Australian development assistance to Papua New Guinea increases by $26 million

2018/2019 Budget - Papua New Guinea

Australia has a strong and enduring partnership with Papua New Guinea, our nearest neighbour.

Close cooperation on economic, security, and development matters, as well as a broad range of people-to-people links, highlight the depth and breadth of our relationship.

Development cooperation with Papua New Guinea

• Total Australian official development assistance to Papua New Guinea (PNG) will rise from $546.3 million in 2017/18 to $572.2 million in the 2018/19 financial year

• The bilateral allocation is estimated at $519.5 million, which includes: 

- $62 million for commitments under the Joint Understanding;
- $29.6 million towards the high-speed undersea telecommunications cable; and
- over $400 million to support ongoing programs targeting health, education, - infrastructure, law and justice, gender and subnational priorities in PNG.

Supporting PNG to host APEC in 2018
Australia is expanding its support to bolster PNG’s hosting of APEC:

• $14.4 million to strengthen PNG’s cyber security capabilities in the lead up to hosting APEC Leaders’ Week and beyond; 
• Up to $10 million  to boost internet connectivity  and strengthen telecommunications; and 
• $5.4 million in support for policing, fire fighting and other hosting assistance.

This brings our total support for PNG’s hosting of APEC to $130 million.

Australia’s development assistance priorities

In 2018–19, Australian support for PNG will focus on:

• supporting the future digital economy through the delivery of a new undersea high-speed telecommunications cable from Australia to Port Moresby, a project that will have a positive impact on business engagement and significant social benefits 
• improving the lives of women and girls across all areas of work through investments that: enhance women’s voice in decision-making, leadership and peace building; promote economic empowerment; end violence against women and girls; and increase access to support services
• enabling economic growth by investing in infrastructure, innovation and business partnerships; leveraging finance for development; supporting agriculture and rural development; improving the business enabling environment; developing improved financial markets; and deepening financial inclusion 
• supporting effective governance, with an emphasis on working with provinces and districts to improve service delivery and economic opportunity; supporting the contribution of communities, churches and the private sector; and enhancing the accountability, legitimacy and responsiveness of law and justice agencies
• enhancing health by targeting maternal and child health and communicable diseases; strengthening health security; and helping to build a more effective health system
• enhancing the education sector by improving the quality of education for young children; equipping students with the skills and qualifications necessary for employment; and nurturing the leadership qualities needed for the country’s development
• cultivating a culture of gender inclusiveness.