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Development assistance in Papua New Guinea

Flag of Papua New Guinea

Australia’s development partnership with Papua New Guinea

2024-25 bilateral allocation [budget estimate]

$500.0 million

2024-25 total Australian ODA [budget estimate]

$637.4 million

2023-24 bilateral allocation [budget estimate]

$500.0 million

2023-24 total Australian ODA [budget estimate]

$616.2 million

2022-23 total Australian ODA [actual]

$643.9 million

Further funding information is published in the relevant Australia's Official Development Assistance: Statistical Summary.

A stable, prosperous, peaceful and resilient PNG is critical to Australia's interests. We are PNG's largest development partner and its main partner on economic and security issues.

Australia is working in partnership with PNG to implement the PNG-Australia Comprehensive Strategic and Economic Partnership.

We are preparing a new Papua New Guinea Development Partnership Plan (DPP) to set out development priorities for 2024-2029 in line with the International Development Policy. The DPP will reflect the development priorities we share with PNG and further strengthen our already comprehensive development partnership with PNG. The PNG DPP is being prepared in consultation with government and non-government stakeholders in Papua New Guinea and Australia and will replace the COVID-19 Development Response Plan.  
 

PNG COVID-19 Development Response Plan

The PNG COVID-19 Development Response Plan (CRP) set out how Australia has helped PNG to respond to and recover from COVID-19 shocks. Our support is framed around three pillars: health security; stability; and economic recovery, in line with Partnerships for Recovery: Australia’s COVID-19 Development Response.

Pillar 1 – health security

To support health security in PNG, Australia’s health programs adjusted to include COVID-19 preparedness and mitigation measures. Funding for health security was increased and our support continues to be directed to strengthening local systems.

Australia’s support for PNG’s COVID-19 response included deployment of Australian Medical Assistance Teams (AUSMAT) to provide on the ground support and help strengthen PNG government systems; support for COVID-19 testing, provision of personal protective equipment and information campaigns, and support to help PNG’s provinces implement their COVID-19 preparedness and response plans. Australia also provided comprehensive support for PNG’s COVID-19 vaccination rollout, ensuring a secure supply of vaccines, and extensive delivery support on the ground.

More information on Australia’s support for health security in PNG.

Pillar 2 – stability

Australia and PNG share an interest in a secure, stable and peaceful region. The Agreement between the Government of Australia and the Government of Papua New Guinea on a Framework for Closer Security Relations was signed on 7 December 2023 (the Australia—PNG Bilateral Security Agreement) is a key outcome of the Comprehensive Strategic and Economic Partnership, and elevates the breadth of our security cooperation.

The Defence Cooperation Program (DCP) between PNG and Australia is our largest bilateral defence cooperation program. The Defence Cooperation Program in PNG provided the Australian Defence Force's largest international response to COVID-19 and supports the Papua New Guinea Defence Force (PNGDF) across operations, infrastructure, equipment and border security. The Australian Federal Police (AFP), through the Policing Partnership, continues to support the Royal Papua New Guinea Constabulary (RPNGC) to build its capabilities and support its reform ambitions. We continue to promote stability and social cohesion by supporting the Bougainville Peace Agreement and the Governments of PNG and the Autonomous Region of Bougainville in post-referendum consultations.

Our increased focus on gender and justice and emphasis on strengthening protection and services for survivors of family and sexual violence help to build an equitable, cohesive and stable society. Our work in education, social protection, disability, food security, health, climate change mitigation, disaster risk reduction and humanitarian assistance all promote a more stable and resilient PNG.
 

More information on Australia’s support for stability in PNG.

Pillar 3 – economic recovery

Australia’s economic engagement with PNG is being strengthened to assist PNG undertake significant economic reform and recover from the COVID-19 pandemic. In total, Australia has provided PNG approximately $2.56 billion in budget support loans since 2020. These loans have been provided to assist PNG with the ongoing health and economic impact of the COVID-19 pandemic, and continue its progress on economic reforms under International Monetary Fund (IMF) Staff Monitored Programs. 

We will continue working with our international partners, including the IMF and the Asian Development Bank, to help PNG meet the important reform conditions of its loans and build a stronger and more resilient economy.

We have enhanced support to the informal sector, which provides most of PNG's employment. We continue programs to improve the business enabling environment. We are working through the Australian Infrastructure Financing Facility for the Pacific (AIFFP) to draw in financing for quality, climate resilient infrastructure that delivers long-term benefits for communities and the economy.
 

More information on Australia’s support for economic recovery in PNG.

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