O multilateral organisations, 88–93, 214 obstetric fistula, 92 see also Asian Development Bank; United occupational health and safety, 138 Nations; World Bank; World Trade Office of Review and Evaluation, 116, 118– Organization 19, 129, 130 multisector programs, 18, 31 Ombudsman, 133 Muslims, see Islam ongoing staff, 137, 216

248 AUSAID Annual Report 2004–2005 operating results, 124–5 Papua New Guinea (PNG), 30–42, 91, 103, opium cultivation, 87 110 oral health, 74 program expenditure, 30–1, 211, 212 organisation and structure, 5–6, 9–13 program reviews, 5, 134 Organisation for Economic Cooperation and Papua New Guinea Agricultural Innovation Development (OECD), 27, 114 Grants Facility, 41 outcomes, 12–125, 210 Papua New Guinea church partnership outlook, 8 program, 34, 37 outputs, 108–23, 210 Papua New Guinea defence force, 36 outsourced services, 141 Papua New Guinea Department of Education, 38 overseas posts, 136, 137, 138, 231 Papua New Guinea Department of Health, staff numbers, 5, 216, 217 36 ozone depleting substances, 93 Papua New Guinea Department of Personnel Management, 33 P Papua New Guinea Department of Transport Pacific, 43–57, 106, 107, 110, 211, 212 and Civil Aviation, 39 global programs, 91, 95 Papua New Guinea Department of Works, harmonisation, 113–14 38 program performance audit, 131 Papua New Guinea Electoral Support World Bank Facility, 90 Program, 42 see also Papua New Guinea Papua New Guinea Enhanced Cooperation Program, 32 Pacific Blue, 56 Papua New Guinea Health Services Radio Pacific Enterprise Development Facility, 44 Network, 36 Pacific Governance Support Program, 57 Papua New Guinea Medium-term Pacific Islands Forum, 56 Development Strategy 2005–10, 32 Pacific Islands Forum Secretariat, 54, 56 Papua New Guinea National AIDS Council, Pacific Plan for Strengthening Regional 36 Cooperation and Integration, 56 Papua New Guinea National Disaster Pacific Regional Aid Strategy 2004–09, 43 Management Office, 39 Pacific Regional Policing Initiative, 45 Papua New Guinea National Executive Pacific Regional Trade Facilitation Program, Council, 40 45 Papua New Guinea National Fisheries Pacific Transport Technical Support Fund, College, 41 56 Papua New Guinea National Broadcasting Pacific 2020 process, 5 Corporation, 33 Pakistan, 79, 83, 211, 213 Papua New Guinea Prepared Communities Palau, 45 Grants Account, 39 Palestinian territories, 87, 98, 211, 213 Papua New Guinea Public Service palliative care, 37 Commission, 33 Papua (Irian Jaya), 64 Papua New Guinea Red Cross, 39

Papua New Guinea Royal Constabulary, 40 S SECTION 6 E C T I O N

6

Index 249 parliamentarians, 103 policy, 108–11, 210 parliamentary committees, 108, 134 polio, 23, 92 parliamentary delegation to Indonesia, 103 polling organisations, 228 parliamentary questions on notice, 108 port facilities, 35 Parliamentary Secretary, see Ministers see also shipping part-time staff, 216 Port Moresby, 40 participation and consultation, 98, 115, Portfolio Budget Statements, 16 129, 221–2, 229–30 portfolio membership, 10 partnerships for development, 113–15 possible parliamentary questions, 108 pay and remuneration, 136, 218 poultry, 41, 85 peace building, 26, 47, 94 power supplies, 86 Bougainville, 42 powers, 221 Middle East/Central Asia, 86–7 price of outputs, 210 Mindanao, 70 primary education, see education Solomon Islands, 47 principal advisers, 5 peer review, 130 Principles of Good International Engagement People Management Advisory Group, 128, in Fragile States, 27 135–9 Privacy Commissioner, 134 People’s Republic of China, 58, 60, 72, program expenditure, 17–28, 124–5, 134, 211, 212 211–15 performance audits, 131, 133 Africa, 84, 211, 213 performance information framework, 16– cross regional, 105–7, 213 17, 115–16 East Asia, 58–9, 61–3, 65–6, 68–74, performance management, 131–2, 133, 76–8, 211, 212 135 emergency, humanitarian and refugee, contractors, 122 18, 94–6, 214 performance pay, 136 Middle East/Central Asia, 86–7, 211, performance report, 16–125 213 Performance Review and Audit Section, multilateral organisations, 88, 90–2, 214 131–2 non-government organisations and period offers, 120, 225 volunteers, 98–101, 214 persistent organic pollutants, 28 Pacific region, 43–4, 46, 48, 50–7, 211, pharmaceuticals and pharmacists, 36, 55, 212 63, 65 Papua New Guinea, 30–42, 211, 212 Philippines, 58, 70–1, 91, 110, 211, 212 South Asia, 79–83, 211, 213 Philippines Bureau of Immigration, 71 program management, 112–22, 210 Philippines Department of Education, 71 public broadcasting, 33 Philippines Policy Forum, 110 Public Expenditure Review and photocopying services, 141 Rationalisation exercise, PNG, 32 photographic exhibition on HIV/AIDS, 103 public information, 102–4, 214 Phuket, 76 see also publications police services, see law and justice Public Sector Linkages Program, 59, 76

