AusAID Report 2009

AUSTRA L I A N AG E N CY FO R
INT ERNAT IO N A L D EV E LO P M E N T
Ann ual Rep o rt

0 9|10
© Commonwealth of Australia 2010
ISSN 1032–2019
ISBN 978-1-921612-38-1 (volume 1)
ISBN 978-1-921612-39-8 (volume 2)
ISBN 978-1-921612-40-4 (two-volume set)
ISBN 978-1-921612-41-1 (volume 1 online)
ISBN 978-1-921612-42-8 (volume 2 online)
This work is copyright. Apart from any use as permitted under the Copyright Act 1968,
no part may be reproduced by any process without prior written permission from the
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Acknowledgements
Editor: Angus Braithwaite
Editor’s assistant: Khadhraa Glenn
Editorial consultant: Morris Walker Pty Limited
Indexer: Michael Harrington
Internet websites
AusAID home page http://www.ausaid.gov.au
DFAT home page http://www.dfat.gov.au
AusAID annual report http://www.ausaid.gov.au/publications
Distribution
This report is available through the above websites and directly from the Australian Agency
for International Development (AusAID).
Comments about this report are welcome and should be directed to:
Annual Report Editor
AusAID
GPO Box 887, Canberra, ACT, 2601, Australia
Telephone: (02) 6206 4000
Facsimile: (02) 6206 4880
Australian Business Number (ABN): 629 215 588 38
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SECT ION 1
At a Glance
AusAID is the Australian Agency for International Development.
As at 30 June 2010, AusAID was an administratively autonomous agency within the
Foreign Affairs and Trade portfolio.
Our role

We provide advice to the government on development policy and manage the
implementation of Australia’s overseas aid program. We plan, lead and coordinate
Australia’s poverty reduction activities and its response to humanitarian disasters. We
evaluate and improve Australia’s overseas aid program as well as analyse and publish
data relating to development.
Our objective
To assist developing countries reduce poverty and achieve sustainable development, in
line with Australia’s national interest. Australia’s development assistance focus on poverty
is guided by the Millennium Development Goals, the internationally agreed targets for
poverty reduction.
Our people
At 30 June 2010, we employed 1487 staff, including 593 based overseas (110 APS staff
and 483 locally engaged staff). Our head office is in Canberra, and we have a presence in
37 locations around the world.
Our budget
In 2009–10, it is estimated that AusAID provided $3.385 billion in official development
assistance. Other Australian assistance through other government departments and
agencies brought total Australian official development assistance to an estimated
$3.818 billion, or 0.31 per cent of gross national income.
Australia has implemented new international accounting standards used to calculate gross
national income. Therefore the 2009–10 official development assistance/gross national
income ratio is lower than would have been the case under the previous gross national
income methodology.
The government is committed to increasing Australia’s official development assistance to
0.5 per cent of gross national income by 2015–16.
The way we work

We work in partnership with governments and civil society in developing countries to
assist their development efforts.
We support countries in our region to respond to emergencies such as cyclones, floods,
tsunamis and earthquakes.
We work with multilateral organisations and national development agencies to address
regional and global development challenges.
We work with Australian Government departments and agencies to ensure a whole-of-
government approach is taken to the implementation of Australia’s overseas aid program.
iii
SECT IO N 1 AUSAID ANNUAL REPORT 2009–2010
Contents
Section 1—Overviews 1
Director General’s review 2
Agency overview 9

Section 2—Report on performance 15

Effectiveness against outcomes 16
Program 1.1 Official development assistance—Papua New Guinea and Pacific 35
PROGRAM 1.2 Official development assistance—East Asia 64
PROGRAM 1.3 Official development assistance—Africa, South and Central Asia, Middle East
and other 95
PROGRAM 1.4 Official development assistance—Emergency, humanitarian and refugee programs 118
PROGRAMs 1.5 and 1.6 Official development assistance—United Nations, Commonwealth
and other International Organisations and Multilateral Replenishments 123
PROGRAM 1.7 Official development assistance—Non-government organisations, volunteer
and community programs 136
PROGRAM 1.A Official development assistance—Cross regional activities 142
Departmental support—Outcome 1 160
Program 2.1 Official development assistance—East Asia (Australia-Indonesia Partnership for
Reconstruction and Development) 171
Financial results 174
Section 3—Management and accountability 177

Corporate governance 178
External scrutiny 187
Management of human resources 188
Purchasing and assets 197
Section 4—Financial statements 203
Section 5—Appendices 279

A. Minister and Parliamentary Secretary 280
B. Agency resource statement 2009–10 281
C. Aid program expenditure 282
D. Staffing overview 287
E. Freedom of information 296
F. Information available on the internet 299
G. Consultancy services 300
H. Advertising and market research 302
I. Ecologically sustainable development and environmental performance 303
J. Statement of material errors 309
Section 6—Glossary and indexes 311

Glossary 312
Abbreviations 316
List of requirements 318
Index 322
iv

SECT ION 1
Figures and tables
Figure 1: Organisational structure, 30 June 2010 12
Figure 2: AusAID Outcomes and program structure 2009–10 13
Figure 3: Estimated total Australian official development assistance on education 2009–10 23
Figure 4: Estimated total Australian official development assistance on health 2009–10 26
Figure 5: Estimated total Australian official development assistance by region 2009–10 32
Figure 6: Estimated total Australian official development assistance by sector 2009–10 32
Figure 7: Estimated total Australian official development assistance to Papua New Guinea

by sector 2009–10 36
Figure 8: Estimated total Australian official development assistance to the Pacific by
country 2009–10 45
Figure 9: Estimated total Australian official development assistance to East Asia by
country 2009–10 66
Figure 10: Estimated total Australian official development assistance to Indonesia by
sector 2009–10 68
Figure 11: Estimated total Australian official development assistance to Africa by
country 2009–10 97
Figure 12: Estimated total Australian official development assistance to South Asia by
Country 2009–10 102
Figure 13: Estimated total Australian official development assistance to Middle East and
Central Asia by country 2009–10 108
Figure 14: Learning and development activity breakdown by training type 191
Table 1: Learning and development activity summary 191
Table 2: Agency resource statement 2009–10 281
Table 3: Total Australian official development assistance to partner countries 2009–10 282
Table 4: Country and regional programs expenditure 2006–2010 284
Table 5: Global programs expenditure 2006–2010 286
Table 6A: All APS employees by classification, location and gender, 30 June 2010—
departmental and administered budgets 287
Table 6B: All APS employees by classification, location and gender, 30 June 2010—
administered budget only 287
Table 7A: APS employees by status and attendance type, 30 June 2010—departmental and
administered budgets 288
Table 7B: APS employees by status and attendance type, 30 June 2010—administered
budget only 288
Table 8A: Senior executive service, 30 June 2010—departmental and administered budgets 288
Table 8B: Senior executive service, 30 June 2010—administered budget only 288
Table 9A: All APS employees by location and gender, 30 June 2010—departmental and
administered budgets and overseas-based staff 289
Table 9B: Employees by location and gender, 30 June 2010—administered budget only 290
Table 9C: Overseas-based employees by location and gender, 30 June 2010 291
Table 10: Employees covered by the enterprise agreement, Australian workplace agreements
and section 24(1) determinations under the Public Service Act 1999
at 30 June 2010 293
Table 11: AusAID SES employee salary range, 30 June 2010 294
Table 12: All APS employees by workplace diversity category and level, 30 June 2010—
departmental and administered budgets 294
Table 13: AusAID winners of Australia Day Achievement Awards, 2010 295
Table 14: AusAID learning and development participants for 2009–10 295
Table 15: Summary of consultancy contracts 300
Table 16: Consultancy services let during 2009–10 of $10 000 or more 301
Table 17: Advertising and market research expenditure 302
Table 18: AusAID’s energy consumption and greenhouse gas emissions for 2006–2010 308
Table 19: AusAID waste management/recycling (tonnes) 2006–2010 308
v
Feature Boxes
What are the Millennium Development Goals? 16
Response to the global recession 20
Indonesia on track to achieve Millennium Development Goal 2 22
Consultative Forum on Aid 29
Cairns compact drives Pacific progress on Millennium Development Goals 46
Kids in school 55
Education in Indonesia 2009–10 71

Basic education assistance for Mindanao 77

Responding to violence against women in East Timor 80
Government-to-government linkages 89
Sexual and reproductive health for East, Southeast Asia and the Pacific 93
Australia-Africa Food Security Initiative 98
Housing the victims of conflict 105
Customs and border control 110
The Afghanistan Health Development Service 114
Australia responds to a stricken Haiti 122
Partnership with the World Food Programme 125
Giving children a future—helping the World Bank fund education in the world’s
poorest nations 129
Sowing seeds for prosperity in Malawi 141
Australia Awards 143
Food security through rural development 146
Australia influences global action on disability and development 150
Expanding access to finance through innovation in Vanuatu 157
Blueprint for a better world 164
One Just World 167
AusAID Enterprise Agreement 2009–2011 189
vi

SECT ION 1
Guide to the report
Guide to volume two
The AusAID Annual Report 2009–10 outlines performance against the outcomes,
outputs and performance information contained in the Foreign Affairs and Trade Portfolio
Budget Statements 2009–10 (Part B: Agency Budget Statements—Australian Agency

for International Development—AusAID). The report also provides information for the
community and stakeholders about AusAID’s work throughout the year, and has been
prepared according to parliamentary reporting requirements.
The report is the second of two volumes, with volume 1 addressing the work of the
Department of Foreign Affairs and Trade.
Section 1 of this report provides a review by the Director General including a summary of
significant issues and developments during 2009–10 and the outlook for the year ahead.
The agency overview provides a snapshot of the agency including its role and function,
organisational structure and outcome and output framework.
Section 2 of the report provides an analysis of performance and effectiveness against

outcomes and outputs. This section details the agency’s results and activities in the
following areas:
• country and regional programs
• global and multilateral programs—United Nations, Commonwealth and other
international organisations
• emergency, humanitarian and refugee programs
• non-government organisations, volunteer and community programs
• cross regional programs
• information, education and communication programs.
This section also reports on policy, program management, and the Australia-Indonesia
Partnership for Reconstruction and Development.
Section 3 reports on management and accountability processes, including corporate

governance, external scrutiny, human resource management, and purchasing and assets.
Section 4 contains the audited financial statements for 2009–10.
Section 5 comprises appendices providing additional information as required

by legislation.
Section 6 contains a glossary, list of abbreviations, a compliance index and an index.
v ii
AUSAID ANNUAL REPORT 2009–2010
Below Then Australian Prime Minister

Kevin Rudd attends a partnership signing
with Apisai Ielemia, Prime Minister of Below Minister for Foreign Affairs, Stephen Smith, meets
Tuvalu, at the Pacific Islands Forum in students from Madrasah Balaraja—the 2000th school built
Cairns on 6 August 2009 under the Australia Indonesia Basic Education Program
Photo: AusAID Photo: Josh Estey
vi i i
Overviews
Section 1
Director General’s review

Agency over view
SECT IO N 1
Ove rviews AUSAID ANNUAL REPORT 2009–2010
Peter Baxter, Director General AusAID

Photo: Angus Braithwaite

The year in review
The impact of the global recession continued to be felt by many developing countries
throughout 2009–10. While a global recovery is now underway, with growth strongest
in the major developing economies, uncertainties remain and many smaller developing
countries continue to struggle. The World Bank has estimated that there will be 64 million
more people in developing countries living in extreme poverty by the end of 2010 than
would have been the case without the crisis.
Having followed a prolonged period of volatility in food and fuel prices, the global
recession exacerbated hardship and suffering for many people in developing countries.
Falling revenues also made it increasingly difficult for some governments to provide
essential services. In this context, meeting the Millennium Development Goals remains a
challenge for many developing countries, including those in our immediate region.
Australia responded effectively to the crisis by building partner country resilience and
implementing targeted assistance programs. We gave priority to generating employment
and restoring growth, supporting delivery of basic services, such as health care and
education, and protecting the vulnerable.
Against this backdrop the Australian Government provided an estimated $3.818 billion in

official development assistance (ODA) in 2009–10 and the Minister for Foreign Affairs,
Mr Smith reaffirmed the government’s commitment to increase ODA to 0.5 per cent
of gross national income by 2015–16 to address poverty in the Asia Pacific region
and globally.
The Australian Government is helping developing countries to reduce poverty and

achieve the Millennium Development Goals through several new budget measures that
got underway in 2009–10. These included a $464 million four-year initiative to improve
food security through rural development and a $454 million four-year commitment to
2
SECT ION 1
support high priority infrastructure needs. Under the food security initiative assistance
was provided in Southeast Asia, the Pacific and Africa to increase agricultural productivity,
improve access to financial services and support government social protection programs,
such as school-feeding and cash for work programs. Under the infrastructure initiative,
Australia’s support focused on energy sector development, improving access to water and
sanitation and support for transport infrastructure to allow better access for poor people
to markets and services.
Ove rviews
Australia assisted partner governments to implement key public sector reforms critical
to achieving better development results through performance-linked aid ($336.1 million
will be provided over four years). Performance linked aid is helping strengthen partner
government systems responsible for the delivery of services such as health and
education at national and local levels. For example, this initiative has improved fisheries
administration and revenue collection in Kiribati and supported the introduction of
competition in the telecommunications sector in Solomon Islands.
Education is a flagship of the Australian aid program. Enhanced support for basic,
secondary and vocational education and tertiary-level scholarships is helping to get
more children into school, provide pathways out of poverty and develop leaders. Our
support has strengthened national education systems, built and refurbished schools,
and improved the quality of education provided to children in our region. By the end of the
year Australia had helped construct or extend over 2000 schools in Indonesia and funded
539 000 new textbooks for 3300 primary schools and eight teacher training colleges in
Papua New Guinea. Through Australian support to school fee relief programs in Samoa,
Vanuatu and Solomon Islands, financial barriers to primary school attendance are being
removed, allowing more children the opportunity to receive an education.
The health Millennium Development Goals (maternal and child health; combating HIV,
malaria and other diseases) continued to be a key priority for our work in the region and
globally. In Papua New Guinea more than 900 000 children were immunised against
measles and other childhood diseases. In Cambodia, Australian support to improve
maternal health is helping to train midwives, and the number of deliveries performed by
trained birth attendants has increased from 58 per cent in 2008 to 63 per cent in 2009.
In September 2009, Australia announced a $250 million commitment over 20 years to
expand the GAVI Alliance’s successful International Finance Facility for Immunisation.
These funds will help countries tackle health system challenges, such as providing critical
maternal and child health care services (including immunisation), training health staff and
buying essential drugs.
Throughout the year Australia responded to more than 30 humanitarian emergencies

across the globe. In our region we have responded to floods, cyclones, earthquakes,
droughts and tsunamis in Indonesia, Samoa, Tonga, Fiji, Laos, Timor-Leste, Vietnam and
the Philippines. Our response to the September 2009 Padang earthquake in Indonesia
included emergency humanitarian relief which was delivered in partnership with the
Australian Defence Force and Queensland Fire and Rescue. We also helped build
temporary schools, shelters and health centres and assisted reconstruction efforts.
Further afield, our assistance included humanitarian relief to people affected by protracted
conflicts in countries such as the Sudan, the Democratic Republic of Congo, Sri Lanka,
Pakistan and Yemen. Australia provided $24 million to assist Haiti after the devastating
earthquake in January 2010 through emergency humanitarian relief and support for early
recovery and reconstruction efforts.
3
Key policy announcements and achievements

Australia is committed to assisting Pacific Island countries meet their Millennium
Development Goal targets. While good results have been achieved in some countries,
overall progress has been uneven and a concerted effort is needed to improve aid
effectiveness in the Pacific. Australia assumed the chair of the Pacific Islands Forum
in Cairns in August 2009. Under Australian leadership, consensus was reached on
a new approach to aid delivery and effectiveness, and regional leaders agreed the
Ove rviews
Cairns Compact on Strengthening Development Coordination in the Pacific at the forum.

The compact is an ambitious initiative to ensure more effective coordination and use of
partner country and donor resources for development. As chair of the forum, Australia has
led the implementation of the Cairns Compact in 2009–10 working closely with Pacific
countries, the Pacific Islands Forum Secretariat and other development partners.
Three new Partnerships for Development were signed at the 2009 Pacific Islands Forum
with Nauru, Tonga and Tuvalu, bringing the current number of partnerships to eight. These
partnerships provide for more effective aid programs by emphasising mutual accountability
between Australia and partner governments for achieving outcomes in areas such as
health and basic education. Partnership success stories in 2009–10 include an increase
in primary and secondary school enrolments in Solomon Islands and a 50 per cent
reduction in the prevalence of malaria in Vanuatu.
In 2009–10, the Australian Government continued to increase the volume of aid

delivered in Africa and to South Asia, especially to Bangladesh and in response to
humanitarian needs in the north and east of Sri Lanka. Our assistance to Africa focused
on food security, water and sanitation, and maternal and child health. Australia is also
building Africa’s human resources with scholarships, fellowships and targeted technical
assistance. Humanitarian assistance to protracted crises in Africa and carefully targeted
support for Zimbabwe’s recovery remained priorities.
In December 2009, the Australian Government committed to increasing Australia’s civilian

contribution in Afghanistan. In Uruzgan Province AusAID worked alongside the Australian
Defence Force, the Department of Foreign Affairs and Trade and the Australian Federal
Police on reconstruction, stabilisation and capacity building efforts. At a national level,
AusAID increased its support to the government of the Islamic Republic of Afghanistan,
strengthening its ability to deliver basic services and livelihood opportunities to the
Afghan people. AusAID doubled its staff complement in Afghanistan, with increased
representation in Kabul, an officer deployed to work with coalition partners in Kandahar
and more development advisers on the ground in Uruzgan.
Australia’s bilateral assistance program to Pakistan doubled over the past year to
$70.3 million. In September 2009 the then Prime Minister Kevin Rudd announced that
Australia would enter a new development partnership with Pakistan. Priorities under
the partnership include maternal and child health, basic education, rural development,
economic reform and improved democratic governance. Key programs during the year
included training 8871 midwives and providing 330 000 metric tonnes of food aid to
internally displaced people in Pakistan’s border regions.
4
SECT ION 1
Australia is committed to promoting gender equality and women’s empowerment in
developing countries. In August 2009 the landmark report Responding to violence against
women in Melanesia and East Timor was released by AusAID and highlighted the need
for more action to be taken by national governments and donors to reduce gender based
violence. As part of Australia’s increased commitment to reducing violence against
women, the government entered a partnership with the United Nations Development Fund
for Women (UNIFEM) that will target violence against women by increasing the capacities
of law and justice agencies.
Ove rviews
In October 2009 the government announced the creation of the Australian Civilian Corps,
an initiative which will enable the government to rapidly deploy trained civilian specialists
to assist the early recovery efforts of countries experiencing or emerging from natural
disasters or conflict. An interim capacity, with an initial register of civilian specialists ready
to deploy, was established in March 2010. The Australian Civilian Corps is expected to be
fully operational in early 2011, with the number of civilian specialists built up progressively
to approximately 500 by 2014.
Australia has been in the forefront of efforts to eradicate mines for many years and
in the lead up to the Cartagena Summit on a Mine-Free World, held in Colombia in
November 2009, Mr Smith announced a new Mine Action Strategy. Australia will contribute
$100 million over five years to reduce the threat and socio-economic impact of landmines,
cluster munitions and other explosives. Australian assistance will focus primarily
on affected countries in Asia. Priority countries include Afghanistan, Iraq, Sri Lanka,
Cambodia and Laos, with some engagement in Africa and Latin America.
In November 2009 the government announced the creation of new Australia Awards
scholarships, which bring together all international scholarships managed by the Australian
Government to ensure they are delivered effectively and in support of Australia’s long‑term
interests. Scholarships to study in Australia build the leadership and skilled human
resources that developing countries need to grow and reduce poverty. In 2009–10, over
1850 new scholars from 45 countries commenced courses in Australia. Of these 1276
received long term scholarships, an increase of over 100 places from the previous year.
The Copenhagen Accord on climate change agreed in December 2009 committed

developed countries to provide new and additional resources to address the impacts
of climate change in developing countries. Australia has committed $599 million over
2010–2012 to meet its ‘Fast Start’ obligations under the accord. This reflects the
Australian Government’s commitment to achieving a global solution on climate change and
will provide immediate assistance to those countries most vulnerable to the impacts of
climate change, including the small island states of the Pacific.
At the Commonwealth Heads of Government Meeting in Trinidad and Tobago in

November 2009, the then Prime Minister Kevin Rudd signed an historic partnership
framework with the Caribbean Community (CARICOM) and in May 2010 Mr Smith
announced a four-year $60 million commitment to Caribbean countries. Caribbean
countries are particularly vulnerable to natural disasters and climate change. Australia
will draw on its considerable experience dealing with these issues in Pacific Island
countries and will deliver a program focused on climate change activities, natural disaster
management and the strengthening of people-to-people linkages through volunteer
programs, scholarships and other exchanges.
5
Partnerships and community engagement

Non-government organisations are important development partners for the Australian
aid program. Throughout the year, AusAID held regular consultations with the Australian
Council for International Development. The government entered into new partnership
arrangements with World Vision Australia, Oxfam Australia, Caritas Australia, Plan
International Australia and ChildFund Australia. These partnerships strengthen policy
dialogue, enhance collaboration and provide multi-year funding for joint efforts to alleviate
Ove rviews
poverty and increase the reach and effectiveness of the Australian aid program.
Australia continued to strengthen its engagement with multilateral organisations by signing

multi-year strategic partnership agreements with the World Food Programme, the United
Nations Development Fund for Women, the Joint United Nations Programme on AIDS,
the International Labour Organisation and the United Nations Population Fund. Australia
also expanded its cooperation arrangements with bilateral donor agencies. We deepened
existing cooperation arrangements with New Zealand in the Pacific and with Germany
and the UK in Asia. AusAID also signed a new strategic partnership agreement with the
US Agency for International Development. The AusAID-USAID partnership will focus on
agricultural research and innovation to improve food security, cooperation on stabilisation,
reconstruction and development in Afghanistan, climate change and natural resource
management, and maternal and child health and family planning.
AusAID supported several activities which promoted community dialogue and

understanding of international development challenges, including the Millennium
Development Goals. These activities included supporting CARITAS to tour its interactive
exhibition Blueprint for better world and partnering with ActionAid to coordinate the
1GOAL: Education for All Campaign in the lead up to the FIFA World Cup in South Africa.
AusAID supported two major conferences on the Millennium Development Goals, one in
partnership with Australian Council for International Development and La Trobe University
in Melbourne in November 2009, and the other with the Lowy Institute for International
Policy in Sydney in June 2010. These conferences brought together Australians working
on international development and an impressive number of international experts to
share ideas.
A consultative forum on aid was also established to engage the community in discussion
on development issues and the Australian aid program. The Parliamentary Secretary for
International Development Assistance hosted forums in Sydney, Melbourne and Canberra,
which saw representatives from the community sector, business and universities
exchanging views on the aid program and achieving the Millennium Development Goals.
Planning for Australia’s role as host of the 63rd conference of the UN Department of
Public Information and Non-Government Organisations was well advanced by 30 June. The
conference to be held in Melbourne from 30 August to 1 September, will bring together
hundreds of non-government organisation representatives from around the world to
discuss global health and the Millennium Development Goals. This is only the third time
this event will have been held outside New York.
6
SECT ION 1
A more effective aid program
In May 2010 Mr Smith announced that the government would strengthen the management
structure of AusAID so it could better manage an expanding aid program. AusAID’s
corporate reform agenda is broad-reaching and will touch every aspect of our operations.
It will involve new ways of working, enhanced corporate management and reporting
systems and a strengthened senior management structure. Reviews of AusAID’s business
practices, risk management frameworks and workforce planning are underway. AusAID is
Ove rviews
committed to ensuring the aid program delivers effective programs and provides value for
money in the use of Australian Government funds.
The Australian National Audit Office’s 2009–10 audit of our management of the
aid program found that “since 2005 AusAID has managed the expansion of the aid
program in a way that supports delivery of effective aid.” AusAID agreed to all of the
six major recommendations in the report to strengthen management of the agency.
Good progress has been made with their implementation. The second Annual Review of
Development Effectiveness tabled in August 2009 also found that AusAID had improved
its effectiveness and was changing the way it delivered programs. The review highlighted
the need for continuing reform of AusAID’s business practices as the program expands,
the need to protect progress already made in poverty reduction in an uncertain global
economic environment and to improve the way in which we engage local communities in
the delivery of basic services.
Through the Development Effectiveness Steering Committee, which I chair, the government
is ensuring that development assistance provided by other government agencies is
delivered in a coordinated and effective manner. The committee comprises deputy
secretaries from the Departments of the Prime Minister and Cabinet, Foreign Affairs and
Trade, Treasury and Finance and Deregulation.
As part of broader efforts to improve accountability and value for money within the aid
program, in May 2010 Mr Smith announced a review of the use and remuneration of
technical advisers in the delivery of the aid program. Technical advisers are an important
way of providing assistance to partner countries but they are not always the most
appropriate or cost effective response to a development need. A new policy which sets
out more clearly the circumstances in which advisers are used is being developed, along
side a standardised remuneration framework. A major review of all current long-term
adviser positions involved in delivering the aid program is being undertaken jointly with
partner countries. The review will be completed by the end of 2010.
AusAID is also reviewing the way it delivers its country programs. In 2009–10, an
independent review of Australian aid to Papua New Guinea was undertaken. A panel of
experts assessed the Treaty on Development Cooperation (1999) and made a number
of recommendations on how Australia and Papua New Guinea’s government can more
effectively contribute to Papua New Guinea’s medium and long-term development priorities
and aspirations. These recommendations included focusing the aid program on key
sectors such as education, reducing the use of technical advisers and placing a greater
focus on assisting service delivery. The recommendations of the review are currently
under consideration by both governments and a joint response is expected late in 2010.
7
The year ahead

