Agreement reached on additional assistance

AUSTRALIA and PNG agreed last week that Australian assistance, provided to design and manage the proposed sovereign wealth fund as well as any other assistance in support of the LNG project, would be additional to that provided under the Development Cooperation Treaty.
Foreign ministers Stephen Smith and Samuel Abal agreed that the LNG project presented a significant opportunity for PNG to transform its economy and future development.
A joint understanding between the two countries on further cooperation on the PNG LNG project is already in place.
The ministers welcomed the progress in the design of sovereign wealth funds which will contribute to effective and transparent management of project revenue.
While the question of technical expertise has been touchy, particularly in relation to alleged exorbitant costs, Abal noted that technical assistance would make a useful contribution to the success of the project.
The ministers agreed further that Australia’s current level of overseas development assistance to PNG would not be affected by any commitment to assist with the implementation of the LNG project.
An official working group would commence a rapid capacity assessment next week to determine:
*The present level of capacity of systems, processes and physical kits of infrastructure;
*The future demand triggered by the PNG LNG project;
*Capacity gaps; and
*Who and how identified gaps would be filled in a substantial sequenced and coherent manner.