Program 1.6: ODA Papua New Guinea and Pacific

Objective
To assist developing countries in Papua New Guinea and the Pacific region to reduce poverty and achieve sustainable development.

Deliverable	2013–14 result	Reporting
To assist developing countries in Papua New Guinea and the Pacific region to reduce poverty and achieve sustainable development.	met	below

Key performance indicators	2013–14 result	Reporting
Achievement of significant development results.*	met	below & App. 5
Demonstrated organisational effectiveness.*	met	below & App. 5

* Program 1.6 KPIs were revised over the course of the 2013–14 reporting period. In the Portfolio Budget Statements 2013–2014, the KPIs of then AusAID program 1.1 included a reference to tier 2 and tier 3 headline results under the Comprehensive Aid Policy Framework (CAPF). The Portfolio Additional Estimates Statements 2013–2014 subsequently indicated that a revised set of KPIs for the Australian Aid Program was under development. Revised performance information was published in the Portfolio Budget Statements 2014–2015. A new aid policy and performance framework was launched on 18 June (see Aid overview). In line with the Requirements for Annual Reports, the department has reported against the former and current performance information for the entirety of the reporting period. Aggregate reporting of performance over the year against tier 2 and tier 3 CAPF headline results is at App. 5.

Figure 21: Estimated department ODA to Papua New Guinea and the Pacific, 2013–14

*Includes the Federated States of Micronesia, Palau and the Marshall Islands

Papua New Guinea

Country statistics*

*data sources for statistics used in this section: HDI–UNDP; GDP–World Bank; Australian ODA–OECD/DAC

Item	Measure
HDI rank (2013)	157
GDP per capita, PPP (current int’l $) (2013)	2538
Australian ODA as a % of total ODA (2012)	70.2%

In 2013–14, the department managed bilateral aid of $430.3 million to Papua New Guinea. Other assistance through regional and global programs brought our total ODA to an estimated $459.4 million.

In line with the Australian and PNG Governments’ priorities, the department reoriented the aid program toward greater support for private sector-led economic growth. We are focussing on: improving the enabling environment for business; supporting rural livelihoods and income generating opportunities in agriculture; strengthening technical and vocational training; and supporting infrastructure that will encourage economic growth. We will continue to invest in good governance, health and education, law and justice, and women’s empowerment as essential elements of inclusive economic growth and social stability in Papua New Guinea.

Our aid supported the development and maintenance of essential transport infrastructure for economic growth and service delivery, resulting in maintenance of over 2000 kilometres of PNG’s most economically important roads. We strengthened aviation and maritime safety and security standards through modernising and upgrading air traffic management systems and communications.

The department promoted effective law and justice through strengthening access to legal services, policing and protection for victims of family and sexual violence. Our funding contributed to the establishment of family and sexual violence units, training and infrastructure development for the Royal PNG Constabulary, including in Bougainville, and more female village court magistrates.

The department promoted improved public sector governance and accountability at the national, sub-national and community levels by funding programs which: strengthened budget prioritisation and planning, revenue collection and the enabling environment for private sector development; delivered voter awareness training in the lead-up to the 2013 local-level government elections; supported an increased number of female candidates in local elections; and strengthened community development and service delivery. (See also 1.1(7).)

Our assistance resulted in increased access and quality of education in schools and higher education institutions through training 4315 teachers and building or upgrading 120 classrooms; assisting five PNG universities to complete quality assessments; financing over 600 000 children to attend elementary school, contributing to an increased net enrolment of 79 per cent national net enrolment rate in basic education; and supporting 328 postgraduate study awards in Australia and 505 students to study in Papua New Guinea.

We worked with Australian NGOs to strengthen PNG’s health and HIV/AIDS services. Our funding enabled 24 848 babies to be delivered under the supervision of skilled staff; 54 393 children to be immunised against measles and other diseases; and increased access to anti-retroviral therapy for HIV/AIDS patients.

At the sub-national level in Papua New Guinea, the department delivered assistance in Bougainville which helped implement the Bougainville Peace Agreement, including by: providing support to the public service in Bougainville; facilitating reconciliation under the Panguna Peace Building Strategy; and supporting the delivery of services to Bougainvilleans—maintaining key roads, strengthening law and justice and policing, constructing school infrastructure, piloting adult literacy classes, delivering medical supplies and strengthening health services.

The department worked to strengthen women’s empowerment and economic participation. We increased training for women health workers and increased access for women to law and justice services and mobile banking. Our aid supported women’s leadership in government, the private sector and civil society, including through the Business Coalition for Women. We supported PNG women to study at Australian universities and technical colleges and to study in-country in the fields of midwifery, nursing, community health work and education.

