AusAID contracts a new opportunity for PNG cos.

AA 04 092
Wednesday 15 December 2004

AusAID contracts a new opportunity for PNG companies

I am pleased to announce that all future tenders for work under the Australian aid program to PNG will be open to companies carrying on business in PNG.

This represents a major new opportunity for PNG companies. They can now compete on an equal basis with Australian and New Zealand companies, with technical merit and value for money the sole criteria for decisions.

We have seen the impact and benefits of opening AusAID-funded road construction contracts to PNG companies, who are now engaged in maintenance work worth around K100 million a year.

The policy change follows a request from the Government of PNG and is further evidence of Australia’s commitment to increased PNG participation in the delivery of the Australian aid program.

The change, effective in PNG from 1 January, was also endorsed by the Joint Aid Review of the Australia-Papua New Guinea aid program as a means to improve the effectiveness of Australian aid.

The new arrangement in PNG reflects a policy change applicable to all countries who receive aid from Australia. Australia has revised its eligibility criteria to allow recipient country firms to tender for work under our bilateral aid program in that recipient country.

ENDS

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