Australia’s Bilateral Aid Program in Papua New Guinea
Department of Foreign Affairs and Trade Submission to the Australian Senate Standing References Committee on Foreign Affairs, Defence and Trade
April 2015
Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
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Cover image: A young child at Gerehu Market in Port Moresby. Photo: Ness Kerton/DFAT.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Table of Contents
Executive summary ...... 5 List of Acronyms ...... 8 Australian Aid to PNG: The Context ...... 11 Figure 1: Australian goods and services trade with PNG 2008-14 ...... 11 Figure 2: PNG Real economic growth 2007-19 (projected) ...... 12 Table 1: Australian Official Development Assistance to PNG, 2011-12 to 2014-15 ...... 14 Table 2: Official Development Assistance disbursements to PNG by Top 10 Donors, 2011-13 .... 14 Table 3: Australian Official Development Assistance expenditure, 2013-14 ...... 15 Figure 3: DFAT Official Development Assistance (%) to PNG, 2013-14 ...... 16 Highlight #1: Aid Results in 2013-14 ...... 16 Australian Aid to PNG: A New Direction ...... 17 Figure 4: Proposed DFAT Official Development Assistance (%) to PNG 2014-15 ...... 17 Figure 5: Proposed Strategic Framework for the PNG aid program ...... 19 Highlight #2: A New Direction for Australian Aid to PNG: Refocusing Australian Aid to Help Unlock PNG’s Economic Potential ...... 20 Australian Aid to PNG: Investments ...... 21 Health and HIV/AIDS ...... 21 Investment Example #1: Tuberculosis Control Initiatives in Western Province and the National Capital District ...... 22 Investment Example #2: Medical Supply Reform in PNG ...... 23 Education ...... 23 Investment Example #3: Australia Awards and the New Colombo Plan ...... 25 Transport Infrastructure ...... 25 Investment Example #4: PNG Incentive Fund ...... 27 Law and Justice ...... 27 Economic and Democratic Governance ...... 29 Investment Example #5: PNG Governance Facility ...... 30 Investment Example #6: A New Precinct for Public Sector Reform and Education...... 31 Australian Aid to PNG: An Enhanced Focus on the Private Sector ...... 32 Highlight #3: Aid for Trade ...... 33 Figure 6: Australian Government: Private Sector Development Framework for PNG 2014-18 .. 34 Australian Aid to PNG: Gender Equality and Women’s Empowerment ...... 35 Investment Example #7: Pacific Women Shaping Pacific Development - PNG ...... 36 Australian Aid to PNG: Disability-Inclusive Development ...... 36 Australian Aid to PNG: The Autonomous Region of Bougainville and Manus Province...... 37
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Bougainville ...... 37 Manus Province ...... 38 Australian Aid: A Strong Whole-of-Government Approach ...... 39 Attorney-General’s Department ...... 39 Australian Centre for International Agricultural Research ...... 40 Australian Electoral Commission ...... 40 Australian Federal Police ...... 40 Australian National Audit Office ...... 41 Australian Public Service Commission ...... 42 Australian Taxation Office ...... 42 Australian Trade Commission ...... 43 Commonwealth Ombudsman ...... 43 Department of Finance (Finance Australia) ...... 44 Department of Immigration and Border Protection ...... 45 Investment Example #8: Government-to-Government Support ...... 46 Department of Infrastructure and Regional Development ...... 47 The Treasury ...... 48 Australian Aid: Delivery Partners in PNG ...... 49 Table 4: DFAT Official Development Assistance to PNG by partner type, 2011-12 to 2013-14 .... 49 Non-Government Organisations ...... 50 Multilateral Organisations ...... 51 Partnering with the Private Sector ...... 52 Australian Aid: Making Performance Count ...... 54 Australian Aid: Learning and Applying Lessons ...... 55 Governance in PNG ...... 55 Learning from other countries ...... 57 Thematic Strategies - The Health Sector in PNG, a case study ...... 58 Annex 1 – Senate Committee Letter to Mr Peter Varghese AO, Secretary, DFAT ...... 61 Annex 2 – Links to key documents ...... 63
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Executive summary
On 4 December 2014, the Senate requested the Standing References Committee on Foreign Affairs, Defence and Trade conduct an inquiry and report on The Delivery and Effectiveness of Australia‘s Bilateral Aid Program in Papua New Guinea (PNG).
This submission has been prepared by the Australian Department of Foreign Affairs and Trade (DFAT) in response to the Inquiry’s Terms of Reference. It provides an overview of Australia’s bilateral aid program in PNG which is principally coordinated and managed by DFAT. It also reflects the strong whole-of-government engagement by Australia in support of growth and development outcomes in PNG and includes input from the Attorney-General’s Department, Australian Electoral Commission, Australian Federal Police, Australian National Audit Office, Australian Public Service Commission, Australian Taxation Office, Australian Trade Commission, Commonwealth Ombudsman, Department of Finance (Finance Australia), Department of Immigration and Border Protection, Department of Infrastructure and Regional Development and The Treasury. The Australian Centre for International Agricultural Research is providing a separate submission to the Senate Inquiry.
Australia values its longstanding ties with PNG – we are neighbours and regional partners, with a shared history and a shared geography. A stable and prosperous PNG is clearly in Australia’s national interest.
PNG has experienced over a decade of comparatively robust economic growth, with expanding formal employment opportunities and strong growth in government expenditure and revenues. This economic performance has been driven by high international prices for PNG’s exports (including agriculture), favourable macroeconomic policies and, more recently, construction activity related to the Liquefied Natural Gas project.
Despite this sustained period of growth and a long history of aid, PNG continues to face substantial development challenges and a range of constraints to inclusive economic growth. These include poor law and order, inadequate infrastructure, complex levels of governance, inequality between men and women, weak capacity, corruption, and poor health and education services. These factors have impeded PNG’s ability to meet international development goals and national targets.
Australia has provided aid to PNG since its independence in 1975. PNG is currently Australia’s second largest aid recipient behind Indonesia with planned expenditure of $577 million in 2014-15. We are PNG’s largest aid donor, but in 2015, Australian aid flows are estimated to represent around 7 per cent of PNG’s total official expenditure.
An assessment of our aid program in PNG for 2013-14 highlighted some performance variability. Good progress was made towards outcomes in the health and HIV sector, and targets for road rehabilitation were met. Modest gains were achieved from education, and law and justice, investments. The challenging political and security environment in PNG limited the achievement of outcomes for Australian-supported activities in the governance sector. Deep-rooted socio-economic issues affected progress on programs designed to advance gender equality and women’s empowerment.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
In 2014, the Australian and PNG Governments agreed to reshape Australia’s aid program to better meet PNG’s development needs and align with the shared priorities of both governments. A new direction for Australian aid in PNG: refocusing Australian aid to help unlock PNG’s economic potential recommended nine areas for change, improvement or enhancement. These new and enhanced directions for the Australian aid program in PNG reflect the Australian Government’s aid paradigm as outlined in Australian aid: promoting prosperity, reducing poverty, enhancing stability and are guided by two development outcomes: strengthening private sector development and enabling human development. The way aid is being designed and delivered in PNG also reflects the Australian Government’s increased focus on performance and mutual accountability for results.
Australia is continuing to invest in health, education and law and justice outcomes in PNG. However, recognising the sovereign responsibility of PNG to deliver basic services for all of its citizens, Australian aid is increasingly focused on building PNG’s own capacity to deliver such services, including to the most remote communities. The Australian aid program is less focused on direct service delivery and is encouraging new partnerships between the PNG Government and churches, other civil society organisations, and the private sector.
Good governance is fundamental to PNG’s stability and growth. While Australia has, over many years, sought to help the PNG Government improve the effectiveness of its state institutions, this effort must be strengthened. Australia is embarking on an enhanced program of support to governance in PNG, including through a new initiative – the Pacific Leadership and Governance Precinct - that will build leadership and management skills across all levels of the public service. We are bringing greater coherence to our governance efforts under a new Governance Facility, as well as strengthening our efforts to build the professionalism of the Royal Papua New Guinea Constabulary and help combat corruption.
Australia is increasing its engagement with government and civil society in PNG to protect and empower women. The very high rate of sexual and domestic violence against women and children requires more concerted action – including through the aid program. We are committed to implementing gender equality and women’s empowerment measures across our aid investments. We are also ensuring more targeted initiatives to promote gender equality and end violence against women and children.
While DFAT coordinates and manages the majority of Australian Official Development Assistance to PNG, there is strong whole-of-government engagement across the program. Australian Government agencies provide expertise across the breadth of our aid engagement. Many Australian officials, for example, are involved in the delivery of governance, and law and justice investments. This is typically through long-term advisory and mentoring support with counterparts in PNG, but can also be through advice or short-term deployments to support specific reforms.
There is clearly scope to increase the role of the private sector in helping to deliver aid outcomes, and promote sustained and inclusive economic growth in PNG. Creating the enabling environment for the private sector to flourish, and tapping into the expertise and resources of the private sector, are high priorities for the Australian aid program. In recognition of this, we are reallocating 30 per cent of the aid program to facilitate private-sector led growth and aid for trade activities over the next three years.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Non-government organisations and Australian civil society partners continue to play a key role in delivering development outcomes in PNG, whether these are supported by the Australian aid program or by other funding sources. Most recently, the establishment of the new Pacific Leadership and Governance Precinct is also providing the opportunity for Australian education and training providers to increase their involvement in the delivery of Australian aid in PNG.
Australia utilises the expertise and resources of regional and international partners in PNG. The World Bank, Asian Development Bank and the United Nations are key delivery partners in selected sectors. While Australia is the largest aid donor to PNG, we cooperate closely with New Zealand, Japan and the European Union, sharing information and ensuring complementarity between our respective engagements.
As part of the Australian Government’s enhanced approach to aid performance, we are developing a new set of performance benchmarks and mutual obligations with the PNG Government. These will ensure a rigorous approach to aid impact, and accountability by both Australia and PNG for development outcomes.
DFAT’s internal quality processes are also driving improved performance of the aid program and ensuring value for money from investments. These include the development of Aid Investment Plans, Annual Program Performance Reports, aid quality checks and sector program reports, peer reviews of investments and annual departmental reports. External audit and review processes, including by the Australian National Audit Office and the Office of Development Effectiveness (ODE), are important to regularly assess aid performance and identify areas for improvement. ODE has a specific role in assessing aid performance, including through a rolling program of aid evaluations and the sharing of lessons across the Australian aid program.
We continue to learn from aid programs in other countries, and apply those lessons with relevance to the PNG context to ensure continuous improvement to the delivery of Australian aid.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
List of Acronyms
ABG Autonomous Bougainville Government ACBPS Australian Customs and Border Protection Service ACIAR Australian Centre for International Agricultural Research ADB Asian Development Bank AEC Australian Electoral Commission AFP Australian Federal Police AGD Attorney-General’s Department (Australia) AGO Papua New Guinea Auditor-General’s Office AIDS Acquired Immunodeficiency Syndrome ANAO Australian National Audit Office ANCP Australian NGO Cooperation Program APEC Asia Pacific Economic Cooperation APSC Australian Public Service Commission APTC Australia-Pacific Technical College ATO Australian Taxation Office AUSTRAC Australian Transaction Reports and Analysis Centre Austrade Australian Trade Commission BPA Bougainville Peace Agreement CAID Complaints and Administrative Investigations Division CO Commonwealth Ombudsman CPP PNG Church Partnerships Program DFAT Department of Foreign Affairs and Trade (Australia) EPSP Economic and Public Sector Program FATF Financial Action Task Force FSOU Family and Sexual Offence Unit FSV Family and Sexual Violence FSVU Family and Sexual Violence Unit GDP Gross Domestic Product GIF Australia-New Zealand Governance and Implementation Fund HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome ICDP CARE’s Integrated Community Development Project IDG International Deployment Group IFC International Finance Corporation IPA Institute of Public Administration IRC Internal Revenue Commission JU PNG-Australia Joint Understanding on Further Bilateral Cooperation on Health, Education and Law and Order K Papua New Guinea Kina LNG Liquefied Natural Gas MOU Memorandum of Understanding NCD National Capital District NGO Non-Government Organisation OCPNG Ombudsman Commission of Papua New Guinea ODA Official Development Assistance OPP Office of Public Prosecutor PBF Peace Building Fund PPAs Partner Performance Assessments PNG Papua New Guinea
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
PNG-APP PNG-Australia Policing Partnership PNGEC Papua New Guinea Electoral Commission PLGP Provincial and Local Government Program PSDI Private Sector Development Initiative P4D PNG-Australia Partnership for Development RPNGC Royal Papua New Guinea Constabulary SGP Strongim Gavman Program “Strengthening Government Program” SMEs Small and Medium Enterprises SPSN Strongim Pipol Strongim Nesen “Strong People Strong Nation” TB Tuberculosis TSSP Transport Sector Support Program WASH Water, Sanitation and Hygiene TVET Technical and Vocational Education and Training WHO World Health Organisation WTO World Trade Organisation UN United Nations UNDP United Nations Development Programme UNICEF United Nations Children’s Fund UPNG University of Papua New Guinea VRCS Visual Road Condition Survey
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Australian Aid to PNG: The Context
Papua New Guinea (PNG) is the largest country in the Melanesian region of the Pacific; it shares sea or land borders with Australia, Indonesia and Solomon Islands. The PNG mainland and its six hundred islands cover a total area of 463,000 square kilometres. PNG is geographically and culturally diverse, and has over 800 known languages.1 English, Tok Pisin (Pidgin), and Hiri Motu (the lingua franca of the Papuan region) are the country’s official languages.
PNG’s population is estimated at 7.3 million with an annual population growth rate of 3.1 per cent. The spectrum of PNG society ranges from traditional village-based life, dependent on subsistence and small cash-crop agriculture, to modern urban life in the main cities of Port Moresby (capital), Lae, Madang, Wewak, Goroka, Mt Hagen and Rabaul. Approximately 85 per cent of the population derive their livelihood from agriculture.
A constitutional monarchy, PNG’s head of state is Her Majesty Queen Elizabeth II who is represented by the Governor-General. The Prime Minister is appointed by the Governor-General on the proposal of Parliament. PNG has five levels of government — national, provincial, district, local and ward. The National Parliament is a 111 member unicameral legislature elected for five-year terms by universal suffrage. The Supreme Court, National Court, and District and village courts form an independent justice system.
PNG celebrates its 40th anniversary in September 2015; independence from Australia was proclaimed in 1975. Our people-to-people links remain very strong, and over 10,000 Australians—whether representing government, business, civil society organisations, or as individuals—live and work in PNG.2 Many more travel between PNG and Australia on a frequent basis for personal and business reasons. As illustrated in Figure 1, trade between Australia and PNG is strong, with two-way merchandise trade worth $5.9 billion and total trade worth $6.8 billion in 2013-14.3
Figure 1: Australian goods and services trade with PNG 2008-14
5,000
4,000
3,000
2,000 A$ A$ millions 1,000
0 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Exports Imports
Based on ABS trade data on DFAT STARS database, ABS catalogue 5368.0.55.003 and unpublished ABS data.