As the global economy shifts slowly from recession to recovery, the Asia Pacific region
has returned to strong economic growth, with real gross domestic product levels for the
region now higher than pre-crisis levels. However, there is continuing uncertainty about the
strength and sustainability of the global economic recovery and many smaller developing
countries still face hardship and remain vulnerable to external shocks. In Asia, the
Australian Government will work with partner countries to help ensure increased economic
Ove rviews
growth is translated into greater economic resilience, and more effective poverty reduction
efforts. In the Pacific, where growth prospects are more mixed, Australia will continue
to work closely with partner governments to improve the delivery of basic services and
cooperate with other development partners to improve aid coordination and effectiveness
under the Cairns Compact. Assisting improved progress towards the achievement of the
Millennium Development Goals will remain a core priority.
Total official development assistance for 2010–11 is estimated to increase to

$4.349 billion from $3.818 billion in 2009–10—equivalent to 0.33 per cent of gross
national income. The government has introduced new budget measures which will increase
aid to Indonesia to assist in poverty reduction and education, support stabilisation and
development in Afghanistan and expand our assistance to African countries.
As Australia’s official development assistance increases, the government will increase

the share of aid expenditure going to the delivery of basic services. In 2010–11 the
proportion of the aid program spent on education and health expenditure will rise.
Our education assistance will include greater efforts to increase school enrolments,
particularly for disadvantaged groups such as those with disability, girls and children
in remote rural areas. There will be a greater focus on increasing skills, capacity and
leadership in developing countries. In the health sector, priorities will include addressing
child and maternal health, HIV and infectious diseases, and addressing specific health
problems like malaria and non-communicable diseases in the Pacific. Spending on
infrastructure, including water supply and sanitation, will also grow and a new disability
budget measure will improve the quality of life of people with disability and their access to
social and economic opportunities.
The Australian Government’s decision to increase the official development assistance

budget to 0.5 per cent of gross national income by 2015–16 will allow Australia to make a
major contribution to assisting developing countries in our region and globally make better
progress towards the Millennium Development Goals by 2015.
Peter Baxter
Director General AusAID
8
Agency overview
SECT ION 1
Agency overview
Our role and functions
AusAID advises the government on development policy and manages the implementation
of Australia’s international development assistance programs. AusAID plans and
Ove rviews
coordinates Australia’s poverty reduction activities and is the lead agency coordinating
Australia’s response to humanitarian disasters.
Australia’s aid program is focused on achieving sustained improvements in people’s lives

by working with our partners—domestic, international and multilateral—to achieve the
Millennium Development Goals.
AusAID does this by:

• providing the Australian Government with sound policy advice and successfully
implementing government decisions
• effectively managing the Australian Government’s international development budget
• employing strategies and policies that are built on comprehensive analysis,
a deep understanding of country contexts, and dialogue and agreement with
development partners
• coordinating fast, flexible and effective responses to humanitarian crises and disasters
• working in partnership with other Australian Government agencies as well as
multilateral, international and non-government organisations
• demonstrating improved development outcomes to the government, Australian public
and development partners.
AusAID and enhanced whole-of-government engagement

Whole-of-government engagement in the delivery of the aid program is central to AusAID’s
way of working. At a strategic level, the Development Effectiveness Steering Committee,
with deputy secretary representation from central agencies, provides a whole-of-
government coordination mechanism to give advice to the Australian Government on new
aid policy proposals and oversee the effectiveness of the aid program.
At an operational level, the aid program benefits from the expertise of other government
departments in such areas as public financial management and law and justice. This
collaborative approach helps to address the development challenges in our region.
AusAID’s new approach to developing country strategies requires earlier and more
substantial engagement with Australian Government agencies and non-government
organisations. Securing whole-of-government agreement on the strategic priorities for
official development assistance contributes to a more coherent and focused Australian
Government aid program.
9
AusAID cooperates with a range of Australian Government departments and agencies

in delivering the aid program. The Regional Assistance Mission to the Solomon Islands
and the Strongim Gavman Program in Papua New Guinea are just two examples of this
approach. Nine government departments and agencies are involved in supporting our
efforts to improve development outcomes in these countries.
Development assistance issues are increasingly interlinked with Australia’s regional and
international policy priorities. Priority areas include regional security, trade, economic
Ove rviews
integration, climate change, the transboundary threats posed by HIV/AIDS and other
communicable diseases, counter-terrorism, illicit drugs and organised crime.
The AusAID executive at 30 June 2010.

Back, left to right: Jamie Clout, Deputy Director General—Corporate Enabling Division, Murray Proctor, Deputy
Director General—Program Enabling Division, Richard Moore, Deputy Director General—Asia Division, and Robin Davies,
Deputy Director General—Sustainable Development and Partnerships Division.
Front, left to right: Blair Exell, Acting Deputy Director General—Pacific and PNG Division, Peter Baxter, Director General,
Catherine Walker, Deputy Director General—Africa, West Asia, Middle East and Humanitarian Division
10
Agency overview
SECT ION 1
Organisational structure in 2009–10
At 30 June 2010, AusAID was an administratively autonomous agency within the
Foreign Affairs and Trade portfolio. Final responsibility for the operation and performance
of AusAID rested with the Director General who reported to the Minister for Foreign Affairs
on aid policy and operations.
The Director General was also responsible for the agency’s financial and personnel
Ove rviews
management, and was assisted to meet these responsibilities by the AusAID executive,
which consists of six Deputy Directors General.
Under these arrangements, the Director General was responsible to the Secretary of the
Department of Foreign Affairs and Trade for the administration of the agency and was a
member of the department’s executive.
AusAID’s structure has continued to evolve to better meet government priorities and
respond to ongoing changes in the operational environment. AusAID 2010—Director
General’s blueprint (February 2007) established a model for AusAID which features
a strengthened central core to provide strategic direction for Australia’s overseas
aid delivery and coordinate the joint aid activities of other government departments.
AusAID’s overseas presence, which is primarily in the Asia Pacific region, has grown
to meet the increased need for effective management and implementation of our
expanding development program. Best practice networks for staff working on similar
development topics in different program areas, known as thematic networks, and the
Office of Development Effectiveness exist to enhance AusAID’s analytical capacity and
the quality and performance of its programs. These are further supported by a responsive
and connected management framework which incorporates stronger business systems,
processes and controls.
Outcomes and outputs framework

AusAID’s outcomes and outputs framework is shown in figure 2. Appendix B provides the
resources summary for the agency’s outcomes.
The agency’s two outcomes are:
Outcome 1—To assist developing countries to reduce poverty and achieve sustainable
development, in line with Australia’s national interest.
Outcome 2—Australia’s national interest advanced by implementing a partnership

between Australia and Indonesia for reconstruction and development.
AusAID’s administered items and outputs contribute to these outcomes.
11
Ove rviews SECT IO N 1
Figure 1: Organisational Structure, 30 June 2010
Office of Development Effectiveness
12
Assistant Director General Australian Agency for International Development (AusAID) Executive Branch
John Davidson Director General Assistant Director General
Principal Adviser Aid Effectiveness Peter Baxter Richard Sisson
VACANT
Asia Division (ASIA) Africa, West Asia, Middle East & Sustainable Development & Program Enabling Division (PED) Corporate Enabling Division (CED) Pacific & PNG Division (PPNG)
Deputy Director General Humanitarian Division (AWAMEH) Partnerships Division (SDP) Deputy Director General Deputy Director General Deputy Director General
Richard Moore Deputy Director General Deputy Director General Murray Proctor Jamie Clout A/g Blair Exell
Catherine Walker Robin Davies
Asia Regional Branch Africa & Humanitarian Branch UN, Banks & G20 Branch Operations Policy & Support Branch Finance Branch Papua New Guinea Branch
Assistant Director General Assistant Director General Assistant Director General Assistant Director General Chief Financial Officer Assistant Director General
Robert Stewart (Humanitarian Coordinator) Chris Tinning Laurie Dunn Lisa Rauter Octavia Borthwick
Jamie Isbister Minister Counsellor—
PORT MORESBY
Asia Bilateral Branch Community Partnerships & Health, Education & People & Planning Branch Stephanie Copus-Campbell
Assistant Director General Middle East & West Asia Branch Latin America Branch Scholarships Branch A/g Assistant Director General
(Gender Coordinator) Assistant Director General Assistant Director General Assistant Director General MaryEllen Miller
Michael Wilson Natasha Smith Therese Mills Peter Versegi Pacific Branch
Mekong and Regional Principal Adviser Health & HIV Assistant Director General
Minister Counsellor—BANGKOK VACANT Information Services Branch Bill Costello
Phillippe Allen Crisis Prevention Stabilisation Climate Change & Principal Adviser Education Chief Information Officer Assistant Director General
Philippines Minister Counsellor— & Recovery Environment Branch Steve Passingham Shane McLeod Jane Lake
MANILA Group Manager Assistant Director General Minister Counsellor—SUVA
Titon Mitra Mat Kimberley Jean-Bernard Carrasco Judith Robinson
Governance & Leadership Branch Parliamentary, Security & Minister Counsellor—HONIARA
Assistant Director General Property Branch Paul Kelly
Gender Policy Section Australian Civilian Corp Branch Steve Hogg Assistant Director General
Principal Gender Adviser Assistant Director General Alistair Sherwin
Gillian Brown Cheryl Johnson Cairns Compact Taskforce
Economics, Rural Development & A/g Assistant Director General
Infrastructure Branch Sue Connell
Indonesia & East Timor Group Assistant Director General
Assistant Director General Vincent Ashcroft
James Gilling Principal Adviser Rural Development
Minister Counsellor—JAKARTA Alwyn Chilver
Jacqui De Lacey Principal Adviser Infrastructure
Minister Counsellor—DILI Alan Coulthart
Ali Gillies
Communications & Research
Assistant Director General
Chris Elstoft
Chief Economist
Agency overview
SECT ION 1
Figure 2: AusAID outcomes and program structure 2009–10
AusAID
Total departmental appropriation: $143.752 million
Total departmental expenses: $134.248 million
Total administered appropriation: $2 872.901 million
Total administered expenses: $3 058.139 million
Ove rviews
OUTCOME 1 OUTCOME 2
To assist developing countries to Australia’s national interest advanced
reduce poverty and achieve sustainable by implementing a partnership
development, in line with Australia’s between Australian and Indonesia for
national interest reconstruction and development
Departmental operating appropriation: Departmental operating appropriation:
$134.915 million $6.009 million
Departmental capital appropriation: Departmental expenses: $3.013 million
$2.828 million
Departmental expenses: $131.235 million Administered operating appropriation:
$3.868 million
Administered operating appropriation: Administered expenses: $86.991 million
$2 862.781 million
Administered capital appropriation:
$6.252 million
Administered expenses: $2 971.148 million
13
Below Children take part in an activity

carried out at a child friendly space set up
by Save the Children in a displacement camp, Below Parliamentary Secretary for International
Saint Therese, Haiti. Australia has delivered Development Assistance, Bob McMullan, tours St Michael’s
all of the total $24 million in assistance it Guilleme Community Hospital, Malawi, where Australian
promised to Haiti since the quake of which volunteers assist with nursing and pharmacist services.
$400 000 went to the work of Save the Mr McMullan is speaking with sister-in-charge at the
Children in Haiti hospital, Sister Elizabeth
Photo: Robert King/Polaris Photo: Stephen Morrison
14
Report on
performance
Section 2
Effectiveness against outcomes

Papua New Guinea and Pacific
East Asia
Africa, South and Central Asia,
Middle East and other
Emergency, humanitarian and
refugee programs
United Nations, Commonwealth
and other International Organisations
and Multilateral Replenishments
Non-government organisations,
volunteer and community programs
Cross regional activites
Departmental support
Australia-Indonesia Partnership for
Reconstruction and Development
Financial results
Effectiveness against
outcomes
The Millennium Development Goals
Australia’s aid program is centred on working with developing country partners, bilateral
SECT ION 2
and international development organisations, and non-government organisations to

promote faster progress towards achieving the Millennium Development Goals.
What are the Millennium Development Goals?

The eight Millennium Development Goals are a shared world vision for reducing
poverty, and were adopted by 189 nations in September 2000. The central goal is to
reduce by half the proportion of people living on less than US$1.25 a day by 2015
Re p o rt o n p e r fo r m a n c e
relative to 1990. Developed and developing countries have a shared responsibility

for delivering these goals by 2015. The Millennium Development Goals are:
1. Eradicate extreme poverty and hunger

• Halve, between 1990 and 2015, the proportion of people whose income is
less than $1 a day.
• Achieve full and productive employment and decent work for all, including
women and young people.
• Halve, between 1990 and 2015, the proportion of people who suffer
from hunger.
2. Achieve universal primary education

• Ensure that by 2015, children everywhere, boys and girls alike, will be able
to complete a full course of primary schooling.
3. Promote gender equality and empower women

• Eliminate gender disparity in primary and secondary education, preferably by
2005, and in all levels of education, no later than 2015.
4. Reduce child mortality

• Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate.
5. Improve maternal health

• Reduce by three-quarters, between 1990 and 2015, the maternal
mortality ratio.
• Achieve universal access to reproductive health.
16
6. Combat HIV and AIDS, malaria and other diseases

• Have halted by 2015 and begun to reverse the spread of HIV/AIDS.
• Achieve by 2010 universal access to treatment for HIV/AIDS for all those
who need it.
• Have halted by 2015 and begun to reverse the incidence of malaria and
other major diseases.
SECT ION 2
7. Ensure environmental sustainability
• Integrate the principles of sustainable development into country policies and
programs and reverse the loss of environmental resources.
• Reduce biodiversity loss, achieving by 2010 a significant reduction in the rate
of loss.
• Halve by 2015 the proportion of people without sustainable access to safe
drinking water and basic sanitation.
• Achieve by 2020 a significant improvement in the lives of at least 100 million
slum dwellers.
8. Develop a global partnership for development

• Address the special needs of least developed countries, landlocked countries
and small island developing states.
• Develop further an open, rule-based, predictable, non-discriminatory trading
and financial system.
• Deal comprehensively with developing countries’ debt.
• In cooperation with pharmaceutical companies, provide access to affordable
essential drugs in developing countries.
• In cooperation with the private sector, make available the benefits of new
technologies, especially information and communications.
Further information on the Millennium Development Goals can be found at

www.ausaid.gov.au/keyaid/mdg.cfm
Promoting faster progress towards achieving the

Millennium Development Goals
Australia is one of 189 countries that signed the Millennium Declaration in 2000. It is the
collective responsibility of all 189 countries to meet the goals and targets set out in the
declaration by 2015.
The Millennium Development Goals are at the centre of Australia’s aid program. In
2009–10, Australia increased its support for activities that created jobs, improved food
security, saved children’s lives, gave more people—particularly women and those with
disability—better access to education and health services, provided clean water and
sanitation facilities, and promoted clean energy.
17
Australia’s approach to achieving the Millennium Development Goals recognises that the
goals are inter-related and that efforts to achieve one goal can have an important impact
on others. Australia recognises the importance of developing country leadership on the
achievement of Millennium Development Goals, and partners with a range of domestic
and international agencies to harness expertise and resources for greatest impact.
At a global and regional level, the rate of progress towards the Millennium Development
Goals in 2009–10 has been uneven. The countries of East Asia continued to perform
SECT ION 2
strongly on many of the goals while elsewhere progress has slowed, including in parts of
the Pacific. This was due in part to the ongoing impact of the global recession and high
food and fuel prices.
Australia’s aid program continued to support developing country partners to lift

performance against the Millennium Development Goals. Sustained effort and new
commitments during 2009–10 have focused Australian support on several key elements
of the goals: rural development and food insecurity, the delivery of health and education
services, women’s empowerment, opportunities for the most vulnerable including those
living with disability, the supply of clean water and sanitation, climate change adaptation,
market access and the expansion of new telecommunications technology. Australia’s

commitment to increase aid to 0.5 per cent of gross national income by 2015–16 will
allow Australia to make a major contribution to efforts to speed up progress towards the
goals at both the regional and global level.
There is no internationally agreed method for country reporting against individual

Millennium Development Goals. The annual expenditure of donors, including Australia,
is reported by sectors which have been defined by the Organisation for Economic
Co-operation and Development’s Development Assistance Committee. A range of
reports aim to capture the extent to which progress against the Millennium Development
Goals is being made at a global and regional level. For example, the United Nations
provides a comprehensive annual report on global progress towards the Millennium
Development Goals.
In the Pacific, Australia has supported the production of annual “Millennium Development
Goals tracking” reports. The 2009 Tracking Development and Governance in the
Pacific report was published in August 2009. This analysis noted that some countries
were translating economic growth into reducing poverty and meeting the Millennium
Development Goals. However it also found that overall the region is falling short of
the goals. The report recommended a stronger effort by Pacific Island countries and
development partners to improve governance and development coordination.
The impact of Australia’s support for the Millennium Development Goals is reported
through specific country program assessments, as well as the annual Pacific Regional
Millennium Development Goals tracking reports, the Annual Review of Development
Effectiveness and high level strategic evaluations of the Australian aid program produced
by the Office of Development Effectiveness.
Australia has worked with Pacific Island countries to emphasise mutual accountability
for progress towards the Millennium Development Goals through the negotiation of the
Pacific Partnerships for Development with eight countries. At the 2009 Pacific Islands
Forum, leaders agreed to the Cairns Compact on Strengthening Development Coordination
in the Pacific. The compact recognised that faster progress was needed on the Millennium
Development Goals in the Pacific and a new approach was required for more effective
18
development results. The compact strengthens the coordination of all available resources
for development in line with each country’s national priorities. This includes government
revenue and donor assistance.
Eradicating extreme poverty and hunger: Millennium Development Goal 1

The number of people living in poverty worldwide has continued to fall. By 2015, the
number of people living in poverty (less than US$1.25 a day) is expected to be 900 million
SECT ION 2
in comparison with 1.4 billion people who were living in extreme poverty in 2005.
The sharpest reductions in poverty have been in Asia. Strong economic growth in
East Asia in particular has helped to sustain progress on this goal at a global level.
However, Asia is still home to two thirds of the world’s poor, highlighting the need for
further action to ensure that the benefits of growth are distributed widely and equitably.
Across the Pacific and East Timor, the average economic growth rate for 2009 was
estimated at 2.3 per cent, down from 5.4 per cent in 2008. Although forecasts for 2010
predict some improvement to this rate, the recovery is expected to be slow and will affect
progress on poverty reduction targets in the immediate region. Globally, high food prices
and reduced employment and incomes affected the ability of the poorest families to
access sufficient food and nutrition, a particular concern for the health of children.
Australia’s approach recognises that equitable and sustained economic growth is

essential to reducing poverty. Growth generates employment, private income and
government revenues which can be invested in infrastructure and basic services.
In 2009–10, Australia committed to a range of new programs to reduce the incidence

of poverty and hunger in developing countries. Activities included supporting crop and
livestock production and transport infrastructure, particularly in the Asia Pacific region.
For example, Australia provided $10.5 million in funding for the Challenging the Frontiers
of Poverty Reduction Program in Bangladesh. This program supports the extreme poor
and has contributed to 72 000 families receiving productive assets such as livestock and
small business training to enable them to generate income.
The construction and maintenance of roads and bridges in Solomon Islands,

Papua New Guinea and Vanuatu in 2009–10 has helped generate local employment and
improved access to market. In Solomon Islands, road construction funded by Australia
provided employment to over 4500 Solomon Islanders.
To address hunger and malnutrition, Australia commenced a four-year investment to

support global food production and food security for selected countries in Asia, the Pacific
and Africa, with an estimated value of $464 million. The Australian Centre for International
Agricultural Research (ACIAR) and the Commonwealth Scientific and Industrial Research
Organisation (CSIRO) are playing a key role in research to increase agricultural productivity.
In addition, Australia signed a new $180 million, four-year partnership agreement with

the World Food Programme in 2009–10. This agreement delivers guaranteed and flexible
funding to provide food for those suffering from hunger and malnutrition. Part of this
funding is allocated to school feeding programs in Asia, Africa and Latin America to
address child hunger and improve school attendance rates. In Cambodia, Australian
funding of $6 million to the World Food Programme is providing 8600 metric tonnes of rice
for around 800 000 Cambodians living in hunger, including 578 000 children.
19
Response to the global recession

2009–10 was a difficult year for development. The World Bank estimates that
the global economy contracted by 2.1 per cent in 20091. The implications of this
have been severe for many people in developing countries. Economic growth in
developing countries was only 1.7 per cent in 2009 compared with 8.1 per cent
in 20072. However, if China and India are excluded, the economies of developing
SECT ION 2
countries actually contracted by 1.8 per cent3. The World Bank has estimated
that an additional 64 million people will be living in extreme poverty, on less than
US$1.25 a day, by the end of 2010 as a result of the global recession4.
The fiscal capacity of developing countries to respond to the crisis varied

considerably. Some were able to implement effective policy responses to support
the economy and weathered the global recession relatively well. Others, including
many of the Pacific Island countries, had less capacity to spend on basic services
like health and education.
Although uncertainty remains, the global recovery is underway, with major developing
economies such as China, India, Indonesia and Vietnam taking the lead. The
World Bank estimates that gross domestic product for developing countries will
expand by 6.2 per cent and 6.0 per cent in 2010 and 2011 respectively. The key
challenge for the Australian aid program now is to help our developing country
partners build long-term economic resilience and regain momentum towards
achieving the Millennium Development Goals.
Shared and sustained economic growth remains the most powerful long-term
solution to reducing poverty and is a central theme of Australia’s aid program.
Economic growth creates jobs and income, and generates government revenues
which can be invested back into communities, schools and health facilities. This is
important because health and education are critical drivers of sustained economic
growth. The Australian government is committed to helping developing countries
ensure the benefits of economic growth are equitably distributed, environmentally
sustainable and contribute to progress towards the Millennium Development Goals.
The Australian Government is providing a range of growth enhancing initiatives

in infrastructure investment ($562 million in 2010–11), rural development
($292 million in 2010–11) and microfinance and financial services ($18 to
$20 million a year). These initiatives will help our developing country partners
achieve inclusive growth, build economic resilience and accelerate progress towards
achieving the Millennium Development Goals.
1 World Bank (2010), Global economic prospects: fiscal headwinds and recovery, (1),
http://siteresources.worldbank.org/INTGEP2010/Resources/FullReport-GEPSummer2010.pdf
2 Ibid
3 Ibid
4 Ibid
20
Achieving Universal Primary Education: Millennium Development Goal 2

