Australian Aid to PNG - AusAID

in the baseline indicators over the life of the project. Depending on the sectorand the project, this monitoring may need to be done by the managingcontractor, with reporting required through current mechanisms (eg, annualplans, six-monthly reports). Alternatively, it may be done more appropriatelythrough mechanisms such as mid-term reviews, technical advisory groups,sector monitoring and review groups, or evaluations. Some sector programswithin AusAID’s PNG Branch are already developing systems that will go someway toward improving the performance information available to AusAID, suchas a more rigorous approach to developing and using monitoring andevaluation frameworks. Where these are being developed, it is important thatthey be in place as early as possible in the life of a project.AusAID's move to in-country management will facilitate monitoring andevaluation of program outcomes, and increase dialogue on programperformance with the Government of Papua New Guinea.A number of activities, such as in the renewable resources or infrastructuresectors, lend themselves to quantification of benefits through use of cost benefitanalysis (CBA). Ignoring for the moment the desirability of using CBA as aplanning tool at the feasibility study stage, it may be worth considering moresystematic use of CBA for appropriate projects at the completion or evaluationstage. Activity guidelines in AusAID already specify that:“When possible and essential to determining the worth of a project, calculatethe financial rate of return (FIRR) and the economic internal rate of return(EIRR), and compare these with that estimated at the time of project design." 27In the interests of isolating and estimating the economic and financial impactsof activities, it would be highly desirable for project completion reports to berequired to calculate the FIRR and EIRR wherever practicable.Once effective systems are in place to gather performance information beyondthe output level, it is important that AusAID systematically monitor thecollection and periodic review of such data through appropriate systems.AusAID has not required impact-level data until very recently, and has notmonitored or supervised this aspect of project reports closely. Nevertheless, arange of systems is already in place in AusAID that could be used to facilitatethis process easily. 28 Systematic monitoring and reporting of project and sectorwideoutcomes and impacts of Australian aid activities would enable morerigorous analysis of performance against higher order development goals. Thiswould allow defensible conclusions to be drawn, to the benefit of future policyand programming decisions.27 AusGUIDElines 13 – Preparing Project Completion Reports.28 For example: annual plans, activity monitoring briefs, mid-term reviews, technical advisory groups, sectormonitoring and review groups, and project completion reports.54 The Contribution of Australian Aid to Papua New Guinea’s Development 1975–2000