250 AUSAID Annual Report 2004–2005 public sector performance, see economic reproductive health, see sexual and and public sector performance reproductive health Public Service Act staff, 216 research, 106, 214 publications, 103, 105, 223 agricultural, PNG, 35, 41 AusAID policies, 108–9 ASEAN–Australia Development review and evaluation reports, 118–19 Cooperation Program, 60 see also documents; Internet fragile states, 27, 90, 106 purchasing, 140–2, 225–8 health, 92: Cambodia, 75 aid program, 115, 120–2 resources, see finance; staff contracts charter, 143 review and evaluation, 4–5, 114, 116–19, Senate Order for contracts, 133 129–30, 131–2 purchasing, aid program development scholarships, 106 volunteers, 100 performance information framework, 16–17, 117 rice seed, 75 Q risk management, 132 Qantas Club lounges, 103 RMIT University, 106 Quality at entry review 2004, 118 roads, 38–9, 46 quality indicators, 16–17 role and functions, 9 Quang Ngai province, 69 Rotary International, 92 quantity indicators, 17–18 Royal PNG Constabulary, 40 see also aid program expenditure Royal Tonga Airlines, 56 questions on notice, 108 rubella vaccinations, 54 quotas, 20 rural development, 18, 28 Burma, 77 R East Timor, 73 Rabaul Volcanological Observatory, 39 Papua New Guinea, 31, 33, 41 radio broadcasting, 33, 64 Solomon Islands, 50 radio communications, 36, 51, 69 Vietnam, 70 Rakhine State, 77 see also agriculture; fishing; forestry; records management, 141 water supply and sanitation recruitment of staff, 137, 138, 139, 217 recycling, Tonga, 53 S Red Cross, 39, 95 Sa Dec province, 69 refugees, 77, 85, 95 Safe water guide for the Australian aid Regional Assistance Mission to Solomon program, 108 Islands (RAMSI), 27, 48 salaries and remuneration, 136, 218 regional development, 63 Samoa, 45, 52, 113, 119 regional security, see security program expenditure, 44, 52, 211, 212 religion, 68 program performance audit, 131 see also Islam Samoan Ministry of Health, 52 S SECTION 6

remuneration of staff, 136, 218 E C T I O N

6

Index 251 Samoan Trade and Investment Promotion senior management, 129 Unit, 46 separations of staff, 137, 217 Sanglah Hospital, Bali, 64, 103 service charter, 143 sanitation, see water supply and sanitation sex of staff, 137, 216, 217 satisfaction, 16–17 sexual and reproductive health, 92 Ministers/Parliamentary Secretary, 109 Africa, 85 staff learning and development activities, Pacific region, 46 137 Papua New Guinea, 36, 37 scholarships, 7, 23, 106, 113 see also HIV/AIDS East Timor, 74 sexual violence, 33 Indonesia, 64 Seychelles, 97 Laos, 77 Shillong, 81 Mongolia, 78 shipping, 39, 56 Pakistan, 83 security, 39, 67 Papua New Guinea, 38 simplified monitoring toolbox (SMT), 116 Philippines, 71 Simeulue, 66 Tonga, 53 SIMON, 7 Tuvalu, 55 Singapore, 66 Vietnam, 70 small to medium sized enterprises, 64 school buildings, 23 see also microfinance schooling, see education social security, China, 72 secondary education, 67 solar power, 51 Secretariat of the Pacific Community, Solomon Islands, 48–50, 211, 212 56, 113 affordable finance, 44 security, 26–7 foreign investment legislation, 46 Indonesia, 65 governance, 45, 48–9, 105 Pacific region, 47 human rights, 105 Papua New Guinea, 39–40 law and justice, 45, 50 Philippines, 71 program expenditure, 44, 48 Samoa, 52 weapons-free village campaign, 47 Solomon Islands, 50 Solomon Islands Central Bank, 44 Vietnam, 69 Solomon Islands Department of Lands, 50 see also law and justice; terrorism Solomon Islands Electoral Commission, 49 seminar support, 214 Solomon Islands Foreign Investment Senate, 63 Advisory Service, 46 Order for Departmental and Agency Solomon Islands Forestry Department, 50 Contracts, 133 Solomon Islands High Court, 50 Senate committees, 134 Solomon Islands Institute of Public Senior Executive Service, 136, 216–19 Administration and Management, 48 Senior Level Forum on Development Solomon Islands Ministry of Health, 49 Effectiveness in Fragile States, 27, 90