Achieving universal primary education is central to all the Millennium Development Goals.
There has been strong global progress towards this goal with primary school enrolments
continuing to increase throughout the developing world. The United Nations estimates that
enrolment rates for primary education are now at 89 per cent although completion rates
and the quality of education remain issues of concern in many countries. An estimated
98 per cent of children with disability are denied educational opportunities in developing
SECT ION 2
countries. Australia’s aid program seeks to ensure children with disability have the
same access to education as their peers.
Education is a flagship of the Australian aid program. In 2009–10, Australia’s education

investment in developing countries increased by an estimated 14 per cent from 2008–09
levels. The Australian aid program’s Delivering Better Education initiative is investing
around $540 million between 2007 and 2011 to improve education for young people in
Asia and the Pacific and to help equip them with the skills they need to lead productive
lives. In 2009–10, Australian assistance in Bangladesh helped provide access to
education for the 990 000 children who were not attending school or did not complete
primary school. Of these, 65 per cent were girls and almost 75 000 were children with
special needs. Funding for school infrastructure, classroom resources and assistant
teachers supported 23 123 schools. Over 160 000 teachers received training.
In 2009–10, Australia’s aid program helped get 46 000 girls into school in Pakistan.
It also helped build 104 school buildings in Papua New Guinea, contributing to the
enrolment of an extra 300 000 children in total over the last three years. Children in
Papua New Guinea are also benefiting from a major program providing 539 000 textbooks
for more than 3400 primary schools and a program of support to eight teacher training
colleges. By the end of 2009–10, Australia’s aid program had helped to build or extend
over 2000 junior secondary schools in Indonesia, creating an additional 330 000 new
places (see box).
By joining Australian aid efforts with those of multilateral partners, progress towards the
Millennium Development Goals can occur on a larger scale and further afield. Australia’s
participation in the United Nations Educational, Scientific and Cultural Organization’s
global Education for All Fast Track Initiative provides a way to combine our efforts with
30 other major donors and international organisations to increase the number of children
in school. Australia has committed $50 million to the Fast Track Initiative over four years
to 2011. Through this mechanism, Australia and other donors will help another 20 million
children in Africa attend primary school by December 2010.
21
Indonesia on track to achieve Millennium Development Goal 2

Through the $387 million Australia-Indonesia Basic Education Program, Australia
has assisted Indonesia’s recent impressive gains in education. The program,
implemented between 2005 and 2010, has focused on 21 of Indonesia’s
33 provinces and targeted poor and under-serviced areas, particularly in
Eastern Indonesia.
SECT ION 2
By the end of 2009–10, Australia’s aid program had helped to build or renovate
2074 junior secondary schools, and provided 330 000 new junior secondary
school places for children. An estimated 48 per cent of students enrolled in Basic
Education Program schools are from families earning around US$2 a day. The quality
of education in Indonesia has also improved through the program’s focus on teacher
performance, learning materials and national assessments.
Since 2008, schools under the Australia-Indonesia Basic Education Program have
been built with ramps and accessible toilets, helping to realise the ambition of the
aid program to provide children with disability with the same access to education as
their peers.
With Australia’s assistance and a national net primary enrolment rate of 96 per cent
as well as equal enrolment for girls and boys, Indonesia is on track to achieve
Millennium Development Goal 2.
Australia is working with Indonesia to build more schools and improve access to quality education across
the country
Photo: AusAID
22
Figure 3: Estimated total Australian official development assistance on education 2009–10
Scholarships (24%)
Multi-level education
SECT ION 2
and education
governance (40%)
Basic education (26%)

Secondary and
higher education (4%)
Technical and vocational training (6%)
* Percentages shown based on provisional sector data for 2009–10. This data is subject to review and revision, which may change
the percentages.
Promoting Gender Equality and Empowering Women: Millennium

Development Goal 3
Improving the access of women and girls to education and increasing the number and
role of women in government, business and community leadership will support the
achievement of all Millennium Development Goals. Women’s full participation in economic,
social and political life is a key factor in reducing poverty, enhancing economic growth
and democratic governance, and increasing the health and well-being of women, girls and
their families.
Gender gaps in education are still a concern in many countries in sub-Saharan Africa
and in parts of Asia and the Pacific. The share of women in parliaments increased in
2010 to just 19 per cent worldwide with some countries, including many in the Pacific,
having no female representation at a national level. A number of Pacific Island countries
have experienced increases in the number of women in non-agricultural employment,
but the impact of the global recession has affected further progress. In many countries,
inequalities in wage rates, working conditions and opportunities for women are yet to be
adequately addressed.
Ensuring that girls have the opportunity for an education and women’s employment
and leadership continues to be an important priority for Australia’s aid program. In
Papua New Guinea during 2009, 330 women were trained as district facilitators to
strengthen the management of nearly 3000 primary schools across the country. These
women are role models for other women who aspire to be in management and leadership
positions. Their involvement on school boards is helping to increase female enrolment
rates in schools and address the particular needs of female students.
In Afghanistan, Australia supported CARE Australia to implement a primary education

project with a particular focus on girls from remote communities in seven provinces.
The project aims to provide sustainable access to quality primary education for students
23
by supporting communities to set up schools and providing technical assistance,

classroom supplies and school teacher training. Australia’s support has directly funded
the tuition fees of 370 female secondary students and contributed to the achievement of
70 per cent enrolment rates for female students in the seven target provinces.
Australia has been at the forefront of efforts to eliminate violence against women through
United Nations initiatives and programs in the Pacific region. During 2009, the Fiji
Women’s Crisis Centre in Suva and its three district branches provided counselling and
SECT ION 2
support services to 1802 women who had been subjected to violence. The release of
the report, Stop violence: responding to violence against women in Melanesia and East
Timor, in August 2009, sets out Australia’s priorities and actions to prevent and reduce
violence against women with a particular focus on increasing women’s access to justice
and support services.
Reducing violence against women by increasing the capacities of law and justice bodies
and civil society organisations is a key objective of Australia’s partnership framework with
the United Nations Development Fund for Women. The framework, signed in August 2009,
is valued at $17.7 million over four years. In addition, an Australian Government
contribution of $500 000 to the development fund’s Pacific Fund to End Violence Against
Women in 2009–10 is providing small grants to organisations to help raise awareness of
violence against women and provide counselling, legal support and safe havens.
Australia is providing $42.5 million over four years to advance efforts to eliminate

gender-based violence, promote gender equality and improve maternal and child health
in developing countries through the AusAID-United Nations Population Fund agreement,
signed on 4 December 2009. The partnership includes actions to achieve universal
access to reproductive health by 2015, support the specific needs of females during
humanitarian crises, and improve needs analysis and monitoring to increase the impact of
activities on women and girls.
KAVRE district—women’s cooperative (ADRA)

Photo: AusAID
24
Reduce Child Mortality, Improve Maternal Health and Combat HIV/AIDS,

Malaria and Other Diseases: the health-related Millennium Development
Goals 4, 5 and 6
Progress towards the health-related Millennium Development Goals has been mixed
worldwide. Some of the most significant gains have been in the areas of HIV/AIDS
and malaria prevention and treatment, and in combating childhood disease through
immunisation programs.
SECT ION 2
In 2008, the total annual number of deaths in children under five years of age across
the world fell to 8.8 million, down by 30 per cent from 12.4 million in 19905. However,
reductions in maternal mortality have yet to be achieved in many countries and the
incidence of non-communicable diseases has increased, including in the Pacific.
In 2009–10, the Australian Government invested over $475 million in health services,

health reform, and disease prevention and control activities in developing countries.
This represented an increase of approximately 13 per cent from 2008–09 levels. Of
this funding, nearly $172 million was provided as part of the four-year Delivering Better
Health initiative (2007–08 to 2010–11). Activities in 2009–10 included a focus on
maternal, neonatal and child health programs in five Asian countries, malaria prevention
and eradication in the Philippines and parts of the Pacific, training health workers and
improvements to health sector management across the Asia-Pacific region, and a new
program to address the rise of non-communicable diseases in the Pacific.
In Cambodia, improvements in maternal health have been assisted by an Australian-

funded program which has been training midwives and strengthening reproductive health
services. This has resulted in an 8 per cent increase in the number of deliveries by trained
staff and an 80 per cent increase in post natal care visits. Australian aid has helped to
improve child survival rates in Papua New Guinea. In 2009, more than 900 000 children
in Papua New Guinea were immunised against measles and other childhood illnesses.
In six provinces, more than 95 per cent of children were immunised and child death rates
are gradually decreasing.
Australia’s support to international agencies and initiatives, including the Global Fund to
Fight AIDS, Tuberculosis and Malaria, the GAVI Alliance (formerly the Global Alliance for
Vaccines and Immunisation), the World Health Organization, the United Nations Children’s
Fund and the United Nations Population Fund has helped countries deliver life-saving
interventions such as immunisation and insecticide-treated bed nets, and improve the
treatment of common childhood illnesses. Approximately 80 per cent of Pacific children
are now immunised against a range of diseases through the support of Australia’s aid
program and the United Nations Children’s Fund.
Australia has continued to support regional and global efforts to eliminate the threat of
malaria. Australia’s support for the Pacific Malaria Initiative, and partnerships with the
international Roll Back Malaria initiative and the Global Fund to Fight AIDS, Tuberculosis
and Malaria, have led to major reductions in the incidence of malaria in parts of Asia
and the Pacific. The Pacific Malaria Initiative continues to reduce the incidence of malaria
in Solomon Islands and Vanuatu. Cases of malaria in Solomon Islands decreased from
5 World Health Organization Statistics 2010.
25
199 people per thousand in 2003 to 77 per thousand in 2009. In Vanuatu, new cases
decreased from 74 people to 15 people per thousand between 2003 and 2009. The
Roll Back Malaria Project in Mindanao in the Philippines has contributed to a 32 per cent
reduction in malaria cases and 86 per cent reduction in malaria deaths since 2000. An
estimated 6 million people have already benefited from this project.
Major advances in HIV/AIDS prevention and treatment have been achieved in recent years.
Australian assistance increased the number of patients in Indonesia on anti-retroviral
SECT ION 2
therapy by 50 per cent to over 15 000 by December 2009. In Papua New Guinea,
Australian aid provided funding to help over 6000 people receive anti-retroviral treatment
for HIV, more than double the number in 2007. An Australian funding commitment to the
Joint United Nations Programme on HIV/AIDS of $25 million over four years will continue
to support HIV prevention, treatment, care and support in developing countries.
In September 2009, Australia committed $250 million over 20 years to expanding the

GAVI Alliance’s successful International Finance Facility for Immunisation, designed
to support countries’ health systems. These funds will help countries tackle health
system challenges such as providing maternal and child health care services (including
immunisation), training health staff, building and renovating health facilities and supplying
essential drugs. The expansion of this successful facility will help speed up progress
towards the Millennium Development Goals.
Figure 4: Estimated total Australian official development assistance on health 2009–10
Sexually transmitted
diseases, including
HIV/AIDS (26%)
Basic health care (43%)
Population
policies and
reproductive
health (3%)
Multi-sector health and

health governance (21%)
Medical education, research
and services (7%)
the percentages.
Ensuring Environmental Sustainability: Millennium Development Goal 7

More than 2.5 billion people directly depend on their local natural resources and
ecosystems for food, shelter and income. The Australian aid program recognises that the
sustainable management of environmental resources has a positive impact on people’s
income levels, access to food and their health. Support for this goal has a flow-on effect
to the other Millennium Development Goals.
26
Australia is committed to helping small island developing states and the most vulnerable
countries adapt to the unavoidable impacts of climate change. The commitment of
$328 million through the International Climate Change Adaptation Initiative (2008–2013)
is focused on assisting vulnerable countries by integrating adaptation into development
activities, helping build a better understanding of current and future impacts, supporting
key regional organisations, and funding community-level activities. In 2009–10, practical
assistance was provided to help address climate change impacts on:
• infrastructure, by helping the Vanuatu government upgrade roads and drainage in
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vulnerable areas
• food security, through promotion of crop diversity in the Pacific
• coastal protection, through community mangrove replanting in Fiji
• water, by helping countries in South Asia and the Mekong understand and respond to
climate change impacts on water resources.
Australia has committed funding of $273 million to reducing emissions from deforestation

and forest degradation activities to 2012–13 and was one of six countries to pledge
additional funding for this purpose in Copenhagen in December 2009. Australia’s support
for climate change mitigation through the Indonesia–Australia Forest Carbon Partnership
is increasing Indonesia’s forest carbon measurement capacity and supporting practical
activities to reduce emissions from forests and peatlands.
In 2009–10, Australia provided $25 million to the global Clean Technology Fund, a

unique financing instrument designed to support low-carbon development. It finances
the demonstration, deployment and transfer of low carbon technologies in the energy
and transport sectors with significant potential for long-term greenhouse gas emissions
savings in a range of countries.
A strong focus on water and sanitation through Australia’s aid program has helped
increase access to safe drinking water and basic sanitation, and improve hygiene
practices in many communities in the Asia Pacific region. In Solomon Islands, toilets,
stand pipes and water tanks have been constructed to improve water and sanitation in
38 remote communities. On a larger scale, support to the Mekong River Commission is
improving water resource management and flood control. This is helping to protect the
livelihoods of around 60 million people in the Mekong River basin region which spans six
nations. In 2009–10, Australian funding of $12.7 million helped provide around 1200 new
piped water schemes as well as many small water schemes providing around 2.5 million
people with access to clean water.
27
Develop a global partnership for development: Millennium Development

Goal 8
New and continuing partnerships between countries and organisations in 2009–10 have
helped to combine expertise and resources for greater development impact and faster
progress towards the Millennium Development Goals.
The global recession has impacted on the aid budget commitments of many donors.
Despite the economic challenges, Australia increased its aid program in 2009–10,
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providing official development assistance of over $3.8 billion. The aid budget is forecast
to increase further with Australia’s official development assistance/gross national income
ratio rising from 0.31 in 2009–10 to 0.5 by 2015–16.
Australia continued to advocate for the special development needs of small island
developing states and fragile states at an international level. An estimated 57 per cent of
Australia’s bilateral and regional aid focuses on fragile states—countries that face grave
poverty and the greatest challenges to meeting the Millennium Development Goals.
As chair of the Pacific Islands Forum in 2009–10, Australia ensured that progress
towards the Millennium Development Goals in the Pacific continued to be a focus
for regional action. The 2009 agreement to the Cairns Compact on Strengthening
Development Coordination in the Pacific, and implementation of the Pacific Partnerships
for Development, reflects the enhanced commitment between Australia and other donors
and Pacific Island countries to achieving improved progress towards the Millennium
Development Goals. In addition, the 2009 agreement between Australia and the
Caribbean Community for Australian assistance with climate change adaptation, disaster
risk reduction and natural disaster management, demonstrates Australia’s support to
partnerships focused on the Millennium Development Goals.
Australia’s approach to development recognises the importance of regional initiatives to

promote strong and equitable economic growth and reduce poverty. This included a focus
on trade related infrastructure, trade facilitation and trade policy development. Aid for
trade activities represented around 10 per cent of the total aid program in 2009–10, with
an estimated expenditure of $400 million. Australia provided assistance to developing
countries to build or strengthen their trade and trade-related economic capabilities and
facilitate their participation in the global marketplace.
Australia continued to push for a successful conclusion to the Doha round of multilateral
trade negotiations, particularly to reform distorted trade arrangements in the agricultural
sector. A four-year ASEAN-Australia Development Cooperation Program commenced
to support economic research and policy advice to help implement priority regional
economic integration measures in South-East Asia. In addition, funding for transport
infrastructure, including the upgrading of national and provincial roads in Cambodia,
Laos and Vietnam to connect to the ASEAN highway network, is facilitating trade through
more efficient movement of goods, vehicles and people. In the Pacific, the Pacific
Regional Agricultural Market Access program is assisting countries to export agricultural
products to key markets, including Australia, by helping them to meet customs and
quarantine requirements.
28
Consultative Forum on Aid

A new mechanism for dialogue between the Australian Government and Australian
organisations working in the aid and development sector started in September
2009. Representatives of non-government organisations, the private sector and
tertiary institutions participated in the Consultative Forum on Aid. The dialogue was
hosted by the Parliamentary Secretary for International Development Assistance,
SECT ION 2
Bob McMullan, in Sydney and Melbourne in 2009 and in Canberra in 2010. The
forum provided an opportunity to share knowledge on aid effectiveness and ideas to
make faster progress towards the Millennium Development Goals.
Participants in the Consultative Forum on Aid in Canberra, 2010
Photo: AusAID
How AusAID assesses performance

In December 2007, AusAID introduced a performance management and evaluation policy
to better assess the performance of the Australian aid program. The policy sets out the
minimum performance expectations at the strategy, program and activity levels. As a
result AusAID reports on performance against the outcomes at these levels, as well as
against AusAID’s key performance indicators. There are three basic types of performance
reports—annual performance reports, quality reports and independent evaluations.
Annual performance reports describe the performance of a particular program over the
reporting period—including against country, regional or thematic strategy objectives—and
specify actions that can be taken to improve effectiveness. Objectives are based on an
analysis of the relevant situation and the development priorities of our partners, and
represent what we believe can realistically be achieved in a given country or sector. Annual
performance reports include Development Cooperation Reports, Pacific Partnership for
Development Reports and annual reporting on selected thematic or global programs.
Assessment at the program objective level is based on the quality reporting instruments
outlined below. The program report and ratings involve partner government input and
assessment, and are subject to whole-of-Australian-Government scrutiny.
29
Quality reports are mandatory at the entry and implementation stages for all aid
activities where:
• the expected Australian Government contribution to the activity over its entire life is
greater than $3 million
• an activity is significant for its country and corporate strategies or key relationships
with other development partners, including whole-of-government partners.
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A quality at entry report is produced as part of the quality assurance process in the
design stage of an activity. Quality reports assess how individual aid activities contribute
to overall program objectives and ensure that periodic monitoring against specific
criteria is carried out that allows program managers to identify and manage emerging
issues. They are also the source of information for performance reports which AusAID
publishes annually.
All assessed activities are gauged against the following seven criteria:
• relevance: contribute to higher-level objectives of the aid program as outlined in
country and thematic strategies
• effectiveness: achieve clearly stated objectives and continually manage risks

• efficiency: manage the activity to get maximum value for money from aid funds, staff
and other resources
• monitoring and evaluation: able to effectively measure progress towards
meeting objectives
• analysis and learning: based on sound technical analysis and continuous learning
• sustainability: address how the benefits of the activity can be sustained after funding
has ceased, with due account given to partner government systems, stakeholder
ownership and phasing out issues
• gender equality: advance gender equality and promote the role of women.
Activities are rated using a six-point scale grouped into two categories:
• satisfactory—very high quality, good quality or adequate quality
• unsatisfactory—less than adequate quality, poor quality or very poor quality.
An assurance process assessing the reliability and validity of ratings is also in place to
ensure consistency and adherence to standards.
Independent evaluations of activities against the seven quality criteria above are
commissioned at least once every four years. Each year AusAID also commissions a
number of evaluations at sectoral and country strategy levels. These are often conducted
by the Office of Development Effectiveness, but individual program areas may also
commission evaluations in response to program specific issues.
30
Effectiveness—overall achievement
of outcomes
Outcome 1—To assist developing countries to reduce poverty and achieve sustainable
At the individual aid activity level, AusAID achieved its overall target of more than
75 per cent of activities being rated satisfactory or higher against the effectiveness
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criterion at the quality at implementation stage. Quality at implementation reports were
completed for 409 out of 455 activities. Of these, 83 per cent were rated satisfactory or
above on the effectiveness criterion according to AusAID’s six-point scale below.
Satisfactory Less than satisfactory
6 Very high quality; needs ongoing 3 Less than adequate quality; needs work to
management and monitoring only. improve in core areas.
5 Good quality; needs minor work to 2 Poor quality; needs major work to improve.
improve in some areas.
4 Adequate quality; needs some work 1 Very poor quality; needs major overhaul.
to improve.