1 Data used by DFAT, http://www.dfat.gov.au/geo/papua-new-guinea/Pages/papua-new-guinea- country-brief.aspx 2 This figure is an estimate, based on immigration data and consular activities. 3 Data compiled by DFAT using raw ABS data.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Over the past decade, PNG has experienced comparatively robust economic growth, with expanding formal employment opportunities and strong growth in government expenditure and revenues. This economic performance has been driven by high international prices for PNG’s exports (including for agriculture), favourable macroeconomic policies and, in more recent years, construction activity related to the Liquefied Natural Gas (LNG) project.
In 2015—the first full year of LNG exports—PNG’s real economic growth is expected to peak at 15.5 per cent (see Figure 2). In contrast, non-mining Gross Domestic Product (GDP) in PNG is expected to grow by only around 4 per cent over the period 2015 to 2019; this figure is only marginally above population growth. The current account balance, as a percentage of GDP, was -53.6 per cent in 2012, -30.8 per cent in 2013 and estimated at -11.4 per cent in 2014.
Figure 2: PNG Real economic growth 2007-19 (projected*)
18 16 14
12 10 8
Growth(real) 6 4 2 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GDP Non-mining GDP
* 2013 is estimated, 2015-2019 are projected. Source: PNG National Budgets
Unfortunately, PNG’s strong period of economic growth has not translated into security and prosperity for all Papua New Guineans. Inadequate law and order, lack of infrastructure, complex governance arrangements, inequality between men and women, weak capacity and corruption, poor health and education services, and a rapidly growing population remain key constraints to inclusive growth and prosperity.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
PNG will not meet any of the Millennium Development Goals and key social indicators such as infant mortality4 and maternal mortality5 are among the worst in the Asia Pacific region.6 Life expectancy is only 62 years. One in five children is not enrolled in school, and attendance of those enrolled is poor.
Women and girls suffer unacceptably high death rates related to pregnancy and maternal health issues, and the majority experience sexual and family violence. Women are less likely to be employed in the formal sector, receive lower pay, and occupy few positions of leadership in communities and in government. Compared to men, the burden of work falls heavily on women, particularly in rural PNG.
Over 3 million people in PNG—or 40 per cent of the population—remain poor and/or face hardship.7 Between 80 to 85 per cent of the population reside in traditional rural communities and largely secure their livelihoods from subsistence gardens and small-scale cash cropping. It is estimated that less than 10 per cent of Papua New Guineans of working age are employed in the formal sector.
Compounding the development challenge is PNG’s very high annual population growth rate of around 3.1 per cent.8 If this growth is sustained, PNG’s population could double to 15 million people in 23 years.
Despite these considerable development challenges, PNG is seeking to achieve middle-income country status by 2030.9 Sector priorities, as set out in the 2012 Alotau Accord,10 include education, health, law and justice, infrastructure and sustainable economic growth. The PNG Government is committed to a growth agenda focused on investments in roads, ports, power, and hospitals; job skills development; and partnerships with the private sector, including for service delivery.
A stable and prosperous PNG is clearly in Australia’s interest as its nearest neighbour and close regional partner. Australia’s aid program to PNG is Australia’s second largest bilateral aid investment behind Indonesia, with expected expenditure of $577 million in 2014-15 (Table 1). Reflecting our close ties, Australia is PNG’s largest aid donor providing 68 per cent of total Official Development Assistance (ODA) flows to PNG in 2013 (Table 2).
4 57 per 1000 live births, PNG National Health Plan 2011-2020. Child Mortality (Under 5) is 75 deaths per 1,000 live births, PNG National Health Plan 2011-2020. 5 Maternal mortality rate (MMR) ranges between 230 per 100,000 and 733 per 100,000 depending on the calculation method (UN Interagency Maternal Mortality Rate, and PNG’s 2006 Demographic Health Survey respectively). However, both figures remain unacceptably high. 6 For 2014, PNG was ranked a low 168 out of 187 countries on the United Nations Human Development Index. 7 World Bank Development Indicators, 2009, based on an income of less than $2 per day. 8 Based on the 2011 National Census. The 2011 census recorded PNG’s population at 7.3 million people. 9 PNG Development Strategic Plan 2010-2030. 10 See Annex 2 for link to this document.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Table 1: Australian Official Development Assistance to PNG, 2011-12 to 2014-15
2011-12 2012-13 2013-14* 2014-15* Spending ($m) Spending ($m) Spending ($m) Spending ($m) Total PNG Country Programs 441.9 448.5 434.6 502.1 Total Regional Programs 19.8 24.1 21.0 15.0 Total Global Programs 8.2 9.6 11.1 24.7 Total Other Government 23.7 19.0 35.7 Departments 35.2 Total ODA to PNG 493.6 501.2 502.4 577.1 % of Total Australian ODA 10.2% 9.9% 10.0% 11.5%
Source: DFAT table prepared using OECD/DAC data. *There is a break in the series from 2013-14 to reflect the amalgamated portfolio of DFAT. Prior to this period, DFAT aid appropriations were included in Other Government Department figures, collected through a bi-annual survey.
Table 2: Official Development Assistance disbursements to PNG by Top Donors, 2011-13
2011 2012 2013 2013 Donor Spending % of Spending % of Spending % of Rank (US$M) total (US$M) total (US$M) total ODA ODA ODA 1 Australia 510.3 77.5 498.6 70.2 474.2 67.7 2 Asian Development 13.1 2.0 60.2 8.5 87.7 12.5 Bank Special Funds 3 Global Fund 13.6 2.1 36.2 5.1 35.1 5.0 4 International 17.6 2.7 27.0 3.8 26.7 3.8 Development Association 5 New Zealand 25.7 3.9 24.3 3.4 19.1 2.7 6 Japan 34.1 5.2 21.7 3.0 11.4 1.6 7 European Union 19.9 3.0 15.6 2.2 8.0 1.1 Institutions 8 United States 3.6 0.5 3.6 0.5 7.3 1.0 9 OPEC Fund for - 0.0 2.8 0.4 6.9 1.0 International Development 10 Gavi (the vaccine 0.7 0.1 1.4 0.2 6.3 0.9 alliance) All Other Donors 19.8 3.0 19.2 2.7 17.6 2.7 All Donors, Total 658.4 100 710.6 100 700.3 100
Source: DFAT table prepared using OECD/DAC data
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Over recent years, our aid expenditure has assisted PNG with reforms and service delivery across the four key sectors of health and HIV, education, transport and law and justice, as well as strengthened economic and democratic governance. These areas of focus were agreed under the 2008 PNG-Australia Partnership for Development (P4D). In the last financial year (2013-14), Australia’s expenditure on aid in PNG totalled $502.4 million. The Australian Department of Foreign Affairs and Trade (DFAT) was responsible for the coordination and management of $434.6 million of this total. The sector breakdown of DFAT’s expenditure is highlighted in Table 3 and Figure 3. An assessment of our aid program in PNG for 2013-14 highlighted some performance variability. Good progress was made towards outcomes in the health and HIV sector, and targets for road rehabilitation were met. Modest gains were achieved from education, and law and justice, investments. The challenging political and security environment in PNG limited the achievement of outcomes for Australian-supported activities in the governance sector. Deep-rooted socio-economic issues affected progress on programs designed to advance gender equality and women’s empowerment.
A comprehensive commentary on Australia’s aid performance for 2013-14 is available in the PNG Aid Program Performance Report (see Annex 2 for the document link).
Table 3: Australian Official Development Assistance expenditure, 2013-14
2013-14 Expenditure Percentage PNG Program ($m) Spend (%) Health/HIV 111.9 22.3 Education 74.8 14.9 Law and Justice 23.6 4.7 Infrastructure 72.9 14.5 Public Sector (including SGP) 74.6 14.8 Democratic Governance 39.7 7.9 JU Package* 4.3 0.9 Program Support Services 4.4 0.9 Other – incl. gender, disaster management 28.4 5.7 Sub-total 434.6 86.5 Total Regional 21.0 4.2 Total Global 11.1 2.2 Total Other Government Departments 35.7 7.1 TOTAL 502.4 100
Source: DFAT internal data and data from the biannual Other Government Department (OGD) Survey data. *PNG-Australia Joint Understanding on Further Bilateral Cooperation on Health, Education and Law and Order (JU)
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Figure 3: DFAT Official Development Assistance (%) to PNG, 2013-14
Other 9% Health/HIV 26% Governance 26% Education Other includes Joint 17% Understanding Infrastructure Package, Program Support Services, 17% Gender and Disaster Law and Justice Management. 5%
Highlight #1: Aid Results in 2013-14
Australia's aid program has supported a range of achievements in line with the priorities of the PNG-Australia Partnership for Development. As captured in our 2013-14 results stocktake, for example, we worked to promote effective law and justice through strengthening access to legal services, policing and the protection of survivors of family and sexual violence. Our funding contributed to: the establishment of 14 police Family and Sexual Violence Units by June 2014 training and infrastructure development for the Royal Papua New Guinea Constabulary, including in Bougainville more female village court magistrates, bringing the number to 900 in 2013.
Our assistance increased access and quality of education through: the training of 4,315 teachers and building or upgrading 120 classrooms financing over 600,000 children to attend elementary school, reaching a 79 per cent national net enrolment rate in basic education assisting five PNG universities to complete quality assessments supporting 328 postgraduate study awards in Australia and 505 study opportunities in PNG.
We worked with Australian NGOs to strengthen health and HIV/AIDS services, enabling: 24,848 babies to be delivered under the supervision of skilled staff 54,393 children to be immunised against measles and other diseases increased access to anti-retroviral therapy for HIV/AIDS patients.
Our aid supported essential transport infrastructure for economic growth and service delivery, resulting in: the maintenance of over 2,000km of PNG’s most economically important roads, totalling 9,000km since 2010 strengthened aviation and maritime safety and security standards through upgrading PNG’s aid traffic management systems and communications.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Australian Aid to PNG: A New Direction
Building on the progress and lessons learned from our aid program to date, Australia’s aid relationship with PNG is evolving to reflect a more mature, focused and innovative engagement. Australian aid is being positioned to assist the PNG Government to mobilise its own resources for development, and to serve as a catalyst for inclusive economic growth.
The 2014 assessment of Australia’s Aid Program in PNG, A New Direction for Australian Aid in PNG: Refocusing Australian Aid to Help Unlock PNG’s Economic Potential,11 specifically considered ways in which Australia’s aid program could more closely align with both governments’ priorities. This included the need to better address key constraints to economic growth and equitable development in PNG, and clearly reflect the Australian Government’s overarching development outcomes for Australian aid: strengthening private sector development and enabling human development. The recommendations of this aid assessment have been agreed by the Australian and PNG Governments and are now being implemented (see Highlight #2). Figure 4 highlights the proposed DFAT aid expenditure in PNG by sector in 2014-15.
Figure 4: Proposed DFAT Official Development Assistance (%) to PNG, 2014-15
Bougainville Other 4% 12% Private Sector Health/HIV 3% 19%
Education Governance 14% Other includes Joint 27% Understanding Package, Program Support Services, Infrastructure Law and Justice Gender and 15% 6% Disaster Management.
*Figure 4 includes two new sectors to those reflected in Figure 3: DFAT Official Development Assistance (%) to PNG 2013-14. The separation out of spending on Private Sector development reflects this enhanced commitment. The inclusion of an additional segment on Bougainville reflects a change in internal financial management. The Bougainville spend remains at $50 million per annum, however $20 million is allocated directly to Bougainville programming, with $30 million spread across relevant sectors. In 2013-14, $50 million was allocated across relevant sectors.
11 http://www.dfat.gov.au/geo/papua-new-guinea/development-assistance/Pages/a-new-direction- for-australian-aid-in-png-refocusing-australian-aid-to-help-unlock-pngs-economic-potential.aspx
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Over the past year, priority has also been given to the start-up of commitments under the $420 million PNG-Australia Joint Understanding on Further Bilateral Cooperation on Health, Education and Law and Order (JU), which was signed by PNG Prime Minister O’Neill and former Australian Prime Minister Rudd in July 2013 and reaffirmed by the Australian Government in December 2013. Under the JU, Australia has committed to fund 50 per cent of the redevelopment of the Lae ANGAU Hospital and contribute to the costs of senior management personnel; deploy an additional 50 Australian Police in Port Moresby and Lae; rehabilitate essential infrastructure at the University of PNG (UPNG) and support twinning and exchange with Australian institutions; scope and design the Lower Courts complex in Port Moresby; scope and design the Madang-Ramu Highway; and recruit senior positions in the Royal Papua New Guinea Constabulary (RPNGC) and National Departments of Health and Education. Under the new direction for Australian aid in PNG, and given PNG’s sovereign responsibility for service delivery, Australia is shifting away from the direct payment of education subsidies and recurrent financing for health operations, as well as the distribution of text books and basic medical supplies. We are increasingly focusing our efforts in the health, education, transport and law and justice sectors on developing PNG’s own capacity to deliver these services to its population. Australia can add value by strengthening local institutions and leadership capacity. However, where there remains an immediate public health threat, for example tuberculosis (TB) in Western Province and the National Capital District (NCD), and HIV in most-at-risk populations, Australia will continue with direct service delivery support.
The 2014 aid assessment clearly recognised the need to focus the aid program more firmly on private sector-led growth, including through investments to reduce the constraints to business and help PNG foster trade and investment. The review recommended reprioritising 30 per cent of the aid program to focus on private-sector led growth and aid for trade, increasing effective partnerships with the private sector, expanding support for women’s empowerment, and increasing the program’s focus on Bougainville.
Australia will increase support to initiatives that empower women to take on greater leadership roles in public and community life, and participate in the economy – including through access to agribusiness, financial literacy, and microfinance opportunities. We will also help improve women’s safety and security and increase our efforts to end violence against women.
The enhanced focus on private sector participation is being coupled with an enhanced focus on leveraging Australian expertise to support infrastructure investments across a range of sectors including health, education and transport. This reflects the role of infrastructure in enabling economic growth and poverty reduction. Infrastructure can enable greater connectivity between businesses, improving economic integration and growth. Improved infrastructure also ensures that households, including women and girls, can access the services they need to improve their lives. This commitment also recognises Australia’s considerable experience and expertise in PNG’s infrastructure sector, particularly in relation to road rehabilitation and maintenance. Given the centrality of infrastructure to PNG’s economic growth and human development, Australia will progressively increase expenditure in this sector to 50 per cent of the aid program by 2017.
No single approach to aid delivery is appropriate across the spectrum of our engagement in PNG. Decisions on delivery mechanisms are based on an assessment of how Australian aid objectives can be achieved as efficiently and effectively as possible, taking into account
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea technical and political economy considerations, as well as the long term nature of development work in PNG. To that end, we are seeking to leverage finance and ideas from a wide range of sources, and developing innovative models for private sector partnerships to achieve development outcomes.
The 2014 aid assessment also recommended clear, realistic performance benchmarks to assess aid performance and drive mutual accountability by both the Australian and PNG Governments. An Australian Aid Investment Plan for PNG and a new PNG-Australian agreement on development will be established in 2015, and will align with the priorities of the PNG Medium Term Development Plan 2015-2018 and Australia’s new aid paradigm. The new agreement, to supersede the 2008 PNG-Australia P4D, will include agreed performance benchmarks and mutual obligations for both governments. Figure 5 (below) represents the proposed new strategic framework for Australian aid in PNG. Further detail on the performance approach can be found in the section of this submission entitled ‘Australian Aid: Making Performance Count’.
