Asia-Pacific

Australia slashes Papua New Guinea aid program

(Agencies)
Updated: 2010-10-15 09:33

CANBERRA - Australian Foreign Minister Kevin Rudd on Friday confirmed to slash the number of technical advisors to Papua New Guinea (PNG) by a-third in an attempt to eliminate wastage.

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According to Rudd in a statement, more than a-third of the 487 adviser positions in PNG will be phased out within two years, and the cuts was part of a plan to drastically overhaul its $456 million PNG aid program.

The announcement came less than six months after a review of the PNG-Australia Development Cooperation Treaty urged for changes to the program, criticizing it for putting too much of its budget towards consultancies and training. It also found "widespread dissatisfaction with the aid program" and the "capacity building through advisers model is not working."

However, Rudd said Australia remained committed to assisting PNG with the effective delivery of the liquefied natural gas (LNG) project, and it would continue to work with.? Similar reviews are being conducted into adviser positions in East Timor, the Solomon Islands and Vanuatu.

Meanwhile, Jenny Howard Jones from the Sydney-based Lowy Institute said the sharp cut in the number of technical advisers was a positive move in a prickly situation between PNG and Australia.

Assistance in areas likely to bring direct benefits, such as the massive ExxonMobil Liquefied Natural Gas project, was potentially a more effective use of advisers, she added.