AusAID achieved its overall target with more than 75 per cent of Australia-Indonesia
Partnership for Reconstruction and Development (AIPRD) activities receiving a quality
rating of satisfactory or higher. All 17 initiatives submitted quality at implementation
reports in 2009–10 and 88 per cent of these were rated satisfactory or above on the
effectiveness criterion according to the six-point scale.
Total Australian official development assistance

Figure 5 shows total estimated Australian official development assistance in 2009–10
across major regions. The estimated sectoral breakdown of Australian official development
assistance is shown in figure 6. Appendix C provides a more detailed breakdown of
Australia’s expenditure on overseas aid.
31
Figure 5: Estimated total Australian official development assistance by region 2009–10
Papua New Guinea Indonesia and

and Pacific (27%) East Asia (28%)
SECT ION 2
South Asia (4%)
Africa (4%)
Global and other
regions (30%) Middle East and
Central Asia (7%)
Figure 6: Estimated total Australian official development assistance by sector 2009–10
Infrastructure (9%)
Other sectors and
multi-sector (16%)
Humanitarian, emergency
and refugee aid (10%)
Rural development
and food security (6%)
Health (13%)
Education (14%)
Environment and natural

Governance (28%) resource management (4%)
the percentages.
32
Summary of performance67
Indicator Result 2009–106
Program 1.1 Official Development Assistance Papua New Guinea and Pacific
At least 75 per cent of activities receive 82 per cent of the aggregated quality ratings for
a quality rating of satisfactory or higher; Papua New Guinea and Pacific programs were satisfactory
at least 75 per cent of program strategy or higher. 93 per cent of program strategy objectives were
SECT ION 2
objectives fully or partially achieved; fully or partially achieved. 31 per cent of program strategy
significant development results; objectives were fully achieved and 62 per cent of program
significant activity outputs. strategy objectives were partially achieved. Significant
development results and activity outputs are reported by
individual programs on pages 35 to 63.
Program 1.2 Official Development Assistance East Asia
At least 75 per cent of activities receive 81 per cent of the aggregated quality ratings for East
a quality rating of satisfactory or higher; Asia programs were satisfactory or higher. 90 per cent
at least 75 per cent of program strategy of program strategy objectives were fully or partially
objectives fully or partially achieved; achieved. 43 per cent of program strategy objectives
significant development results; were fully achieved and 47 per cent of program
significant activity outputs. strategy objectives were partially achieved. Significant
development results and activity outputs are reported by
individual programs on pages 64 to 93.
Program 1.3 Official Development Assistance Africa, South and Central Asia, Middle East
and Other
At least 75 per cent of activities receive 83 per cent of the aggregated quality ratings for Africa,
a quality rating of satisfactory or higher; South and Central Asia, Middle East and other programs
at least 75 per cent of program strategy were satisfactory or higher. 100 per cent of program
objectives fully or partially achieved; strategy objectives were fully or partially achieved7.
significant development results; 36 per cent of program strategy objectives were fully
significant activity outputs. achieved and 64 per cent of program strategy objectives
were partially achieved. Significant development results
and activity outputs are reported by individual programs
on pages 95 to 117.
Program 1.4 Official Development Assistance Emergency, Humanitarian and Refugee Program
At least 75 per cent of emergency, 88 per cent of the aggregated quality ratings for
humanitarian and refugee activities emergency, humanitarian and refugee programs were
receive a quality rating of satisfactory or satisfactory or higher. 100 per cent of program strategy
higher; at least 75 per cent of program objectives were fully or partially achieved. Organisations’
strategy objectives fully or partially significant outputs and humanitarian results are
achieved; organisations’ significant highlighted on pages 118 to 122.
outputs; significant humanitarian results.
6 From 2009–10, all general government sector agencies were required to report on a program basis, resulting
in a transition from reporting on administered items, outputs and output groups in 2008–09 to the program
reporting framework used for the 2009–10 budget.
7 This rating refers to Africa, South Asia and Pakistan. Annual program reports are not required for Iraq,
Afghanistan and Palestinian Territories.
33
Indicator Result 2009–10

Programs 1.5 and 1.6 Official Development Assistance United Nations, Commonwealth and
other International Organisations and Multilateral Replenishments
At least 75 per cent of organisations 100 per cent of the quality ratings for United Nations,
receive a rating of satisfactory or higher; Commonwealth and other international organisations and
at least 75 per cent of program strategy Multilateral organisations were satisfactory or higher*.
objectives fully or partially achieved; 100 per cent of program strategy objectives were fully or
organisations’ significant outputs; partially achieved. Organisations’ significant outputs and
significant development results. development results are highlighted on pages 123 to 135.
SECT ION 2
Program 1.7 Official Development Assistance Non-government organisations, Volunteer and

Community Programs
At least 75 per cent of non-government 100 per cent of the quality ratings for non-government
organisations, volunteer and community organisations, volunteer and community programs were
activities receive a quality rating of satisfactory or higher. 100 per cent of program strategy
satisfactory or higher; at least 75 per objectives were fully or partially achieved. Organisations’
cent of program strategy objectives significant outputs and development results are
fully or partially achieved; significant highlighted on pages 136 to 159.
organisation outputs; significant
development results.
Departmental support: Outcome 1

Increased awareness of, and The information, communication and education programs
support for, Australia’s international effectively promoted the role of Australia’s development
development assistance program assistance and supported relevant stakeholders.
among international, rural, regional and
metropolitan audiences.
Ministerial and Parliamentary Secretary In 2009–10, the Parliamentary Secretaries and Minister
satisfaction. expressed satisfaction with the high quality support
services provided by AusAID and the provision of timely
and accurate documents.
Implementation of the aid program’s In 2009–10, AusAID continued to make progress
performance management and in implementing the performance management and
evaluation policy, including the evaluation policy. There was 97 per cent compliance with
production of the Annual Review of reporting at the implementation stage of the activity cycle
Development Effectiveness. and 81 per cent compliance with annual performance
reports at the program level.8 The 2009 Annual Review
of Development Effectiveness was tabled in Parliament
in August 2010 and the 2010 review is currently being
prepared by the Office of Development of Effectiveness.
Program 2.1 Official Development Assistance East Asia (AIPRD)
At least 75 per cent of activities receive 88 per cent of the aggregated quality ratings for the
a quality rating of satisfactory or higher; AIPRD were satisfactory or higher.
at least 75 per cent of program strategy
Achievement of program strategy objectives are reported
objectives fully or partially achieved*;
and assessed within the Indonesia program portfolio.
significant development results;
significant activity outputs. Significant development results and activity outputs are
reported on pages 171 to 173.
* These satisfaction ratings refer to core funding and global programs with multilateral partners. The satisfaction ratings of country program
co-financing arrangements with multilaterals are assessed within specific country programs ratings.8
8 Annual Program Reports have not yet been prepared for the following programs: Pakistan, due to the recent
natural disaster and postponement of partnership talks; Nauru, due to the caretaker government arrangements;
Pacific Regional and Fiji.
34
Program 1.1 ODA— Papua New Guinea and Pacific
Program 1.1 ODA—

Papua New Guinea and Pacific
Summary of performance
Indicator Result 2008–09 Result 2009–109
SECT ION 2
At least 75 per cent of activities 87 per cent of the aggregated 82 per cent of the aggregated
receive a quality rating of quality ratings for Papua New quality ratings for Papua New
satisfactory or higher. Guinea and Pacific programs Guinea and Pacific programs
were satisfactory or higher. were satisfactory or higher.
At least 75 per cent of program N/A* 93 per cent of program strategy
strategy objectives fully or objectives were fully or partially
partially achieved. achieved. 31 per cent of
program strategy objectives
were fully achieved and
62 per cent of program strategy
objectives were partially
achieved.
Significant development results; Significant development
significant activity outputs. results and activity outputs are
reported by individual programs
on pages 36 to 63.
* This indicator was introduced in 2009–10 and was not reported against in 2008–09.9
35
Papua New Guinea

In 2009–10, AusAID country program aid to Papua New Guinea totalled $394.9 million.
Other Australian assistance through AusAID’s regional and global programs and through
other government departments brought total ODA to an estimated $445.9 million.
Overview
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In 2009–10, two high profile reviews of Australian aid to Papua New Guinea
were undertaken.
In April 2009, then Prime Minister Kevin Rudd and Papua New Guinean Prime Minister
Michael Somare agreed to an independent review of the Treaty on Development
Cooperation (1999) that underpins the Australian aid program in Papua New Guinea. The
review considered how Australia’s aid could most effectively contribute to Papua New
Guinea’s medium and long-term development priorities and aspirations. The report was
completed in April 2010. The review assessed the performance of both the Papua New
Guinean and Australian governments and provides a number of clear recommendations on
how to improve the effectiveness of assistance, narrowing the focus of our assistance,
reducing our use of advisers and placing greater focus on service delivery to benefit the
people of Papua New Guinea. Papua New Guinea and Australia will jointly respond to the
review in due course.
In January 2009, Mr Rudd and Mr Somare also commissioned an independent review of

Papua New Guinea’s universities to provide recommendations on ways to strengthen the
capacity of the country’s university system to produce quality graduates who contribute
to its economic and social development. The review was undertaken by Professor
Ross Garnaut and Sir Rabbie Namaliu and identified key issues facing the country’s
universities. The findings of the review are currently being considered by the Australian
and Papua New Guinean governments.
Figure 7: Estimated total Australian official development assistance to Papua New Guinea
by sector 2009–10
Rural development (2%)

Other sectors and multi-sector (7%) Education (15%)
Infrastructure (13%)
Humanitarian,
emergency and
refugee (1%)
Health (21%) Governance (41%)
the percentages.
36
PROGRAM 1.1 ODA—PAPUA NEW GUINEA AND PACIFIC
Partnership for development

Wherever possible, Australia seeks to support Papua New Guinea’s national development
plans and targets. This avoids duplicating our efforts and builds Papua New Guinea’s
capacity to fund and deliver services in the long term. In 2009–10, our two countries
continued to work towards commitments under the Papua New Guinea–Australia
Partnership for Development, addressing transport infrastructure, basic education, health,
public service and statistics. Work also started on developing schedules for three new
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priority areas: HIV and AIDS, higher education and technical and vocational education and
training, and law and justice. These schedules are expected to be completed in 2010–11
and will reflect recommendations of the Development Cooperation Treaty Review.
Basic education
Basic education not only directly improves living standards, but is also fundamental to
building longer term economic growth and social development. Basic education leads to
higher productivity in agriculture, develops the basic skills needed for the formal workforce
and provides an entry into higher education.
The Papua New Guinea–Australia Partnership for Development supports Papua New
Guinea’s Universal Basic Education Plan, which aims to ensure all school age children
complete nine years of education.
Papua New Guinea, with Australian support, has made strong progress over the past three
years towards achieving universal basic education. The net enrolment rate for 6 to 14 year
olds has increased significantly, from 52.9 per cent in 2007 to 63.6 per cent in 2009.
Key achievements in 2009–10 included:

• constructing classrooms and other school buildings in 229 schools, including
176 double classrooms, 47 teacher houses and 13 other buildings such as libraries,
administration, toilets and fencing
• providing maintenance grants to 189 schools for small rehabilitation works
• procuring and distributing 539 000 textbooks and printing and distributing
180 000 HIV/AIDS booklets to schools and provinces
• expanding the Papua New Guinea Education Institute in Port Moresby with the
introduction of a new residential course for 300 elementary school teachers and
provision of in-service teacher training to 33 000 teachers
• strengthening schools through support for provincial education offices.
Australia directly supports improved development outcomes for girls in education

through school infrastructure including girls’ toilets and grants to schools to improve
retention rates.
Australian assistance for education is likely to expand significantly in the coming years.
37
SECT ION 2
Re p o rt o n p e r fo r m a n c e AUSAID ANNUAL REPORT 2009–2010
Students at Taurama Primary School in Papua New Guinea. The Australian and Papua New Guinean governments have
agreed to work towards placing an extra 300 000 children into school over the next five years
Photo: Rocky Roe
Higher education
Papua New Guinea and Australia have agreed to work together to strengthen higher
education and technical and vocational education.
Development in Papua New Guinea is constrained by a shortage of skilled, qualified

people across key sectors of the workforce. The shortage of skilled workers is a result
of the country’s universities and trade schools not producing enough quality graduates.
Australia is helping address this issue through the Australia Pacific Technical College
and scholarships to provide high quality graduates with Australian awards at vocational,
undergraduate, postgraduate and doctoral levels.
The Australia Pacific Technical College provides training to Papua New Guineans in
the automotive, manufacturing, construction and electrical trades, and in hospitality
and tourism.

• supporting 399 Papua New Guinean students currently enrolled in the Australian
Pacific Technical College, of which 123 have Australian scholarships
• granting 130 students an Australian Development Scholarship, and a further 11 an
Australian Leadership Awards Scholarship.
38
Health
The health schedule of the Papua New Guinea–Australia Partnership for Development
commits Australia to support the Papua New Guinean government to implement its
national health plan and assist it to achieve the Millennium Development Goals.
There have been improvements in some areas of the Papua New Guinean health system.
Infant and child health has improved in recent years, with the under-five mortality rate
falling from 94 deaths per 1000 live births in 1990 to 74 deaths per 1000 live births in
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2006. In other areas progress remains slow. Access to health services remains limited
and health outcomes for women continue to be a major concern with maternal mortality
doubling between 1996 and 2006.

• maintaining and supporting the largest non-military high frequency radio network in
the southern hemisphere, consisting of over 1300 high frequency radios installed in
all health centres and some aid posts across every province of Papua New Guinea.
The health radio network is widely recognised as vital infrastructure that saves lives
every day
• launching a new program for medical training at the University of Papua New Guinea
School of Medicine and Health Sciences, which supports the training of doctors,
specialists, postgraduate nurses and allied health professionals
• supporting 14 new sexually transmissible infection clinics in the Momase and
Highlands regions, where services were previously non-existent or very limited
• supporting the National Department of Health to secure significant additional
government funds through the 2010 Papua New Guinea budget
• supporting the national and provincial command centres to control the first outbreak of
cholera in 50 years. Australia also supported cholera control activities, purchased oral
rehydration salts, water purification tablets and water containers, and provided logistic
support through the Australian Defence Force.
39
SECT ION 2 AUSAID ANNUAL REPORT 2009–2010
A child immunisation clinic along Kokoda Track. AusAID supports health clinics to travel to the Kokoda region to train
villagers in the importance of basic health care and immunisation
Photo: Roger Wheatley
HIV and AIDS

Reducing the HIV infection rate is a growing challenge for Papua New Guinea. Australia is
the largest contributor to Papua New Guinea’s response to the epidemic through our HIV/
AIDS and health programs.
Papua New Guinea and Australia have agreed to work together to stabilise the spread
of HIV by 2020. Australia supports Papua New Guinea’s HIV response by improving
prevention measures, testing, care, counselling, treatment and support. Young women
are increasingly vulnerable to HIV in Papua New Guinea, accounting for 36 per cent of
reported new infections in the 15 to 29 age group in 2009.

• supporting 72 per cent of eligible people to access treatment—6324 people—
compared with zero per cent in 2003
• supporting 226 clinic sites to provide HIV testing services across Papua New Guinea,
an increase from 61 sites in 2006
• supporting more than 115 000 people to receive voluntary counselling and HIV
testing, compared to 32 645 in 2006
• supporting the procurement of over 108 million condoms through the National
Department of Health, National AIDS Council Secretariat and AusAID, compared with
less than 5 million condoms in 2008
• increasing the number of support networks for people living with HIV/AIDS to seven
with over 1500 members up from only three such networks in 2006
• supporting non-government organisations, such as churches and the Clinton
Foundation, to provide testing, prevention services and treatment across
Papua New Guinea.
40
Transport infrastructure
With over 85 per cent of Papua New Guinea’s population living in rural and remote
areas, good transport infrastructure is critical for development. Roads and highways are
essential for people to take their goods to market to earn an income, to get to schools
and hospitals, and for the government to deliver services to those in rural areas. The
Papua New Guinea–Australia Partnership for Development supports the implementation
of Papua New Guinea’s National Transport Development Plan and the National Transport
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Strategy 2010–2030.

• increasing the proportion of priority roads in good condition from 32.7 per cent in
2007 to 39 per cent in 2009
• maintaining 1700 kilometres of priority national roads and over 300 kilometres of
additional key roads
• improving transport security standards at airports and ports, and ensuring that
12 airports are compliant with certification requirements
• improving governance and management within transport sector agencies
• refurbishing the Buka Wharf in Bougainville, and maintaining 416 kilometres of the
Bougainville trunk road.
Public service
A well-trained and properly resourced public sector is key to improving service delivery
in Papua New Guinea. This is a long-term challenge and through the partnership for
development, Papua New Guinea and Australia are working to support an efficient and
effective public service with improved public sector capacity and performance, and
improved budgeting and financial management.
One of the key constraints to service delivery in Papua New Guinea is inadequate funding
for provinces to meet their service delivery responsibilities. A new intergovernmental
financing regime, which is the result of seven years of assistance to the National and
Economic Fiscal Commission, commenced in 2009. This helped deliver a 25 per cent
increase in service delivery funding to provinces compared with 2008. The system also
introduced conditionality which is designed to ensure that provinces spend these funds on
education, health, agriculture, infrastructure and law and order as intended.

• assisting the Papua New Guinea Department of Treasury to manage a strong budget
process and improve outreach across national agencies
• assisting the Department of Finance to improve budget processes and engage with
the provinces
• supporting the reinvigoration of the internal audit committee program
• assisting the Auditor General’s office to clear the audit backlogs from 2007 and 2008
and to complete 2009 audits on time
41
• assisting the Papua New Guinea Institute of Public Administration to strengthen

financial management practices and systems
• supporting the provincial capacity building program to improve financial management
by provincial and district treasuries in six provinces.
Law and justice

Law and justice issues are a serious concern in Papua New Guinea. Under the partnership
SECT ION 2
for development, Australia’s assistance to the law and justice sector supports the country
to achieve its vision of achieving ‘a just and safe society for all in Papua New Guinea’.
While the Papua New Guinea government must primarily address law and justice issues,
Australia is providing assistance in a number of important areas including courts,
corrections, legal institutions and crime prevention.

• supporting 1400 village courts, which provide many Papua New Guineans with access
to justice services. Significant improvements have also been made in the number of
female village court magistrates, increasing from 10 in 2004 to 384 in 2009

• supporting a coordinated approach to mediation and resolution for tribal fights in the
eastern highlands, which has seen 66 per cent of these conflicts become dormant or
normalised and helped improve law and order
• providing advisory support to law and justice agencies in Bougainville
• supporting the Yumi Lukautim Mosbi (Let’s look after Port Moresby) program in Port
Moresby to help young people find employment and other alternatives to crime, and
bring the police together with local government, businesses and communities to
address law and order concerns
• supporting anti-corruption reforms which have strengthened responses to fraud and
corruption within the law and justice agencies.
Inspector Andy Bawa and volunteers involved in the Krismas Seif (Christmas Safe) campaign, a public safety campaign
at Christmas, part of the larger Yumi Lukautim Mosbi program. Yumi Lukautim Mosbi is reducing crime by providing an
income and job security for those who believe they had no option other than to steal
Photo: Andrew Tully
42
Statistics
Under the partnership for development, Papua New Guinea and Australia are working
together to improve data and statistics for monitoring development outcomes and policy
making. Reliable and current statistics are essential for planning, budgeting and delivering
basic services. Australia provides assistance and funding to Papua New Guinea to:
• conduct the household income and expenditure survey, for which six months of data
collection was completed in 2009–10
SECT ION 2
• undertake the next national population census
• improve collection, analysis and use of development data in policy formulation, through
a new national statistical development strategy.
Gender equality
Papua New Guinea faces a number of challenges in gender equality, including a lack of
women in decision-making positions at a national and community level combined with few
women employed in the public sector. This is further exacerbated by the large number of
women subjected to violence—two out of three women experience domestic violence—and
the low net school enrolment rate for girls—only 61.2 per cent in 2009.

• establishing 19 ‘Stop Violence’ centres in provincial hospitals and three sexual and
family violence units in police stations
• supporting the introduction of interim protection orders, which provide legal support to
victims of family or sexual violence or other gender based crime
• getting messages out to the public by training National Broadcasting Commission staff
to promote gender equity and radio programming addressing gender based violence
and men’s health issues
• awarding Australian Development Scholarships on a 50/50 gender ratio
• working with the Papua New Guinea Department of Health to remove fees for the
treatment of domestic violence, sexual abuse and child abuse cases in hospitals
• training over 300 women across Papua New Guinea to work with schools and
communities to keep girls in school and maintain schools in a way that recognises
girls’ needs.
43
The Pacific
In 2009–10, Australian country and regional program support to Pacific Island countries
(excluding Papua New Guinea) totalled an estimated $447.3 million. Other Australian
assistance through AusAID’s global programs and through other government departments
brought total ODA to an estimated $579.0 million.
In 2009–10, the global economic crisis had a significant impact on all Pacific Island
SECT ION 2
countries, largely through pressure on tourism, falls in remittance flows and in the value of
offshore national trust funds. As a result, a number of Pacific Island countries experienced
negative economic growth, falling government revenues and increased vulnerability.
Australia supported Pacific Island countries to respond to the global economic crisis and
improve their resilience to other external shocks such as natural disasters by helping
strengthen national economic management and by improving the delivery of basic services
such as health care and education.
In 2010–11, economic growth rates across the region are expected to be uneven,
with better managed countries such as Vanuatu performing well, and others facing
difficulty. Even without the impacts of the global economic crisis, progress by Pacific
Island countries in achieving the Millennium Development Goals has been mixed. Data
on poverty reduction in line with Millennium Development Goal 1 is lacking for most
countries, but where available, indicates that while extreme poverty remains rare in the
region, the incidence of basic-needs poverty has been increasing.
Across the region, good progress is being made towards Millennium Development Goal
2—universal primary education—with only Papua New Guinea significantly off-track to
meet it. More children are entering the school system—the challenge is how to maintain
the level of participation and improve the quality of teachers. Australia is helping to get
more children into school by supporting Samoa, Vanuatu and Solomon Islands to phase
out school fees for primary school students.
While some progress has been made in the Pacific in improving health outcomes,
particularly in reductions to infant and under five mortality—Millennium Development Goal
4—more needs to be done to improve maternal health and to reduce maternal mortality—
Millennium Development Goal 5. Progress on maternal health has been very mixed in
the region. National health systems need further strengthening if they are to improve the
delivery of essential services and provide skilled health workers to help the people most
in need.
Despite these challenges, the Pacific Partnerships for Development which have
been signed with eight Pacific Island countries, coupled with the Cairns Compact on
Strengthening Development Coordination in the Pacific, will ensure that Australian
assistance is best positioned to help partner governments respond to the development
challenges they face.
44
Figure 8: Estimated total Australian official development assistance to the Pacific by

country 2009–10
Samoa (7%)
Nauru (4%)
Kiribati (4%) Regional and other (27%)
Tonga (4%)
SECT ION 2
Vanuatu (10%)
Solomon Islands (38%)

Fiji (6%)
Progress against 2009 Pacific Island Forum outcomes
The 2009 Pacific Islands Forum Leaders’ meeting in Cairns, chaired by Australia,
featured a number of important agreements by leaders which are contributing to
better development outcomes in the Pacific and progress towards the Millennium
Development Goals.
A key outcome of the forum was the Cairns Compact on Strengthening Development
Coordination in the Pacific. The compact aims to drive more effective coordination of
development resources to accelerate progress against the Millennium Development
Goals by ensuring that efforts of donors and partner governments work more effectively.
Implementation of the compact is progressing well and is strengthening the leadership of
Pacific Island countries development agendas, while encouraging development partners to
work together more effectively.
At the forum, Pacific leaders agreed on the need to build economic resilience in the
region and AusAID is working closely with all forum island countries on this outcome. A
joint Australian/New Zealand report entitled Surviving the global recession: strengthening
economic growth and resilience in the Pacific was presented at the forum. The
report found that Pacific Island countries are experiencing lower growth, a worsening
macroeconomic outlook and increased poverty.
The report sets out a four pillar framework for response:

• safeguarding macroeconomic stability—the immediate priority, to be achieved
principally through fiscal adjustment
• strengthening budgetary management, protecting core services and assisting
the vulnerable
• continuing reforms to improve competitiveness and underpin longer term growth
and development
45
• coordinating assistance from development partners using a framework of country

policy responses.
In Solomon Islands for example, Australia has been a key advocate in the development
of the Solomon Islands—Donor Core Economic Working Group, which has helped the
government progress key economic reforms.
A second report also presented to the forum, Tracking development and

governance in the Pacific 2009, focuses on the Millennium Development Goals and
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development coordination.
Leaders also issued a Call to Action on Climate Change to help build an international
consensus for urgent action on climate change issues. At the forum, Australia announced
a $50 million package to support Pacific climate change adaptation initiatives and over
the last 12 months has started to implement this. For example, work has started on
upgrading the network of 12 sea level and climate monitoring stations in the Pacific, and
water tanks have been provided to over 85 per cent of households on the main island of
Funafuti in Tuvalu to improve the reliability of fresh water supplies.
Another key forum initiative was targeted at helping address energy security and
affordability in the Pacific.
Australia is providing $25 million over four years from 2009–10 to improve access

to clean and affordable energy services in the Pacific through renewable energy, energy
efficiency and improved fuel procurement. For example, Australia is assisting the Tongan
government to develop an energy road map, charting the course for reduced fossil
fuel dependence and expanded access to energy services. Australia also co-hosted a
special meeting of forum energy ministers in June 2010 to discuss better coordination of
financing for clean and affordable energy.
Cairns compact drives Pacific progress on Millennium

