Papua New Guinea

Provincial Capacity Building Programme Phase II (PCaB II)

There are nineteen provinces in Papua New Guinea, and one of the Government's major policies is to devolve to them, and away from the capital in Port Moresby, a large and increasing role in the management of public finances. Provincial Capacity Building Project Phase II (PCaB II) is helping to improve the capacity of provincial and district treasuries to handle this enormously increased responsibility. This is done through the placement of support advisors in six provinces throughout PNG. The advisors play a coaching and mentoring role, assisting provincial and district staff in these provinces with a wide range of financial procedures while at the same time providing advice on strategy. In the provinces where PCaB advisers are based, there has been a marked improvement in achieving financial reporting requirements. The Western Province was able to clear a substantial amount of overdue financial reporting, having an up to date financial statement and submitting on time completed bank reconciliation statements at the end of 2008. This was a major achievement for the province according to its Provincial Treasurer. Similar back-logs of financial reports from as far back as 2003 in other provinces have also been reduced. In an environment where there is little formal guidance and knowledge, advisors have assisted government staff develop their own manuals which they have in turn used to train other stakeholders within the province. This has seen improved compliance at the provincial level in areas such as procurement and tax payment. The challenges are many - distance, infrastructure, computers, management capacity in provinces and districts - but PCaB II is vigorously and creatively working to address them.

Click here to read more about the Provincial Capacity Building Programme Phase II (PCaB II) project.