252 AUSAID Annual Report 2004–2005 Solomon Islands Ministry of Police, National sustainable resource management, 28 Security, Justice and Legal Affairs, 50 AusAID, 232 Solomon Islands National Medical Stores, Fiji, 51 49 Indonesia, 67 Solomon Islands National Peace Council, Pacific region, 47 47 Papua New Guinea, 40–1 Solomon Islands National Referral Hospital, Solomon Islands, 50 49 Sri Lanka, 82 Solomon Islands Office of the Director of Public Prosecutions, 50 Tonga, 53 Solomon Islands Parliamentary Support see also agriculture; water supply and Project, 49 sanitation Solomon Islands Public Solicitor’s Office, Suva, 94, 105 50 Sydney Royal Easter Show, 103 South Africa, 84 South Asia, 79–83, 92, 211, 213 T South Pacific, see Pacific Tanzania, 85 Southeast Asian Foot and Mouth Disease tariffs, 20 Control Program, 60 taxation, 53, 64 Southern Highlands, 36 teacher education and training, 23, 103 Special Representative for HIV/AIDS, 25 Aceh, 65 speeches, 108 Bangladesh, 80 sports, 84 Fiji, 51 Sri Lanka, 79, 81–2, 97, 103, 211, 213 Laos, 77 staff, 137, 210, 216–19 Nauru, 55 remuneration, 136, 218 Pacific region, 46 seconded to international organisations, Pakistan, 83 89, 113 Papua New Guinea, 38 staff management, 5–6, 129, 135–9 Philippines, 71 staff training and development, 137, Vietnam, 69 218–19 teachers, Indonesia, 64, 65 contracting firm eligibility criteria, 121 technical training, see training ethics and values, 132 tenders, see purchasing ministerial and parliamentary services, terrorism, 26 109 East Asia region, 59, 60 peace, conflict and development learning Indonesia, 66–7 package, 94 Indonesian Jakarta Embassy victims, strategic plan, 130–1 66, 68 study support scheme, 218 Philippines, 70, 71 submissions, 108, 134 tertiary education, see scholarships; Sudan, 84, 85 vocational education and training

Sumatra, 66, 97 S SECTION 6 E C T I O N

6

Index 253 textbooks, see curriculum and curriculum tsunami early warning systems, 57 development tsunami response, 4, 89, 96–7, 103 Thai Community Development Department, India, 81 76 Indonesia, 66, 97, 103 Thailand, 58, 76, 211, 212 NGOs, 99 Thailand–Australia HIV/AIDS Ambulatory Sri Lanka, 81, 82, 97, 103 Care Project, 116 Thailand, 76 Tonga, 45, 52–3, 119 see also Australia–Indonesia Partnership program expenditure, 44, 53, 211, 212 for Reconstruction and Development Royal Tonga Airlines, 56 Tuvalu, 55, 211, 212 Tongan Export Fisheries Association, 53 Tuvalu People’s Lawyers Office, 55 Tongan Waste Management Authority, 53 Tuvalu Trust Fund, 55 Torres Strait Islander and Aboriginal staff, 219 U trade and investment, see globalisation ‘Uiha, 53 training, 23, 24, 28, 105 UNAIDS, 92 Africa, 84, 85 unexploded ordnance and mines, 69, 75, China, 72 82 East Asia region, 59, 60 United Kingdom, 86, 113, 114 East Timor, 73, 74 United Nations, 22, 36, 88–9, 95, 214 Indonesia, 63–4 United Nations Association of Australia Iraq, 86 microcredit conference, 22 Kiribati, 54 United Nations Children’s Fund (UNICEF), Nauru, 54 89 Pacific region, 44 Bangladesh, 80 Papua New Guinea, 33, 34, 36 Indonesia, 66 police officers, 26, 52, 54, 86 Kiribati, 54 Samoa, 52 Philippines, 71 Solomon Islands, 48 Sri Lanka, 82 Thailand, 76 United Nations Counter-Narcotics Trust Vietnam, 69 Fund, 87 see also education; staff training and United Nations Development Programme, development; vocational education and 47, 49, 82, 105 training United Nations Disaster Assessment and transnational crime, 66 Coordination, 95 see also terrorism United Nations Environment Programme, 93 Transparency International, 33 United Nations High Commissioner for transport infrastructure, 35, 38–9, 56 Human Rights, 105 transport security, 39, 67 United Nations Humanitarian Air Services, 95 Transport Technical Support Fund, 56 United Nations Iraq Trust Fund, 86, 91 travel documents, fraudulent, 71 United Nations Joint Logistics Centre, 95 Treasury, 54, 110

