Donor Support: Bougainville Peace Agreement

BPA (B)(9):

173. The National Government will do its best to obtain foreign aid to support restoration and development in Bougainville, and to facilitate the autonomous Bougainville Government's participation in managing aid projects.

174. The autonomous Bougainville Government will be able to obtain foreign aid.

175. The National Government will approve foreign aid secured by the autonomous Bougainville Government, which does not reduce the value of aid already available to Papua New Guinea - and subject to overriding foreign policy considerations.

176. The autonomous Bougainville Government will keep the National Government fully informed of its efforts to obtain foreign aid.

177. The National Government will co-operate with the autonomous Bougainville Government by negotiating such international agreements as may be required to finalise foreign aid prospects identified by the autonomous Bougainville Government.

Implementation History

2001

Minimum Implementation

In the first week of October 2001, Bougainville Affairs Minister, Moi Avei, said that, “his ministry was working with other government agencies to develop plans and get enough money from the 2002 budget to prepare for establishment of the autonomous Bougainville government, as well as other aspects of restoration and development in the province. The government was also talking with foreign aid donors to see how they could assist."1

In November 2001, “Bougainville got the highest provincial allocations of 66m kina from both the development and recurrent budgets in the 2002 budget” The province's higher allocation of 41,395,900 kina was from the development budget. Although this was the highest allocation, it is funded mostly by donor agencies.2

  • 1. "Papua New Guinea minister urges Bougainville press ahead on arms disposal," BBC Monitoring Asia Pacific, October 15, 2001.
  • 2. "Papua New Guinea: Bougainville top province in budget allocations," BBC Monitoring Asia Pacific, November 28, 2001.
2002

Intermediate Implementation

The PNG Government reportedly approved a massive 86m kina budget for the Bougainville Interim Provincial Government. According to a news report, the PNG Government would contribute 28m kina, and donor countries - New Zealand, Australia and the European Union – would provide 58m kina of the budget. Much of the funding was expected to go towards the restoration of peace.3

  • 3. "Papua New Guinea: 'Massive' Bougainville budget approved," BBC Summary of World Broadcasts, February 10, 2003.
2003

Intermediate Implementation

Bougainville received aid support from UNPOB, as well as from Australia, New Zealand, Fiji and Vanuatu, which had also played a role in stabilizing the situation. United Nations agencies and the international community of donors also contributed to restoring peace.4

  • 4. "UN Summaries of statements in today's Security Council meeting on Papua New Guinea," M2 PRESSWIRE, December 16, 2003.
2004

Intermediate Implementation

Provincial Treasurer Joel Banam in Buka handed down Bougainville’s ambitious 82m kina 2005 budget on December 21, 2004. According to Mr. Banam, "total funds estimated available to Bougainville from all sources in 2005 is 82,554,100 kina". He said the total national government grant was 40,364,100 kina, donor contributions were 21,690,000 kina, and internal revenue from Bougainville was 1,200,000 kina, bringing the 2005 budget to 63,254,100 kina. Other sources of funding included a 4m kina balance originally paid as an establishment grant in 2003.5

  • 5. "Papua New Guinea: Bougainville hands down 2005 budget," BBC Summary of World Broadcasts, December 22, 2004.
2005

Intermediate Implementation

During the inauguration of the first Autonomous Bougainville Government, the UN Secretary General asked the international donor community to provide further assistance to the national and autonomous government for reconstruction.6 Australia continuously provided aid support to rebuild socio-economic infrastructure in Bougainville.  

  • 6. "UN: Secretary-General applauds people, leaders of Papua New Guinea for inauguration of first Autonomous Bougainville Government," M2 Presswire, June 15, 2005.
2006

Full Implementation

Bougainville continued to receive foreign aid to consolidate the peace. 

2007

Full Implementation

No further developments observed.

2008

Full Implementation

No further developments observed.

2009

Full Implementation

No further developments observed.

2010

Full Implementation

No further developments observed.