Figure 5: Proposed Strategic Framework for the PNG aid program
Promote Australia’s national interests by contributing to a stable and prosperous PNG
To
Human development Private sector development
Effective, Innovative Aid Investments
Health and Transport Law and Economic and Education HIV Infrastructure Justice Democratic
Governance
Invest in gender equality and disability inclusion across all programs
Invest in effective governance across all our investments
Drive a stronger performance culture
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Highlight #2: A New Direction for Australian Aid to PNG: Refocusing Australian Aid to Help Unlock PNG’s Economic Potential
In 2014, the Australian and PNG Governments agreed to the following recommendations of a comprehensive assessment of Australian aid in PNG:
1) Align the aid program with shared political and economic objectives of Australia and PNG; 2) Reprioritise 30 per cent of the current aid program over the next three years to fund initiatives focused on private sector-led growth and aid for trade. Savings to fund these new initiatives could be sourced from phased reductions to basic service delivery activities agreed by both governments. New areas of focus should include improving the enabling environment for business (particularly Small to Medium Enterprises and partnering with the private sector), agriculture market investments, strengthening technical and vocational training, and infrastructure support; 3) Maintain priority investments in improving health, education, infrastructure and law and justice systems as they remain fundamental to delivering inclusive, sustainable economic growth and improved human development outcomes. These investments should focus on supporting the PNG Government to take greater sovereign responsibility for meeting the needs of its people, including through the strengthening of service delivery systems and approaches. Australia should increasingly transition out of basic service delivery; 4) Increase effective partnerships with the private sector. This should include increased engagement with business to guide improvements in the legal, regulatory and policy environment and to support more effective service delivery in PNG; 5) Expand support for good governance. This should include expansion to the Strongim Gavman Program (strengthening government - SGP), strengthened anti-corruption and security efforts, and professionalisation of the PNG public service through training and mentoring. There should also be a focus on improved accountability and leadership, improving PNG’s ability to lead and undertake critical economic reforms and meet the basic needs of its people; 6) Maintain a strong program of support for building the capacity of PNG’s police. This should include support for the Royal Papua New Guinea Constabulary (RPNGC) to maintain law and order through the deployment of Australian Federal Police officers in advisory and mentoring roles and an expansion of training opportunities for RPNGC members in Australia; 7) Expand support to women’s empowerment. This should include an increased focus on women’s effective participation in the economy through agribusiness, financial literacy, and microfinance; women’s leadership in public and community life; and improved security in public and private spaces; 8) Increase aid investments in Bougainville as a greater proportion of the bilateral PNG program. This should include a focus on supporting the effective implementation of autonomy arrangements and building the Autonomous Government of Bougainville’s capacity to deliver basic services; and 9) Establish clearer, realistic aid performance benchmarks to assess Australian and PNG performance against agreed targets, and to drive mutual accountability for agreed actions. Both value for money and support to shared political and economic objectives of Australia and PNG should be key criteria in assessing aid effectiveness.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Australian Aid to PNG: Investments Health and HIV/AIDS
Australian investments in Health and HIV/AIDS in PNG have been, and continue to represent, a large proportion of our overall aid expenditure in PNG. Expenditure in this sector totalled nearly $112 million in 2013-14, or one fifth of our aid program in PNG. Our investment recognises the vast challenges that PNG continues to face in providing accessible, and high quality health services across the country. PNG lags behind most countries in the region in its health indicators, and has failed to meet Millennium Development Goal targets in relation to maternal and child health.
We work with the PNG Government, non-government organisations and multilateral partners to improve health services and offer better access to essential health care through strengthening the national and sub-national health systems. This approach includes support for improved health sector governance, financing, infrastructure and medical supply arrangements; an increased and better trained health workforce; and a focus on performance information and community mobilisation.
The Australian and PNG Governments have also agreed to prioritise Australian aid support in the sector to activities that further increase the percentage of babies delivered under the supervision of skilled health staff and child immunisation, expand support for family planning services, and help to reduce the spread of TB, HIV/AIDS and malaria and increase access to their treatment. Australia has assisted with good progress in these areas to date. We are also undertaking new investments in childhood nutrition.
(left) Toddler in the treatment room at Susa Mama health clinic, Port Moresby General Hospital, PNG. Photo: Ness Kerton/DFAT
Reducing the incidence in PNG of HIV/AIDS, TB and drug-resistant TB, and malaria demands a strong and sustained commitment from the PNG Government and development partners. As explained in Investment Example #1 (Page 21), Australia is increasing its support for TB surveillance and treatment. In the area of HIV prevention and treatment, while the PNG Government has progressively increased its own funding allocations, we are maintaining a focus on most-at-risk populations who do not receive PNG Government support. Australia is also taking action on malaria control through a new trilateral partnership with PNG and China (focused on malaria diagnosis and operational research), and leveraging the private sector response through the Private Industry Malaria Initiative.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Investment Example #1: Tuberculosis Control Initiatives in Western Province and the National Capital District
Working with a range of partners, Australia aims to reduce the high rates of tuberculosis (TB) and drug-resistant TB through investments in PNG’s Western Province and the National Capital District (NCD).
Since 2011, Australia has invested nearly $17 million in programs to support action against TB. A further $43 million has been committed for the next three years.
Our support has helped to increase the total number of TB case notifications in PNG, with over 2,400 more notifications in 2013 than the previous year. In 2013, we trained an additional 245 Papua New Guineans in TB treatment, bringing the total number trained to 3,380 since 2007.
In Western Province, the Australian Government supports TB control through investments in the health workforce, health infrastructure, laboratory services, community engagement and outreach activities. Australia is currently funding several technical and health workforce positions to support the management of drug-resistant TB, ensure a regular supply of anti-TB medicines, facilitate laboratory testing, and improve infection control practices. Australia is funding the refurbishment of the Daru General Hospital and construction of additional staff housing, and the construction of a new health centre in Mabadauan. Australia’s grant to World Vision for community engagement has supported an increase in TB notification rates from 28 per cent in 2011 to 70 per cent in 2014, and Australia’s funding for a sea ambulance and banana boats has supported over 145 outreach visits across the Middle and South Fly districts since May 2012.
An independent review of PNG’s National TB Program12 identified the NCD as a major ‘hotspot' for TB transmission and drug resistance. This is a focus of heightened action by the PNG and Australian Governments, as well as other donors.
Australia is currently implementing a new $15 million package of support for TB control in the NCD and Western Province. In the NCD, support focuses on programs to manage drug- resistant TB; strengthen laboratory services, increase community-based TB treatment, care and prevention; and assist with patient services, including transport, nutrition, social support and health education. Innovative private sector engagement is a key strategy for the delivery of these components.
Clearly investments in the health sector in PNG require productive partnerships between the PNG Government and its local partners, aid donors and international organisations. Australia has partnerships in the health sector with multilateral agencies, is developing a stronger engagement with the private sector and the Christian Health Services, and is using ‘Kina for Kina’ matching approaches to incentivise PNG Government funding to priority health areas. We also maintain support to a limited number of ‘priority provinces’ to maximise the influence of our health investments and demonstrate their impacts on health service improvements.
12 Independent Review of PNG’s National TB Program, World Health Organisation, 2014
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
We continue to improve the delivery of health services throughout PNG by supporting priority health infrastructure at the sub-national level. Through the JU, we are working with the PNG Government to redevelop the Lae ANGAU Hospital. Australia and PNG have agreed to each fund 50 per cent of the capital infrastructure costs of the redevelopment. Australia has also committed to co-funding, with PNG, the costs of senior management personnel at the ANGAU Hospital once the substantive CEO of the hospital is engaged, following a transparent international recruitment process.
Investment Example #2: Medical Supply Reform in PNG
In 2011, Australia and PNG endorsed a performance-linked aid approach to medical supply reform. This approach was designed to address inefficient procurement and distribution of medical supplies, resulting in high levels of medical supply stock-outs in health facilities. In recognition of the PNG Government‘s cancellation of two compromised tenders for medical supply kits in 2010, Australia assisted PNG in the procurement and distribution of medical supply kits to over 2,700 health facilities from 2011 to 2013. An independent evaluation by the Burnet Institute in 2013 found that the procurement and distribution of quality-assured medical supply kits in 2012-13 resulted in: • Approximately 50 per cent greater availability, especially in high poverty districts; and • An almost 50 per cent reduction in amoxicillin stock-outs in 2012, which has been estimated to have averted up to 834 child deaths due to pneumonia. However, in response to Australian concerns in 2014 over a tendering process for medical supply kits in PNG, Australia withdrew its funding support for PNG medical supply distribution. The PNG and Australian Governments continue to explore opportunities to outsource the procurement and distribution of medical supply functions as a viable, long- term solution for PNG.13
Education
An accessible and high quality education system is vital to PNG’s human development and future prosperity. This is reflected in the size of Australia’s investment in the sector. In 2013-14, Australia invested nearly $75 million in programs to support PNG’s basic, secondary, technical and higher education. Our assistance is building PNG’s capacity to increase education access - including for women, girls and people with a disability; improve the quality of education; and improve young people’s employability.
In basic education, we work in partnership with the PNG National Department of Education and provincial education divisions. We focus on training teachers, developing learning materials, improving the quality of the learning environment through upgrades to 500 primary schools across the country (including the construction of classrooms, teacher houses and ablution blocks), educational standards, and education management. A complementary water and sanitation hygiene (WASH) program is also being delivered through partnerships with Water Aid and UNICEF, helping to increase the retention of girls in school.
13 Performance of Australian Aid 2013-14, pp 426-27
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
In 2012, with the implementation of PNG’s Tuition Fee Free policy and Australian support, the net enrolment rate for basic education reached 79 per cent, exceeding the PNG-Australia P4D performance target of 74.3 per cent by 2015. While this has fallen short of the Millennium Development Goal of universal access by 2015, it does mark important progress in the PNG context and against its national targets. It will be important to continue this momentum but also to strengthen the focus on gender equality in education opportunity, and the quality of education in PNG.
In the vocational and higher education sub-sectors, we work in partnership with the PNG Office of Higher Education, universities, Technical and Vocational Education and Training (TVET) institutions, and colleges, to improve access and quality. Our education investments respond to the demand for a qualified PNG labour force. Targeted activities, including investments at UPNG —as part of the JU commitment—are also helping to strengthen the higher education learning environment.
Ongoing Australian funding for the Australia-Pacific Technical College (APTC) in PNG is providing important training opportunities for current and future employees of government and the private sector. The APTC in PNG is one of five APTC campuses located across the Pacific. The APTC was designed as a centre of training excellence, helping local people gain Australian-standard skills and qualifications for a wide range of vocational careers. The PNG campus of the APTC continues to raise trade training standards and build the capacity of trade institutions.
Our support for PNG’s National Polytechnic Institute also leverages private sector engagement to ensure graduate trade qualifications meet industry requirements. In 2015, Australia will commence an enhanced program of support for youth skills training and vocational education, including through partnerships with the World Bank, and local non- government organisations (NGOs) including City Mission and Ginigoada Bisnis.
Many young people in PNG leave school without the skills to obtain a job and participate fully in society. Women, girls and people with a disability are particularly disadvantaged by poor quality and inadequate education services. While Australia’s support to curriculum and teacher training programs has been an important step towards increasing education quality, this remains a key weakness in PNG’s own education reforms.
(left) Diesel fitters, Michelle Araea and Elva Churem were among the first students of the Australia-Pacific Technical College when classes began in Port Moresby in 2007. Photo: Rocky Roe/DFAT.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
The Australia Awards (scholarships), which provide higher education qualifications at Australian and PNG education institutions, continue to be a key element of Australia’s efforts to improve the employability and education pathways for Papua New Guineans. Gender and disability inclusive scholarships and fellowships are a particularly important way to help remove the barriers faced by women and people with a disability in accessing education.
An expanded alumni program for the Australia Awards helps strengthen people-to-people ties, and supports the awardee’s reintegration into the PNG workforce. The roll out of the New Colombo Plan in PNG is also enhancing Australia-PNG people and institutional links.
Investment Example #3: Australia Awards and the New Colombo Plan
We invest in two complementary scholarship programs with partner countries —the Australia Awards (which enables students from developing countries to study in Australia) and the New Colombo Plan (which enables Australian students to study in the region). Together they offer a two-way exchange that is critical to Australia’s engagement with the Indo-Pacific region.
Each year, through the Australia Awards program, the Australian Government provides around 150 scholarships to Papua New Guineans to undertake tertiary study in Australia. Australia also provides around 500 scholarships for Papua New Guineans to study at health and education institutions across PNG, to address the country’s workforce needs.
Since 1996, over 2,000 Papua New Guineans have graduated from Australian institutions and have used their skills to support PNG’s economic and social development. PNG alumni occupy key roles across the public service, private enterprise and civil society. Of 258 PNG alumni surveyed in a 2013 Tracer Study, 73 per cent of alumni returned to their previous employer and of those who did not, 85 per cent found employment within 12 months.
The first placement of Australian students in PNG under the New Colombo Plan will begin in June 2015 and focus on early childhood studies and vocational teacher training. While no Official Development Assistance is used for the New Colombo Plan, the placements represent an important contribution to PNG’s tertiary education sector and our people-to- people links.
Transport Infrastructure
Australia’s aid program in PNG has made a long term commitment to supporting new and improved infrastructure across the health, education, and law and justice sectors. In addition, we have been investing in PNG’s transport sector recognising that transport infrastructure encourages economic growth, improves access to markets and supports the availability of services to PNG communities. In PNG, as elsewhere, insufficient or inadequate infrastructure creates significant costs to doing business, and constrains economic growth. Australian expenditure on transport infrastructure in PNG totalled nearly $73 million in 2013-14.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Australian assistance to the sector is delivered through an integrated program that includes the Transport Sector Support Program (TSSP), Australian Government advisers deployed through the Strongim Gavman Program (strengthening government - SGP) and commitments under the PNG-Australia Transport Memorandum of Understanding (MOU).
Australia’s support has recently focused on the maintenance and rehabilitation of PNG’s national priority roads, improvement of aviation and maritime safety and security standards, and operational reform of the transport sector agencies. Over 70 per cent of Australia’s expenditure in the transport sector has been directed towards PNG’s national priority roads network. This investment has primarily supported maintenance activities on approximately 50 per cent of the national priority road network in 12 provinces.
Australia also funded a Visual Road Condition Survey (VRCS) of the national road network in early 2015. The VRCS will improve the level and detail of data on actual road conditions to inform decisions on future maintenance support. Australia is also supporting PNG with a major survey and design study for the Ramu-Madang Highway.
Australia has played a significant role in PNG’s recent aviation and maritime policy reforms, helping PNG progress towards international best practice in aviation and maritime safety, increasing efficiency, and reducing the costs of aviation and maritime transport. These measures are important enablers of economic growth in PNG.
