Australian Aid to PNG - AusAID

also improved 24 , and there is evidence of a reduction in some preventablediseases such as malaria and pneumonia. Likewise, there is some evidence thatimprovements have followed aid interventions. For example, deaths fromimmunisable diseases have reduced in periods following major donor-fundedimmunisation campaigns in Papua New Guinea.5.4 InfrastructureIn total, Australia has provided A$0.5 billion to support infrastructuredevelopment in Papua New Guinea, more than 80% of which has been in thetransport sector, particularly roads and civil aviation. Analysis of Papua NewGuinea’s performance in the infrastructure sector, and the contribution ofAustralian aid, indicates that the main impacts have been related to preventingrapid decline of essential infrastructure. Government funding for roadmaintenance, for example, has consistently been inadequate since the late 1980s,if not earlier. The bulk of Australian aid for infrastructure since 1993 (some$320 million) has been spent maintaining and rehabilitating roads and bridges.This has been sufficient to cover about 25% of the national road network. Otherdonors are also providing substantial assistance to maintain land transportinfrastructure. Papua New Guinea’s economic performance would have beeneven worse without this support, given the key role of accessible roads inenabling commercial activity, and the country would have faced much higherrisk of social tension and instability. Yet even this volume of aid is insufficientand, in the current fiscal environment, unsustainable. Overall, roads arecontinuing to deteriorate rapidly, and this is affecting other basic services thatdepend on land transport for access (such as health and education facilities). It isalso imposing further constraints on private sector and rural development, andefforts to achieve social cohesion. Even under an optimistic scenario, whereadequate internal funding is available for maintenance and upgrading ofexisting infrastructure, Papua New Guinea will face significant challenges wellinto the future in being able to maintain its existing road network, let alonefinance new major roads that may have high economic returns.Likewise, in civil aviation, Australian assistance has been instrumental inensuring the national airline carrier (Air Niugini) could continue operations overseveral years since independence. Unfortunately, these achievements have yet toprove sustainable, and the situation remains tenuous. As recently as mid-January2003, Australia's Civil Aviation Safety Authority threatened not to renew PapuaNew Guinea's Air Operator's Certificate 25 , over concerns about safety standards.24 Deeper analysis of these statistics is needed before firm conclusions can be drawn, as discernible trends differdepending on the data source used.25 Extended for three months from 31 January 2003.The Contribution of Australian Aid to Papua New Guinea’s Development 1975–2000 45