It is clear that another cash handout to PNG won't fix the fiscal deficit or really improve basic services. With national elections now less than a year away the temptation will be for the PNG Government to again disburse it via politicians and for national government recurrent costs.
And it won't stop China expanding its influence in our closest neighbour! During this year alone China has signed up the Papua New Guinea Government, and state owned corporations to "belt and road" and other infrastructure deals worth at least K6 billion! And it is all borrowed funds that PNG had to repay and linked exclusively to PRC contractors carrying out the work.
And if anyone doubts the growth of China's influence just read my recent article on the grovelling comments by the PNG Foreign Minister when in China as a state guest!
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If Australia has a "spare $250 million" to "lend" Papua New Guinea it needs to do so in a way that directly benefits the people of our closest neighbour – not its government.
I have in recent contributions outlined a number of specific areas that Australian assistance can bypass politicians and the bureaucracy and truly enhance the living standards, and vital services, the good people of Papua New Guinea desperately need.
If we have $250 million spare – and it's probably money we will have to borrow as well – then here are just two projects that can be funded this year. One relates to Daru and the second vital hospital/health services.
Late last year I helped expose plans for China owned entities to build a massive port and "fisheries industry" at Daru, the PNG town nearest to Australia. While it does not seem to have progressed significantly, it remains on the agenda. If it proceeded, Australia would have another China controlled port within kilometres of Australia.
In response the Australian High Commissioner was forced to sign a MOU with the Governor of the Western Province, in which Daru is located. It can be accessed on the Australian High Commission website. I won't comment further on it because it is fundamentally meaningless.
What Australia should do is negotiate with the PNG and the Western Province governments to immediately fund, and oversee, the ungrading and building of vital community services on Daru.
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The objective should be to give the long suffering people of Daru basic services such as reliable and clean water, sewerage, affordable electricity and a modern port suited to the needs of Daru's businesses, including fisheries. And also totally rebuild hospital and health care services for a community where typhoid, malaria, high infant mortality and now Covid-19 are critical challenges.
If this work was given to Australian contractors I am assured it could be done in a relatively short period, and at a cost of around $100 million, or PNG Kina 250 million.
The objective should be to give the people of Daru – upwards of 15,000 – the same level of basic services that are enjoyed by the people of Thursday Island and the Torres Strait, including the islands closest to Daru and Papua New Guinea.
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