Speech by the Australian High Commissioner at the launch of the Transport Sector Support Program
4 October 2007; Port Moresby, PNG
The Honourable Don Polye, Minister for Works, Transport and Civil Aviation, the Honourable Paul Tiensten, Minister for National Planning, distinguished guests, ladies and gentlemen.
Good morning and welcome.
It gives me great pleasure to be here today to be part of such a significant occasion – an occasion which marks the beginning of a program that will ultimately have a direct impact on everyone in PNG at some time or another.
I am talking about the Transport Sector Support Program.
To my mind this project makes good common sense. It will see all previous transport infrastructure development projects brought under one umbrella which will ensure greater efficiency and a more effective use of resources.
But more than this it will be a partnership project further strengthening the already significant bonds between the Australian and PNG Governments.
It will also be a program which will empower the PNG Government to take a significant step forward in the management, upgrade and ongoing maintenance of infrastructure in the maritime, air and road services areas.
It is appropriate that we hold this launch overlooking Jacksons Airport where some of this activity will take place.
The development and maintenance of essential public infrastructure is a key ingredient for sustained economic growth and poverty reduction.
Poor infrastructure is perhaps the most binding constraint to growth throughout the Asia-Pacific region.
In Asia, rapid population growth and urbanisation threaten to exacerbate infrastructure bottlenecks. In the Pacific, emphasis is needed on equitable access to social infrastructure in remote, rural environments where 80 per cent of the population live mostly without electricity and roads.
Infrastructure investment can lift economic growth and support social objectives.
Transport infrastructure is especially important, improving access to services and markets in rural areas for many of the region’s poor.
Australia has a keen interest in, and recognises the importance of, supporting infrastructure development – a fact clearly reflected in Transport Sector Support Program.
So what does this mean for PNG?
Well, it means that 215km of the New Britain Highway between Bialla and Kimbe is maintained so small holder oil palm producers and local communities can benefit from the lucrative oil palm business.
It means PNG exports can continue to be shipped to international markets in the current commodities boom by maintaining key PNG Ports such as Lae, Port Moresby, Rabaul and Kimbe.
It means airport safety and security standards help to continue the growth in tourist numbers.
And it means rural communities in PNG have access to markets via the continued maintenance of 4000km of priority national roads in the short term and ultimately the whole PNG national road network in the medium to long term.
These are just a few examples of the benefits of this program.
As I mentioned earlier the Transport Sector Support Program will bring together land, marine and air transport infrastructure under one umbrella and is premised on a planning and implementation time frame of ten to fifteen years.
700 million Kina has been allocated for the first four years of this project which will see work continue in the provinces previously covered by the Australian Government-funded infrastructure projects.
Under the new program assistance will be provided in line with PNG's Medium Term Development Strategy, the Public Sector Reform Strategy and the National Transport Development Plan.
The key agencies that have been targeted under the program are the Department of Transport, Department of Works, Civil Aviation Authority, PNG Ports Corporation and National Maritime Safety Authority – and I welcome many key staff from those agencies here today.
At the provincial level pilot-provinces covered under PNG’s Provincial Performance Improvement Initiative and AusAID’s Sub-National Strategy will also receive policy and planning assistance under the program.
But this is not just about Australia putting up the money for this project – PNG is making a significant commitment.
The Government of PNG has made significant strides in this sector over the last few years. The development of the National Transport Development Plan 2006-2010 is a watershed, in that it recognised that, with the limited resources available to it, the Government had to focus its attention on maintaining the current infrastructure.
Funding has also increased dramatically over the past 5 years including large portions of the supplementary budgets of the last few years being applied to transport infrastructure. The 2006 Supplementary Budgets added 338 million Kina to the 2007 Development Budget figure of 563 million Kina.
But allocating funding is only half the battle. It is critical that money is actually spent in line with approved government policies, in this case the MTDS and NTDP.
Maintenance of PNG’s current key transport infrastructure assets is the minimum requirement for the sector given the current level of resources out there.
When considering major new infrastructure the government needs to ensure that the economic costs and benefits are closely scrutinised and the ongoing cost of maintaining that infrastructure is considered.
And while we talk about money it’s very important to remember that this project is not about just putting money into the maintenance of existing infrastructure and then assuming the job is done.
That mistake has been made in the past - this program has a much longer-term view in mind and sets about achieving this through two main objectives.
The first is putting a much higher priority on improving governance and capacity within the transport sector agencies. This will be delivered through technical assistance focusing on strengthening financial and human resource management, information technology, and asset and project management.
This work will ensure that PNG Government departments have the necessary skills and resources to not only upgrade infrastructure but ensure its ongoing maintenance and management.
The second objective is the actual work of maintaining the infrastructure – this will cover the PNG priorities outlined in the National Transport Development Plan which are 16 roads of national importance, key wharves and airports but focusing primarily on the maintenance and rehabilitation of existing infrastructure.
I hope you will take the opportunity at the end of the formal part of this ceremony to have a look at the display we have here today which will show you some of the ongoing work under this program.
What I see as key to the success of this program is the fact that it has been a partnership from the start. Since last year extensive high level discussions between the Australian and PNG Governments on the likely shape of support to transport infrastructure has brought us to this point today.
It was clearly recognised by both partners that the project-by-project approach to supporting the sector has not brought the full range of sustainable development benefits that might be achieved and this has meant a significant change of focus in the design of the program.
I think this outcome recognises some important facts: that aid delivery must learn from itself and that the future of aid delivery lies in successful partnerships like this one.
The Transport Sector Support Program will enhance existing PNG Government institutions and systems rather than requiring new ones to be set up.
And by multiple PNG Government agencies working hand-in-hand there are myriad benefits including:
• developing common approaches to key areas of public sector management;
• recognising the links between land, marine and aviation infrastructure and optimising expenditure in these areas;
• assisting sector leaders to build the leadership and management in their agencies through commonly developed measures;
• and importantly, developing common methods and practices for data management as well as performance assessment and monitoring in the sector.
There are many other benefits too numerous to mention but I think you get the idea that I’m trying to get across. And that is that this project makes very good sense.
And you only need look at some of the outcomes under the older stand-alone programs to realise the potential benefits for people.
For example upgrading works on the Pagwi Road on the Sepik River now mean that people have much greater access to markets but more than this it also means that families have greater access to essential services such as health care.
Previously during the wet season the local road was impassable for months at a time so the only option was for people to walk 46km to Hayfield – this is on top of a canoe ride to get to the beginning of the road.
On a larger scale imagine the benefits to the country of improving and maintaining the infrastructure of Lae’s cargo-handling capability. This will mean ships can move in and out faster. It will mean goods getting off the docks faster both in and out of the country.
And when you talk about things like improving port facilities it makes obvious sense to link this type of development to that of road systems. There really isn’t much point in having slick operations at your ports or airports only to have your goods struggling to either get in or out of your ports and airports because your road system is not up to the task.
I think the choice of tag line “PNG on the move” is entirely appropriate for this program.
To me it says that infrastructure is playing a key role in advancing PNG economically and socially and while there is a long way to go the work we are discussing here today will ensure that PNG continues to go forward.
There is no denying that this is an ambitious program, shifting away from more traditional notions for this type of project. However the concept is simple: Let’s fix it or upgrade it and then let’s look after it.
The Transport Sector Support Program will ensure Australia and PNG work together to build PNG’s capacity to do just that and I look forward to seeing the fruits of this labour.
Thank you.
Australian High Commissioner to PNG, HE Mr Chris Moraitis