Development Goals
Pacific leaders agreed to the Cairns Compact on Strengthening Development
Coordination in the Pacific at the 2009 Pacific Islands Forum. The compact arose
from concerns that, despite high levels of development assistance over many years,
the Pacific region remains off-track to achieve the Millennium Development Goals by
2015. Under the compact, Pacific Island countries and their development partners
have committed to redouble their efforts to accelerate progress towards the
Millennium Development Goals by strengthening leadership of their own development
agenda and encouraging development partners to work together more effectively in
the region.
The compact sets out actions designed to improve the coordination and use of
development resources in the Pacific in line with international best practice as
expressed in the Paris Declaration on Aid Effectiveness and Accra Agenda for Action.
46
These processes aim to better align budget and donor support, strengthen aid
coordination and delivery systems, and enhance development data to improve
decision-making. Through these changes, the compact has the potential to bring
about real and lasting improvements to the way that Pacific Island countries and
their development partners deliver aid.
As chair of the forum, Australia played a major role in establishing the compact, and
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has engaged in the range of new reporting, review and other processes that have
been successfully established, involving forum countries, development partners and
the forum’s secretariat. These processes have identified a number of good practice
examples of development coordination in which Australia is an active participant.
In Vanuatu for example, Australia has collaborated with the government and other
development partners to support universal primary education through the Vanuatu
Education Roadmap 2010–2012, including through support for fee-free primary
education. The roadmap is a collaborative, Vanuatu-led and implemented reform plan
supported by Australia, New Zealand, the United Nations Children’s Fund, France,
the World Bank and the European Union. The approach reflects Vanuatu’s efforts—
strongly supported by Australia—to transition to more coordinated, program-based
forms of development assistance in education, as well as health, infrastructure
and agriculture.
In Solomon Islands, Australia was a key advocate for development partners aligning
and harmonising their support to the government on economic and fiscal reform
through the joint Solomon Islands Government—Donor Core Economic Working
Group. Formed in 2009 in response to the global economic crisis, the group is
led by the Solomon Islands government and supported by Australia and all key
development partners in the economic sector. It has improved dialogue on economic
management issues and created better development partner coordination and more
harmonised approaches.
The forum secretariat has ongoing

responsibility for implementing the
compact, and Australia is supporting
this work. The secretariat will report
annually to leaders and development
partners on progress against the
compact as part of the Pacific Islands
Forum’s post-forum dialogue.
AusAID Director General Peter Baxter discusses the compact with Secretary General of the Pacific Islands Forum
Secretariat, Neroni Slade, at a meeting in Sydney in March 2010
Photo: AusAID
47
Pacific Partnerships for Development

Australia gives high priority to its relationships with Pacific Island countries—both as
a neighbour and a key bilateral donor in the region. Progress to meet the Millennium
Development Goals is mixed in Pacific Island countries and a concerted effort is needed
to improve the impact and effectiveness of the Australian aid program through the Pacific
Partnerships for Development.
Australia has continued to work with Pacific Island countries in the spirit of the 2008
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Port Moresby Declaration, which marked a new approach to development cooperation

in the Pacific. The declaration commits Australia and Pacific partner countries to work
closely together to improve the well-being of Pacific islanders, with a specific focus on
achievement of the Millennium Development Goals.
The Pacific Partnerships for Development are the framework for this new approach and
are modelled on international best practice in aid. The partnerships align with national
government development plans and set out joint commitments by leaders to achieve
specific development outcomes, such as putting more children in school and reducing the
number of women who die in childbirth. The partnerships are complemented by efforts
to improve development effectiveness through the Cairns Compact on Strengthening
Development Coordination in the Pacific.
In 2009–10, new partnerships were signed with the leaders of Nauru, Tonga and Tuvalu,
bringing the total to eight. This followed the signing of partnerships with Papua New
Guinea, Samoa, Solomon Islands, Kiribati and Vanuatu in 2008–09.
Partnership talks are held each year between senior officials from both countries to
jointly assess progress and revise commitments where required. The annual talks
elevate dialogue on development policy to the highest levels and mutual responsibility for
achieving the Millennium Development Goals is strengthened. In 2009–10, partnership
talks were held for the first time with Papua New Guinea, Kiribati, Samoa and Vanuatu.
In addition to the Pacific Partnerships for Development, the Regional Assistance

Mission to Solomon Islands partnership framework was agreed with the Solomon
Islands government and forum leaders, and tabled in the Solomon Islands parliament in
November 2009.
Pacific bilateral programs
Solomon Islands
Australia delivers support to Solomon Islands through a bilateral aid program, participation
in the Regional Assistance Mission to Solomon Islands (RAMSI), AusAID’s regional and
global programs, assistance from other government departments, and through multilateral
organisations. Our assistance aims to achieve a more prosperous and secure future for
the country by addressing long-term development and security challenges.
48
In 2009–10 AusAID country program aid to Solomon Islands totalled $109.0 million,

comprising:
• $57.1 million for the bilateral program
• $51.9 million AusAID contribution to RAMSI.
Other Australian assistance through AusAID’s regional and global programs and through
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Australia’s bilateral aid program is guided by the Australia-Solomon Islands Partnership
for Development, signed in January 2009. The partnership focuses on health, education,
rural development, infrastructure—including roads, energy and telecommunications—and
management of economic and fiscal challenges.
Key achievements in 2009–10 through the bilateral program included:

• supporting a reduction in malaria rates, which fell from 199 cases per thousand
people in 2003 to 77 cases per thousand in 2009
• improving access to markets and essential services for thousands of Solomon
Islanders through support for upgraded roads, bridges, toilets, wells and water tanks
which have been installed in 38 remote communities
• supporting a Solomon Islands initiative to remove school fees that has helped over
140 000 young Solomon Islanders receive an education.
RAMSI priorities are guided by the Solomon Islands government–RAMSI partnership

framework and focus on three agreed core programs: economic governance and growth,
machinery of government, and law and justice. This support has helped Solomon Islands
better manage the economy and mitigate the effects of the global economic crisis.
Key achievements in 2009–10 through RAMSI included:

• supporting the Ministry of Finance and Treasury to help the government clear debt
arrears and improve revenue collection from $589 million in 2007 to $924 million
in 2009. This enabled the government to maintain critical health and education
expenditures and services
• supporting improvements to the environment for private sector development through
reforms in telecommunications and improved accountability and oversight of
institutions
• supporting economic growth, law and justice, and accountability in government, which
was praised in a Solomon Islands Foreign Relations Committee report released in
November 2009. In April 2010, Prime Minister Sikua described RAMSI as one of the
success stories of regionalism in the Pacific.
Vanuatu
In 2009–10, AusAID country program aid to Vanuatu totalled $45.6 million. Other
Australian assistance through AusAID’s regional and global programs and through other
government departments brought total ODA to an estimated $60.3 million.
49
Vanuatu has emerged largely unscathed from the impact of the global recession. Growth
in tourist arrivals, the continuing expansion of telecommunications to rural areas and
increased donor flows contributed to estimated gross domestic product growth of
3.8 per cent in 2009—down from 6.6 per cent growth in 2008. Unlike many countries in
the Pacific, Vanuatu is on track to achieve a majority of its Millennium Development Goals.
Australia’s bilateral aid program is guided by the Australia–Vanuatu Partnership for

Development, signed in May 2009. The partnership focuses on education, health,
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infrastructure and economic governance.

• supporting Vanuatu’s plans to phase out school fees for all primary school children
and to improve the curriculum, facilities and teacher training
• helping reduce malaria parasite incidence, improve immunisation rates and address a
major nursing shortage
• supporting work to improve maintenance of transport infrastructure and enhance job
opportunities on the islands of Tanna, Ambae and Malekula, and to design a new
international wharf for Port Vila

• facilitating ongoing improvements in Vanuatu’s budget processes and reporting
systems, and in implementing the Vanuatu Land Sector Framework. Australia also
supported the 2009 Vanuatu census, the results of which will expand the evidence
base and provide better data to track progress and target future assistance
• helping Vanuatu to develop and finalise its first ever law and justice sector strategy.
Through the Australian Federal Police, Australia improved the skills of the Vanuatu
police force and funded refurbishment of essential police buildings. Australia also
helped improve case load management in three public legal offices.
Samoa
In 2009–10, Australia’s country program aid to Samoa totalled $25.9 million. Other
Australia’s bilateral aid program is guided by the Samoa–Australia Partnership for

Development. The partnership focuses on health, education, governance, climate change
and private sector growth.

• providing a rapid response to the devastating earthquake and tsunami that struck
Samoa in September 2009. At the peak of the tsunami response, 108 Australian
emergency and medical personnel were on the ground, 72 of whom were medical
staff. They performed life saving work including 101 surgical operations, 171 field
medical treatments, 1060 emergency department presentations and 33 public health
village assessments
• supporting a school grants scheme to increase access to primary school education in
Samoa, which is benefitting thousands of children
50
• supporting the establishment of an inclusive education program improving education

for children with disability as well as the implementation of a community-based
health program.
Fiji
Australia’s strong commitment to the people of Fiji is clear despite concerns about
the interim military government. Australian aid will continue to the people of Fiji
SECT ION 2
unless the actions of the interim military government render our programs ineffective
or compromised.
Australia’s aid to Fiji aims to mitigate the economic and social impacts of continuing
political uncertainty since the 2006 coup. We also aim to respond to humanitarian
disasters and alleviate the impacts of the global recession. The aid program is focused
on assisting the most vulnerable in Fiji by supporting the delivery of essential health
and education services, developing social protection and financial inclusion measures to
increase community resilience, partnering with civil society and regional organisations and
supporting scholarship and volunteer programs.
In 2009–10, AusAID’s country program aid to Fiji totalled $17.6 million. Other Australian
assistance through AusAID’s regional and global programs and through other government
departments brought total ODA to an estimated $35.9 million.

• providing up to $2 million for emergency relief and to rebuild and repair schools and
health centres after Cyclone Tomas in February. Fiji is one of the most vulnerable
countries in the Pacific to natural disasters
• providing $3 million to Fiji in response to the 2009 floods as well as $100 000 for
assistance following Cyclone Mick
• supporting Fiji’s health sector to achieve a 95 per cent immunisation rate for
key vaccines including tuberculosis, measles, hepatitis B, polio, diphtheria and
tetanus. Essential training has also been provided to 620 people in handling and
providing vaccines
• fitting 127 rural health facilities with radio telephones, improving communications that
have enabled timely and life saving advice on patient treatment and made ordering
medical supplies faster.
Tonga
In 2009–10, AusAID’s country program aid to Tonga totalled $16.8 million. Other
Australia’s bilateral aid program is guided by the Tonga-Australia Partnership for

Development, signed in August 2009. The partnership focuses on a more efficient and
effective public sector, improved health, improved technical and vocational skills, and
developing infrastructure to improve the everyday lives of the people.
51

• providing funding to support Tongan teachers to attain advanced teacher training—41
graduated with trainer and assessor certificates IV in 2009. These qualifications will
enable Tongan students to receive internationally-recognised training
• funding to support the establishment of the Tonga Health Promotion Foundation.
Non‑communicable diseases such as diabetes and heart and lung disease are an
increasing health burden in Tonga and are responsible for four out of five deaths.
SECT ION 2
These measures address this issue, providing grants to community activities which
reduce risk factors associated with diseases such as obesity
• working with New Zealand to support Tonga’s Constitutional and Electoral Commission
to guide political reform and implement a public awareness campaign that included
151 community workshops and 46 half-hour television programs to build understanding
of the changes
• funding the Tonga Red Cross to supply blankets, food and water for the survivors of
the August 2009 sinking of the inter-island ferry MV Princess Ashika, which claimed
74 lives. Through the Australian Red Cross, AusAID also provided training for the Tonga
Red Cross to support the survivors and families of victims, and supported Tonga’s
Royal Commission into the ferry’s sinking
• responding quickly to the tsunami that struck the northern island of Niuatoputapu
on 30 September 2009, killing nine people and destroying most of the island’s
infrastructure. Australia provided $1 million for humanitarian relief and recovery
efforts. The HMAS Tobruk transported supplies and reconstruction equipment to the
disaster zone, enabling the clean up and preparations for reconstruction to begin
shortly after the disaster.
Nauru
In 2009–10, the AusAID country program to Nauru totalled $20.1 million. Other Australian
assistance through AusAID’s regional and global programs as well as through other
Australia’s bilateral aid program is guided by the Nauru–Australia Partnership for

Development, signed in August 2009, the partnership focuses on, and will continue
to support Nauru’s ongoing reform agenda in areas of public sector management and
improved delivery of essential services such as health care, education and utilities. The
partnership also focuses on assisting the development of Nauru’s private sector.
Key achievements 2009–10 included:

• funding a rebuilding and refurbishment of the Nauru secondary school, which was
completed in 2009. The school now provides an adult learning and technical and
vocational training facility, improving employment opportunities for Nauruans
• providing Australian aid-funded officials to Nauru for the continued improvement to
financial planning and management with successive balanced budgets being produced
since 2004. Nauru’s significant debt problems are gradually being addressed through
52
a strong debt management strategy and important national bank accounts have been
reconciled this year
• providing scholarships to increase local capacity to manage public sector functions.
Recent Australian scholarship holders have taken up key positions in the departments
of finance, health and commerce and industry, and senior management roles
• helping Nauru to generate electricity 24 hours a day for the first time in many years.
Drinking water production has increased from 30 per cent to 80 per cent of Nauru’s
SECT ION 2
requirements. A new cost-recovery program using pre-paid metering has been
introduced, bringing modest revenue back into the government’s accounts and helping
manage excessive electricity demand
• supporting Nauru’s health sector to achieve 100 per cent immunisation coverage
for key vaccines including tuberculosis, measles, hepatitis B, polio, diphtheria and
tetanus. Infant mortality rates have dropped from 40 per 1000 live births in 2002 to
20 per 1000 live births in 2009.
Kiribati
In 2009–10, AusAID country program aid to Kiribati totalled $13.0 million. Other
Australia’s bilateral aid program is guided by the Kiribati–Australia Partnership

for Development, signed in January 2009. The partnership focuses on the key
priority areas including improving basic education, workforce skills, and growth and
economic management.

• supporting 20 teachers to graduate from the Australia Pacific Technical College with
Australian-standard certificates in teacher training, and increasing the pool of qualified
technical and vocational educators in Kiribati
• enabling 80 per cent—or 1275—of teachers to be tested on their English language
proficiency. The results are being used to reshape English language training
and curriculum, as poor English has been a key impediment to I-Kiribati gaining
scholarships and employment in the region
• helping to dramatically reduce the number of confirmed tuberculosis cases from 745
in 2007 to 248 in 2009 as a direct result of an Australian supported Secretariat of
the Pacific Community program. Through this program, Kiribati’s first tuberculosis
laboratory has been built, enabling early diagnosis of drug resistant strains of the
disease for the first time
• helping the Kiribati government to maintain revenue levels from import duties despite
reduced overall trade flows during the economic crisis.
53
Small island states

Australia provided support to other Pacific island nations during the year. AusAID’s country
program aid to the Cook Islands, Tuvalu, Federated States of Micronesia, Republic of the
Marshall Islands, Republic of Palau, Niue and Tokelau totalled $11.4 million.
Assistance to small island states has targeted human resource development, governance
reforms, outer islands infrastructure, technical assistance on taxation, financial
SECT ION 2
management, energy and education, small grants schemes for community organisations
and contributions to international trust funds.

• developing Pacific Partnerships for Development with each of the north Pacific states,
and signing partnerships with the Federated States of Micronesia, the Republic of
the Marshall Islands, and the Republic of Palau at the 2010 Pacific Islands Forum
in Vanuatu
• establishing, with New Zealand, a special relationship on development assistance to
the Cook Islands, Niue and Tokelau. New Zealand implements Australia’s aid program
to the Cook Islands under a delegated cooperation agreement.
Key sector programs
Education
Australia’s education assistance across the Pacific region in 2009–10 was guided by key
education priority outcomes identified through the Pacific Partnerships for Development.
Australia is focusing its education assistance on getting children into school, improving
their learning outcomes and providing a basis for further learning beyond basic education
so young people are provided with opportunities to gain the skills for employment and to
improve their livelihoods.

• putting more children in school in Samoa, Vanuatu and Solomon Islands by supporting
school fee relief programs (see box)
• testing the English language proficiency of 80 per cent of teachers in Kiribati. The
results will be used to reshape English language training and curriculum, as poor
English proficiency has been a key impediment to people from Kiribati gaining
scholarships or employment in the region
• refurbishing and rebuilding the Nauru Secondary School. The school now also provides
an adult learning and technical and vocational training facility to improve employment
opportunities for all Nauruans
• supporting over 80 Samoan children with disability to attend school. Australian
assistance is providing transport to and from school, training teachers in sign
language, and providing specialised learning materials
54
• providing advanced teacher training for 41 Tongan teachers who graduated with trainer
and assessor certificates IV in 2009. These qualifications are preparing them to
provide internationally-recognised technical and vocational training to Tongan students.
Kids in school
In Samoa, Vanuatu, and Solomon Islands, Australia is supporting partner
SECT ION 2
government plans to phase out school fees. Australia is also working to improve
the quality of education through curriculum reform, upgrading school facilities and
enhancing teacher training.
In Samoa, a school fees grants scheme has been introduced that is phasing out
school fees at all schools except private primary schools, and removing the financial
barriers to primary school attendance. With support from Australia, New Zealand
and the United Nations Children’s Fund, the Vanuatu government has also begun
phasing out school fees for all government funded primary schools, with 70 per cent
of primary schools to be fee-free in 2010. Fees will be abolished for all 43 000
children who attend government primary schools in Vanuatu by 2012. Australia is
also supporting a Solomon Islands initiative to remove school fees, which is helping
over 140 000 young Solomon Islanders get an education. A $3 million grant was
provided by Australia for this purpose in 2009–10.
Australian volunteer, Rachel Brindal, is working hard to improve facilities and teaching resources for children with
hearing impairments pictured here at Saleilua Primary School, Samoa
Photo: Claire Dennis
55
The Australia-Pacific Technical College

In 2009–10 Australian contributed $38.5 million to the Australia-Pacific Technical College
which is playing a significant role in developing the advanced technical and vocational
skills required in workplaces throughout the Pacific.

• enrolling more than 1600 trainees (27 per cent women) in the college from 13 of the
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14 Pacific Island Forum countries. As well, 980 scholarships were awarded as part of
the $16.4 million scholarships program, including to non-campus countries
• graduating 1109 students (39 per cent women). It is expected that the college’s initial
target of 3000 graduates by June 2011 will be achieved
• establishing new industry/training partnership agreements with the University of
the South Pacific, New Britain Palm Oil in Papua New Guinea and the Public Works
Department in Fiji
• opening two training centres in Suva for hairdressing and tiling.
Health
While some progress has been made in the Pacific towards the health Millennium
Development Goals, more needs to be done to help countries reach these targets.
National health systems need further strengthening if they are to improve the delivery
of essential services and provide skilled health workers to the people who need them
the most.

• supporting the Fiji School of Medicine and Fiji School of Nursing to train additional
health care workers. Assistance is being provided by AusAID to develop curriculum and
review teaching programs, upgrade teaching facilities and implement a new human
resources management system. As a result, the Fiji School of Medicine increased
its annual medicine degree intake from 70 Pacific Islander students in 2007 to 86
in 2010
• achieving improved health worker coverage in Nauru, with one doctor and
9.8 nurses for every 1000 people. Nauru continues to maintain health promotion
and community‑based maternal and child health care programs and, as a result,
vaccine‑preventable childhood diseases and adverse maternal outcomes are becoming
rare, with almost all babies born in the hospital with the assistance of a trained
birth attendant
• providing $1.06 million in 2009–10 to enable the Fiji Ministry of Health, United
Nation’s Children’s Fund and the World Health Organization to respond to the
increased vulnerability to typhoid outbreaks as a result of tropical Cyclone Tomas.
An additional $500 000 was provided to the Fiji Ministry of Health for repairs to health
centres damaged by the cyclone
• working in partnership with the World Bank, the United Nations Children’s Fund, the
World Health Organization and the United Nations Population Fund to support the
56
Solomon Islands Ministry of Health and Medical Services. This program has improved
access to essential medicine and halved the percentage of items reported out of stock
by health facilities in 2008 by 2009
• funding the work of high quality specialised Australian surgical teams in Pacific
countries, including the Royal Australian College of Surgeons which sent 52 teams of
volunteer clinicians to 11 Pacific Island countries throughout 2009. These services
were supplemented by three biomedical engineers to help maintain medical equipment
SECT ION 2
• investing $6.5 million in 2009–10 to help Pacific countries reduce exposure to
non-communicable diseases. Australian support also helped establish the Tonga
Health Promotion Foundation and the first round of grants for health promotion. This
foundation is the first of its kind in the region and has the potential to lead the way in
non-communicable disease prevention.
Malaria in the Pacific

The governments of Vanuatu and Solomon Islands are partnering with AusAID, the Global
Fund to Fight AIDS, Tuberculosis and Malaria, the World Health Organization and the
Secretariat of the Pacific Community to address malaria. All partners share the ambition
to effectively control and ultimately eliminate malaria from these countries.
Reports released by health authorities in both countries highlighted the continuing

reductions in malaria incidence. In Solomon Islands, the incidence of malaria has reduced
from 199 cases per thousand people in 2003 to 77 cases per thousand in 2009. In
Vanuatu, the incidence rate has reduced from 74 cases per thousand people in 2003, to
15 cases per thousand in 2009.
Both countries have experienced fewer hospital admissions for severe or complicated
malaria, reduced the incidence of malaria in children less than five years of age, and
report fewer confirmed malaria deaths. Coverage with key interventions including bed nets
is scaling up rapidly. It is expected by the end of 2010, national coverage of households
with adequate numbers of long-lasting insecticide impregnated nets will reach 80 per cent
in Solomon Islands and 90 per cent in Vanuatu.
Disaster preparedness
Australia is providing more than $20 million over four years from 2007 towards long-term
efforts to strengthen disaster preparedness, management and response capacity in
the Pacific.
This includes the $12 million Pacific Enhanced Humanitarian Response Initiative which
supports the prepositioning of essential emergency supplies. These Australian funded
emergency supplies, including tarpaulins, water containers and blankets, prepositioned
across the Pacific by the Red Cross and other non-government organisations were among
the first relief supplies distributed after disasters in Samoa, Tonga, Fiji, and Solomon
Islands during 2009–10.
Australian funding through the initiative is also supporting development of national

disaster management plans in 14 countries, and funds a range of Australian non-
57
government organisations to help local communities better prepare for disasters. For
example, over 140 community disaster management committees have been established in
Fiji, Solomon Islands, Tonga and Vanuatu in vulnerable communities to inform people what
to do when disasters strike.
Australia is also helping to strengthen tsunami warning capacity in Pacific Island countries
and has upgraded communications equipment at sea level monitoring stations in
12 countries.
SECT ION 2
Responding to disasters
Australia responded immediately to the devastating earthquake and tsunami that struck
Samoa and Tonga on 30 September 2009. This included the mobilisation of Australian
Defence Force aircraft and ships, medical teams, search and rescue personnel and over
29 tonnes of medical and emergency supplies. At the peak of Australia’s immediate
response, and within 24 to 36 hours of the disaster, 108 Australian emergency and
medical personnel were on the ground.
Total Australian assistance to Samoa and Tonga tsunami relief, recovery and
reconstruction now stands at $13 million—$12 million to Samoa and $1 million to Tonga.
Support for Samoa:

• Australia provided $3 million for initial emergency response, including medical and
emergency supplies
• $500 000 was provided to Australian non-government organisations for recovery and
relief operations
• $2.5 million was provided for infrastructure and essential services to assist
communities and businesses rebuild and improve disaster monitoring and warning
systems
• $5 million was provided to Samoa’s government to help rebuild homes, schools,
roads and seawalls, reconnect power, sanitation and communications, and help the
recovery of agriculture and fisheries. Work is progressing well but is not expected to
be completed until the end of 2012
• $1 million is being provided to support the costs of Samoa’s reconstruction planning
and coordination team.
Support for Tonga:

• Australia provided $1 million for tsunami relief and recovery efforts to Tonga, including
rebuilding homes on Niuatoputapu
• Australia and New Zealand are also providing $1.9 million each to help Tonga’s
government charter a new inter-island ferry after the tragic sinking of the Princess
Ashika on 5 August 2009. The new ferry service commenced in April 2010 providing a
vital lifeline for remote communities, including the delivery of food and other essential
supplies.
58
Law and justice

Australian assistance is helping Pacific Island countries to build the capacity
of police forces, legal and judicial institutions, and promotes improved regional
security. This assistance is also supported by the Australian Federal Police and the
Attorney-General’s Department.
An important development in 2009–10 was the launch of Australia’s Framework for Law
SECT ION 2
and Justice Engagement with the Pacific in June 2010, which will improve coordination
of Australian Government partners working in the law and justice sector at the state
and national levels, as well as assistance from non-government organisations and the
private sector.
Law and justice is also a significant focus of RAMSI. During 2009–10, RAMSI’s law and
justice program helped:
• build major correctional facilities, such as the Auki Correctional Centre in
Malaita Province
• support justice administration, which has reduced court waiting periods from
12 months in 2005 to an average of five months in 2010
• draft the 2009 Evidence Act to assist in the prosecution of sexual assaults and
provide greater protection for victims and witnesses
• train all corrections staff in human rights and fair treatment of prisoners, in
accordance with a new Corrections Act
• develop a new training curriculum for police recruits.
Stopping violence against women

Violence, and the fear of violence, limits women’s social, political and economic
participation in many communities in the Pacific. It also causes escalating health care
and social service costs, as well as placing a strain on policing and the justice system.
Australia has worked through the Pacific Islands Forum and with partner countries to raise
the profile of this issue.

