This archive report was first published on 26 August 2019.
Published on August 26, 2019, Papua New Guinea's Prime Minister James Marape has requested that Australia consider sending a portion of its annual Aus$600 million aid budget directly to the government's coffers.
This approach would allow for greater flexibility in using the funds, as opposed to the traditional method of channeling aid through specific projects or Australian companies.
Marape's government is facing significant challenges, including slow economic growth, which has hindered its ability to pay wages and build basic infrastructure.
As part of its efforts to address these issues, the government is seeking to return to the international bond market and implement reforms to secure a second tranche of a World Bank loan.
However, Marape's administration is also exploring alternative sources of funding, including a potential loan from the China Development Bank.
"At the moment, they are giving a headline figure of 600 million in terms of aid every year. If half of that or a quarter of that comes in budget support even better for us," Marape said.
He emphasized that the government would ensure that any aid received would be used effectively and transparently, with strict oversight to prevent waste or corruption.
