The importance of technical assistance
has been increasingly recognised for its success in the transfer of skills
to Papua New Guineans and for institutional building.
Financial assistance which addresses
investment in capital works, for example, may also be provided as part of
a technical assistance programme.
Bilateral and multilateral agencies,
including the Australian Agency for International Development (AusAID),
the EU, the United Nations Development Programme (UNDP), the ADB and the
Commonwealth Fund for Technical Co-operation (CFTC), provide financial
assistance through grants. Procurement of goods and services involves
internationally competitive bidding covering at least the member countries
of the agency concerned.
Papua New Guinea also receives
concessional loans because of its status as a middle class income country.
The lenders generally meet all foreign exchange costs and some of the
local costs. Papua New Guinea is expected to meet the balance of local
costs. The concessions received vary, but generally involve low interest
rates and long pay back periods. The World Bank, the ADB and the EU are
the most important financiers.
Bilateral Development Programmes
The objective of Australiaís
development co-operation is to promote the sustainable economic and social
advancement of the people of developing countries, as well as to pursue
its own foreign policy and commercial interests.
The country's development co-operation
programme is managed by an autonomous body within the Australian
Department of Foreign Affairs and Trade, AusAID. It was formerly known as
the Australian International Development Assistance Bureau (AIDAB).
The objective of Japanís Overseas
Development Assistance (ODA) is to support self-help efforts of developing
countries, based on environmental conservation, humanitarian
considerations and recognition of interdependence in the international
community, as stipulated in the ODA charter adopted in 1992.
The Peopleís Republic of China
The overall objective of China's aid
policy is based on an ideology to foster equality and mutually-beneficial
development through an open door foreign policy, enhancement of
self-reliance and economic development and complementary development
co-operation programmes with partner developing countries.
China is an aid recipient as well as a
donor. Its expertise is mainly in the agro-based industries such as
agriculture, forestry, manufacturing and medicine. It provides
opportunities for human resource development in the fields of food
production and processing, fisheries, agricultural mechanisation and small
hydro power plants.
Federal Republic of Germany
Germany's development co-operation
focuses on areas such as food security, rural development, environmental
protection, improved energy supply and population policy. Special emphasis
is placed on women and other disadvantaged sections of the population.
Republic of Korea
As a donor, Korea aims to foster
international co-operation and assist developing countries to overcome
difficulties caused by disease, poverty, unemployment, population
explosion, environmental pollution and degradation. This is addressed
through technical co-operation, human resources development and technology
The objective of New Zealandís ODA is
to provide assistance to developing countries, strengthen the links with
its development co-operation partners and contribute to New Zealandís
own external relations and trade policies in terms of international
economic prosperity, maintenance of peace, security, political stability
and global environmental protection.
Key areas of support are human resource
development, agriculture, forestry, environmental management and technical
United States of America
The major objective and commitment of
the United States of Americaís assistance programme is to promote and
consolidate democracy and governance, population and family planning,
market principles, conservation and environmental considerations. It also
promotes peace to achieve the stability essential for economic growth and
political freedom, sustainable development, protection against
transitional threats and meeting urgent human needs.
Other Bilateral Donors
The Papua New Guinea and Israeli
Governments have a Memorandum of Understanding (MOU) relating to
agricultural co-operation. Projects funded under the MOU include a citrus
project in the Central province.
Papua New Guinea has in place a
technical co-operation agreement with a consortium of French banks known
as the Caisse Francaise de Developpement (CFD). The agreement allows for
the funding of projects in PNG which have been approved by the national
Under the provisions of a memorandum of
understanding, the Malaysian Government is providing assistance towards an
institutional housing project for the disciplinary forces (defence and
Canada and Spain have sought
possibilities for co-operation with the Papua New Guinea Government. These
are still in the negotiation stages.
Multilateral development assistance
programmes are funded by various agencies and institutions.
Asian Development Bank
The objective of the ADB's strategy in
Papua New Guinea is to assist the Government in diversifying and expanding
the non-mining opportunities and to improve its absorptive capacity by
overcoming the shortage of skilled personnel.
The bank's assistance to the agriculture
sector continues to contribute to improving productivity, strengthening
the export development base, increasing employment opportunities and
raising the per capita income in the rural sector.
Papua New Guinea is a signatory to the
EUís Lome II, III and IV Conventions. The Government has consistently
identified rural and human resources development as principal sectors for
development assistance through the Lome conventions.
The Bank's relationship with Papua New
Guinea can be seen as adviser, co-ordinator of donor assistance,
facilitator of aid mobilisation and a source of programme financing.
United Nations Development Program
This programme assistance has been
directed towards agriculture, forestry and fisheries, labour development
and training, strengthening of financial management and preparation of
pre-investment studies and industrial development in Papua New Guinea.
International Fund for Agricultural
The International Fund for Agricultural
Development (IFAD) provides assistance towards expanding and improving
food production, nutrition, combating rural poverty and supporting