Solomon Islands

Item	Measure
HDI rank (2013)	157
GDP per capita, PPP (current int’l $) (2013)	2068
Australian ODA as a % of total ODA (2012)	73.4%

The department managed bilateral aid of $95.7 million to Solomon Islands. Other assistance through regional and global programs brought our total ODA to an estimated $113.7 million.

In response to major flooding in Honiara and surrounding areas in April 2014, we provided $3 million in immediate humanitarian relief and a further $2 million to help rebuild key infrastructure. (See also 1.1(7).)

The department agreed priority areas with the Solomon Islands Government—health and education services, justice services, broad-based economic growth and governance.

Enhancing stability, including maintaining law and order and supporting democratic elections, remained an overriding priority. We funded courts and justice agencies to deliver justice services to all Solomon Islanders and supported the Government to prepare for national elections due in late 2014.

We worked to improve budget execution and staff performance in public sector agencies. Our aid supported maintenance or rehabilitation of 417 kilometres of roads; delivered improved water quality and supply in Honiara; and facilitated the provision of agriculture and financial services.

Australia is the lead donor to the health sector, contributing around 40 per cent of recurrent health spending. We promoted the control and elimination of malaria. Our support also helped to reduce the number of maternal and infant deaths and improve sanitation and clean water access across all provinces—18 new water and sanitation facilities were constructed in 2013.

In education we worked closely with the Solomon Islands Government to support teacher training and curriculum development, as well as strengthening planning, financial and procurement systems. We reduced financial barriers for all 145,000 students in basic education, allowing more children to go to school. In 2013–14, the department supported the establishment of the Australia–Pacific Technical College (APTC) in Solomon Islands.

Vanuatu

Item	Measure
HDI rank (2013)	131
GDP per capita, PPP (current int’l $) (2013)	2991
Australian ODA as a % of total ODA (2012)	64.1%

The department managed bilateral aid of $40.6 million to Vanuatu. Other assistance through our regional and global programs brought total ODA to an estimated $55.8 million. The department’s aid program to Vanuatu focused on improving education, health, infrastructure, economic governance, and law and justice. We also provided assistance for Vanuatu to better prepare and respond to natural disasters.

The department sought to improve the effectiveness of our aid investments in Vanuatu, reshaping some programs, strengthening monitoring and evaluation and introducing new financial controls.

Our efforts to promote economic growth resulted in: maintenance of 128 kilometres of key rural roads; 4000 men and 5000 women attending financial literacy workshops from which over 500 female participants consequently formed cooperative business groups; 852 Ni-Vanuatu in rural and remote areas participating in business development workshops; and 15 000 new savings accounts opened in rural areas. We helped 205 Ni-Vanuatu participate in the Seasonal Workers Program in Australia (SWP) and promoted business opportunities in the tourism sector through development of Vanuatu’s first formal tour guide accreditation system. Our education support enabled 141 Ni-Vanuatu (55 per cent women) to graduate from the APTC’s Port Vila campus with internationally-recognised qualifications and 44 Ni-Vanuatu Australia Awardees to study in Australian and regional universities.

We improved basic education and health services by helping to finalise a new primary school curriculum for years 1–6; supporting the introduction of a new Teacher Service Commission Act which will lead to improvements in teacher quality; and distributing medical supply kits to over 150 villages.

We contributed to safer communities by assisting 3737 women survivors of violence access counselling and support services through the Vanuatu Women’s Centre; providing humanitarian assistance in response to a landslide on Paama Island, a dengue outbreak and Cyclone Lusi; and supporting 1804 youth access services (for example, literacy, computing, agriculture, nutrition) at Wan Smolbag, a local civil society organisation. (See also 1.1(7).)

Fiji

Item	Measure
HDI rank (2013)	88
GDP per capita, PPP (current int’l $) (2013)	7948
Australian ODA as a % of total ODA (2012)	52.4%

Australia remains Fiji’s largest donor. The department managed bilateral aid of $34.7 million while other assistance through regional and global programs brought our total ODA to an estimated $59 million.

Sustainable economic growth and poverty reduction in Fiji is at the heart of the department’s development assistance program. We focused on primary health care, improving the quality of education, tertiary scholarships, community development, private sector development, and gender equality.

The aid program is assisting Fiji’s transition to democracy. We supported preparations for the multinational observer group, funded four Australian experts in the Fiji elections office, and supported the participation of two Fiji officials in the Australian Electoral Commission’s elections visitor program. We also worked to expand our cooperation with Fiji’s public sector to build public service capacity, improve good governance and facilitate economic growth. (See also 1.1(7).)

The department shifted the focus of the aid program in Fiji to include aid for trade and private sector initiatives through a Market Development Facility, the Pacific Financial Inclusion Program and the Pacific Agriculture Market Access Program.

Direct support for Fijian women was also a growing area of focus. Through a Markets for Change program, ten municipal markets around Fiji will be pilot sites for safer, cleaner, more inclusive trading spaces for women market vendors and for women customers.

