Australian High Commission
Papua New Guinea

MR 080523 Budget

MEDIA RELEASE

23 May 2008

For immediate release

AUSTRALIAN BUDGET GOOD NEWS FOR PNG

 

With a Budget increase exceeding the commitment by Prime Minister Rudd during his visit earlier this year, Australia’s development program in PNG is set to continue to make a strong impact in the lives of PNG’s people.

Estimated total aid to for 2008-09 is K973.2 million providing an estimated K83.5 million increase over the 2007-08 Budget.

“On top of this PNG will also have access to a significant pool of regional funding along with funding from Global initiatives such as the Forest Carbon Partnership, reflecting the agreement signed by Prime Ministers Rudd and Somare this year,” said head of AusAID in PNG, Margaret Thomas.

“This means that Australia and PNG are in a strong position to work together in a range of priority areas.”

The Budget amount includes additional allocations such as K32.5 million for infrastructure, K15 million for education, K14.6 million for governance, K6 million for health, and K2.5 million for humanitarian response, on top of existing strong sector programs.

“We will continue to work in partnership with the Government of PNG to jointly identify areas of priority and steer these substantial resources in those directions.”

The increase also includes resources (K10 million) to support the recently agreed re-engagement by the Australian Federal Police with the Royal PNG Constabulary.

Improved governance and nation building will be supported through programs covering economic and public sector reform, law and justice, and border security.

Sustainable broad-based economic growth and increased productivity will be facilitated through the maintenance and rehabilitation of roads and other economic infrastructure, supported by increased PNG Government budget contributions.

Improved service delivery and stability will include a focus on supporting public administration and governance at the sub-national level through the Provincial Performance Improvement Initiative, which now covers 17 provinces as well as Bougainville.

A strengthened, coordinated and effective response to the HIV/AIDS crisis will be supported by a K250 million five year multi-sector program to prevent the spread of HIV and provide treatment and care for those most affected.

This program will be complemented by up to K125 million over seven years to strengthen PNG's health sector response to HIV and AIDS. 14 sexually transmittable infections clinics will be built in PNG in 2008 to address the high prevalence of STIs and HIV and AIDS. A further 18 clinics are planned for 2009.

“This Budget reinforces Australia’s commitment to its closest neighbour and friend,” said Ms Thomas.

 

More information: AusAID Public Affairs, T: 325 9333 Ext 471, 216, 304