Papua New Guinea's Prime Minister has praised New Zealand for its 22 million US dollar aid programme in his country.
Peter O'Neill , who is on a two-day visit to New Zealand, had discussions in Wellington with his New Zealand counterpart John Key.
The two governments have agreed to maintain and bolster cooperation in areas including renewable energy, agriculture, and peace and security efforts in Bougainville.
Mr O'Neill says his government is very grateful for New Zealand Aid projects in PNG's education, policing and primary industries sectors.
"We are also very glad that New Zealand is willing to continue to help in some of the issues that we have in PNG, including strengthening our law enforcement sector which includes trying to help provide us some training capacities in many of our police and defence colleges in PNG."
The two governments have signed a Geothermal Energy Cooperation agreement to facilitate the exchange of expertise in this area.
Meanwhile, New Zealand and PNG's burgeoning bilateral trade relationship is to be boosted by a double tax agreement, which is in the final stages of ratification.