Governance

Good governance is critical to PNG's stability and development. The rule of law and effective government institutions that ensure accountable and transparent decision-making are essential for achieving sustained economic growth and poverty reduction.

Strengthening governance in PNG requires:

Effective management of existing and future Government resources and expenditure control
Sound macroeconomic management
Improved government service delivery
Improved leadership, capacity and systems in the public sector and increased transparency and accountability.

Australia supports PNG's economic and public sector reform efforts through activities that provide technical and advisory support and training for mainly central agencies. Sectoral programs complement this work by improving the allocation, management and accountability of the PNG Government's expenditure.

Australia supports the governance sector through close coordination with other major donors and Australian Government agencies to provide the Enhanced Cooperation Program (ECP).

Australia will also provide advisory support and training and will help capacity building programs complement the support provided through the ECP.

Continued AusAID support will emphasise central agency leadership of public sector-wide improvements in budgeting, public financial management, public sector workforce development and performance management.

Major aid activities

Australia aims to strengthen public administration and economic management. These initiatives include improving economic and financial management and strengthening the public sector.

Advisory Support Facility Phase 2 (ASFII)

Contribution: up to $81.7 million
Duration: 2003 - 2008

This activity addresses the priority development and reform needs in public sector management and administration. The aim is to strengthen the skills base and institutional capacity of PNG government agencies. Advisers work with PNG public servants to develop and implement government policies, plans and systems that will improve the delivery of services.

Enhanced Cooperation Program - Economic and Public Sector Reform component (EPSR)

Contribution so far (including 2006/07): $26.3 million
Duration: current treaty covers 2004-2008

The Economic and Public Sector Reform component of ECP works to improve economic and financial management and budget processes within PNG, with a special focus on anti-corruption. The ECP places senior Australian Government officials in PNG to work alongside their counterparts, mainly in central agencies. Other placements ensure system-wide linkages on policy and management issues. Australia provides most resources to the Departments of Finance and Treasury and the Internal Revenue Commission. Australia also has ECP officials placed in the Department of Personnel Management, the Office of the Auditor General, the Department of Prime Minister and National Executive Council, the Department of Defence, and the PNG Customs Service.

PNG Australia Treasury Twinning Scheme (PATTS)

Contribution: $5 million up to 2006
Duration: 1999 - ongoing

AusAID and the Australian Government's Department of Treasury jointly manage PATTS. The objective is to improve PNG Treasury officials' abilities to perform their core duties and build a strong institutional relationship between the agencies. PATTS focuses on building PNG Treasury officials' technical skills such as developing and implementing economic and fiscal policy, and their professional skills such as writing, time and work-flow management, liaison and coordination.

There are other smaller 'twinning' schemes between Australian agencies and their PNG counterparts including the Department of Finance and Administration and the Australian National Audit Office. Australia is also developing new schemes involving the Australian Customs Service and Australian Tax Office.

Public Sector Workforce Development Initiative (PSWDI)

Contribution: $2 million excluding ASF support
Duration: 2005-2007

Australia is helping PNG with a major program of reform aimed at improving the performance of PNG's public servants. The Public Sector Workforce Development Initiative will reinstitute a sustainable program of training and professional development. Australia provides advisers through ASF II, as well as direct funding for different training initiatives.

PNG-Australia Targeted Training Facility (PATTAF)

Contribution: $47.1 million
Duration: 2001-2008

PATTAF supports public sector training in priority areas identified by PNG’s Medium Term Development Strategy as well as providing more than 70 public sector Australian scholarship and other leadership awards each year.

July 2007