Untied Aid Opportunities

On 26 April 2006 the Australian Government's Overseas Aid Program was untied with the exception of Australia Indonesia Partnership for Reconstruction and Development (AIPRD) funded programs.

Prior to this announcement Australia had already taken significant steps in untying parts of the Australian Aid program. Most recently this included allowing local firms in any recipient country to tender for work under the bilateral aid program in that particular country. Going to the next step of completely untying aid is widely accepted as a way of further improving aid effectiveness and efficiency.

Complete untying of the Australian aid program increases opportunities for Australian industry to compete for other aid donors' contracts. The European Union recently passed legislation that provides for untying aid procurement on a 'reciprocal basis'. The share of this market (consisting of the EU Budgetised development assistance but excluding the European Development Fund which is restricted to EU, African, Caribbean and Pacific nationals) is valued at around A$10.5 billion annually. This represents substantial opportunities for the Australian development industry.

Untying Australian aid is in line with the Australian Government's longstanding commitment to openness in trade and competition. Untying also removes the current inconsistency between the application of eligibility criteria for aid program procurement and the Commonwealth Procurement Guidelines which prohibit discrimination based on foreign ownership, affiliation or location.

In accordance with the DAC agreement, untied aid opportunities will be published on the DAC Untied Aid website [external website].

Details of untied and other aid opportunities funded through the Australian Government's aid program are also provided on the AusTender website [external website].

July 2008