We have been assisting PNG to improve its compliance with international aviation and maritime safety and security standards, including through Agency Support Arrangements. Efforts focus on improving navigational and communication systems, noting the key role PNG will play in hosting significant international events such as the South Pacific Games in 2015 and the Asia Pacific Economic Cooperation (APEC) forum in 2018. Australia has also been supporting PNG with the implementation of small craft legislation to increase safety standards and improve revenue collection. In addition, officials from the Australian Customs and Border Protection Service (ACBPS) have been working with the PNG Customs Service in the design of its Container Examination Facility for Port Moresby and Lae.
The TSSP has ensured a focus on effective governance in the transport sector and on key cross-cutting social issues. Ongoing support is helping to improve the transparency of the budget process and ensure an appropriate mix between funding for new projects and maintenance of existing land transport assets. TSSP also supports PNG’s efforts to consult more effectively with the private sector to improve the enabling environment for investment, and better leverage private sector expertise.
Australian advisers have supported a range of transport sector agencies to develop and improve gender and workplace HIV/AIDS policies. TSSP road contracts include a requirement for HIV/AIDS and gender awareness activities. Our investments also promote an understanding of key safeguards throughout the transport sector, including environmental management, resettlement and child protection.
Recognising the centrality of infrastructure to PNG’s economic growth and human development, Australia will progressively increase expenditure on infrastructure through the aid program. By 2017, 50 per cent of Australian aid in PNG will be allocated to high priority infrastructure investments. Australia will give a particularly strong emphasis to our ongoing partnership with PNG in the transport sector, which will also serve to enhance Pacific regional cooperation.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Investment Example #4: PNG Incentive Fund
The PNG Incentive Fund is a successful, demand-driven Australian aid initiative that aims to establish a better enabling environment for service delivery and economic growth. The Fund provides competitive grants to high performing and accountable PNG organisations to support their infrastructure development. Eligible organisations include provincial and local-level governments, research organisations, universities, hospitals, NGOs, faith-based organisations, women’s organisations and private enterprises.
In Phases 1-3 (2000-14), the Incentive Fund managed 59 separate grants worth $160 million. Phase 4 was approved in December 2014 and has been redesigned to attract interest from the private sector and encourage new innovations. It will be open to any organisation that can contribute to economic growth, and includes a dedicated $10 million innovations component.
Phase 4 will have a budget of $90 million over six years, with at least 50 per cent of the investment allocated to infrastructure. At least 20 per cent will specifically target private sector engagement and at least 80 per cent of all Incentive Fund initiatives will support the empowerment of women and girls.
Law and Justice
Australia's support for the law and justice sector in PNG aims to improve the security of communities, combat family and sexual violence (FSV), improve access to justice, and increase PNG’s capability to deal with corruption. Assistance in the sector is provided by various Australian Government agencies through separate but complementary programs and agreements. These include the PNG-Australia Law and Justice Partnership, the Australian Federal Police (AFP) PNG-Australia Policing Partnership, SGP law and justice advisers, and the Australian Attorney-General’s Department (AGD)/Australian Transaction Reports and Analysis Centre (AUSTRAC) Combating Corruption Project. In 2013-14, DFAT managed law and justice investments in PNG totalling nearly $24 million.
Inadequate and poor quality law and order services in PNG, however, continue to hinder human development and private sector development. Insecurity for women and children, and the devastatingly high rate of family and sexual violence, remain critical challenges that need to be addressed.
Australia has substantially increased its support to the Royal Papua New Guinea Constabulary (RPNGC) with the deployment of 73 AFP staff – 60 in Port Moresby and 13 in Lae. We have delivered training to over 1,900 police officers, and helped establish 14 specialist police Family and Sexual Violence Units (FSVUs) in PNG. Increasing the numbers of, and access to, FSVUs and protection from family and sexual violence, remains a high priority for Australia’s aid program in PNG.
Recognising the importance of the rule of law to human development and economic growth in PNG, Australia is further augmenting policing and public sector capacity building assistance. The reshaped AFP engagement in PNG is increasing the professionalism of the
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
RPNGC. AFP officers are being deployed in core advisory and mentoring roles, and we are expanding training opportunities for RPNGC members in Australia.
Village courts in PNG are also an important avenue through which Papua New Guineans can access justice. Noting their key role, Australian aid has supported the network of 1,652 village courts, and helped increase the number of female village court officials.
(left) Police officers Malen and Peter look after the cases at the Family and Sexual Violence Unit at Waigani Police Station in Port Moresby. DFAT funds fourteen units around PNG. Photo: Ness Kerton /DFAT.
Australia has also prioritised programs that aim to combat corruption in PNG, including by supporting PNG’s investigation and prosecution capacities. This is assisted through the placement of SGP advisers in the PNG Office of the Public Prosecutor (OPP), and AFP advisory support to the RPNGC Fraud and Anti-Corruption Directorate.
We are supporting PNG’s efforts to establish an Independent Commission Against Corruption and to improve its compliance with international anti-money-laundering and counter-terrorism financing standards. This includes work to harden legislative and regulatory regimes, improve law enforcement and regulatory capacities, and enhance policy-making and inter-agency coordination.
Despite recent achievements in the law and justice sector, access to the district and higher courts remains limited by distance, cost, and lack of awareness of legal rights. Community trust and confidence in the police remains low. FSV is deep-seated and the cultural change to shift perceptions will require a sustained commitment by authorities and communities in PNG.
Australia’s renewed investments in the law and justice sector from 2015 will expand access for Papua New Guineans to justice and local conflict resolution mechanisms. We are working with the PNG Government, civil society organisations and the private sector to promote community safety and security, and address FSV. We also continue to support PNG’s efforts to combat corruption and implement the recommendations of the Financial Action Task Force (FATF) using the expertise of AGD and AUSTRAC.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Economic and Democratic Governance
Promoting good governance is an objective that spans across Australian aid activities in PNG. Sound policy development, budget planning and transparent decision-making are vital ingredients for stability and growth in any country. So too is ensuring that governments are accountable to their citizens and that elections are free and fair.
Effective governance in PNG is at the heart of our efforts to build capacity in PNG’s health, education, infrastructure, and law and justice sectors. These efforts are complemented by a large program of investments that specifically focus on PNG’s economic and democratic governance. We invested approximately $115 million in these targeted governance initiatives in 2013-14 (or nearly 20 per cent of the bilateral aid program).
Our support focuses on accountable leadership, an effective public sector, an active civil society, and election processes. We provide support at the national, sub-national and community levels. Currently, assistance is delivered through the following major initiatives: i) Strongim Gavman Program “Strengthening Government Program”(SGP); ii) Economic and Public Sector Program (EPSP); iii) Provincial and Local Government Program (PLGP); iv) Strongim Pipol Strongim Nesen “Strong People Strong Nation (SPSN)”; v) PNG Church Partnerships Program (CPP); and vi) Electoral assistance.
Australian Government and contracted advisers provide expertise across a range of policies and reforms, including in the areas of macroeconomics, customs, immigration, and law and justice. Advisers have helped PNG counterparts with the preparation of annual budgets, to increase internal revenues, and the framework for a sovereign wealth fund. Australia has also been supporting the PNG Government to improve the planning, financial accountability and transparency of provincial and sub-national governments.14
We have promoted greater PNG Government accountability by encouraging engagement between communities and government. For example, Australian funding to CARE’s Integrated Community Development Project (ICDP) in selected wards of the PNG Highlands is helping to increase community voice and engagement in the delivery of public services. Through SPSN, Australia has helped service delivery by providing community grants to improve health, education, gender equity and disability-inclusive development. This program has fostered effective partnerships between civil society actors and government.15
Australia is also supporting seven PNG churches (Anglican, Catholic, Seventh Day Adventist, Salvation Army, Baptist, Evangelical Lutheran and United) and their Australian Partners through the CPP. The CPP enhances the capacity of PNG churches to help improve public sector governance, and to deliver crucial services to disadvantaged and remote communities.
14 Provincial & Local Government Program Annual Report 2012-13. 15 Organisations include the PNG Department of Community Development, PNG National Broadcasting Corporation, Transparency International PNG, the Consultative Implementation and Monitoring Council, Eastern Highlands Family Voice, Callan National Disability Services, Buk Bilong Pikinini and the Port Moresby City Mission.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
PNG’s capacity to hold free and fair elections has also been a focus for Australian support, in cooperation with other development partners. Australian aid to the PNG Electoral Commission for the 2013 Local Level Government Elections helped ensure that electoral materials (including ballot boxes and papers) reached polling places across the country on time, and voters were able to exercise their right to vote.16 A voter awareness program involving 37 civil society organisations reached 290,000 voters. Australian assistance will help PNG prepare for the next General Elections in 2017.
Recent reviews of Australia’s governance investments in PNG indicate that while many are highly relevant and have delivered results, the contribution is taking place in a deteriorating environment in PNG.17 PNG’s public sector remains weak and in urgent need of reform. This reality, together with changes to governance structures – including the introduction of District Development Authorities across PNG -necessitates a continuing high priority of governance efforts to promote accountability, stronger civil society and democratic institutions, and a need for responsiveness to emerging issues and opportunities.
Investment Example #5: PNG Governance Facility
Current Australian-funded governance programs in PNG will end in 2015-16. A suite of new programs are being developed that build on the lessons of these programs, ensuring Australia’s future investments in governance achieve successful outcomes and represent value for money.
New investments will respond to the Australian aid policy and the recommendations of the PNG aid assessment. These include stronger investments in public sector strengthening and the enabling environment for the private sector, and initiatives that build demand for ethical leadership and good governance. An enhanced focus will be given to investments that empower women and youth for public and private sector leadership positions.
The programs will be delivered under a new umbrella initiative – the PNG Governance Facility. The Facility will bring greater coherence and increased efficiencies to the way we deliver governance investments in PNG in the future. Australia will apply innovation and engage the private sector directly in the delivery of these programs wherever possible.
The development of the new Pacific Leadership and Governance Precinct in Port Moresby and an expansion of SGP will increase Australia’s focus on building the leadership and ethical behaviours, and core competencies, of the PNG bureaucracy. Australia will complement this by increasing engagement with PNG champions who support reforms for more accountable and better functioning national and sub-national governments.
16 Electoral Support Program Completion Report, 2013 17 Review of the PNG-Australia Development Cooperation Treaty (1999) published 2010; Alan Morris et al, PNG Governance Review (2012); Independent Progress Report of the Strongim Gavman Program (2012); Independent Progress Review of the PNG-Australia Economic and Public Sector Program (2012); Independent Completion Report of Sub-National Strategy Phase 1 2007-12 (2012); Independent Evaluation of Australian Aid for Electoral Assistance in PNG 2000-2012 (2013); Independent Review of Two Democratic Governance Programs in PNG - Strongim Pipol Strongim Nesen and Church Partnership Program (2013); Independent Review of Two Remote Service Delivery and Community Development Programs (2012).
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Investment Example #6: A New Precinct for Public Sector Reform and Education
The Pacific Leadership and Governance Precinct is a new partnership initiative between the Australian and PNG Governments. It recognises the importance of public sector effectiveness to PNG’s future prosperity.
The Precinct was established in early 2015, and will strengthen leadership, ethical behaviours, and core capabilities of the public service in PNG at all levels.
Under this new initiative, the existing School of Business Administration at the University of PNG will be transformed into the School of Business and Public Policy, to provide high quality learning and applied research in public policy, economics, and public sector leadership. The new School will bring together academics and practitioners from the public and private sectors and civil society. It will offer courses at undergraduate and postgraduate level, as well as providing relevant executive education programs for senior public servants and members of PNG’s security sector agencies. Over time, courses will be available for public servants from across the Pacific.
A complementary program of assistance to the PNG Institute of Public Administration (IPA), with the engagement of the Australian Public Service Commission, will support the transition of the IPA into the PNG School of Government. This revitalised School, focused on development of the public service workforce, will provide short courses, diploma and certificate level programs for public servants across the national, provincial, district and local-levels of government of PNG.
Australian education and training providers, including the Australian National University, University of Queensland, the Australia and New Zealand School of Government and the Australian Institute of Company Directors, will be making an important contribution to the design and delivery of education programs in the new Precinct.
(above) Senior PNG and Australian officials with participants and course trainers at the Pacific Leadership and Governance Precinct’s inaugural short course on public policy, 6 February 2015 [DFAT]
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Australian Aid to PNG: An Enhanced Focus on the Private Sector
Despite its sustained period of high economic growth, PNG has not yet harnessed the full potential of the private sector to promote broad-based, inclusive growth. The country’s growth is heavily dependent on the mining and petroleum sectors and needs to diversify if it is to withstand future price shocks and ensure greater inclusion. In the World Bank’s 2015 Cost of Doing Business, PNG ranked 133 out of 189 economies surveyed (the lower the ranking, the higher the costs). PNG also rated particularly poorly in the category of ‘enforcing contracts’ (181 out of 189).
Australian aid will be a stronger catalyst for more inclusive economic growth in PNG, including by assisting the PNG Government to diversify its economic base and improve productivity, and foster an environment conducive to private sector development. To ensure the Australian aid program in PNG has a clear focus on economic growth, 30 per cent of Australian aid will be redirected to fund initiatives focused directly on private sector-led growth and aid for trade.18
Recognising that insufficient or inadequately maintained infrastructure creates significant costs to doing business, and constrains economic growth, Australia’s aid investment in infrastructure in PNG is planned to increase as a proportion of the aid program from 37 per cent in 2014 to approximately 50 per cent by 2017.
We are increasing support for rural livelihoods through an enhanced DFAT-Australian Centre for International Agricultural Research (ACIAR) partnership that includes a focus on developing markets in the agriculture sector. We are also strengthening PNG’s capacity to deal with cross-border trade issues such as quarantine and customs, helping PNG access international markets, and have offered support to PNG for its preparations for APEC 2018.
PNG has been a member of the World Trade Organisation (WTO) since 1996. The WTO Agreement on Trade Facilitation contains provisions for faster and more efficient customs procedures through effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. PNG is not yet fully compliant with the WTO Agreement on Trade Facilitation. Under SGP, an Australian Customs and Border Protection Service (ACBPS) Cargo Adviser is assisting PNG to comply with the articles contained in the WTO Agreement on Trade Facilitation. The Adviser is helping to address PNG’s long Customs clearance times and high transaction costs, including through the introduction of electronic funds transfer for payments and a pre-payment facility for air cargo.
Australia is increasing aid investments in technical and vocational education and training to respond to PNG’s need for more skilled employees in both the public and private sectors. Australian aid is also supporting improvements in the quality of education by investing in teachers, post-secondary institutions and school infrastructure to enable more school leavers to be literate and skilled for employment and engagement in the formal economy. We are also increasing partnerships with the private sector to guide improvements in PNG’s legal, regulatory and policy environment, and to support more effective service delivery in PNG.
18 18.79% of Australian aid in 2013-14 was directed to initiatives focused directly on private-sector led growth and aid for trade.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Highlight #3: Aid for Trade
Following several years of advocacy from developing countries for “trade not aid”, the concept was launched at the WTO’s Hong Kong Ministerial Conference in December 2005.