• releasing the report Stop violence: responding to violence against women in Melanesia
and East Timor, which highlights Australia’s approach to improve women’s access to
justice and support services to prevent violence against women
• helping the Vanuatu government appoint a national family protection taskforce to
oversee the implementation of the Family Protection Act by providing support for
counselling services
• supporting the Vanuatu Women’s Centre with $3.7 million in funding over five years to
help increase reporting of domestic violence by over 60 per cent. The centre has also
worked closely with the government to raise awareness of the Family Protection Act
and incorporate human rights into the national law and justice strategy
59
• assisting the Fiji Women’s Crisis Centre with $5.6 million in funding over six years
to conduct inaugural national consultations to end violence against women. This led
to the development of a national strategy and national network to eliminate violence
against women. In 2009, Fiji’s Violence Bill, which the centre’s advocacy for legislative
change contributed to, was brought into law
• supporting Solomon Islands and Kiribati family health and safety studies, which have
guided the development of policies and action plans to end violence against women in
these countries and provide leadership on the issue in the region
SECT ION 2
• funding the United Nations Development Fund for Women’s Ending Violence
Against Women Pacific Facility with $1.1 million since 2008–09 to help civil society
organisations across the Pacific build the skills to counsel women who have
experienced violence, and to provide them with legal and practical support.
Shamima Ali, coordinator of the Fiji Women’s Crisis centre. The centre provides support for women and training for
organisations in Fiji and across the region
Photo: AusAID
Infrastructure
In 2009–10, the Pacific Region Infrastructure Facility continued to provide long-term
infrastructure assistance across the region. Australia, New Zealand, the World Bank Group
and the Asian Development Bank worked through the facility to provide assistance focused
on the transport, energy, telecommunications, water and sanitation sectors.

• helping Solomon Islands introduce competition into its telecommunications market
to decrease costs for consumers and increase service quality and coverage to
rural populations
60
• consolidating long-term transport sector activities in Solomon Islands, Vanuatu and

Tonga to maintain roads and improve connectivity for more reliable access to markets
and public services. In Solomon Islands, contracts were awarded for the maintenance
of over 140 kilometres of roads across three provinces, and a significant program of
bridge rehabilitation commenced in response to the severe floods of 2009 and 2010.
Contracts included the use of appropriate labour-based technology to enhance local
employment opportunities
• responding to the 2009 earthquake and tsunami in Samoa through support
SECT ION 2
to rehabilitate more than 30 kilometres of affected roads and 6 kilometres of
damaged seawall
• supporting the Vanuatu Utilities Regulatory Agency to better regulate pricing and
service standards of Vanuatu’s energy providers, which has led to tariff structures that
could potentially reduce the bills of small household customers by up to 48 per cent.
Energy security in the Pacific
Rising and fluctuating world fuel prices have presented specific budget challenges for
fossil fuel dependent Pacific Island countries.
The Pacific Region Infrastructure Facility is helping to improve energy efficiency, highlight
renewable energy options and develop least cost approaches to planning for energy
security across the region.
Access to affordable and reliable energy services is a major constraint to long-term

economic development in the Pacific. In some Pacific countries up to 85 per cent of the
population has no access to electricity. Pacific Island countries are also highly dependent
on imported fuel for energy generation, draining scarce national resources and making
these economies vulnerable to the volatile international oil market.
To help respond to these challenges, Australia has supported the Secretariat of the Pacific
Community to develop a regional framework for action on energy security in the Pacific to
better coordinate energy sector support at a regional level, and to support Pacific Island
countries’ national energy security efforts. The framework integrates important energy
sector components including energy efficiency, renewable energy, transport and petroleum
supply into a whole-of-sector approach to increase energy security.
An example of this approach at a national level is Tonga’s 10-year energy road map
which was finalised in 2010. This initiative seeks to address the impact of fossil fuel
dependence and expand access to energy services. The map will help Tonga’s government
increase energy security through a mix of measures including consumer energy efficiency,
supplementation of grid-based electricity supply with renewable energy, and more efficient
fuel procurement.
The road map was finalised in June 2010 and has been developed by Tonga’s government
in collaboration with several development partners. Australian funding support has been
coordinated through the Pacific Region Infrastructure Facility. Assistance is being provided
through the facility to initiate similar energy sector work in Vanuatu and Kiribati.
61
Food security
Fisheries play an integral role in the economies of Pacific Island countries. At the
community level, fish also forms a significant part of the Pacific Islander diet. The
successful management and harvesting of Pacific coastal and high seas fisheries is
important for improving food security, providing livelihoods and economic growth.
In 2009–10, AusAID increased its funding to the Forum Fisheries Agency from $3.8 million
SECT ION 2
to $4.95 million. This funding aims to enhance the sustainable management of oceanic

fisheries, particularly of tuna stocks. The increased funding will expand programs to
combat illegal fishing and improve fisheries monitoring and surveillance, enhance
assessments of longer-term fisheries development opportunities in the region, and
strengthen the capacity of national fisheries agencies. AusAID is also working with
the secretariat of the Pacific Community on an expanded program of future support in
recognition of the importance of coastal fisheries to food security and regional community
resilience. In 2009–10, individual country support focused on the small island states of
Kiribati, Nauru and Cook Islands.
Protecting the environment and responding to climate change

AusAID works with the Department of Climate Change and Energy Efficiency, the
Department of Environment, Water, Heritage and the Arts and other Australian and
regional agencies to help Pacific countries protect and sustainably manage their
environmental resources. Some Pacific countries are particularly vulnerable to changes
in sea levels and climate, exacerbating existing challenges to their natural environments.
As well as implementing the International Climate Change Adaptation Initiative, Australia
supports complementary activities that provide information to Pacific Island governments
as well as community-managed environment projects.

• implementing the Sea Level and Climate Monitoring Project which provides data for
Pacific Island countries to help monitor long-term changes to sea levels and climate,
with funding of $9 million over five years from 2005
• completing the Persistent Organic Pollutants in Pacific Island Countries project which
collected around 120 tonnes of highly toxic man-made chemicals and contaminated
transformers from 12 Pacific Island countries. Australia provided $7 million between
2001 and 2010 for this initiative, and these chemicals were transported to
Australia where they have been destroyed
• supporting the Pacific Islands Climate Prediction Project through $3.8 million in
funding between 2006 and 2010. The project enables national meteorological
services to provide tailored seasonal predictions for climate sensitive industries such
as tourism and agriculture, contributing to better planning and decision-making by
government and business
• providing core funding to regional organisations such as the Secretariat of the
Pacific Regional Environment Program and the Secretariat of the Pacific Community,
which enabled them to support Pacific countries’ climate change adaptation efforts,
including in fisheries management and crop diversity to enhance food security
62
• supporting small-scale community-based coastal protection activities such as

mangrove replanting and improving water management and storage capacity, under the
Vulnerability and Adaptation Initiative.
SECT ION 2
AusAID supported small-scale coastal protection activities in Fiji include planting vetiver grass to stabilise and protect sea
banks, seen here at Buretu
Photo: University of the South Pacific
63
PROGRAM 1.2 ODA—East Asia

Indicator Result 2008–09 Results 2009–1010
At least 75 per cent of 86 per cent of the aggregated 81 per cent of the aggregated
activities receive a quality quality ratings for East Asia quality ratings for East Asia
SECT ION 2
rating of satisfactory or higher. programs were satisfactory programs were satisfactory

or higher. or higher.
At least 75 per cent of N/A* 90 per cent of program
program strategy objectives strategy objectives were fully or
fully or partially achieved. partially achieved. 43 per cent
of program strategy objectives
were fully achieved and
47 per cent of program strategy
objectives were partially
achieved.
Significant development Significant development

results; significant results and activity outputs are
activity outputs. reported by individual programs
on pages 65 to 94.
* This indicator was introduced in 2009–10 and was not reported against in 2008–09.
64
Official development assistance—East Asia

East Asian economies were adversely affected by the global recession during 2009 but
timely stimulus measures and strong domestic demand supported growth. According
to the World Bank, economic growth in developing economies in East Asia slowed to
7 per cent in 2009, down from 8.5 per cent in 2008.
Economic performance within the region was mixed during 2009. China continued to
SECT ION 2
experience solid growth of 8.7 per cent.11 Laos also recorded relatively strong economic
growth despite the slow down in demand with 6.7 per cent gross domestic product
growth,12 and Vietnam negotiated the financial crisis better than expected with real
gross domestic product growing by 5.3 per cent.13 However, the economies of Malaysia,
Thailand, Cambodia and Mongolia all contracted during 2009. Excluding China, growth in
the rest of the East Asia region fell sharply to 1.5 per cent in 2009, from 4.7 per cent
in 2008.14
Positive growth in the region allowed for a continued reduction in poverty, but this occurred
at a slower pace as a result of the financial crisis. Despite this, East Asian economies are
recovering quickly with growth of 8.7 per cent forecast for 2010.15 Again, this is expected
to be driven by strong performance in China but with the rest of the region also growing
robustly at 5.8 per cent.
In 2009–10 AusAID further enhanced its development relationships in East Asia at

a country and regional level. AusAID continued to work cooperatively with East Asian
countries to address development challenges and support economic integration. Australia
provided assistance to East Asia in key areas including health, education, economic
growth and sustainable development and human security. The spread of infectious
diseases, including HIV/AIDS, and pandemics such as H1N1 influenza, continued to pose
ongoing challenges.
Australia continued to support infrastructure initiatives in the Philippines, Vietnam,

Cambodia and Laos by improving transport links to enhance regional trade and drive
economic growth. Australia also sought to enhance disaster response capabilities within
Association of Southeast Asian Nations (ASEAN) countries and supported agricultural
productivity and food security initiatives in Cambodia, Laos and Burma.
11 World Bank East Asia and Pacific Economic Update 2010, Volume 1
14 World Bank, Global Economic Prospects Summer 2010
65
Figure 9: Estimated total Australian official development assistance to East Asia by

country 2009–10
Burma (3%)
Vietnam (11%)
Philippines (12%)
Regional and other (8%)
China (4%)
SECT ION 2
Cambodia (6%)
Thailand (1%)
Laos (4%)
Indonesia (45%)
East Timor (9%)

Asia bilateral programs
Indonesia
In 2009–10, AusAID country program aid to the Indonesia, including the Australian-
Indonesia Partnership for Reconstruction and Development (AIPRD), totalled
$387.7 million. Other Australian assistance through AusAID’s regional and global
programs and other government departments brought total ODA to an estimated
$454.6 million.
Indonesia is a diverse, decentralised economy of around 240 million people spread

across 17 000 islands. Service access and employment opportunities are unevenly
distributed across the country and in 2009, 14 per cent of the population lived below
Indonesia’s national poverty line.
Despite the global recession, Indonesia’s economy grew at 4.5 per cent during the year.
The country increasingly faces the development challenges shared by middle income and
rich countries, such as developing a globally competitive economy, promoting equity by
opening up opportunities for the poor, sustaining a healthy and educated workforce, and
improving environmental stewardship.
Australia maintains a strong partnership with Indonesia and our government agencies use
a coordinated approach to address a range of development challenges. Australia is the
largest grant-based donor to Indonesia. However, Australian assistance is small relative to
the total economy at around 0.1 per cent of Indonesia’s gross domestic product. Between
2003–04 and 2009–10, the volume of Australian assistance to Indonesia trebled. This
increase has significantly raised Australia’s profile in Indonesia and contributed to the
bilateral relationship.
66
SECT ION 2
Over 2000 villages across Indonesia now have access to a clean water supply similar to this facility in West Lombok
Photo: AusAID
Australia is supporting the Indonesian government to sustain economic growth and

development, and to target the outcomes of growth to further reduce poverty. Australia’s
contributions in areas such as education, health and infrastructure are helping Indonesia
to meet its Millennium Development Goals targets, while efforts to prevent deforestation
and forest degradation are helping the country to address climate change issues.
In 2009–10, Australian assistance to Indonesia continued to be delivered in four

key areas as agreed under the Australia-Indonesia Partnership Country Strategy for
2008–2013:
• sustainable growth and economic management
• investing in people by improving health and education
• democracy, justice and good governance
• safety and peace.
67
Figure 10: Estimated total Australian official development assistance to Indonesia by

sector 2009–10
Rural development (4%)
Other sectors and multi-sector (3%)
Education (28%)
Infrastructure (18%)
SECT ION 2
Humanitarian,
emergency and
Environment and
refugee (6%)
natural resource
management (5%)
Health (7%)
Governance (29%)
the percentages.
Australian–Indonesia Partnership for Reconstruction and Development achievements are

reported separately under Output 2.1.
In 2009–10, the Indonesia program performed above AusAID’s target rate of 75 per cent
of activities receiving a satisfactory quality rating, with 86 per cent of program activities
performing satisfactorily or better. The Indonesia program is undertaking internal capacity
building to improve decision-making and program implementation including increasingly
rigorous assessment of the program as the capacity of staff to critically monitor program
performance improves. Significant development results and activity outputs are reported
under the four key country strategy areas.
Sustainable growth and economic management

Australia is working with Indonesia to strengthen economic policy and management at
the national level, reduce constraints to growth, respond to climate change and improve
natural resource management.
Sustained economic growth requires sound economic management. Through the

Government Partnerships Fund experienced Australian government officials provide advice
on reforms and help develop the skills of their counterparts in Jakarta as the government
goes through a period of reform and development. By being available to assist their
counterparts, who are often facing challenges and reforms familiar to Australian officials,
they contribute to a strengthening of the Indonesian public service. The fund provides
an opportunity to strengthen Australia’s whole-of-government engagement and provides
an avenue for Indonesian officials to discuss reform challenges with peers from the
Australian Government. This has contributed to a stronger bilateral relationship which
facilitates quality policy and implementation advice. The partnership has also helped
Indonesia to introduce a range of improvements including better risk management of
pension funds.
68
Australian assistance both before, and during, the global recession helped the government
of Indonesia to gauge its impact on the economy. Australian and international advisors
helped Indonesia to strengthen its tax collection, budget, and debt management, and
this bolstered its fiscal position and credit rating. This allowed Indonesia to implement an
effective stimulus program to ensure economic growth stayed steady at 4.5 per cent.
Despite these efforts, growth rates have not been high enough to meet the country’s
national goal of reducing poverty from 14 per cent in 2009 to between 8 and 10 per cent
SECT ION 2
in 2014. In 2009, the Indonesian government formed an inter-ministerial National Team
for Accelerating Poverty Reduction under the direction of the vice president. Following a
direct request for assistance, Australia will provide support, including world-class technical
assistance, to help the government with this important task.
Australia will also provide $215 million over the next five years to the Indonesian
government’s flagship poverty reduction program, the National Program for Community
Empowerment. Australian support will provide small-scale infrastructure and basic health
and education services to poor rural and urban villages, and will build on the programs
demonstrated capacity to reduce poverty.
Indonesia has the third largest area of tropical forests in the world. But forest loss due
to expanding populations, fire and conversion to agricultural land makes Indonesia one of
the largest greenhouse gas emitters in the world. Australia is working with Indonesia to
reduce emissions from deforestation and forest degradation, including through initiatives
which prevent forest loss, reduce fires, rehabilitate degraded peatland, and examine
how communities can benefit financially from reducing greenhouse gases. In 2009–10,
13 village facilitators were placed in communities along the Kapuas River in Kalimantan
to share information about reducing deforestation and forest degradation. Lessons from
these activities will inform international negotiations on the post-Kyoto international
climate framework.
Forest-dependent communities are directly affected by the consequences of deforestation and environmental
degradation, so they must also be at the heart of the solution
Photo: Josh Estey/AusAID.
69
Australia is also helping to improve Indonesia’s roads, water and sanitation infrastructure.
Weak governance structures, particularly the incidence of corruption, a poor investment
climate, and inadequate design and maintenance of projects currently constrain the
infrastructure sector, and addressing these issues will contribute to future economic
growth. Australian assistance supports a range of initiatives in the poorest districts of
Indonesia and is aimed at demonstrating new and more effective ways of delivering
infrastructure services. The lessons learned from these activities will inform future
strategic policy engagement at the central and provincial levels of government.
SECT ION 2
For example, in 2009–10, the Australian and Indonesian governments signed a funding
agreement for $25 million to support a new national incentive payment system to
stimulate local government investment in piped water supplies and sewerage systems in
poor communities. This program will see up to 35 local governments begin construction
in 2010. It is anticipated up to 480 000 Indonesians will directly benefit from new
water and sewerage connections. The Indonesian government plans to use the lessons
from this initiative in other sectors to improve the effectiveness of funds provided to
local governments.
Around two thirds of Indonesia’s poor live in rural areas so improving rural growth will be
critical for promoting equitable development across the country. Together with Indonesia’s
government and private sector organisations, Australia is working to enhance rural growth
and household incomes in the eastern provinces of Indonesia through the development
of smallholder agribusinesses. For example, farmers in rural areas have been trained in
livestock and sloping-land farming systems, measurably improving the incomes and food
security of more than 15 000 households.

• jointly developing the Indofire satellite fire monitoring system to prevent and combat
forest fires
• jointly developing the national carbon accounting system to monitor forest loss and
support future cost efficient forest carbon trading
• assisting the Indonesian Ministry of Finance to develop its green paper outlining
economic and fiscal policy strategies for climate change mitigation
• facilitating the private sector to work directly with more than 1000 cocoa producers
through a streamlined supply chain which is helping to increase farmers’ incomes by
20 per cent
• supporting the establishment of the Financial Sector Stability Forum, where
the Ministry of Finance and Bank of Indonesia coordinate the development and
implementation of financial sector policies. This was critical to determining the
response to the global recession
• assisting in key areas of macroeconomic policy-making to help Indonesia recover
from the global economic crisis of late 2008 and early 2009 more quickly. Improved
economic governance meant that Indonesia did not need to draw down on any of
the US$5.5 billion Public Expenditure Support Facility established during the crisis.
Australia contributed A$1 billion to the pool of loans.
70
Investing in people by improving health and education

Australia is working with Indonesia to improve health and education services as this will
support long-term, sustainable economic and social growth. Australia invested heavily
in responding to HIV/AIDS in Indonesia throughout 2009–10, and has worked to reduce
transmission by implementing needle exchange, methadone and safe sex programs.
Between December 2008 and December 2009, Australian assistance increased the
number of patients on anti-retroviral therapy by 50 per cent to 15 647, significantly
SECT ION 2
enhancing the quality of life for those living with HIV/AIDS. Australia also helped to shape
Indonesia’s national HIV policy and played a large role in the formation and maintenance
of Komisi Penanggulangan AIDS, which is the peak body responsible for HIV policy
in Indonesia.
Australia is working in partnership with the Indonesian government to improve health

services, with a particular focus on supporting Indonesia to achieve the health
Millennium Development Goals. For example, Australia helped to improve maternal
and neonatal health in East Nusa Tenggara—one of Indonesia’s poorest provinces—by
training 110 health workers and midwives and renovating public health clinics and a
clinical training centre. This has contributed to a range of life-saving outcomes, including
increasing the percentage of births assisted by health workers from 40 per cent to
69 per cent at the Narang public health centre in 2009–10.

• increasing HIV services in 54 Indonesian prisons and providing 82 000 prisoners with
harm reduction services
• linking more than 15 000 injecting drug users into HIV programs
• distributing 285 000 syringes and 200 000 condoms
• providing HIV prevention information and materials to 75 000 people in Papua, where
there is a generalised HIV/AIDS epidemic.
Education in Indonesia 2009–10

Australia is working with Indonesia to ensure that by 2015 every Indonesian child
has the opportunity to attend at least nine years of basic education—regardless of
their gender, where they live or how much their family earns. This presents a major
challenge as currently only 67 per cent of Indonesia’s children complete nine years
of schooling.
Australia’s role in the education sector has grown over the past 10 years from
being a small donor implementing a series of parallel projects to being a major
bilateral partner supporting the government of Indonesia’s most important
education programs. The maturing relationship has seen Australia channel more
aid funds directly through government accounts, reducing costs and strengthening
local systems.
71
The Australia Indonesia Basic Education Program has contributed to increases in

junior secondary enrolment rates in some of the poorer and more remote areas
of Indonesia. A total of 2074 schools have been built since 2005, including
504 madrasah or Islamic schools. The new schools have created 330 000 new
places with more than 130 000 additional children now attending, of which
50 per cent are girls.
SECT ION 2
Over 1700 private Islamic primary and junior secondary schools have requested and
received assistance through the Learning Assistance Program for Islamic Schools,
which is a partnership between Australia, the Indonesian Ministry of Religious
Affairs and Islamic universities. The program has improved the qualifications of
teachers and provided better quality learning resources, and this has benefited
around 300 000 students, of which 49.6 per cent are women, 15 000 teachers, of
which 53 per cent are women, and 8500 school staff and community members.
BRIDGE is an innovative program designed to increase education standards

in Indonesia and improve Australian teachers’ and students’ knowledge and
understanding of Indonesia, including the role of Islam. The program has developed
a bilingual website www.indonesia.bridge.edu.au which supports teacher training and
online collaboration. Around 90 000 Indonesian and 30 000 Australian students are
connected. Ninety-three schools in both countries are currently working on more than
60 collaborative activities online.
Australia’s support for the education sector ensures people with disability are
included in mainstream education. Since 2008 all schools built with Australian
support have ramps and toilets for use by children with disability, making more than
1000 schools more accessible.
Australia is working with Indonesia to build more schools and improve access to quality education across
the country
Photo: AusAID
72
The Indonesian government is aiming to reduce its reliance on expensive international

technical assistance and rely more on its own institutions for advice on economic and
social science policy. In 2009, it requested support from Australia to develop the capacity
of Indonesian universities, non-government organisations and think tanks to provide this
advice, and work has begun on developing a series of pilot projects which will support the
development of the knowledge sector in Indonesia.
Democracy, justice and good governance
SECT ION 2
Australia is working with Indonesia to strengthen the capacity, accountability and
responsiveness of legal and democratic institutions and processes in Indonesia. During
2009–10, Indonesia held a free and fair presidential election, which is an important
step in the consolidation of its democracy. Australia was the lead international donor
in improving electoral procedures and administration, and also provided funding for
voter education conducted by civil society organisations, including advocacy for women
in politics. As a result of these initiatives, important peer-to-peer relationships were
formed between the Australian Electoral Commission and the Indonesian National
Electoral Commission.
Australian assistance has played a key role in bringing about greater judicial transparency
in Indonesia through the promotion of high-level policy dialogue between the Indonesian
Supreme Court and the Australian Federal and Family Courts. Civil society and court
staff have also had an opportunity to be involved in this dialogue. Australian assistance
promoted greater access to courts for marginalised women and supported the gathering
of data on the constraints women face when needing to access the courts, which will lend
weight to calls for budget increases. Reduced court fees and increased court circuits are
amongst the initiatives that have increased the accessibility of court services for women.
Under Indonesia’s decentralised system, responsibility for delivering basic services rests
with district governments. Australia is partnering with district governments in eastern
Indonesia to strengthen their planning, budget allocation and monitoring systems to
improve their ability to deliver health, education and other district level services.

