K12.64 million project deal inked

THE PNG Sustainable Development Program Ltd will provide K12.64 million (US$6.11 million) for a pilot project to benefit 280,000 people in the rural areas of Western province, with assistance by the World Bank.
This project is an important contribution to Western and comes at a time when PNGSDP is focusing substantial efforts in developing a number of community projects to support people’s livelihoods in preparation for the closure of the Ok Tedi mine.
PNGSDP is contributing the money towards the pilot rural services delivery and local governance project (RSDLGP).
The RSDLGP will be implemented by the Department of Provincial and Local Government Affairs.
Following the signing of the agreement between PNGSDP and the World Bank, a separate agreement will be signed between the World Bank and the PNG government.
The project aims to pilot a community-driven development approach (CDD) as a way to improve the access, quality and management of basic public services delivered in rural communities in PNG.
The project will work with approximately 14 local level governments (LLGs) in Western and another province which is yet to be selected, and will provide important information to the government on the viability of the approach so that it could be used elsewhere in PNG.
PNGSDP chief executive officer David Sode said the company was happy to support the project because it was aimed at building the capacities of the LLGs to spend funds wisely to maximise benefits of their communities.
“Development can only be meaningful to communities if they are involved in shaping it themselves,” he said.
The testing of CDD systems and procedures will be done through community grants.
These community grants will be used for a wide-range of small-scale social or economic investments or services.
The specific use of individual grants will determined by communities on an annual basis with the support of trained facilitators.
“This generous financing from PNGSDP will allow the World Bank to bring our global experience in programmes for community level service delivery and customise it for the special needs of communities in Papua New Guinea,” Laura Bailey, World Bank country manager for PNG, said.
The project will have three parts:
n Systems and financing of community service-delivery grants;
n Capacity building of national and sub-national government (or non-government) entities; and;
n Project management (including monitoring, evaluation and knowledge sharing).