Aid for trade helps developing countries improve their capacity to trade, which drives economic growth and provides opportunities to build livelihoods and increase income. Aid for trade addresses key constraints to trade, including:
weak public sector institutions, with limited capacity to formulate economic policy and negotiate trade agreements;
poor infrastructure, including transport and communications; and
insufficient private sector capability, including poor access to finance, supply chains, and an under-skilled workforce.
On average, every dollar invested in aid for trade increases recipient country exports by an additional ten dollars. Given this high return on aid for trade investments, the Australian Government has committed to increase aid for trade to at least 20 per cent of Australia’s annual aid spend by 2020. This target will bring Australia more in line with the current percentage of aid for trade assistance of other donors, and will build upon Australia’s existing contribution to aid for trade ($630 million or 12.5 per cent of Official Development Assistance in 2013–14).19
Aid for trade is an important lever to meet the Government’s broader economic diplomacy objectives. In scaling up aid for trade, Australia will target country-specific constraints to participation in trade.
Areas of focus will include governance and regulatory impediments, trade facilitation, infrastructure, water, private sector development, agri-food, fisheries and services, and empowering women to engage in economic activities. The private sector, multilateral development banks and other donors will be important partners in the delivery of aid for trade outcomes.
19 Food and Agriculture Organization of the United Nations (FAO), World Agriculture Towards 2030-2050: The 2012 Revision, Rome, FAO, 2012, p.7.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
A new Private Sector Development Framework for Australia’s aid program in PNG has identified a range of new and enhanced investments to help reduce costs, reduce risk and increase the productivity of the PNG economy (see Figure 6). These investments will total an estimated $60 million over four years.
Figure 6: Australian Government: Private Sector Development Framework for PNG 2014-18
Supporting Inclusive Economic Growth Reducing Cost, Reducing Risk and Increasing Productivity
Pillar Two Pillar One Pillar Three Agriculture: Rural Pillar Four Business Enabling Innovation and Development, Markets Financial Inclusion Environment Partnerships and Trade
Asian Development Bank: Rural Development and Innovation and International Finance Microfinance Expansion Research: ACIAR Partnerships Grants Facility Corporation Project
Market Development Pacific Financial Inclusion Asian Development Bank Pacific Business Fund Program Program
Trade: Pacific Horticultural and Strongim Gavman Program Partnerships for Financial Agricultural Market Access (SGP) Literacy Program and SGP
Women’s Economic Empowerment
We are implementing the new framework by working closely with our partners including the Asian Development Bank (ADB) and International Finance Corporation (IFC), as well as Australian partners such as Westpac. An Innovation Facility will be established to encourage social entrepreneurship and business-led investments through a competitive process. The Facility will work with well performing institutions, and offer innovative solutions to stimulate economic development and support women’s economic empowerment.
A strong focus on women’s economic empowerment and financial opportunities, particularly in rural settings, is a common theme across all pillars of the framework. A research program will seek to build on lessons learned from past programs. Most importantly, it will ensure that Australian support remains informed and nimble in the face of the political and economic shifts which are constantly reshaping the outlook for business and economic growth in PNG.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
The framework links directly with the new phase of the PNG Incentive Fund and the Pacific Women Shaping Pacific Development Initiative. Several Pacific regional programs will also be modified to deliver for the PNG operating environment, such as the Pacific Horticultural and Agricultural Market Access Program and Market Development Facility.
Australia’s aid program in PNG includes a strong focus on PNG’s agricultural sector. ACIAR facilitates the undertaking of agricultural research in PNG and is embarking upon a range of new investments from 2015. Please see ACIAR’s separate submission to The Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea for further details.
Australian Aid to PNG: Gender Equality and Women’s Empowerment
The Australian Government is firmly committed to being at the forefront of efforts to empower women and girls and promote gender equality in the Indo-Pacific region. Reflecting this commitment, the Government has appointed an Ambassador for Women and Girls to advocate on these issues. The Government has also set a target requiring that at least 80 per cent of Australian aid investments, regardless of their objectives, will effectively address gender issues in their implementation.20
Gender equality and women’s empowerment are vital to PNG’s economic and human development. As agreed in the current PNG-Australia Partnership for Development, gender is a focus of Australian aid in all sectors. We continue to increase our investments in: women’s voice in decision-making, leadership, and peace-building women’s economic empowerment ending violence against women and girls.
For example, we continue to assist women to gain internationally recognised education qualifications through the Australia Awards. We are working with the PNG Department of Personnel Management to support women in the public service, including through the implementation of the PNG Government’s Gender Equity and Social Inclusion Policy. Complementing this focus, the TSSP - with a senior Australian Government transport adviser deployed under SGP, is supporting a two year formal mentoring and coaching program for a female senior executive in PNG’s transport sector.
We have assisted the RPNGC to establish 14 police FSVUs to provide better support to survivors of violence. In 2012, SGP supported the OPP to establish a Family and Sexual Offence Unit (FSOU) to help strengthen PNG’s response to family and sexual violence. Since it was established, the SGP adviser has helped build the capacity of the FSOU, mentoring OPP staff to increase the standard of legal expertise in the Unit and assisting OPP to introduce a dedicated Victim Liaison Officer network. With SGP support, the FSOU also provides legal resource support to provincial offices.
20 Making Performance Count, Strategic performance target number four.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
The Australian-funded Pacific Women Shaping Pacific Development program is adding critical investments to support gender equality and women’s empowerment across the Pacific, including PNG. The Business Coalition for Women has been developed to support the mentoring of women business leaders and facilitate connections across the Pacific.
We are also expanding support to women’s economic empowerment in PNG, including through the Pacific Women’s Parliamentary Partnerships program; supporting access to adequate services for survivors of family and sexual violence; and addressing constraints to women’s effective participation in labour markets and agribusiness through financial literacy, microfinance, and building markets. Australian support to the UN Women Safe Cities program is providing safe environments in PNG for women to sell produce at urban markets, thereby helping women to earn a reliable income.
Investment Example #7: Pacific Women Shaping Pacific Development - PNG
The Australian Government is supporting a ten year $320 million program to improve the political, economic and social opportunities for Pacific Women in 14 Pacific countries.
Under the PNG Second Country Plan, Australia is investing in women’s productivity by expanding women’s access to markets, including through value chain analyses and the improvement of market places.
Pacific Women is assisting women to obtain the skills necessary to enter formal labour markets. At the same time, Pacific Women is working with the private sector to promote gender equality at work and support a more coordinated effort to increase income for women.
Pacific Women is also ensuring a focus on the needs of disadvantaged women in response to the discrimination women and girls face in PNG, which increases their vulnerability to family and sexual violence. Research, learning modules and training curricula will help to promote gender equality and women’s leadership.
The Pacific Women’s Parliamentary Program is part of the Pacific Women Shaping Pacific Development Initiative. It aims to build the skills and effectiveness of women parliamentarians across the Pacific by matching them with Australian parliamentarians for ongoing mentoring, and through training workshops and exchanges in both Australia and other Pacific countries. The program in PNG focuses on improving women’s parliamentary influence and advocacy of women’s interests.
Australian Aid to PNG: Disability-Inclusive Development
The Australian Government consistently advocates for disability-inclusive development with the PNG Government and our implementing partners. In 2013, with Australian Government support, the PNG Government ratified the United Nations Convention on the Rights of Persons with Disability. Australia is now supporting a collaborative process to develop a National Disability Policy for PNG.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
In addition, the Australian Government partners with disability organisations in PNG to improve education access and learning environments for those with disabilities, to dismantle the barriers to their participation in elections, and to improve physical access to facilities such as hospitals. Nine percent of Australia Awards Scholarships in PNG in 2015 went to candidates with disabilities. We are also working with the private sector to increase workforce participation for those with disabilities.
Australian Aid to PNG: The Autonomous Region of Bougainville and Manus Province Bougainville
The Autonomous Region of Bougainville, as elsewhere in PNG, faces a range of constraints to economic growth and human development. However, there are unique factors affecting Australia’s aid program as a result of the nine year (1989 to 1998) civil conflict in the region. Australia provided nearly $38 million in aid to Bougainville in 2013-14.
Our aid to Bougainville aims to foster peace and development in Bougainville in support of the Bougainville Peace Agreement (BPA), to which Australia is a witness. Australia is also guided by the Joint Review of Autonomy Arrangements – a clear framework for action in Bougainville conducted and endorsed by the Autonomous Bougainville Government (ABG) and PNG national government.
The majority of our assistance to Bougainville is delivered through PNG national programs in the sectors of health, education, law and justice, and transport infrastructure. Australia also funds region-specific initiatives in governance and peace building to help the ABG respond to the particular challenges posed by Bougainville’s post-conflict and autonomous status.
We increased our focus on peace building issues in 2013-14. The Panguna Peace Building Strategy – a partnership between the ABG and Australia, managed through the Strongim Pipol Strongim Nesen (SPSN) program, has helped progress Panguna area reconciliations and foster dialogue with non-state actors. In late 2014, the Panguna Peace Building Strategy was renamed the Bougainville Peace Building Program in recognition of its expansion to other parts of Bougainville.
The five-year window (2015-20) in which Bougainville will hold a referendum on its future political status, as mandated by the BPA, will present a range of challenges for the PNG Government and the ABG. Australia is increasing its aid to Bougainville to support stability throughout this period.
We are increasing support to Bougainville through the existing sector programs of health, education, law and justice, and transport infrastructure. Governance remains a priority area for our assistance, as we aim to improve the capacity of the ABG and support the drawdown of powers from the PNG Government - as facilitated through the BPA. These aims will be achieved primarily through Australian advisory support and the joint Australia-New Zealand Governance and Implementation Fund (GIF). Our assistance is giving priority to corporate functions, autonomy measures, infrastructure and economic development, sector support, and communications, awareness raising and peace building. We will also be reviewing the GIF to ensure its continuing relevance to supporting the BPA objectives.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Australia is expanding assistance to increase private sector engagement in Bougainville’s agricultural sector. ACIAR will examine economic opportunities in cocoa production. A Commodity Support Facility will be piloted under the GIF to establish private sector partnerships in cocoa and we will support agricultural education. We are also supporting implementation of the Bougainville Gender Investment Plan, a component of the Australian Government’s regional initiative, Pacific Women Shaping Pacific Development. The Gender Investment Plan aims to reduce gender-based violence, strengthen women’s leadership and improve women’s economic opportunities.
Manus Province
Australia’s aid to Manus Province includes support to education, health, transport infrastructure, climate change and disaster risk management. We are helping to strengthen sub-national governance arrangements, and provide SPSN grants to Manus communities for a range of activities, including water and sanitation, and microfinance. Our current package of assistance to Manus includes the delivery of school infrastructure kits, redevelopment of the Manus Provincial Market, and renovations and equipment for the Lorengau Hospital.
Over the next few years, our assistance will include: three road and bridge rehabilitation projects, delivered in partnership with the PNG Department of Works and the Manus Provincial Administration, rehabilitation of existing staff housing at Lorengau Hospital, support to the RPNGC to rebuild the Lorengau Police Station under Australia’s Law and Justice program, support to the Provincial Division of Community Development on activities aligned with the Manus Provincial Youth Policy, targeting youth involvement in sports and income generation. This includes delivery of business workshops to improve private sector skills, and building new ablution blocks and water tanks at Lombrum Naval Base Primary School.
Further details of our support to Manus are available on the Australian High Commission in PNG website (see Annex 2 for details).
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Australian Aid: A Strong Whole-of-Government Approach
DFAT is responsible for the coordination and management of the majority of Australian ODA delivered in PNG. 21 However, many Australian Government departments and agencies make a significant contribution to the delivery of Australian ODA to PNG, including through long term advisory support, short term technical assistance, mentoring and work placements. Many are involved in SGP, contributing to PNG’s economic and public sector reforms and capacity. Others are involved in investments that focus on short term twinning partnerships or discrete projects.
Coordination of Australian support is critical to the success of the aid program, and DFAT works closely with its Australian Government partners in PNG and Australia to ensure Australian aid is well aligned and as effective as possible. The following contributions have been provided by many of the Australian Government agencies who are directly or indirectly contributing to the delivery of human development and economic growth outcomes in PNG. Attorney-General’s Department
The Australian Attorney-General’s Department (AGD) provides direct support to PNG’s law and justice sector through two key programs.
AGD oversees the largest deployment of Australian Government officials under the SGP, with eleven positions currently filled across two key agencies. Our assistance supports PNG on high-priority law and justice issues such as anti-money laundering, anti-corruption, and family and sexual violence as well as building the capacity of PNG law and justice officials.
AGD and AUSTRAC are working with PNG to strengthen its legal frameworks and capacity to combat money laundering and terrorism financing. The project includes the development of four pieces of legislation and assistance to relevant PNG officials to use proceeds of crime, anti-money laundering, counter-terrorism financing, and financial sanction laws effectively through training, mentoring and support, to assist PNG to comply with Financial Action Task Force (FATF) standards and to meet key deficiencies agreed to in its FATF action plan. If these deficiencies are not addressed, PNG is at risk of facing punitive measures from FATF.
AGD also works regionally to build legal policy skills in law and justice officials in the Pacific, including through its Legal Policy Twinning Program, to strengthen the capacity of Pacific law and justice agencies to develop and implement effective policy to fight crime, and improve community safety. AGD also works with key regional bodies in the Pacific, including the Pacific Islands Law Officers’ Network and Pacific Islands Chiefs of Police, to enhance regional engagement on law and justice issues, including the priority areas of sexual and gender based violence, corruption and the recovery of proceeds of crime.
21 The agencies listed in this section, with the exception of ACIAR, Australian Federal Police (AFP), Department of Finance, Department of Immigration and Border Protection, and Australian Trade Commission (Austrade), implement activities in PNG utilising DFAT administered ODA. ACIAR, AFP, Department of Finance and Department of Immigration and Border Protection fund their activities in PNG from both DFAT administered ODA and from their respective portfolio budgets. (When other government departments engage with developing countries, their activities sometimes meet ODA eligibility requirements and are therefore counted in the Australian aid program.) ACIAR receives a direct ODA appropriation. Austrade does not use ODA.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Australian Centre for International Agricultural Research
The Australian Centre for International Agricultural Research (ACIAR) is a statutory authority that operates within the Foreign Affairs and Trade portfolio.
DFAT and ACIAR are collaborating on a new program of agricultural research and development as part of the new private sector and rural development agenda in PNG. The DFAT-ACIAR PNG Agribusiness Development Partnership will spend $24.75 million over five years to develop key agricultural commodities and improve rural livelihoods, and will include components on Bougainville and women in agribusiness. It will be geared towards private sector-led development, and will also explore opportunities to achieve complementary human development outcomes.
Please see ACIAR’s separate submission to The Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea for further details on ACIAR’s work in PNG.
Australian Electoral Commission
The Australian Electoral Commission (AEC) works in collaboration with the PNG Electoral Commission (PNGEC) through the AEC PNGEC Twinning Program funded by DFAT. The AEC twinning program represents the only current Australian electoral assistance to PNG with the conclusion of the broader Australian government electoral support program in late 2013. The AEC provides short term injections of technical expertise appropriate to the PNGEC’s focus.