• contributing to a significant rise in the number of court hearings in isolated areas and
a ten-fold increase in poor people accessing court fee waiver programs
• supporting the Indonesian Supreme Court improve its transparency by publishing a
large number of cases online and including detailed financial and case management
information in its annual reports
• helping improve systems for district planning, budget allocation and monitoring in
eastern Indonesia to improve service delivery.
73
Safety and peace

Australian assistance supports Indonesia to prepare for, and respond to, natural disasters
to ensure it can meet the needs of people in times of crisis.
Indonesia is very prone to natural disasters. The magnitude 7.6 earthquake that struck
off the coast of Padang in September 2009 resulted in over 1100 deaths, damaged over
270 000 homes and affected an estimated 1.25 million people. Australia responded to
the Indonesian government’s request for assistance by building temporary classrooms,
SECT ION 2
shelters and health centres, and preparing sites for new construction. This assistance
was provided in addition to the emergency relief delivered immediately after the
disaster to help families meet their urgent humanitarian needs.
Australian officials from AusAID, the Department of Foreign Affairs and Trade, the Australian Defence Force, and a
Queensland search and rescue team meet in Padang, West Sumatra, to coordinate Australia’s quick and effective
response to the devastating Padang earthquake on 30 September 2009
Photo: Australian Defence Force
The Australia-Indonesia Facility for Disaster Reduction works in partnership with

Indonesia’s National Disaster Management Agency to build the nation’s capacity to
independently manage disasters. The facility draws on the disaster management
experience of Australia, Indonesia and other Southeast Asian nations to strengthen
national and local capacity in disaster risk reduction. In 2009–10, Australia worked
with Indonesian scientific and academic institutions to develop capacity in risk and
hazard mapping, trained Indonesian officials in disaster management, and worked
with Indonesian disaster experts to assess the disaster needs of national and
sub-national governments.
The facility also conducted engineering assessments for building safer houses after the
Padang earthquake and supported a public advertising campaign on rebuilding safe
homes. It received presidential acknowledgement for its commitment to developing a new
earthquake map to support better building codes for the future.
74

• supporting the humanitarian response in parts of West Sumatra affected by the
earthquake on 30 September 2009. Australia responded with immediate assistance
including family kits containing items such as kitchen utensils, tarpaulins and blankets
• contributing to the reconstruction effort by fielding a joint Australia-Indonesia
engineering team from the Australia-Indonesia Facility for Disaster Reduction to assess
earthquake damage and provide advice on building stronger and safer houses to
SECT ION 2
minimise casualties in future earthquakes.
Philippines
In 2009–10, AusAID country program aid to the Philippines totalled $109.6 million.
Other Australian assistance through AusAID’s regional and global programs and other
The Philippines avoided the worst of the global recession, but economic growth slowed
substantially and almost 2 million more Filipinos were pushed into poverty during 2009.
The economy took a further hit in late 2009 as the worst typhoon season in 40 years
devastated Metro Manila and the agricultural heartland of the country.
Governance and anti-corruption indicators have continued to decline in the Philippines

in recent years, hindering much-needed reform, and on current indications the country
is unlikely to meet the 2015 Millennium Development Goal targets for maternal health,
education and poverty reduction. The government of the Philippines is working closely
with its partners, including Australia, to ensure the nation is progressing towards
targets on gender equality and that the empowerment of women is considered in all
development programs.
AusAID Director General Peter Baxter meets with local government leaders and members of the Gawad Kalinga non
government organisation while visiting a community that received Australian assistance after the devastating typhoons
of 2009
Photo: Trisha Gray
75
The Australian aid program in the Philippines aims to improve basic education, promote
national stability and human security and support economic growth. Australia continued to
assist the government of the Philippines in moving towards universal primary education,
including for children living in conflict-affected areas of Mindanao and in Muslim and
indigenous communities. Australia supported the Philippines’ education reform agenda by
improving school management, training teachers, constructing classrooms and developing
teaching and learning materials. Increased funding to United Nations agencies has also
helped improve maternal and child health, and reduced the risk of maternal mortality.
SECT ION 2
Australia is partnering with seven provincial governments in the Southern Philippines

under a new, four-year $100 million road management program to rehabilitate and
maintain over 1000 kilometres of road and bridges. This will provide over 4 million
people with improved access to markets, ports, schools and health services. Australian
assistance is contingent on provincial governments improving their financial management
accountability and transparency, creating an incentive for reform.
Over half of Australia’s aid to the Philippines is directed to Mindanao, where education
and peace building partnerships aim to improve basic services and increase the
participation of women in peace and development.

• constructing 479 new classrooms and 450 toilets in schools in the southern
Philippines, which will benefit over 38 000 children
• providing 97 water supply systems in conflict-affected areas to provide clean water for
over 28 000 people
• supporting 91 municipal health stations to improve access to health services for over
132 000 people living in conflict-affected communities
• supporting World Health Organization activities which have helped six provinces to
attain malaria-free status, decreased the number of malaria cases by 68 per cent,
and reduced the number of malaria-related deaths by 64 per cent in targeted areas of
Mindanao
• providing emergency support for up to 500 000 people in response to the devastating
typhoons in late 2009, including emergency food supplies and reducing the risk of
water borne disease for up to 70 000 families.
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Basic education assistance for Mindanao

The Basic Education Assistance for Mindanao program was completed in late
2009 after seven and a half years of operation. The program was supported by
the Australian Government, working with the Philippines Department of Education
to introduce new approaches to learning and education management, and improve
access to education across three regions in Mindanao including the Autonomous
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Region in Muslim Mindanao. The program contributed to peace building efforts
by directly addressing the needs of marginalised groups—including Muslim and
indigenous children—and helping them to access education opportunities relevant to
their cultures. The program’s community-based initiatives show that it is possible to
deliver quality education in a conflict-affected environment.
As a result of the program:

• over 16 000 male and 17 000 female children, parents and out-of-school
youth from 253 disadvantaged communities are now participating in education
through school-on-the-air, distance learning, pre-school, functional literacy and
livelihood classes
• Arabic language and Islamic values education programs have been integrated
into schools with largely Muslim communities across the Philippines, which
has improved access to culturally-responsive education for over 54 000
Muslim children
• an indigenous curriculum has been introduced into many schools, which has
improved access to culturally-responsive education for approximately 34 000
indigenous children
• new training for in-service teachers, improved school-based management and
updated learning materials have contributed to a 21 per cent improvement in
student performance in mathematics, science and English.
Administrators and teachers in Mindanao have moved away from a focus on rote memorisation and now
encourage students to become active learners. Here, Muslim students in Davao City participate actively in an
Arabic language and Islamic values education class
Photo: Jing Damaso
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East Timor
In 2009–10, AusAID country program aid to East Timor totalled $74.9 million. Other
assistance through AusAID’s regional and global programs and other government
departments—particularly the Australian Federal Police—brought total ODA to an
estimated $94.7 million.
East Timor made progress in economic, social and political development in 2009–10.
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Despite the global economic crisis, the country experienced growth of over 10 per cent in
2009. Suco—local level—elections were held peacefully in October 2009 and the United
Nations Police began to hand back authority for policing, district by district. However,
with the exception of access to water, most of the Millennium Development Goals are
unlikely to be met by 2015. In 2009 the government of East Timor released a first draft
of its long‑term strategic development plan. The plan seeks to ensure that significant oil
revenues lead to a reduction in poverty over the next 20 years.
There is some evidence that Timorese are beginning to benefit from a sustained period
of growth and stability. In particular, access to maternal child health and water and
sanitation services has increased, although rapid population growth may put progress at
risk. There are also signs that the country’s private sector is gaining momentum, but it is
too early to tell whether this can be sustained or whether it simply represents a temporary
response to an increase in government spending.
Australia has helped East Timor to increase its agriculture production and farmer incomes by encouraging the use of
higher yielding crop varieties
Photo Rob Williams
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Australia and East Timor agreed to focus Australian assistance on delivering strong results
in fewer priority areas. The Australia Timor-Leste Country Strategy 2009–2014 was agreed
to in December 2009 and this commits Australia to focus our efforts on regional areas
and sectors where help is most urgently needed. As a result of this agreement, Australian
assistance will focus on:
• improving maternal and child health
• supporting young men and women to get jobs
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• increasing agricultural productivity
• supporting government to build a more accountable and effective public service and a
safer community through policing.

• providing emergency obstetric care equipment to 32 new maternity clinics, operational
support for monthly mobile community health clinics in all 13 districts and training for
one out of every five midwives in the country. This led to an increase in the number of
babies being delivered by skilled health workers as well as the proportion of children
being immunised
• delivering better water and sanitation services to an additional 40 000 people in rural
communities, bringing the total number of people reached by these services to over
90 000 since 2002. As a result, East Timor is now on track to meet the Millennium
Development Goal target on access to safe and clean water
• creating nearly 150 000 days of employment and maintaining almost 700 kilometres
of road since 2008 through Australia’s youth employment program
• awarding Australian Development Scholarships to 20 students—the majority of whom
were women—and a further three Australian Leadership Awards, bringing the total
number of Timorese awardees to 197 since 1999
• assisting East Timor to increase agricultural production and farmer incomes by
encouraging use of higher yielding crop varieties. Since its inception in 2001, the
program has supported approximately 2500 farming families with new varieties of
maize, rice, sweet potato, cassava and peanuts with yields increasing between 23 and
80 per cent
• helping the East Timorese government to better manage its budget planning
and execution
• supporting the creation of new institutions including the Anti-Corruption Commission
and the Civil Service Commission, which will help East Timor’s public sector tackle
corruption and increase the capacity of public servants.
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Responding to violence against women in East Timor

Gender inequality and violence against women remain fundamental problems in
East Timor but Australian aid is making a difference. In 2009, Australia supported
13 local organisations to promote community awareness, provide legal aid to victims
of violence, monitor court cases and run safe houses for women who have been
victims of violence or are at risk.
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As one example of this grassroots work, the Covalima Youth Centre is working to
provide public information on violence against women. The youth theatre group
will visit each of the seven sub-districts of Covalima and perform a play which
communicates the message that domestic violence is a crime in East Timor. The
group also screens local films about family violence and judicial processes on an
open-air stage.
These educational entertainment evenings have been enthusiastically received by

Timorese of all ages. After attending a performance in Lalawa, in the Tilomar sub-
district, the village head said, “we now know that domestic violence is a public
crime—we must change our thinking that this is an internal, household issue.”
Officers of the Timorese defence forces also attended the event and spoke out
against domestic violence, encouraging the audience to report such violence to the
police. To complement these live events, the youth theatre group is also recording
drama shows which aim to prevent violence against women, children and girls, and
these will be played on national and community radio stations.
Covalima Youth Centre theatre group performs a drama which communicates that domestic violence is a crime in
East Timor
Photo: Arlindo Soares
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Vietnam
In 2009–10, AusAID country program aid to Vietnam totalled $98.2 million. Other
Australian assistance through AusAID’s regional and global programs and other
Vietnam continues to make impressive development progress and has already reached
five of the Millennium Development Goal targets set for 2015. However, it may only
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partially achieve the target on environmental sustainability and is unlikely to meet the
sanitation and HIV/AIDS targets. The poverty rate in Vietnam has fallen from 58 per cent
in 1993 to 12.3 per cent in 2009. However, long-term poverty remains an issue for ethnic
minorities, whose poverty incidence remains high at 31.2 per cent.
Vietnam weathered the global economic crisis relatively well but long-term challenges
remain. These include a lack of adequate infrastructure and insufficient numbers of
people qualified to do the kinds of jobs that will help Vietnam consolidate its middle
income status. Ongoing institutional reform to support a changing economy will also be
required if Vietnam is to improve its productivity and remain globally competitive.
The signing of a comprehensive partnership between Australia and Vietnam in September
2009 is a symbol of the importance of this relationship to both countries. The partnership
lays out plans to strengthen the bilateral relationship by building cooperation on
trade, defence, security, education, science, research and development assistance.
On development assistance, the partnership highlights cooperative efforts to address
human resource development challenges, support infrastructure projects to maximise
opportunities for integration into the world economy, and assist Vietnam to address the
global challenge of climate change.
A new strategy for Australian aid to Vietnam is being developed using the comprehensive
partnership as its foundation. Key objectives for Australian aid in Vietnam include:
• improving access to markets and stimulating regional trade
• strengthening Vietnam’s human resource foundations
• strengthening access to water and sanitation services
• alleviating poverty among ethnic minorities
• helping mitigate climate change challenges.

• supporting Vietnam’s program to deliver water and sanitation services to rural
communities, including by constructing 256 new piped schemes, providing access to
sanitation for 63 653 households, and providing new water and sanitation facilities to
136 health clinics and 474 schools
• supporting Vietnam’s program to reduce poverty in ethnic minority communities,
through over 12 000 small-scale infrastructure projects. These include roads,
schools, health clinics, irrigation systems, water supply schemes and electricity
lines, conducting over 2000 training courses to help commune authorities develop
the skills needed to manage their commune’s development, and providing funding to
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over 200 000 poor students to encourage continued school attendance. The program
reaches almost 5000 of the poorest communes and villages in Vietnam
• contributing to Vietnam’s future human resource base by mobilising 225 Australian
Development Scholarship students to begin studies in 2011, in line with Australia’s
commitment to increase the number of scholarships from 150 to 225 a year.
Cambodia
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In 2009–10, AusAID country program aid to Cambodia totalled $51.2 million. Other

government departments brought the total aid program for Cambodia to an estimated
$60.1 million.
The recent global food, fuel and economic crises have exposed the fragility of
previous development gains with the Cambodian economy contracting by an estimated
2.75 per cent in 2009. It is now clear that Cambodia will struggle to achieve a number of
the Millennium Development Goals, with maternal mortality indicators being particularly
discouraging. While modest growth is expected in 2010, Cambodia faces significant

challenges in diversifying its narrowly based economy and providing opportunities for its
rapidly growing youth population.
Australia’s aid program to Cambodia focuses on:

• reducing rural poverty through agricultural development
• strengthening the health system
• strengthening the law and justice system
• constructing transport infrastructure for employment and growth.

• improving health outcomes by increasing the number of births attended by trained
health staff from 58 per cent in 2008 to 63 per cent and facilitating a rise in
the number of pregnant women attending two or more ante-natal care visits from
81 per cent in 2008 to 83 per cent
• helping to alleviate rural poverty by increasing, per household, rice yields from
0.77 metric tonnes to 1.25 metric tonnes, and vegetable yields from 54 kilograms to
63 kilograms
• achieving a 30 per cent increase in the number of prisoners in rehabilitation programs
from 2473 in 2008 to 3207, which represents 25 per cent of the total prison
population in Cambodia
• adopting a law promoting and protecting the rights of people with disability with
Australian help
• increasing crime prevention and community safety initiatives for women, which
contributed to the development of a draft national domestic violence prevention plan.
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Laos
In 2009–10, AusAID country program aid to Laos totalled $29.6 million. Other Australian
Laos is one of the poorest countries in Southeast Asia with gross domestic product per
capita of only US$906 in 2008–09. An estimated 26.6 per cent of the population live
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below the national poverty line and a considerable proportion still live close to the poverty
line. Health and education indicators are poor, with one in 10 children dying before they
reach the age of five and an 18-year-old rural ethnic minority girl being likely to have an
average of only two years of schooling.
Despite these challenges, Laos has achieved sustained economic growth and reductions
in poverty over the last two decades through a growing market economy and increased
economic engagement within the region. Laos is also currently on track to meet the
Millennium Development Goals on halving extreme poverty, reducing under five mortality
by two-thirds and halving the proportion of people without access to improved drinking
water and sanitation in urban areas.
Australia’s development objectives in Laos for 2009–10 were:

• improving outcomes in basic education and better education sector management
• supporting broad-based growth through trade and investment reforms
• reducing poverty in rural areas through rural infrastructure provision and strengthened
community resilience.

• providing 591 teachers in 154 schools with teaching materials, benefitting over
17 700 children in the country’s three most northern provinces, including 7979 girls
• supporting the Laos government’s efforts to cut red tape for businesses, including
through the enactment of an investment promotion law which will help grow both
international and domestic investment. Ongoing trade reform has seen the number of
days required to start a business in Laos reduced from 163 days in 2006 to 100 days
in 2009
• progressing a road infrastructure project in the north of Laos which is improving
road access for over 19 000 households, creating employment opportunities and
strengthening transport infrastructure linkages to the region
• supporting several non-government organisations to clear bombs and other unexploded
ordnance from 2.65 million square metres of land, creating a safer and more
accessible environment for 2191 households
• providing 129 families with small-scale credit to support income-generating activities
and boost their economic futures.
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Burma
In 2009–10, AusAID country program aid to the Burmese people totalled $20.7 million.
Other Australian assistance through AusAID’s regional and global programs and other
Burma is amongst the poorest countries in Southeast Asia with almost half its 50 million
people living in poverty. Burma’s development remains severely constrained by a lack of
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progress towards real democracy, economic reform and improved service delivery. The
military regime spends less than $1 per person per year on health care and education
combined. Ongoing conflict has resulted in refugee populations fleeing to neighbouring
countries with up to 1 million people internally displaced. Cyclone Nargis, which hit Burma
in May 2008, compounded this situation causing massive loss of life and widespread
devastation in the Irrawaddy Delta region.
Australian Government assistance to the people of Burma is primarily humanitarian.

Australian aid is not provided directly to the Burmese regime. Australian aid is delivered
through United Nations and other international agencies and well established international
non-government organisations to ensure that aid reaches the intended beneficiaries.

Australian aid in Burma is focused at the community level to address basic health and
education and improve livelihoods, as these are areas in which the country will not
meet the Millennium Development Goals. Australia also supports vulnerable populations
and displaced people inside Burma and on the borders with Thailand and Bangladesh.
In 2009, Australian assistance also sought to address significant transboundary
development issues such as people trafficking, transnational crime and HIV/AIDS.
On 8 February 2010, the Minister for Foreign Affairs, Mr Smith, announced an expanded
aid package to Burma while maintaining targeted sanctions. This will move the Burma
program to a more broad-based development focus which can achieve long-term
reductions in poverty. This decision has been made in recognition of the dire needs of
the Burmese people. To address the long-term decline in the country’s human capital,
the expanded package will include a greater focus on rebuilding the capacity of Burmese
people and institutions. This will include the establishment of a pilot scholarship scheme
and carefully targeted interaction in areas of great need including health, education
and agriculture.

• training 300 teachers and principals from 55 schools in areas affected by Cyclone
Nargis in child-centred learning approaches and disaster risk reduction
• providing crucial treatment, prevention and screening services to over 400 000
people affected by HIV/AIDS, tuberculosis and malaria through the multi-donor Three
Diseases Fund
• providing food, shelter and medical services to approximately 140 000 refugees on
the Thai-Burma border through the Thailand Burma Border Consortium, Australian non-
government organisations and volunteers
• improving the education of 574 600 primary school children, including in hard-to-reach
areas, by providing textbooks and essential learning packages through the United
Nations Children’s Fund.
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Thailand
In 2009–10, Australian assistance through AusAID’s regional and global programs and
Australia’s development cooperation with Thailand has been reducing since 2004 as
Thailand moves away from being a recipient of development aid. While Australia no longer
has a bilateral development cooperation strategy for Thailand, Australia provides support
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for some priority global and regional initiatives of importance to Australia’s interests
which involve a number of countries in south-east Asia including Thailand. Some of these
initiatives are delivered through key regional bodies like the Association of Southeast
Asian Nations (ASEAN).

• supporting Thailand’s involvement in programs aimed at strengthening economic
integration and prosperity and addressing major transboundary challenges, such as
people trafficking and emerging infectious diseases. The programs facilitated closer
integration with key regional bodies such as ASEAN, the East Asia Summit and the
Asia-Pacific Economic Community to promote balanced economic growth and improved
governance. A limited number of students from Thailand also participated in the
Australia Awards program which provides post-graduate scholarships for study and
short-term professional development placements in Australia.
• supporting Chulalongkorn University in Bangkok to conduct a series of workshops
aimed at improving the skills of science and maths teachers from the three southern
provinces of Thailand. This followed the 2009 agreement between the Foreign
Ministers of Australia and Thailand which recognised the need to address critical gaps
in education to majority Muslim populations in southern Thailand.
Greater Mekong sub-region

Australian assistance to the Mekong sub-region focuses on opening up opportunities for
trade through greater connectivity and improving the management of water resources in
the Mekong River basin. This builds on our strong existing trade and investment links
with the Mekong sub-region, as well as our close involvement with wider Asian regional
economic integration.
Australia is investing approximately $170 million in transport and energy infrastructure to

help join up the sub-region. Australia is also supporting sub-regional cooperation in trade
and transport to ensure that Mekong countries can realise the gains offered by better
physical connectivity. In addition to this financial support, Australia is working with the
Asian Development Bank and the World Bank to address the potential social impacts of
the increased movement of people and products, which may include gender inequality,
human trafficking and the spread of HIV/AIDS.
Water resources are central to development in the Mekong sub-region. Improving the
quality of life for people depends on good choices being made about sharing, developing
and managing water. These choices will impact on the community’s ability to produce food
and energy, and to maintain vital ecosystems.
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Australia is providing up to $40 million to regional and national bodies, such as the

Mekong River Commission, and non-government organisations to strengthen water
resource management in the region, based on a better understanding of the resource,
and the interplay between competing demands for water use (hydropower, irrigation, flood
control, fisheries, and environmental flows), and to enhance public discussions around
these issues.

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• achieving more efficient movement of road freight between Vietnam and Thailand, with
vehicles no longer required to unload and reload at border crossings, as a result of an
Australian-supported Asian Development Bank trade facilitation program
• ensuring safer and more efficient trade along the Mekong River through support to the
Mekong River Commission’s navigation program
• enhancing debate around a hydropower code of practice, important to improved
hydropower management, that reached over 350 key actors in government, civil
society and the private sector in the Mekong
• enabling over 50 professionals to benefit from Australia’s expertise in water resource

management through fellowships and training with Australian institutions
• improving the way major transport infrastructure activities address issues of gender
equality, human trafficking, resettlement, HIV transmission and environmental
impact, as a result of Australian-funded specialist advice around design and
delivery approaches.
China
In 2009–10, AusAID country program aid to China totalled $25.2 million. Other Australian
The China program advances Australia’s national interests by helping China achieve
more balanced development. Over the past decade the program’s focus has shifted to
keep pace with China’s rapid economic growth. Australian assistance is helping China
manage its own substantial resources and poverty reduction efforts more effectively. This
approach has lifted Australia’s engagement to a strategic policy and institutional level, and
uses Australian expertise to support China’s development priorities in health, governance
and the environment.

