PNG-EU mark 40 years with K570m deal

Two finance agreements worth K570.4 million have been signed between the PNG Government and the European Union for water and sanitation projects as well as a capacity building project.

Two finance agreements worth K570.4 million have been signed between the PNG Government and the European Union for water and sanitation projects as well as a capacity building project.

The agreements pave the way for funding of the Water, Sanitation, and Hygiene (WaSH) Part 1 program, and capacity building of the National Authorizing Office (NAO).

The two agreements cement the 11th European Development Fund (EDF) Support Program Finance Agreement and were signed by EU Ambassador to PNG, Ioannis Giogkarakis-Argyropoulos, and Minister for Planning and Monitoring, Charles Abel, on Monday.

Ambassador Giogkarakis-Argyropoulos said the cooperation between PNG and the EU has evolved from projects to now supporting of Government policies.  This is evident with the signing of funding for the WaSH program.

“Our cooperation has evolved beyond development cooperation. And we share a more holistic approach by enlarging this partnership in areas like political cooperation, trade cooperation, economic cooperation and exchanges of people to people contact,” he said.

Minster Abel said despite the current unsteady political climate in Europe, particularly with ‘Brexit’, the EU has still been able to perform its role in assisting PNG in its development aspirations.

“The very foundations of the European Union has been shaken, and there is a political wind at the moment of conservatism and reduction of open trade and so forth. But despite that the European Union continues to come forth,” said Abel.

“The 11th EDF as we are talking about today as we sign these first two agreements continues to grow, and so despite these difficulties, the European Union continues to step forward and assist developing countries like Papua New Guinea and we are very grateful.”

The EU funding to the WaSH program complements the Sustainable Development Goals (SDGs), according to Minister Abel.

He says this will ensure availability and sustainable management of water and sanitation for 70 percent of the population by 2030, ensure healthy lifestyles and promote well being for all ages, and combating climate change and its impacts through enhancing adaptive capacity to climate related hazards.

Funding for the Wash Program totals K71.6 million will be broken down into the following activities:

  • Technical assistance support to project management unit – K4.6 million for operation and project oversight activities;
  • UNICEF for indirect management costs – K66 million
  • Compliance and audit – K1 million

The second agreement will see the funding of capacity building of the National Authorizing Office’s traditional roles under the Cotonou Partnership Agreement.

These include the effective implementation of current and future EDF programs, and further enhancing the NAO’s role which is to:

  • Support development and implementation of the PNG Government’s national policy priorities;
  • Ensure the efficient and effective implementation of current and future EDF programs; and
  • Support the integration of the Aid Effectiveness agenda into the Official Development Assistance (ODA) implementation modalities in PNG.

A funding of K31.9 million, consisting of a PNG Government contribution of K4.2 million and an EU contribution of K27.7 million, will fund the program.

Meanwhile, a new logo has also been launched to commemorate the 40-year partnership.

Author: 
Cedric Patjole