Australian Aid to PNG - AusAID

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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
Both within sectors and more broadly, as the quality of available performanceinformation improves, consideration should be given to strengthening theperformance milestones used at the highest level of scrutiny of the Papua NewGuinea – Australia aid program, ie. Treaty indicators. It has not been possiblein this paper to analyse whether the current Treaty indicators are provingvaluable but, in a general sense, Australia should encourage use of milestonesand indicators at this level, to help build ownership and capacity within PapuaNew Guinea itself to assess the impact of donor support on development.The Contribution of Australian Aid to Papua New Guinea’s Development 1975–2000 55
Page 5 and 6:
BOXESBox 3.1 The Dutch Disease in P
Page 7 and 8:
FOREWORDAs part of a broader focus
Page 11 and 12:
programs to improve living standard
Page 13 and 14:
sector since independence, 65% has
Page 15 and 16:
1 INTRODUCTIONThis report provides
Page 17 and 18: Figure 2.1 Real GDP per capita in P
Page 19 and 20: 1985 1990 1995 2000PNG HPC LIC LMC
Page 21 and 22: significant strain on the budget an
Page 23 and 24: • Improved central coordination a
Page 25 and 26: Connell (1998, pp. 311-2) highlight
Page 27 and 28: y the successful mobilisation of cu
Page 29 and 30: 3 INTERPRETING THE DEVELOPMENT ANDG
Page 31 and 32: The estimated increase in private c
Page 33 and 34: 3.4 Reconciling the Growth and Deve
Page 35 and 36: 3.5 Implications for AidTo summaris
Page 37 and 38: Although the precise extent of the
Page 39 and 40: program saw a decline in the overal
Page 41 and 42: criticism that the withdrawal of Au
Page 43 and 44: Ministerial Forum found that real p
Page 45 and 46: management for Papua New Guinea, ov
Page 47 and 48: 5 THE IMPACT OF AUSTRALIAN AID INPA
Page 49 and 50: • Improved retention rates at sch
Page 51 and 52: • Achieved operational efficienci
Page 53 and 54: policing are being introduced, alon
Page 55 and 56: deliver community and public servic
Page 57 and 58: BOX 5.5 HEALTH IMPACTS OF AUSTRALIA
Page 59 and 60: also improved 24 , and there is evi
Page 61 and 62: 5.5 Renewable ResourcesIn total, Au
Page 63 and 64: Land Use Management• Established
Page 65 and 66: New Guinea needs donor financing fo
Page 67: only assist within the context of t
Page 71 and 72: However, it seems reasonable to arg
Page 73 and 74: useful to document the findings of
Page 75 and 76: ANNEX A EVOLUTION OF AUSTRALIAN AID
Page 77 and 78: ANNEX B SECTOR BREAKDOWN OF AUSTRAL
Page 79 and 80: 8 REFERENCESAhai, N., 1988, The Dev
Page 81 and 82: Garnaut, R., and Baxter, P., 1984,
Page 83 and 84: Growth Strategy, Final Report, prep
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