As part of the Twinning Program, AEC assistance in 2013-14 comprised regular dialogue with PNGEC leadership about strategic direction, and included two staff seconded to assist the PNGEC with a series of Enrolment Pilots, and three staff provided additional short term expertise in the areas of community engagement, training and evaluation to assist with the pilots. A further seven PNG Assistant Election Managers attended an AEC led election study programs for the March 2014 South Australian and Tasmanian state elections.
Australian Federal Police
The Australian Federal Police (AFP) International Deployment Group’s (IDG) current assistance mission in PNG, the PNG-Australia Policing Partnership (PNG-APP), provides support to the Royal Papua New Guinea Constabulary (RPNGC) to develop the RPNGC’s operational capacity in Port Moresby and Lae.
AFP appointees deployed to the PNG-APP undertake a range of activities including frontline advisory roles, executive level mentoring, and facilitating training and infrastructure upgrades. Through the PNG-APP and RPNGC placements in Australia, the AFP supports the RPNGC to (re)build core foundational policing skills, improve ethical behaviour, and improve RPNGC enabling services (through the Office of Reform) such as recruitment, human resources, finance and logistics. The AFP also supports the RPNGC planning for a series of upcoming major events, including the Pacific Games and Pacific Islands Forum (July 2015), 40th Anniversary of Independence (September 2015), National Elections (2017) and APEC (2018).
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
To support these activities, the PNG-APP includes the provision of infrastructure enhancements to the RPNGC premises in Port Moresby and Lae, including to the Boroko, Hohola, Gerehu and Port Moresby Police Stations, and the Bomana Police College. The PNG-APP has funded the construction of a new police station in Lae which is due for completion in May 2015. Since 2014, the PNG-APP also facilitates the placement of RPNGC officers into Australian policing agencies in an area relevant to the future development of the RPNGC and the individual officer. At the request of the PNG Government, the AFP is currently delivering a revised Recruit Training Program for 260 new recruits at Bomana Police College.
Through the PNG-APP, the RPNGC has demonstrated enhancements in community policing capability, investigations management, police station front office efficiencies, proper procedures for people in custody, greater examination of briefs of evidence and the management of exhibits.
The AFP strongly encourages the increased participation of women and girls in the law and justice sector as part of Australia’s whole-of-government approach, including through increased gender representation within the RPNGC. The AFP has supported specialist police Family and Sexual Violence Units, provided advice on the development of equal opportunity policies (including the adoption of targets for greater gender representation in the RPNGC), and encouraged the increased recruitment of female police officers by supporting the construction of a new female barracks at the RPNGC Bomana Police College. PNG-APP efforts to promote gender equality are supported by the AFP IDG Gender Strategy, which articulates key objectives, strategies and target outcomes to promote gender equality in IDG work. Australian National Audit Office
The Australian National Audit Office (ANAO) and the PNG Auditor-General’s Office (AGO) have had a longstanding history of engagement, and are currently working together through the ANAO PNG Twinning and SGP program. The objective of the ANAO and PNG AGO program is to assist the AGO by providing strategic support and advice as well as direct technical assistance and skills development to AGO officers.
The ANAO currently deploys two long term staff members to the PNG AGO through SGP and hosts secondments of officers from AGO in Canberra or in the New South Wales and Queensland State Audit Offices.
ANAO’s deployed advisers are drawn from its specialised audit staff. Currently the ANAO has a Senior Advisor/Team Leader working predominantly as an adviser to the PNG Auditor- General. The Team Leader’s role is to support the Auditor-General and the AGO Executive Management Team on a range of auditing and managerial issues and strategic engagement with stakeholders and public financial management counterpart agencies. The second deployee is a Performance Audit Technical Adviser working with a PNG counterpart to establish the PNG AGO performance audit capability. The Performance Audit Adviser assists with improving and expanding the performance audit coverage and quality consistent with the requirements of International Auditing Standards and AGO mandate.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
The deployments are supported by two targeted training development opportunities for AGO staff at junior and middle management levels. These programs are aimed at enhancing the individual AGO official’s knowledge and skills in conducting financial and performance audit in order to comply with International Auditing Standards. The secondments at the junior level involve a 10 month placement for 4 PNG AGO officers (two in the ANAO and two in the NSW Audit Office) as part of the regular ANAO /NSW Audit Office graduate Program. The middle manager secondment involves two six week placements, at crucial points of an audit cycle, for middle managers in the Queensland Audit Office. Australian Public Service Commission
The Australian Public Service Commission (APSC) works in partnership with PNG stakeholders to design and deliver a range of activities to strengthen the PNG Government.
Within Australia, APSC leads the public service in areas related to leadership, organisational capability, performance management and various aspects of human capital management. Using this knowledge of the public sector, the APSC identifies key activities which will improve the effectiveness and efficiency of the PNG Government. In PNG, the APSC has had an ongoing twinning relationship with the Department of Personnel Management and more recently the PNG Institute of Public Administration (IPA).
IPA activities support the effective design, development and delivery of certificate and diploma-level training for PNG Public Servants as part of the Pacific Leadership and Governance Precinct. APSC’s work in PNG includes delivering Diplomas, development and delivery of certificate programs and short courses, developing specific Graduate and Executive Level Leadership development programs and building organisational capacity through advice and guidance to establish strong governance structures to ensure long term sustainability of the IPA.
The APSC also continues to implement the Executive Leadership and Management Capability Framework through the design of ethics and integrity learning materials and assessment tools, and integration of the framework into all learning programs and materials delivered at IPA.
The broader program of work with the PNG Department of Personnel Management is designed to support and guide the implementation of public sector reform through developing a PNG State of the Service Report – to inform decisions and management of the public sector workforce, strengthening PNG agency head performance management, expanding opportunities for Women Executives and supporting workforce planning. The next phase of APSC’s work will focus on maximising organisational structures and functions of agencies to support the leadership and governance reform of the public service. Australian Taxation Office
The Australian Taxation Office (ATO) has a long history of support to its equivalent revenue agency in PNG, the PNG Internal Revenue Commission (IRC). Three ATO officers are currently deployed to the IRC on long term deployments under SGP and a number of shorter term deployments are made each year under the associated twinning program, PNG-ATO Twinning Scheme, also funded by DFAT. Placements and visits to the ATO by IRC staff also occur as necessary under the twinning program and under other international outreach programs undertaken by the ATO.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
The SGP deployees provide advisory, capacity building and practical support across the broad scope of tax administration, including a specific focus on administrative strengthening, taxpayer compliance and tax technical matters.
The ATO’s SGP deployees are also supporting the IRC in its current massive program of change. This includes a phased implementation of a new core computer system, substantial redesign of its internal processes and work approaches, conversion from Public Service Department to Statutory Authority status, a major injection of new base level staff requiring training and mentoring, and intended substantial improvements in service standards and performance.
PNG-ATO Twinning Scheme twinning engagements over the past year have included capacity building support for the IRC’s debt reduction, GST compliance and small business and cash economy compliance activities. Australian Trade Commission
Australian Trade Commission (Austrade) Port Moresby participates in the PNG Business and Development Roundtable meetings. The Roundtable meetings are designed to help the PNG private sector work more closely with the Australian Government and the Australian private sector in implementing the aid program.
Austrade Port Moresby primarily focusses its attention on increased private sector involvement and/or partnership opportunities for Australian businesses in PNG. Austrade is active in identifying opportunities for Australian companies and providing introductions to suitable PNG partners, as well as to relevant DFAT staff at Post with sectoral responsibilities for the aid program. This particularly applies to Australian companies in the transport infrastructure sector and, to a lesser extent, health.
Austrade Port Moresby also organises an annual Roadshow in PNG for Australian tertiary education institutions timed to coincide with the Australia Awards Scholarship Program. In 2014, Austrade arranged for 21 Australian educational institutions to travel to Port Moresby at the shortlist stage of the Australia Awards Scholarship Scheme to promote themselves to more than 300 shortlisted candidates. The Roadshow then moved from Port Moresby to Lae, Madang and Goroka to help the institutions raise their profile in regional PNG and give them the opportunity to offer their education services to potential full fee paying students.
In 2015, Austrade has again invited Australian educational institutions to travel to Port Moresby to pitch themselves to the shortlisted 2016 Awards candidates. Austrade will subsequently take the Roadshow to Madang, Lae and Wabag. Austrade hopes to attract up to 30 Australian institutions to the event this year in support of the aid program as well as the development of additional education business for Australia. Commonwealth Ombudsman
The Commonwealth Ombudsman (CO) and the Ombudsman Commission of PNG (OCPNG) have had an Australian Government funded Twinning Program since 2003. Since its inception Twinning has been effective, flexible and economical. The objectives of the Twinning Program are to build a sustainable and mutually supportive relationship between the two Ombudsman offices. Over the course of the program a strong institutional relationship has evolved, one that has survived changes at the leadership and senior management level in both organisations.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
In late 2013, the CO created a permanent Twinning Officer to oversee the program and liaise between the CO and the OCPNG. The Twinning Officer travels on an as needs basis, spending approximately equal time with each agency. The program operates within a very dynamic environment and its flexibility is central to its capacity to adapt to change and identify and capitalise on opportunity.
Twinning activities are designed by the CO in consultation with the OCPNG and informed by Australian Government Aid priorities and the strategic goals of the Commission. In a recent project the CO worked with the OCPNG to design and deliver a Certificate IV in Government (Investigation) course to 12 investigators from the Complaints and Administrative Investigations Division (CAID). By co-designing and delivering the course with the divisional director, with input from the Executive and alignment to the Strategic Plan, there was a high level of awareness and support for the course from management.
On the back of the Certificate IV course, the Commission has approved the devolvement of a Diploma of Government (Investigation) course by the Twinning Officer and the CAID Director. The course will be aimed at all team leaders in CAID.
Department of Finance (Finance Australia)
The Australian Government Department of Finance’s contribution to SGP involves assistance to PNG to improve capacity in budget processes and financial management frameworks and activities. Fiscal stability, appropriate allocation and reporting of public resources improves government capacity to provide key public services. This has been delivered through institutional partnerships between PNG Finance and PNG Treasury and Finance Australia. It has involved long-term deployments, short-term staff exchanges, and projects.
Finance Australia’s work in PNG has increased expertise in Budget planning and analysis amongst PNG Treasury staff as well as strengthening business processes for Budget delivery. Finance Australia deployees worked to deliver the 2015 Budget, which was assessed as an integrated Budget) for the first time - including both operational and capital components (formerly recurrent and development). This will facilitate future Budget processes, as agencies will now lodge one Budget submission each, allowing for greater visibility over a combined and integrated Budget.
Finance Australia has also supported PNG Finance to improve internal controls and reporting, particularly through facilitating internal audit across PNG government entities. For example, this has involved supporting agencies in undertaking payroll audits to monitor payments and identify potentially problematic employees. Annual savings between K33 million and K34 million have been achieved through recovery of overpayments, cessation of invalid allowances, and system changes.
In 2015, a new staff exchange activity commenced integrating two graduates from PNG Finance into the Finance Australia graduate development program. This activity develops the graduates in Australian Public Service values and behaviours, and builds their financial management capacity. Finance Australia has also worked with DFAT to achieve coordination with a wider donor community.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Department of Immigration and Border Protection
Customs component
The Australian Customs and Border Protection Service (ACBPS) and the PNG Customs Service have a long standing and mature relationship. ACPBS supports the placement of three SGP officers with the PNG Customs Service. Linked with this scheme is the PNG Australia Customs Twinning Scheme, which supports short term specialist placements and incorporates on the job learning opportunities in Australia for PNG Customs officers.
Further support includes the annual program of Joint Cross Border Patrols in the Torres Strait which involves the deployment of maritime and aerial ACBPS assets to PNG. While this activity delivers mutual operational outcomes for both Australia and PNG it also provides a platform for the PNG Customs Service participants to develop both organizational and individual skills.
The international benchmarks established by the Revised Kyoto Convention (to which PNG acceded in 2014) and successive diagnostic assessments undertaken by the World Customs Organisation provide the PNG Customs Service with a blueprint for reform and modernisation. The SGP Team works with the PNG Customs Service to pursue this agenda and to deliver on the key Service Plan outcomes of Border Security, Trade Facilitation and Revenue Collection.
Some examples of ACBPS capacity building include a Strategic Border Risk Assessment, developed with assistance from SGP and the Twinning Program. It identifies and analyses border risks where PNG Customs leads the response. It has helped further develop a strategic intelligence capability within the PNGCS and will inform risk based prioritization and decision making. The ACBPS has also assisted with two rounds of Time Release Studies. This is a WCO endorsed method for measuring the time taken to clear cargo. It enables benchmarking against other sea ports and identifies the nature and extent of impediments to facilitated cargo clearance.
Immigration component
Immigration deploys four SGP advisers on two to three year deployments to work with PNG counterparts to strengthen and support PNG Immigration and Citizenship Service capacity. The advisory roles are Chief Migration Officer Adviser, Deputy Chief Migration Officer Adviser, Enforcement and Compliance Division Adviser and Visa and Passports Division Adviser.
Their roles include mentoring senior PNG Immigration and Citizenship Service counterparts in the areas of strategic policy development and implementation; project and program management; client service; and visa/compliance process improvement.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Investment Example #8: Government-to-Government Support
A range of Australia Government agencies are engaged in the support of human development and economic growth outcomes in PNG. They foster strong Australian Government to PNG Government relationships and partnerships. The following agencies are currently active in PNG through the aid program:
- Australian Federal Police - Attorney-General’s Department - The Treasury - Department of Finance (Finance Australia) - Department of Immigration and Border Protection (including Customs) - Australian Public Service Commission - Australian National Audit Office - Department of Infrastructure and Regional Development - Australian Taxation Office - Commonwealth Ombudsman’s Office - Australian Bureau of Statistics - Australian Electoral Commission - Australian Transport Safety Bureau - Civil Aviation Safety Authority - Australian Maritime Safety Authority - Bureau of Meteorology
Besides Australia’s policing support, the largest government-to-government program is the Strongim Gavman Program “Strengthening Government Program” (SGP). A number of Australian agencies provide long-term capacity development assistance and advice to counterpart PNG Government agencies. Areas of focus include economic and public sector management, law and justice, border management and transport safety and security. For example, SGP has provided: - advice to improve fiscal discipline, effective expenditure and deficit financing; - advice on tax reform and the Internal Revenue Commission’s corporate structure; - support for sustainable, self-sufficient internal finance audit committee processes; - advice on port facility security plans to increase the security of PNG’s borders; and - support to strengthen state legal services and prosecutions.
Australia’s Department of Finance is, for instance, helping to improve PNG’s budgeting and financial processes through institutional partnerships with PNG Finance and PNG Treasury. An Australian Customs and Border Protection SGP Adviser is working with PNG Customs at Jacksons Airport to build capacity in passenger processing and airport operations in advance of the Pacific Games in 2015 and PNG’s hosting of the Asia Pacific Economic Cooperation (APEC) forum in 2018. This will assist PNG to strengthen passenger processing capability at its land border, the growing workload associated with cruise ships, and expanded international air movements at regional airports. An Australian Attorney- General’s Department SGP Adviser in the PNG Office of the State Solicitor is helping improve the timeliness and quality of legal advice and commercial legal services. This contributes to improving the quality and credibility of the State’s commercial transactions, increasing confidence for private sector investors.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Department of Infrastructure and Regional Development
Australian and PNG transport agencies are working together to improve transport safety and security in PNG. Work is being undertaken in the areas of accident investigation, aviation safety regulation, air traffic management, transport policy and maritime safety.