254 AUSAID Annual Report 2004–2005 United Nations Office for the Coordination W of Humanitarian Affairs, 94 waste management, Tonga, 53 United Nations Population Fund, 92 water supply and sanitation, 23, 100, 106 United Nations Relief and Works Agency, 87 Cambodia, 113 United Nations University, 106 China, 72 United States of America, 113 Darfur, 85 university education, see scholarships East Timor, 73 India, 81 V Indonesia, 66, 67, 91 vaccination, see immunisation and Kiribati, 54 vaccination Papua New Guinea, 33, 34 values and ethics, 132 Sri Lanka, 82 vanilla growers, 41 Tonga, 53 Vanuatu, 45, 47, 50–1, 119 Vietnam, 69 program expenditure, 44, 50–1, 211, see also floods and flood mitigation 212 websites, see Internet Vanuatu Institute of Technology, 46 Western and Central Pacific Fisheries Vanuatu National Council of Chiefs, 47 Commission, 47 Vietnam, 60, 69–70, 113 wheat, 95 distance learning centre, 107 White Paper, 4–5 program expenditure, 58, 69, 211, 212 whole-of-government engagement, 10 Vietnam–Cambodia Dengue Project, 60 women, 103 Vietnam Capital Aid Fund for Employment Bangladesh, 80 of the Poor, 22 Burma, 77 violence, family and sexual, 33 Cambodia, 74, 75 Virtual Colombo Plan, 107 India, 81 vitamin A deficiency, 83 Indonesia, 64 vocational education and training Kiribati, 54 China, 72 Nepal, 83 Fiji, 51 Pakistan, 83 Papua New Guinea, 41 Papua New Guinea, 33, 40 Vanuatu, 46 Solomon Islands, 49, 105 see also health education and training; Tonga, 105 teacher education and training women staff, 137, 216, 217, 219 volcanoes, 39 work station assessments, 138 volunteers, 100–1, 214 workplace agreements, 136, 218 see also non-government organisations workplace diversity, 139 Volunteers and Australian development cooperation policy, 100 workplace health and safety, 138 voting, see elections and electoral World AIDS Day, 103 processes S SECTION 6 E C T I O N

6

Index 255 World Bank, 90, 107, 113 Consultative Group to Assist the Poor, 22 fragile states research funding, 27, 90 Kiribati project, 54 Public Expenditure Review and Rationalisation exercise, PNG, 32 quality indicators, 16 World Bank Trust Reform Trust Fund, 87 World Conference on Disaster Risk Reduction, 95 World Food Programme, 66, 80, 89 World Health Organization, 71, 92 World Institute for Development Economics Research, 106 World Vision, 39 World Trade Organization, 21 accessions, 70, 76

X Xinjiang, 72

Y Yangzte Water Resources Commission, 72 youth, 90, 92, 106 Cambodia, 74 Solomon Islands, 49 Vanuatu, 51 see also children; education Youth Ambassadors for Development, 100, 101, 214

Z Zainoel Abidin Hospital, 65 Zimbabwe, 85 zoonotic diseases, 59, 63, 110

256 AUSAID Annual Report 2004–2005 Australian Agency for International Development Telephone: (02) 6206 4000 Internet: www.ausaid.gov.au

ABN 629 215 588 38