Australian Aid to Bougainville

Since 1997, the Australian aid program has contributed over $200 million to support Bougainville's peace process and post-conflict reconstruction.

With the election of the first Autonomous Bougainville Government finalised in June 2005, Australian development assistance now focuses on helping Bougainville create a self-reliant, autonomous government that can deliver services, stability and broad-based economic growth.

AusAID's Framework for AusAID Assistance to Bougainville 2004-2007 outlines three broad objectives for Australian aid. These are to:

Consolidate the peace
Implementing Autonomous Government and Reform
Improving essential service delivery.

AusAID is planning to review the current strategy in late 2007. This review will evaluate Australia's support and assess progress made by Bougainville and the PNG Government toward implementing autonomy The review will inform Australia's assistance in the coming years.

Australia's program will be flexible and responsive to conditions in Bougainville and will aim to make the Autonomous Government affordable.

Consistent with the Bougainville Peace Agreement, this period of 'high autonomy' will continue for a further 10-15 years until a referendum on the province's independence.

Aid activities

Australia provides support for Bougainville through the PNG sectoral programs of Education, Infrastructure, Law and Justice, Health, Rural Development and Civil Society.

Australia has helped implement autonomy through supporting Bougainville's preparation of a constitution and the holding of elections. The Governance and Implementation Fund also provides direct support to help Bougainville and the PNG Government implement the autonomy provisions of the Bougainville Peace Agreement and re-establish public administration in Bougainville.

Governance and Implementation Fund (GIF)

Contribution: up to $10 million
Duration: 2004-2007

The Bougainville Government determines the expenditure priorities of the GIF through their own budget processes. Each year the PNG Government and donor partners to the GIF, currently Australia and New Zealand, agree to these with other donors invited to contribute.

Since its establishment in March 2004, funding through the GIF has helped finalise Bougainville's Constitution and the elections for an autonomous government. Over the medium to long-term, Australia expects the GIF to contribute towards:

Improved public expenditure management and development outcomes
Public sector reform
Better coordination of donor assistance
Improved governance
Transfer of essential powers from the PNG Government to Bougainville, consistent with the autonomy provision of the Bougainville Peace Agreement.

Above: Weapons disposal in Gagang, Bougainville (Photo: Mathias Heng)

July 2007