EU may withdraw millions in funding if PNG can't show plan to spend it
Updated
The European Union says it may take back almost $US53 million dollars intended for Papua New Guinea's education sector after the Government failed to detail plans on how it would use the money which was meant to improve teacher training and purchase text and library books for PNG schools.
Presenter Firmin Nanol
Speakers: European Union Ambassador to Papua New Guinea Aldo Dell'Ariccia, Director of European Union Programs with the Planning Department Mosilaiyola Kwaiyala
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FIRMIN NANOL: It seems like a simple enough deal, the European Union would give Papua New Guinea US$53 million to improve education. All the PNG Government had to do was come up with a detailed plan of how it would spend the money. The money was committed in September 2006, but almost three years later there's still no plan and now the EU wants the money back. The funds were intended for the purchase and delivery of text books and library books to schools. The PNG Government was also supposed to detail how the money would be used to improve teachers' skills and train new teachers as well. None of this has been done. The EU's Ambassador to PNG, Aldo Dell'Ariccia says the government has until the end of the year to tell the EU how it would like to use the money. He says the European Development Fund's rules state the money should be spent within the time stated in the financing agreement.
ALDO DELL'ARICICIA: Our financing mechanism is that if the funds are not used during the period which has been forseen for the implementation of the project they go back to the general budget of the European Commission. We will see at the end of the year how much of the amount allocated to the project are utilised. The fact is that we still have the possibility of implementing the project until the end of 2011 but the contracting must be finalised in 2009.
FIRMIN NANOL: But he says the European Commission will help the PNG Government to utilise the funds, as the financing agreement ends in 2018.
ALDO DELL'ARICICIA: There have been difficulties in the implementation of these projects and these difficulties are being tackled and the Government is trying to redress the situation so the European Commission is supporting the Government in its efforts to bring the project back on track.
FIRMIN NANOL: The PNG Government blames the hold-up on problems with the contractor it employed to manage and deliver the program. The Director of EU Programs with the Planning Department, Mosilaiyola Kwaiyala, accuses it of failing to come up with a detailed cost analysis of the program.
MOSILAIYOLA KWAIYALA: Since they were not moving on this from the beginning, they were supposed to work on important areas like program estimates. Program estimates is a document that is to be presented to the European delegation for approval to enable the commencement of works and that has taken considerable time to be implemented and to be prepared by the managing contractor.
FIRMIN NANOL: He says the Government is talking to the EU to stop the funds from being withheld.
MOSILAIYOLA KWAIYALA: We are now sitting down with this delegation to look at all the issues on the table to be able to address the situation. And in my discussions with the EC delegation officials, I sense that there is positivity in their approach in terms of how we can be able to rectify the situation.
FIRMIN NANOL: While this goes on, most schools in PNG are deteriorating. Classrooms, student halls of residence and other facilities have broken down making them unfit for student learning. The PNG Government is also holding back more than 80 million US dollars meant to rehabilitate and improve school facilities, but isn't saying why. Firmin Nanol, Port Moresby.
