Australia - Papua New Guinea Aid Treaty

MEDIA RELEASE

Released By:
Downer

The Foreign Ministers of Australia and Papua New Guinea, Alexander Downer and Roy Yaki, initialled the text of a Treaty on Development Cooperation in Adelaide today.

Under the Treaty Australia will provide a maximum of $300 million annually for aid activities in Papua New Guinea from July 2000 to June 2003. Aid will be provided through projects jointly agreed by both countries. Budget support will be phased out by June 2000.

The Treaty will make Australia's aid program to Papua New Guinea more accountable as well as responsive to the needs of Papua New Guineans throughout the country. The Treaty is designed to complement PNG's commitment to positive engagement with other important partners in progress, such as the World Bank and IMF. It will also underpin other measures attracting investment and strengthening economic growth.

A strengthened system of performance benchmarks will be linked to the level and composition of the aid program. A growing portion of the program will be devoted to rewarding and encouraging good performance by agencies inside and outside the PNG Government. The Treaty also encourages PNG agencies, companies and individuals to take a greater part in delivering aid activities.

Initialling the text is only the first step in the process of formalising a Treaty, but Ministers agreed that when it comes into force in July 2000 the Treaty will put our bilateral aid relationship on a new footing.

The next steps in the Australian system to formalise the Treaty text will be: approval by the Executive Council, signature by Ministers and tabling in Parliament, where it will be considered by the Joint Standing Committee on Treaties.

Media contacts:

Innes Willox (Minister's Office) - 02 6277 7500 or 0419 206 890

Deborah Nesbitt (AusAID) - 02 6206 4966 or 0419 683 767