Samoa

Item	Measure
HDI rank (2013)	106
GDP per capita, PPP (current int’l $) (2013)	3430
Australian ODA as a % of total ODA (2012)	39.8%

Australia is Samoa’s largest development partner. The department managed bilateral aid of $23.1 million. Other assistance through regional and global programs brought our total ODA to an estimated $35.7 million. We supported improved access to primary health care through construction of a prosthetics and orthotics building, a pharmacy warehouse and a new primary healthcare complex. We facilitated training of 100 Samoan health staff and the provision of specialist medical care by four visiting Australian medical teams.

The department’s efforts helped to address education priorities. We provided grants to all schools in Samoa to improve facilities and purchase school materials, funded the construction of four new secondary schools and helped improve the primary school curriculum. We provided 50 Australia Awards Scholarships and supported 100 Samoan students in manufacturing, construction, electrical, hospitality and health studies at the APTC.

We provided $3.5 million out of a possible $4 million in performance-linked aid to Samoa following the achievement of benchmarks for fiscal discipline and debt management, reform of state-owned enterprises and improvements in public financial management and accountability. (See also 1.1(7).)

The department also contributed $9.2 million to build a new chamber for the Samoan Parliament.

Tonga

Item	Measure
HDI rank (2013)	100
GDP per capita, PPP (current int’l $) (2013)	5303
Australian ODA as a % of total ODA (2012)	36.8%

The department managed bilateral aid of $16.9 million to Tonga. Other assistance through regional and global programs brought our total ODA to an estimated $26.6 million.

We focused our efforts on disaster response and supporting Tonga’s preparations for a free and fair national election in November 2014. We facilitated the first practice parliament for women in Tonga that aimed to encourage women’s active participation in politics, and funded development of a new database that will improve the accuracy and maintenance of Tonga’s electoral roll.

We coordinated closely with other development partners including the World Bank, the Asian Development Bank (ADB) and New Zealand, to link the payment of aid to agreed policy reforms and benchmarks for improved economic management. Those benchmarks covered management and transparency of public finances, debt reduction, state-owned enterprise reform and business cost reductions. (See also 1.1(7).)

To enhance economic opportunities for Tongans and strengthen remittance flows, the department invested in new programs to improve the quality of basic education and increase vocational education and training opportunities.

Tonga faces high rates of non-communicable diseases (NCDs) such as diabetes and heart disease that will impose increasingly high economic and social costs unless reversed. We supported the health ministry to mobilise 20 specialist nurses, who will be placed in health centres and diabetes centres across Tonga to monitor and treat NCD-related issues in the community.

In collaboration with the World Bank, the department used the aid program to maintain roads and train local private sector contractors. We also worked with the ADB to improve access to water and waste management services for people living in Tonga’s capital city, Nuku’alofa.

We supported efforts to end violence against women and remove barriers to women achieving equality in Tonga. Our efforts contributed to the passage of Tonga’s first Family Protection Bill in September 2013. We also continued to fund women’s and children’s crisis services to assist women in need.

Kiribati

Item	Measure
HDI rank (2013)	133
GDP per capita, PPP (current int’l $) (2013)	1855
Australian ODA as a % of total ODA (2012)	46.4%

The department managed bilateral aid of $23.7 million to Kiribati. Other assistance through regional and global programs brought our total ODA to an estimated $31.6 million.

Australia is Kiribati’s largest aid donor, with a focus on education, skills development and health initiatives. (See also 1.1(7).)

We assisted 1355 primary school children through improved school facilities and a further 2943 school children and teachers through expanded access to water and sanitation facilities at schools. Senator Mason opened the new Betio Maternity Ward in May 2014 as part of our infrastructure improvement program.

Nauru

Item	Measure
HDI rank (2013)	n.a.*
GDP per capita, PPP (current int’l $) (2013)	n.a.
Australian ODA as a % of total ODA (2012)	74.7%

* n.a. – not available

Australia is Nauru’s most significant aid donor. The department managed bilateral aid of $14.7 million. Other assistance through regional and global programs brought our total ODA to an estimated $21.1 million.

The presence of the Offshore Processing Centre on Nauru contributed to an increase in economic prosperity, employment and private sector growth. The expanding national budget also allowed the Government of Nauru to significantly reduce debt.

The department’s bilateral aid investments, delivered through targeted grants to Nauru, contributed to positive education, health and infrastructure development outcomes. The jointly-agreed programs increased primary school net enrolment rates, maintained strong immunisation rates, and helped maintain the island’s power supply and water services. We also funded a new independent procurement agent and in-line advisors to assist government performance. (See also 1.1(7).)

Tuvalu

Australia is Tuvalu’s largest aid donor and, in 2013–14, the department managed bilateral aid of $6.1 million with other assistance through regional and global programs bringing our total ODA to an estimated $9.5 million.