The Australian Government’s transport sector assistance to PNG integrates the Transport Sector Support Program (TSSP), SGP and the PNG – Australia Memorandum of Understanding on Cooperation in the Transport Sector (MoU).
The integrated model is coordinated by an embedded senior executive officer from the Department of Infrastructure and Regional Development who is responsible for ensuring integration and coordination of Australian Government initiatives/activities across TSSP, SGP and the MoU. Under TSSP Component 2 (Aviation /Maritime Safety and Security), a total of $7 million is available from 30 June 2013 to 30 June 2016 for targeted Australian Government to PNG Government capacity building activities within the PNG transport sector.
Additional resources and investments are provided through SGP and TSSP, which include the joint Australia/PNG funding of PNG’s air traffic management upgrade; VHF communication upgrade (including to the Kokoda region); maritime and aviation navigational aid upgrades; and a three year commitment to improving maritime safety through the introduction of the Small Craft Act Project. The integration of the transport safety and security streams work in concert to address PNG’s transport development priorities and improve monitoring, reporting and evaluation activities.
The annual Transport Senior Official’s Meeting brings together Secretary and Head of Agency level officials from both governments for bilateral discussions. This model is highly valued by officials from both nations and ensures strategic alignment of all bilateral transport safety and security activities.
Australia remains committed to assisting PNG to achieve a safe and secure transport sector and to meet international standards for aviation and maritime regulations. This includes the placement of four Australian Government officials within partner PNG agencies (Department of Transport, Civil Aviation Safety Authority and the Accident Investigation Commission) – these advisers are building capability and strengthening relationships across transport agencies to address PNG’s transport priorities under the PNG National Transport Strategy. Australian Government transport entities involved in building capability with their PNG counterpart departments/agencies have included the Department of Infrastructure and Regional Development, Australian Transport Safety Bureau, Airservices Australia, Civil Aviation Safety Authority, Australian Maritime Safety Authority, and the Bureau of Meteorology.
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The Treasury
Five Australian Treasury officials and one Australian Office of Financial Management official currently provide ongoing support to PNG Treasury under SGP.
SGP deployees work on a long-term basis (2-3 years) with local counterparts in PNG Treasury to promote macroeconomic stability and adoption of sound economic policy reforms, build individual and organisational capacity and on occasions provide direct technical assistance on key issues. Deployees provide support on issues relating to macroeconomic forecasting and analysis, revenue policy, microeconomic reform, fiscal policy and debt management. This can include participating in discussions; providing support in key meetings, giving presentations on Australian and international policy approaches; running training courses and modelling good practice.
Recently, deployees have worked with PNG Treasury to (among other things) progress budget reform, develop the structure and legislation for a Sovereign Wealth Fund, support PNG's membership to the Extractive Industries Transparency Initiative, support the PNG Government’s review of financial sector services, support the improvement in the national accounts and reforms to the National Statistics Office and improving PNG Treasury’s organisational structure. In addition deployees have contributed to SGP cross cutting measures on gender and anti-corruption.
Since 1999, Australian Treasury has also provided short term technical assistance to PNG Treasury under the PNG-Australia Treasury Twinning Scheme. The PNG-Australia Treasury Twinning Scheme has the broad aim of improving economic governance in PNG central agencies and provides for both the placement of Australian officers with relevant skills in PNG Treasury and the placement of PNG officers to Australian Treasury. Most recently, Australian Treasury officers have provided significant support for the PNG Government’s comprehensive review of its tax system.
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Australian Aid: Delivery Partners in PNG
Beyond Australian Government agencies, DFAT draws on a diverse range of partners in the delivery of aid to PNG (refer Table 4). Non-Government Organisations (NGOs), multilateral organisations and the private sector provide wide-ranging support to Australian Government ODA efforts in PNG, including the ability to leverage finances and resources, expertise and specialisation, and to strengthen community engagement.
We engage our partners through a range of mechanisms such as competitive grants processes and traditional contracting arrangements. We also encourage the private sector and NGOs to propose innovative development partnership ideas to enhance economic growth in PNG.
Table 4: DFAT Official Development Assistance to PNG by partner type, 2011-12 to 2013-14
2011-12 2012-13 2013-14* Partner Type Spending Spending Spending ($’000) ($’000) ($’000) Academic Institution 24,149.0 25,991.6 31,123.0 Australian Public Sector 30,610.9 26,777.3 27,002.6 Organisation DFAT* 190.5 - - Donor Government 32.2 250.0 416.7 Individual 3,127.2 848.2 1.7 International Research 34.6 22.6 138.7 Centre Multilateral 16,038.5 16,046.4 20,881.6 Development Bank NGO-Aust 21,386.2 20,591.2 18,829.3 NGO-O/Seas 37,454.6 4,155.8 651.6 Other** 17,350.7 19,396.6 20,596.8 Other International 171.0 - 314.3 Agency Other Multilateral 588.4 21.4 - Private Contractor 235,067.5 294,516.9 280,945.1 Recipient Government 80,673.8 58,830.2 54,054.5 Regional Organisation 740.1 772.5 991.7 United Nations 2,317.6 13,954.0 10,825.3 Organisation Total 469,932.9 482,174.8 466,773.1
*There is a break in the series from 2013-14 to reflect the amalgamated portfolio of DFAT. Prior to this period, DFAT aid appropriations were included in Other Government Department figures, collected through the bi-annual survey. **Other includes internal work orders, departmental figures and adjustments.
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Non-Government Organisations
Australian NGOs, their PNG counterparts, and a wide range of PNG civil society organisations, including churches, perform a valuable and innovative role in designing and delivering elements of Australia’s aid program in PNG. NGOs have the ability to effectively build community capacity, mobilise and organise communities, undertake stakeholder engagement, provide expertise, and innovate.
In 2014-15, 13 accredited Australian NGOs are expected to implement 33 projects in PNG, with an expected combined budget of over $7 million funded through the DFAT managed Australian NGO Cooperation Program (ANCP). Under the ANCP, Australian NGOs are implementing projects in PNG across a range of sectors including maternal and child health; water, sanitation and hygiene (WASH); education; governance; gender equality; and disaster risk reduction. Through the ANCP, for example, the Australian Government provides funding to World Vision Australia to implement a WASH project in PNG to increase access to safe water and improve sanitation and hygiene behaviours for people in Central Morobe and Central Bougainville communities.
CARE’s Integrated Community Development Project (ICDP), supported by the Australian Government, delivers support to communities in some of the most remote and disadvantaged areas of PNG. It is designed and implemented by CARE Australia and CARE International (PNG). ICDP aims to strengthen partnerships between communities, government and non-government organisations to identify, prioritise and address development needs. Key to CARE’s approach is strengthening local-level governance through ward planning, as mandated by PNG’s Organic Law on Provincial and Local Level Governments (1995). CARE is implementing the ICDP in three districts in PNG: Obura- Wonenara (Eastern Highlands Province), Menyamya (Morobe Province) and Gumine (Chimbu Province).
The Church Partnership Program (CPP) is a partnership between seven PNG churches (Anglican; Baptist; Catholic; Lutheran; Salvation Army; Seventh Day Adventist; and United Church); their seven counterpart Australian faith-based organisations (the Anglican Board of Mission Australia; Transform Aid; Caritas; Australian Lutheran World Service; Salvation Army; Adventist Development and Relief Agency; and the Uniting Church of Australia); and the Australian and PNG Governments. DFAT provides grant funding to Australian Church partners who work with their PNG counterparts to design and implement, monitor and evaluate activities. The program is currently in its second phase (2010-16) and is focused on strengthening partnership and coordination between the seven churches, building their capacity to deliver services, increasing their support for gender equality approaches and the empowerment of women, and increasing Church engagement with the PNG Government to encourage good governance.
Australian support for Susu Mamas (a PNG maternal and child health NGO) has helped expand rural health services for women with 77 rural outreach clinics and eight settlement clinics. Assistance for Marie Stopes International has expanded the availability of permanent family planning methods in PNG. Funding to the PNG Business Coalition Against AIDS, Anglicare, Save the Children and Population Services International has ensured the widespread distribution of condoms in PNG. Australian funding to NGO partners has also assisted to substantially increase HIV testing.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Multilateral Organisations
Multilateral organisations have an important role to play in delivering assistance to the PNG Government and communities. The Australian Government utilises the expertise and leverages the resources of several multilateral organisations active in PNG for specific investments. Through aid donor coordination mechanisms, we ensure that our assistance is well coordinated and complementary.
The World Bank Group, for example, is engaged across a range of sectors in PNG. Australia has and will continue to look for opportunities to expand our partnership with the Bank. As of October 2013, the Bank’s cumulative lending to PNG was US$208.77 million for 16 active projects focusing on infrastructure, mining, agriculture and youth. The Bank’s footprint in PNG is modest relative to its engagement in many other countries, but it remains an important actor able to deliver messages on a range of public and financial management issues. Most recently, this has included analysis and contributions to public debate on the cost of crime to PNG’s economy and the disincentive it poses to foreign direct investment. With Australian support, the Bank has also commenced a range of initiatives to support our increasing engagement in Bougainville, particularly ways to address the gender gap across society.
International Finance Corporation (IFC) operations in PNG are also modest compared to its engagement elsewhere but its contribution is growing. The IFC has increased its commitments from US$1.2 million in 2006 to more than US$200 million in 2012. Its focus remains on supporting small and medium enterprise. For example, in PNG the IFC is working on ways to develop mobile banking to provide farmers small scale producers and rural women with a safe and secure way to transfer money. We are utilising the IFC’s expertise as part of our enhanced private sector development approach.
The Asian Development Bank’s (ADB) presence is the largest of the relevant international financial institutions in PNG. As of December 2013, its cumulative loan’s portfolio was approximately US$1.9 billion. This represented 85 loans across 10 sectors, the largest of which was transport. The focus on transport helps the ADB work towards the objective of allowing for more efficient and safer movement of people and goods around PNG. This is vital for creating livelihood opportunities and improving access to basic services, and complements Australian aid objectives.
Australia is currently co-financing the Rural Primary Health Service Delivery Project with the ADB and is increasing its financial support for the ADB’s regional Private Sector Development Initiative (PSDI) in PNG. PSDI is an advisory facility which works in seven areas: i. financial services reform; ii. business registrations; iii. transparency of commercial legal frameworks; iv. opportunities for private sector market access and Public Private Partnerships; v. strengthening SOE performance; vi. competition policy/regulation; and vii. economic empowerment of women.
PSDI also funds a respected private sector survey which has been helpful in identifying the constraints facing business in PNG.
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The United Nations (UN) remains an important development partner in PNG. The UN fulfils an important advocacy role on governance and development issues with the PNG Government and communities. To better support the United Nations Development Programme (UNDP) coordination role, Australia is funding additional administrative and monitoring and evaluation positions for the UN team in PNG. We are also promoting greater UN coherence by funding all UN agencies in PNG through the One UN Fund.
The UN is also well positioned to support Bougainville. Australia encourages the UN to take on greater leadership and action in relation to Bougainville especially in peace building and referendum activities. Implementation of the UN Peace Building Fund (PBF) activities (the UN Secretary-General declared PNG eligible for the PBF in 2013) is an opportunity for the UN to constructively re-engage as a stakeholder in Bougainville’s peace process.
The UN World Health Organisation’s (WHO) technical specialists have a key role in helping to coordinate PNG’s national health programs while UN Women has been key in implementing innovative programs such as the UN Safe Cities Program.
The United Nations Children’s Fund (UNICEF) has an important and growing presence in PNG. It is active in a range of areas including advocacy on child rights, and improved water supplies, sanitation and hygiene. With Australia’s support, UNICEF will be implementing activities that aim to raise community awareness in support of women and children, strengthen hygiene practices in schools, and improve nutrition among PNG’s children.
Partnering with the Private Sector
The Australian Government is increasing its engagement with business representatives on PNG development and growth issues. This dialogue is principally coordinated through an annual Australia-PNG Business Dialogue, and a Business and Development Roundtable. The Business Dialogue is a unique forum for the peak bilateral business organisations to engage the Australian and PNG Governments at a ministerial level on issues affecting the bilateral trade and investment relationship, and prevailing business environment. It is an important avenue for discussions on key policy issues and constraints for business in PNG.
The Business and Development Roundtable in PNG provides the opportunity for Australian Government officials to engage with the private sector in PNG on development issues.
The objectives of the roundtable are to:
coordinate policy advocacy efforts aimed at promoting an open and competitive business environment in PNG; to foster cooperation between business and the Australian aid program in areas of mutual interest and aligned objectives; and to exchange information on development-related activities of the business community and the aid program.
At the second annual PNG Business and Development Roundtable in PNG in May 2014, Australian Government and private sector participants agreed to work together in support of the new direction of the aid program. Working Groups were established to focus on the issues of TB, technical and vocational education and training, and aid for trade. The next roundtable is scheduled to be held in May 2015.
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Australia is also supporting the Business Coalition for Women in PNG. This initiative aims to generate dialogue on good policies and practices in the workplace on family and sexual violence, to advise businesses on becoming employers of choice for women, to facilitate networking and mentoring, and to help improve laws and regulations for women in the workplace.
The PNG and Australian Governments share a commitment to increasing the role of the private sector in the delivery of development outcomes in PNG. Important partnerships have, for instance, supported improved health outcomes through collaboration in the resource and agricultural sectors to eradicate malaria around worksites. A partnership between the PNG and Australian Governments and private sector organisations for the redevelopment of Lae Polytechnic is helping meet skills gaps identified by the private sector. There is ample scope to increase public-private sector partnerships to support service delivery across PNG and promote economic growth.
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Department of Foreign Affairs and Trade Submission Inquiry into the delivery and effectiveness of Australia’s bilateral aid program in Papua New Guinea
Australian Aid: Making Performance Count
In 2014, the Australian Government announced a strengthened approach to performance across Australia’s aid investments. The new framework, Making Performance Count: enhancing the accountability and effectiveness of Australian aid, outlines how we will measure performance and ensure a stronger focus on results and value for money.
At the strategic level, ten high level targets are used to assess the aid program against key goals and priorities as outlined in the Australian Government’s development policy.
At the country and regional program level, performance benchmarks are being introduced as part of bilateral Aid Investment Plans to measure the effectiveness of our portfolio of investments. Progress will be reported annually in Aid Program Performance Reports for country and regional programs.
At the project level, aid investments are subject to rigorous annual quality checks to ensure they are performing well and achieving their intended results. A more rigorous annual quality process for high value aid investments will assess the extent to which investments represent value for money and effectiveness, and require actions to be taken for any under-performing programs. To ensure funding is directed to investments making the most difference, poorly performing investments will be cancelled if they do not improve within a year.
