15 Sep 2008

PNG Minister outlines single system to ensure aid is used more effectively

4:06 pm on 15 September 2008

Papua New Guinea's Planning Minister says the government is creating a "one system" policy to effectively draw down on donor funds.

Paul Tiensten has just returned from Ghana where he participated in last week's High Level Forum on Aid Effectiveness.

The Forum re-endorsed the Paris Declaration of 2005 which lays out the principles of ownership, alignment, harmonisation, managing of results and mutual accountability to make aid more effective.

The Minister, who has faced criticism after his recent admission that 1.2 billion US dollars in aid funds are still parked in Government trust accounts, says the Paris Declaration is the basis for the new policy.

He says it'll streamline the way all PNG's donor funding is utlilised.

"There are some issues with the aid not being effective because we've been running two parallel systems, and as such it's been very difficult to try and implement some of these programmes. But the donors will still control, they'll take control of how they disburse it and that kind of thing but it must be using our system so that we have one instead of having two and that's the biggest challenge for us."

Paul Tiensten