Tuvalu’s economic prospects are constrained by the country’s distance from markets, small size and vulnerability to external shocks. Our aid investment focused on activities to maximise Tuvalu’s resilience and prospects for growth.

The department worked closely with the Government of Tuvalu and other development partners to improve management of public finances and state-owned enterprise reform, and to ensure value-for-money in procurement. We strengthened basic education through teacher training, early grade literacy, and school management reform. We also improved water security, coastal protection and food security through the UN Development Programme and Tuvalu’s national climate change adaption program.

Cook Islands

The department managed bilateral aid of $1.9 million to the Cook Islands. Other assistance through regional and global programs brought total ODA to an estimated $4.4 million. Much of the bilateral aid was delivered by New Zealand under a delegated cooperation arrangement with a focus on water and sanitation, disaster risk reduction, education and improved gender equality. In 2013–14 we also provided an additional $230 500 directly to the Cook Islands to support disability-inclusive development. (See also 1.1(7).)

Niue

Under a delegated cooperation arrangement with New Zealand the department provided $1.4 million in 2013–14 for improvements to education and waste management. We funded construction of a new primary school and early childhood education centre.

Tokelau

In 2013–14 we contributed $0.385 million to the Tokelau International Trust Fund, established in 2000 to support the long-term financial stability of the country. (See also 1.1(7).)

North Pacific

In 2013–14 the department provided an estimated $12.2 million in aid to the three countries in the North Pacific—the Federated States of Micronesia, the Marshall Islands and Palau. In the Federated States of Micronesia, we worked to improve donor coordination and support the country’s planning for the cessation of the Compact of Freedom of Association with the United States in 2023.

In the Marshall Islands the department assisted efforts to develop greater resilience to natural disasters and increase the availability of safe drinking water.

Assistance to Palau focused on helping clear unexploded ordnance from World War II. In 2013 our delivery partner, Cleared Ground Demining, removed the 30 000th piece of ordnance, opening up tourism sites and increasing avenues for economic development.

Pacific Regional Program

In 2013–14, the department’s Pacific regional aid program totalled $174 million. The department used the program to support regional approaches to improved governance, economic growth and integration, skills development, and better education and health outcomes.

Our engagement with Pacific regional organisations supported enhanced regional security, economic growth and development. In early 2014, we signed multi-year Partnership Arrangements with the Pacific Islands Forum (PIF) Secretariat and the Secretariat of the Pacific Community to assist them to strengthen their own governance and forward planning.

The department worked with the ADB and International Finance Corporation (IFC) to deliver programs that will foster a positive environment for private sector development and economic growth across the Pacific. The ADB Pacific Private Sector Development Initiative will address legal and regulatory constraints to private sector development, and the IFC Pacific Partnership will leverage $1 billion of private sector investment into the Pacific, and provide economic opportunities for 75 000 people.

We promoted progress in PACER Plus free trade negotiations by enhancing the capacity of the Office of the Chief Trade Adviser to provide independent advice and assistance to Pacific Island countries. (See 1.1(7).) Under the Pacific Horticultural and Agricultural Market Access program, the department helped countries meet the quarantine requirements of key trading partners.

The SWP is a core element of our Pacific engagement. Over 3000 Pacific workers have participated in the program since July 2012, remitting on average $5000–$6000 from a six-month placement. Through the Labour Mobility Initiative, the department worked with the World Bank and International Labour Organisation to build the capacity of SWP-participating governments. In 2013–14, we designed a new phase of the initiative to assist in sourcing workers and broadening the benefits of the SWP for women and other disadvantaged groups.

The department provided core funding to the University of the South Pacific, supporting its 25 000 students at 14 campuses across the region. We also funded 5600 APTC graduates (42 per cent female) in high-demand industry sectors. Our investment in critical comparative analysis by the Secretariat of the Pacific Board for Educational Assessment informed country-level decisions about early grade learning.

As part of Australia’s ten-year $320 million Pacific Women Shaping Pacific Development program, the department supported activities to increase women’s representation in decision making, expand women’s access to economic opportunities, and reduce violence against women.

We supported the development of a roadmap to contain the costs of NCDs which put significant financial and health burdens on Pacific economies. In partnership with the Royal Australasian College of Surgeons, the department funded volunteer surgeons to provide over 1000 surgeries across the region.

The department continued to support the PIF Secretariat and the Pacific Disability Forum in its work with Pacific governments and disabled peoples’ organisations to implement disability-inclusive policies and create opportunities for people with disabilities. Under the Pacific Sports Partnership program, people with disabilities were involved in regular cricket, table tennis and football activities that improved their quality of life and increased their participation in the community.

The department provided over $12 million to support regional fisheries management agencies, including for promoting new market-based measures to increase tuna revenues and a community-based fisheries management program in Kiribati, Solomon Islands and Vanuatu.