Further opportunities to promote and effectively monitor cross-sectoral priorities such as gender equality, disability inclusive development and disaster resilience, will also be identified through these quality processes.
Along with other country and regional aid programs, DFAT is currently developing an Aid Investment Plan for PNG that will outline how Australian investments will promote private sector-led growth and enable the poor to participate and share in the benefits of greater economic prosperity. This will include consideration of ways to enable more disadvantaged members of society, including women and children and people with disabilities, to access the same opportunities as others and improve their quality of life. The Aid Investment Plan will succinctly outline the focus and scope of aid investments in PNG and the results to be achieved.
To assess performance against the strategic priorities set out in the Aid Investment Plan, a number of performance benchmarks and mutual obligations will be identified and agreed between the Australian and PNG Governments. This will assist both governments to monitor the effectiveness of Australian aid and progress on mutual commitments.
Progress will be reported in Australia’s annual Aid Program Performance Report for PNG. The Aid Program Performance Report provides a frank, evidence-based assessment of our progress against Australia’s aid objectives for PNG, and includes proposals for management action. Aid Program Performance Reports are a critical element of aid reporting and are used to strengthen program management, demonstrate accountability and improve effectiveness. The reports undergo a peer review to ensure assessment and reporting of program performance is robust and contested and that suitable management responses are identified and implemented. Reporting also provides an opportunity to strengthen relationships and dialogue with partners, especially partner governments and multilateral organisations.
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Partner Performance Assessments (PPAs) are completed on implementing partners in relation to specific agreements (i.e. contracts and grant agreements). PPAs are completed for NGOs, commercial suppliers and multilateral organisations with a total value over $3 million, except for core contributions to multilateral organisations.
In addition to the measures outlined in Making Performance Count, the aid program is subject to several independent mechanisms which help to improve the effectiveness of Australia’s aid. These include:
Independent evaluations of aid investments commissioned by the Office of Development Effectiveness and DFAT’s country program and thematic areas; Internal audits; Audits by the Australian National Audit Office; and Periodic reviews by the Organisation for Economic Cooperation and Development’s Development Assistance Committee.
The monitoring and evaluation of Australia’s aid investments in PNG is also being strengthened through a number of new initiatives. This includes the development of improved, whole-of-government performance frameworks for law and justice investments and SGP, a monitoring framework for Bougainville activities, and a program of training to build staff capabilities in monitoring and evaluation.
The management of risks facing Australia’s aid program in PNG will continue to require close attention by the Australian Government, including those relating to insecurity, weak governance and corruption. Fiduciary and security risk assessments will be conducted on a regular basis to inform program decisions. Mutual obligations between both governments in the new performance arrangements will emphasise good governance, transparency and equity in PNG. Both governments will continue to enforce a zero tolerance policy of fraud in the Australian aid program.
Australian Aid: Learning and Applying Lessons Example - Governance in PNG
Reviews and evaluations over the past two decades consistently reference PNG’s limited institutional authority and capability, and indicate that local PNG leadership is the key factor that determines the impact of Australia’s governance assistance. Australian aid will give greater emphasis in the future to assessing, supporting and facilitating local leadership of both women and men, be more realistic about what can be achieved in set timeframes, and strive to sustain impacts over a longer-term horizon. To ensure aid efforts continue to be tailored appropriately, there is a need to focus on strengthening monitoring, evaluation and knowledge systems of what is driving and/or constraining change.
A number of lessons for Australian aid in PNG have informed the current design approach to a suite of new investments in PNG governance:
Top-down governance solutions in isolation have not delivered sustainable benefits for PNG citizens: assistance must operate in different governance domains (national,
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sub-national and community) to address the difficult task of establishing a clear line of sight between the citizen and various levels of government; Local conditions vary significantly across PNG, as do opportunities: recognising and responding to these differences and opportunities is required rather than promoting uniform solutions nationally; working with the private sector or civil society can be more effective than working only with government in particular circumstances; Effectiveness of assistance is highly contingent on local leadership (political/bureaucratic/civil): understanding this and how changes in the wider context impact on leadership at a local level are key to ensuring the continued relevance of assistance; Lack of women’s leadership within all domains of PNG life – politics, government, the private sector, community and family – hinders overall development within PNG; and Assistance needs to be flexible and adaptable: this requires better understanding of the changing local context and the opportunities and constraints provided, along with modalities and incentives that encourage iterative approaches to delivery of assistance. Australia’s future governance programs will be refocused to align clearly with the new policy directions for the aid program, bringing into sharper focus the role of the private sector in driving broad-based economic growth and raising the importance of enabling business and trade development. DFAT’s governance strategy for PNG is being updated to reflect and align with these new directions. In addition, future governance assistance will reflect the following objectives:
Strengthened aid effectiveness through a new governance portfolio approach that maximises coherence; Improved aid efficiency through use of simpler, more agile management structures and more appropriate selection of aid modalities to deliver assistance, moving away from inflexible and expensive blue-print designs; Empowering women and girls by smart investments in improving women’s voice and ensuring benefits accrue to women and girls across programs. Working closely with the new Pacific Women Support Unit, and the Australian High Commission Gender team, ensure all governance programs target women’s leadership, economic and physical security; Value for money through improved capability to identify and build on success and respond faster to under-performance; and Innovation through the use of contracting arrangements and incentives to encourage well-managed risk-taking by expert contractors.
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Learning from other countries
DFAT has many systems and processes to ensure important lessons from other countries are captured and integrated into the aid program in PNG.
Organisationally, DFAT’s Pacific Division includes the Pacific Analytical and Effectiveness Branch, which includes the Pacific Strategy and Performance, Quality and Risk Sections. Through these teams, data and lessons learned from regional programs and Pacific bilateral programs are captured and shared within the Division. The Pacific Division also facilitates bilateral meetings and High Level Consultations with partner countries and organisations operating in the region. Relevant feedback from these meetings is disseminated through the Division, including information on aid programs that are working well – and can therefore be scaled up or extended to other countries in the region, and those that have not had the desired impact.
DFAT’s organisational structure also includes thematic teams that work across major sectors, and act as a key conduit for the exchange of lessons across Australia’s various aid investments within DFAT and for implementing partners. Thematic teams continually review, source and report on international best practices, and assist country teams to include these learnings in their program designs – but to also ensure they are tailored to local contexts.
PNG is a uniquely challenging environment, and success elsewhere will not necessarily be replicated when applied in PNG. DFAT quality processes demand that relevant sectoral areas be consulted prior to the design and implementation of new investments in country programs. This expertise is regularly drawn upon to continually improve the PNG aid program.
DFAT also develops thematic strategies to guide good practice in regional and country programming. A detailed example of how this and ongoing reviews of programs are being used to shape health investments in PNG is outlined in the next section.
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Thematic Strategies - The Health Sector in PNG, a case study
The Australian PNG health program approach has evolved significantly over time to incorporate lessons learned from global and local learning and evidence of what works to address maternal, newborn and child health, and the main communicable diseases, HIV, TB and malaria. The program helps the PNG Government to strengthen its health system and the policies required to underpin these priorities. A recent independent evaluation gave a positive assessment of the health program’s focus and commended its use of a wide range of modalities.22
Provided below are some observations and lessons learned from reviews of successful health programs, and examples of how these have informed activities in PNG.
Program success factors and Australian aid program examples
There is clear global evidence of what works to reduce premature death and improve health. There is less evidence on the program delivery success factors in developing countries because these are context specific. However a recent study in 144 low and middle income countries found ten countries have been highly successful in rapidly reducing maternal, newborn and child deaths and pinpointed their success factors. 23 Four main success factors were identified and are outlined below.
1. Leadership, sustained donor funding and intensive, sustained use of evidence-based high-impact health interventions to maximize health outcomes
Australia has provided sustained and predictable technical health assistance and financial support through joint government-donor health approaches in Bangladesh, Cambodia, Ethiopia, Nepal, Samoa and Solomon Islands. Being an active partner in these has positioned Australia to help foster government leadership and vision in health and influence policy reforms, recurrent national budgeting beyond bilateral and global health aid, and equity measures for the poorest.
A survey helped the Australia-Indonesia partnership for maternal and neonatal health in Nusa Tenggara Timur province to pinpoint the constraints to reducing newborn deaths. The survey showed about 22 per cent of neonatal deaths were on the first day and 61 per cent in the first week of life, with the main causes being low birth weight, premature birth and infections. Nutrition, along with quality post natal care, will be a central theme of the next phase of the program currently being designed.
Similar reviews into the timing and causes of maternal deaths in the Australian maternal and neonatal health programs in Bangladesh also led to more targeted actions in the high mortality districts.
22Fryatt B, Land T, Ake I, Tulloch J, Independent Evaluation of Australia’s health and HIV portfolio in PNG (2014). Health Resource Facility for Australia’s Aid Program. 23 Kuruvilla S, et al. Success factors for reducing maternal and child mortality. Bulletin of the World Health Organization 2014: 92:533-44. The 10 most successful countries were: Bangladesh, Cambodia, China, Egypt, Ethiopia, Lao People’s Democratic Republic, Nepal, Peru, Rwanda and Viet Nam. At the time of the study DFAT was providing health sector support to Bangladesh, Cambodia, Ethiopia and Nepal.
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In 2009, in response to the persistently high number of maternal deaths, a Ministerial Task Force on Maternal Health in PNG increased the focus on the issue with a range of recommendations and an action plan. In recent years, there has been significant success in increasing supervised births in PNG. This has been largely a result of Australian support to strengthen the four PNG midwifery schools to produce more midwives and to improve quality birthing care. DFAT has funded eight clinical facilitator positions at the midwifery schools and 150 midwifery scholarships to increase midwifery candidates.
2. Multi-sector investments and progress to address crucial health determinants
Poor nutrition is a significant barrier to progress in health indicators in Timor Leste and Indonesia. Australia’s Timor Leste aid program has started applying a nutrition “lens” to its investments to respond to the high and persistent stunting rates in children under five. Programs in health, agriculture, water and sanitation and market development are being shaped to improve nutrition. Australia’s Indonesia program is also developing nutrition partnerships with the food industry to address both persistent stunting in children under five and rising obesity.
Similar multi-sector approaches could be progressed in PNG including through the ACIAR partnership, and with the main food suppliers to PNG.
3. Addressing supply and demand side constraints using community and private partnerships
International evidence has shown us there is a limit to how much can be achieved from improving health systems and services (the ‘supply’ side) only, without addressing the ‘demand’ side (social, cultural and financial barriers) as well. Demand side approaches tailored to reach the poor, the marginalised, women, and people with a disability, can help them overcome barriers to access and increase their voice in demanding better health services. Many solutions have been developed through partnerships between governments, the Australian aid program, communities, NGOs and private enterprise, and taking them to scale nationally.
On the supply side, for example, the Australia-Indonesia Partnership for emerging infectious diseases has developed a state-of-the-art national animal disease reporting system which communicates real time information to the Ministry of Agriculture. This also captures the movement of slaughtered animals. There is the potential to apply some system parts to the monitoring of human health.
In Solomon Islands, an electronic pharmacy inventory system, accessed via ipad tablets, tracks supply and communicates its status in real time. This has improved ordering efficiency and reduced drug stock-outs in remote areas, doubling the availability of essential medicines to 93 per cent.
The PNG health program has worked with mSupply to develop a mobile phone app which tracks medical supply stock and communicates its status in real time.
On the demand side, in Bangladesh, Nepal, Indonesia and Cambodia, health service voucher arrangements have significantly increased pregnant women’s access to antenatal care and birth facilities, and couples access to modern family planning methods.
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In the same countries, community and NGO partnerships for targeted outreach to remote areas and marginalised groups have increased uptake of healthier behaviours and access to services. Mobile phones (“m-health”) have been a key communication tool for this work in Bangladesh and Indonesia.
The PNG health program has also used demand side approaches through: gender equality and women’s empowerment initiatives addressing violence against women; civil society strengthening - including through the Church Partnership Program; and by supporting m-health strategies to target specific health seeking and utilisation behaviours, such as health check reminders via text messages.
4. Alignment of development partner actions and development effectiveness
In many countries Australia has played a role in influencing other development partners to align their support to a government’s health plan, budget and systems. This is important to increase the effectiveness and sustainability of aid. A further step has been encouraging the integration of stand-alone (“vertical”) health programs and services into the public health system and primary health care services.
PNG examples include building into the ‘regular’ health system: routine immunization systems which reach infants and children, year in and year out; integrated TB and HIV outreach, testing and treatment into primary health services, with targeted outreach to the most at risk groups, and; routine household distribution of long lasting insecticide treated nets to prevent malaria.
Also in PNG, the anti-retroviral treatment coverage rate of 75 per cent has been a result of Australian support of the national HIV plan by funding the recognised government service providers – PNG faith based and Australian NGO health service providers - due to their acceptability to government and ability to reach specific groups and remote areas.24
24 Lessons from Australian Aid, Office of Development Effectiveness, DFAT. 2013 report on independent evaluation and quality assurance. January 2014.
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Annex 1 – Senate Committee Letter to Mr Peter Varghese AO, Secretary, DFAT
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Annex 2 – Links to key documents
2013-14 Aid Program Performance Report http://www.dfat.gov.au/about-us/publications/Pages/papua-new-guinea-aid-program- performance-report-2013-14.aspx
A New Direction for Australian Aid in PNG: Refocusing Australian Aid to Help Unlock PNG’s Economic Potential (http://dfat.gov.au/geo/papua-new-guinea/development-assistance/Pages/a-new-direction- for-australian-aid-in-png-refocusing-australian-aid-to-help-unlock-pngs-economic- potential.aspx)
Australian aid: promoting prosperity, reducing poverty, enhancing stability http://www.dfat.gov.au/about-us/publications/Pages/australian-aid-promoting-prosperity- reducing-poverty-enhancing-stability.aspx
Australian High Commission, Papua New Guinea http://www.png.embassy.gov.au/pmsb/home.html
Australia-Papua New Guinea Ministerial Forum December 2014 http://www.dfat.gov.au/geo/papua-new-guinea/Pages/23rd-papua-new-guinea-australia- ministerial-forum-joint-conmunique.aspx
Development Assistance in PNG http://www.dfat.gov.au/geo/papua-new-guinea/development-assistance/Pages/papua- new-guinea.aspx
Joint Declaration for a new Papua New Guinea-Australia Partnership http://www.dfat.gov.au/geo/papua-new-guinea/Pages/joint-declaration-for-a-new-papua- new-guinea-australia-partnership.aspx
Making Performance Count: enhancing the accountability and effectiveness of Australian aid http://dfat.gov.au/about-us/publications/Pages/making-performance-count-enhancing-the- accountability-and-effectiveness-of-australian-aid.aspx
PNG Country Brief http://www.dfat.gov.au/geo/papua-new-guinea/Pages/papua-new-guinea-country- brief.aspx
PNG Country Fact Sheet http://www.dfat.gov.au/geo/papua-new-guinea/Pages/papua-new-guinea.aspx
The Alotau Accord – 2012 Summary of O’Neill Government Priorities http://www.dfat.gov.au/about-us/publications/Pages/papua-new-guinea-alotau-accord- summary-oneill-gov-priorities.aspx
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