• identifying opportunities in the Pacific for Australia and China to deliver modest aid
activities jointly. This was achieved through workshops with Chinese aid officials in
Canberra in 2009 and ongoing high-level talks
• facilitating an inaugural water policy dialogue, co-chaired by the Australian
Parliamentary Secretary for Water and China’s Vice Minister for Water Resources, in
Canberra in October 2009. The talks marked an important first step which will be built
on at the next round in Beijing in 2011
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• supporting the Murray Darling Basin Authority to deliver a memorandum of

understanding with the Yellow River Conservancy Commission to promote technical
exchange in water basin management
• supporting the Australian National University to deliver a memorandum of
understanding with China’s Central Party School to promote governance
sector collaboration
• supporting policy-focused research that led to a parliamentary decision to trial a social
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security budget in China in 2010. This has significant potential benefits for national-
level social security reform
• fostering a shared understanding of human rights principles through constructive
cooperation on sensitive issues like juvenile justice and reintegrating former prisoners
into society
• providing 320 Tibetan health workers with HIV/AIDS and other health-related
qualifications from Shandong University in Eastern China
• providing search and rescue teams, medical support and emergency supplies to
support China’s response to the April 2010 Qinghai earthquake.
Mongolia
In 2009–10, AusAID country program aid to Mongolia totalled $3.2 million. Other
Given the modest size of the bilateral program, AusAID directs funds to activities that
will have the greatest long-term development impact. Australian aid aims to build the
human resource capacity of Mongolian government agencies and the private sector to
foster more effective delivery of services and economic growth. This year, Mongolians
received 28 Australian Development Scholarships, with a further eight receiving Australian
Leaderships Award Scholarships.
Australia is helping Mongolia reform its mining sector through targeted technical
assistance with the World Bank. We also provided essential food and other relief items to
children and families impacted by the extreme winter weather conditions that affected the
country in 2009 known locally as dzud.

• placing 28 new Australian Development Scholarship recipients in Australian universities
• enabling 18 Australian Development Scholarship recipients to graduate from Australian
postgraduate courses
• placing 20 volunteer Australian Youth Ambassadors for Development in Mongolia to
pass on skills in areas as diverse as disability support, social protection, natural
resources management, sustainable development, communications, business
development and veterinary education
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• providing essential food, relief items and support to more than 10 000 children and
their families affected by the economic and humanitarian impacts of the dzud in 2009
• working with the World Bank on reforming Mongolia’s mining sector legislation to
ensure more equitable distribution of Mongolia’s mining royalties.
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AusAID staff Anne Lubell (fourth from left) and Carol Jones (fifth from left) with participants in an AusAID-funded human
rights awareness activity for Mongolian youth, Hands up for your rights, which was run by the National Network of
Mongolian Women’s Non-Government Organisations
Photo: AusAID
Key sector programs
Asia economic
AusAID’s Asia economic support program aims to strengthen the capacity of key regional
institutions to enhance economic integration and trade liberalisation. In 2009–10,
Australia provided $8.5 million to ASEAN, $5.7 million for a range of Asia-Pacific Economic
Cooperation (APEC) related initiatives, and $3 million for trade related research focusing
on the Asia Pacific region.
In 2009–10, AusAID and the ASEAN Secretariat commenced the $57 million, seven-
year ASEAN Australia Development Cooperation Program, Phase II (AADCP II). AADCP
II will strengthen the secretariat’s institutional capacity and develop economic policy
and research advice on priority regional economic integration issues under the ASEAN
Economic Community Blueprint. It supports ASEAN’s goal of establishing an economic
community by 2015 and focuses on helping less developed ASEAN countries, such as
Laos, Cambodia and Vietnam, meet the Millennium Development Goals by increasing
economic growth.
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The treaty for the Australia–ASEAN–New Zealand Free Trade Agreement (AANZFTA)
came into force on 1 January 2010, and Australia has worked closely with ASEAN
and New Zealand to design an economic cooperation work program that will support
the agreement’s implementation. In 2009, AusAID began providing funding of up
to $20 million over five years for assistance across eight broad components of the
agreement, including rules of origin, sanitary and phytosanitary measures, investment
and intellectual property. The program is being delivered in partnership with the
ASEAN Secretariat.
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In 2009–10, AusAID provided $1.5 million to support other Australian Government
agencies and public institutions in delivering economic integration and trade liberalisation
activities in the region through the ASEAN Public Sector Linkages Program.
AusAID also supported research institutions in the region by providing $1 million to the
Economic Research Institute for ASEAN and East Asia to conduct research on the themes
of free trade agreement convergence and rebalancing growth in the region.
Government-to-government linkages
The Australian Government is committed to building strong linkages between
Australian Government institutions and universities, and their counterparts in the
developing country members of ASEAN and APEC. In 2009–10, Australia provided
$4.5 million to strengthen these connections through the Public Sector Linkages
Program and other cross-government activities.
The Public Sector Linkages Program operates within both ASEAN and APEC and
seeks to transfer skills and expertise from Australian federal, state and territory
government departments and agencies, as well as universities, to public sector
counterparts in partner countries. The efficient and safe transportation of goods and
people contributes to APEC’s goal of free and open trade in the Asia Pacific region.
With AusAID funding, the Office of Transport Security (OTS) at the Department of
Infrastructure, Transport, Regional Development and Local Government is working
with counterpart agencies in Indonesia, Thailand, the Philippines, Malaysia and
Vietnam to improve aviation security. AusAID funding has also enabled OTS to train
10 officials from each APEC economy in terrorist threat mitigation, aviation security
legislation, and air cargo security.
AusAID provided $1.5 million to ASEAN in 2009–10 to promote trade liberalisation

and economic integration activities. Under this funding the departments of Foreign
Affairs and Trade and Treasury ran successful trade finance and market supervision
workshops for participants from developing countries. This assisted the cultivation
of good working relationships between the government agencies of the attending
countries.
In 2009–10, whole-of-government activities within ASEAN and APEC covered

areas such as: trade finance, supervision of financial markets, regional education
cooperation, regional supply chain connectivity, aviation security, forestry
management, and harmonisation of food certification for export.
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Australia’s support for APEC helped developing economies undertake reforms to

benefit from greater trade and investment liberalisation. Australia also assisted the
APEC Secretariat with institutional and management reform, improved coordination
of regional technical cooperation, and increased effectiveness of capacity building
projects. Australia’s continuing commitment of $1.5 million to the APEC Support Fund
further helped build regional capacity in decision-making and set common standards for
economic integration.
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Through an Effectiveness Grant to the APEC Secretariat, Australia supported a program

of reform for the selection and implementation of APEC projects which aims to ensure
they are more effective. Australia also provided $3 million in technical assistance through
the APEC Public Sector Linkages Program, which provides opportunities for Australian
governments and universities to work with counterpart agencies in APEC countries to
improve governance and management in a number of technical areas.
Asia transboundary
In 2009–10, regional ODA through Australia’s Asia Transboundary program totalled

$30.9 million.
Strengthening cooperation on transboundary threats in East Asia

Australia is supporting initiatives that have cross-border impacts and demand coordinated
regional responses. Threats such as pandemics and infectious diseases, natural
disasters, human trafficking and labour exploitation, and illicit drugs are undermining the
regional development prospect.
Emerging infectious diseases and pandemic preparedness

In 2009–10, Australia provided $13.2 million for regional pandemic preparedness.
Under the emerging infectious diseases strategy, Australia’s aid helped improve
capacity in preparedness, surveillance, reporting and responsiveness to emerging
infectious diseases. The aid program has also helped strengthen animal and human
health systems. The 2009 H1N1 pandemic highlighted areas of continued weakness,
but also demonstrated the significant advances made in countries’ surveillance and
laboratory systems since the outbreak of severe acute respiratory syndrome (SARS) and
avian influenza.

• strengthening influenza surveillance systems and developing national protocols
for rapid disease containment through AusAID’s support to the World Health
Organization’s Asia-Pacific Strategy for Emerging Diseases
• strengthening capacity in disease recognition, reporting and outbreak investigation
through AusAID’s contribution to the World Bank Trust Fund for avian influenza
• establishing an animal and human health collaboration framework, defining minimum
standards for joint outbreak investigation and response activities, and building an
ASEAN partnership laboratory network with a standard diagnostic operating procedure
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through AusAID’s support to the ASEAN+3 Emerging Infectious Diseases program

involving 10 ASEAN member states and China, Japan and the Republic of Korea
• reducing significantly foot and mouth disease outbreaks in Laos, Malaysia and
Thailand by 84 per cent, 77 per cent and 32 per cent respectively, and maintaining
the status of Indonesia and the Philippines as foot and mouth disease-free countries,
through AusAID’s support to the World Animal Health Organization’s Southeast Asia
Foot and Mouth Disease campaign.
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In addition, the community-based Avian Influenza Risk Reduction Program implemented
by CARE Australia in Cambodia, Laos, Burma and Vietnam, is strengthening responses
to emerging infectious diseases through such grassroots pilot activities as bio-secure
farming, community surveillance teams and promoting hygienic practices in live markets
and slaughterhouses.
Contributing to the fight against HIV/AIDS in Asia

Injecting drug use is one of the primary drivers of the HIV epidemic in Asia. The HIV/AIDS
Asia regional program continues Australia’s efforts to reduce the spread of HIV from
injecting drug use among men and women in China, Burma, Vietnam, Laos, Cambodia
and the Philippines. The program supports partner government’s strategic plans for
action on HIV and drug use and is helping to improve service coverage and build
expertise to reduce the HIV-related harm from drug use. Between June and December
2009 alone, the program reached 11 717 injecting drug users, of whom 1562 were
women. It distributed 1 584 981 needles and syringes and 278 059 condoms. More
than 10 310 successful referrals were also made to methadone treatment, HIV care and
primary health-care services.
In addition to these practical initiatives, the program also worked at the regional level to
improve coordination and cooperation between participating countries. It has established
itself as a respected regional entity, with technical credibility, a convening capacity, and a
strong ability to work with donors, civil society and United Nations partners. Australia has
committed $59 million over eight years from July 2007.
Illicit drugs
The production, trafficking and use of illicit drugs in East Asia has serious negative
impacts on health, economic and social development and security and stability,
particularly where this is linked to organised crime. Levels of illicit drug production
and use in the region are increasing, particularly the production, supply and use of
amphetamine-type stimulants.
Australia works closely with the United Nations Office on Drugs and Crime to address
illicit drugs. AusAID made an annual $1.5 million contribution to the organisation
during the year, and also worked closely with it to develop a new regional program for
East Asia and the Pacific. This program covers the organisation’s full mandate, including
human trafficking.
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Combating human trafficking and labour exploitation

People trafficking and labour exploitation is a significant problem in East Asia. The
International Labour Organization has estimated that there would be over 1.3 million
victims in the Asia Pacific region at any given time, a greater number than any other
region in the world. Australia’s assistance aims to reduce the vulnerability of people
and communities to trafficking and other forms of labour exploitation and improve the
protection of those who have been trafficked or exploited.
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AusAID’s Asia Regional Trafficking in Persons Project focuses on strengthening criminal

justice systems to promote an effective and coordinated response to people trafficking.

• ensuring combating trafficking continued to be a priority issue within ASEAN and its
member states by contributing to ASEAN’s senior officials meetings on transnational
crime, its permanent working group on trafficking in persons and heads of specialist
anti-trafficking units process
• securing ASEAN member state endorsement for the ASEAN handbook on International
Legal Cooperation in Trafficking in Persons Cases, which supports cross-border
cooperation to combat people trafficking through harmonised policy and practices
• delivering training to police, prosecutors and judges in partner countries to better
equip these officers to undertake human trafficking investigations and prosecutions.
A total of 4255 officials were trained between 2006 and 2010
• facilitating joint training to provide greater cooperation and intelligence-sharing between
neighbouring countries such as Cambodia and Vietnam, and Indonesia and Malaysia
• promoting the development of laws that align with international standards and good
practice. For example, Indonesia established separate courtrooms for child victims and
Thailand established a video interview suite for victims. The Philippines also became a
national partner in 2009.
In 2009–10, a new five-year project was developed with the International Labour
Organisation to assist vulnerable migrant workers and their families by raising community
awareness of exploitative labour practices and developing non-exploitative employment
options. A four-year program to combat the commercial sexual exploitation of children in
the Mekong sub-region was also developed, addressing both protection and prevention.
The program supported a major anti-trafficking public awareness campaign by MTV Exit,
with concerts and other media products in Vietnam and Indonesia reaching an estimated
audience of 2 million young people.
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Sexual and reproductive health for East, Southeast Asia and

the Pacific
Currently more than 500 000 women die globally each year as a result of
complications during pregnancy and childbirth, and high maternal mortality and
child mortality persist in our region. Many of these deaths are during humanitarian
situations and most of these deaths are preventable.
SECT ION 2
AusAID is providing a total of $4.5 million over three years to increase access to
sexual and reproductive health services for people in crisis and post-crisis situations
in the Asia Pacific region as a part of its commitment to achieving the health-
related Millennium Development Goals in Africa, Asia and the Pacific. The Sexual
and Reproductive Health Programme in Crisis and Post-Crisis Situations for East,
Southeast Asia and the Pacific (SPRINT) initiative is run by the International Planned
Parenthood Federation and the United Nations Population Fund.
A key element of the initiative is to increase the capacity of organisations to
deliver the Minimum Initial Service Package (MISP) for reproductive health in crisis
situations, a set of priority interventions to be implemented during the early phase
of a natural disaster or conflict.
Activities funded under SPRINT include:

• the implementation of MISP
• the creation of a secretariat in Kuala Lumpur to coordinate the delivery of MISP
• sexual and reproductive health activities in crisis and post-crisis situations
• the establishment of a regional database to inform policy and practice
• the establishment of links with regional policy makers, donors and the public.
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SPRINT has provided training to targeted health professionals from United Nations
agencies, the Red Cross Red Crescent Movement, non-government organisations
and ministries from over 30 countries. This results in greater access to treatment,
care and support for those exposed to sexual and gender violence, a reduction
in HIV transmission, fewer unintended pregnancies, fewer preventable maternal
and neonatal deaths, and a sustained decrease in the incidence of sexual and
gender violence.
SECT ION 2
SPRINT training being carried out in Africa

Photo: AusAID
94
PROGRAM 1.3 ODA—AFRICA, SOUTH & CENTRAL ASIA & MIDDLE EAST
PROGRAM 1.3 ODA—Africa,

South and Central Asia,
Middle East and other
SECT ION 2
At least 75 per cent of 93 per cent of the aggregated 83 per cent of the aggregated quality
activities receive a quality quality ratings for Africa, South ratings for Africa, South and Central
rating of satisfactory and Central Asia, Middle East Asia, Middle East and other programs
or higher. and other programs were were satisfactory or higher.
satisfactory or higher.
At least 75 per cent N/A* 100 per cent of program strategy
of program strategy objectives were fully or partially
objectives fully or achieved17. 36 per cent of program
partially achieved. strategy objectives were fully achieved
and 64 per cent of program strategy
objectives were partially achieved.
Significant development Significant development results
results; significant and activity outputs are reported
activity outputs. by individual programs on
pages 96 to 117.
* This indicator was introduced in 2009–10 and was not reported against in 2008–09.1617
17 This rating refers to Africa, South Asia and Pakistan. Annual program reports are not required for Iraq,
Afghanistan and Palestinian Territories.
95
Africa
In 2009–10, AusAID’s country and regional program aid to Africa totalled $103.1 million.
Other Australian assistance through AusAID’s global programs and other government
departments brought total ODA to an estimated $157.3 million, a 3 per cent increase
from 2008–09.
The Australian Government’s aid program to the region is supporting international efforts
SECT ION 2
to assist Africa achieve the Millennium Development Goals by 2015. Around one third of
Africans suffer from chronic hunger and sub‑Saharan Africa is the region most off-track to
achieve the Millennium Development Goals. One in every seven children in sub-Saharan
Africa die before the age of five and approximately half of all deaths for children under
five in the developing world occur in this region. Similarly, women there face a one in 22
chance of dying in pregnancy or childbirth, four in 10 people do not have access to safe
water, and seven in 10 do not have access to basic sanitation.
In 2009–10, AusAID continued to increase the aid program across Africa, with African
countries receiving assistance through bilateral, regional and multilateral activities.
Australian assistance focused on supporting Africa’s achievement of the Millennium

Development Goals on food security, water and sanitation, and maternal and child health.
Australia is also building Africa’s human resource capacity with scholarships, fellowships,
other training opportunities and technical assistance through the Australia-Africa
Partnerships Facility. Humanitarian assistance to emergencies and protracted crises and
support for Zimbabwe’s recovery also continue to form a substantial part of Australia’s
support to Africa.

• delivering 35 173 tonnes of food to address emergency situations in Ethiopia,
Kenya, Niger, Sudan, Uganda, Chad, Democratic Republic of Congo and Zimbabwe in
partnership with the World Food Programme
• supporting over 300 000 HIV/AIDS orphans and other vulnerable children in Malawi,
Mozambique and Tanzania through a partnership with the United Nations Children’s
Fund, to improve their access to education and health care
• supporting free fistula surgery for 2278 patients and providing 15 622 birthing kits to
traditional birth attendants and health extension workers in Ethiopia
• supporting new models for sustainable public private partnerships in water supply and
sanitation in peri-urban, small towns and rural areas in Kenya
• helping to reduce the number of Zimbabweans dependent on food aid to 2 million,
down from 7 million in 2008–09
• supporting improved access to safe drinking water, sanitation and hygiene services for
at least 2.3 million people in urban and rural areas in Zimbabwe
• expanding the Australian volunteer program through the placement of 38 new
volunteers in eight African countries including Ghana, Ethiopia, Tanzania, Lesotho,
Malawi, Namibia, South Africa and Swaziland. This includes the first four Australian
Youth Ambassadors for Development to be placed in Africa
96
• supporting 168 African students from 17 countries to complete masters level studies
in Australia
• awarding mining fellowships to 26 African students from 16 countries to help them
learn more about sustainable resource management practices.
Figure 11: Estimated total Australian official development assistance to Africa by

country 2009–10
SECT ION 2
Other Africa (5%)
Malawi (2%)
Tanzania (2%)
South Africa (3%)
Somalia (4%) Africa unspecified (38%)
Kenya (4%)
Congo,
Dem. Rep. (6%)
Sudan (6%)
Mozambique (6%)
Zimbabwe (24%)
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Australia-Africa Food Security Initiative

As part of the global efforts to fast track Africa’s progress towards achieving the
Millennium Development Goals, Australia has developed the Australia–Africa Food
Security Initiative. Australia is providing $100 million over four years from 2009–10
to invest in agricultural research and development, increase market access for rural
farmers and help the most vulnerable people gain access to food.
SECT ION 2
The initiative aligns with the Comprehensive Africa Agriculture Development

Program, a framework developed by the African Union’s New Partnership for
Africa’s Development project to harness resources for national and regional
agricultural development.
Australia has a similar climate to many African countries. As part of the agricultural
research component of the Australia–Africa Food Security Initiative, Australia is
sharing expertise in dry land and semi-arid farming systems. AusAID is working
with the Australian Centre for International Agricultural Research, Australia’s
Commonwealth Scientific and Research Organisation and African institutions

to improve agricultural research and productivity in southern, east, central and
west Africa.
Morris Agaba, scientist and molecular biologist at the International Livestock Research Institute in Nairobi, Kenya,
is undertaking research with cattle to improve African food security. Australia provides funding to the institute
through the Australian Centre for International Agricultural Research
Photo: Kate Holt
98
SECT ION 2
Parliamentary Secretary for International Development Assistance, Bob McMullan, inspects a water supply point with
Malawi’s Minister for Irrigation and Water Development, the Hon Richie Muheya, and local community members at
Nathenje in Lilongwe district, Malawi, during a four-country visit to Africa in November 2009
Photo: Stephen Morrison
Australia is also supporting African governments to invest in water and sanitation.

Communities in seven market centres in Malawi will benefit from water supplies
delivered through a new partnership between Australia and the African Development
Bank. In Mozambique, Australia, in partnership with the World Bank and the government
of Mozambique, is providing treated water in the towns of Illha de Moçambique and
Mocimboa da Praia. This initiative will benefit an estimated 80 000 people.
Australia has complemented this bilateral engagement with support for key regional
programs. Since 2006, Australia has provided more than $8 million to the World Bank’s
Regional Water and Sanitation Program, which works with selected African countries in
areas such as the development and strengthening of national water policies, including
sustainable financial plans for implementing large scale water projects. In 2009–10,
Australia also provided $5 million to the African Water Facility, which is an initiative of
the African Ministers’ Council on Water. The initiative aims to help African nations attract
increased investment for water and sanitation projects by, for example, increasing the
effectiveness of water resource management, including for transboundary river systems.
Because civil society organisations are also an important partner in delivering water,
sanitation and hygiene programs at the community level, AusAID’s Civil Society Water,
Sanitation and Hygiene Fund provided $3 million to five Australian and international
non-government organisations for activities in Africa. Activities include supporting the
poorest and most vulnerable people to access safe water, improved sanitation and
hygiene promotion programs.
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Humanitarian assistance
In 2009–10, the bulk of Australian humanitarian assistance to Africa was directed to
Sudan, the Democratic Republic of Congo, Ethiopia, Kenya, Somalia, Zimbabwe and
West Africa, providing urgently needed emergency food supplies and shelter, essential
reproductive health services for women, access to safe water and sanitation facilities
and support for vulnerable livelihoods. Working through humanitarian partners including
United Nations agencies and non-government organisations, Australia has also provided
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protection to civilians affected by conflict and increased security for humanitarian workers
delivering emergency assistance.
Zimbabwe
Australia is at the forefront of international efforts to assist Zimbabwe’s inclusive
government to make sustainable and long-term improvements to the country for
the benefit of all Zimbabweans. Australia was a leading donor in transforming its
humanitarian-only program into a recovery program to provide timely support for the
government’s efforts to restore basic services. More than $35 million in Australian aid
was carefully targeted to key areas such as food security, water and sanitation, education,
and governance programs. In addition, approximately $19 million was provided for
humanitarian assistance.
To assist Zimbabwe’s long-term agricultural recovery, Australia is working with the United
Kingdom’s Department for International Development to provide seed, fertiliser and
training to more than 200 000 households. Australia was the founding donor of a special
program within the Africa Enterprise Challenge Fund which was launched in December
2009. This program has now funded 10 projects to assist rural economic recovery through
private sector investment. These activities are expected to benefit more than 800 000
households over the next four years.
In 2009, Australia’s support for water and sanitation programs run by the United
Nations Children’s Fund and Australian non-government organisations helped to stem a
severe cholera epidemic. Australia’s continuing support for the fund’s program of water
and sanitation rehabilitation in Zimbabwe is also improving access to safe drinking
water and sanitation for over 2 million people in urban and rural areas, including in
Zimbabwe’s second largest city, Bulawayo. Australia has also contributed to the recovery
of Zimbabwe’s education system through a $2 million contribution to the United Nations
Children’s Fund, which will support the purchase of textbooks and learning materials.
Australia is working with South Africa to support Zimbabwe’s recovery. In collaboration

with the South African Revenue Service, Australia is helping to improve Zimbabwe’s
capacity in domestic taxation administration. Australia is also working with South Africa in
water and sanitation in Zimbabwe.
South Asia
In 2009–10, AusAID’s country and regional program aid to South Asia totalled
$152.0 million. Other Australian assistance through AusAID’s global programs and other
100
South Asia is home to nearly a quarter of the world’s population, or 1.5 billion people.
An estimated 400 million people in the region still live in absolute poverty, and a lack
of clean water, food, health care, education and economic opportunities remain serious
challenges. Governance issues and conflict also continue to create serious impediments
to economic and social development and poverty reduction. The region’s progress is
critical to global efforts to achieve the Millennium Development Goals, and Australian aid
is supporting the developing economies of South Asia to address these challenges.
SECT ION 2
Australia provides assistance to Bangladesh, Nepal, Sri Lanka, India, the Maldives and
Bhutan. Australian aid also supports region-wide programs that address cross-border
issues through regional organisations such as the South Asian Association for Regional
Cooperation (SAARC) and multilateral partners. Australia’s decision to take up observer
status at the SAARC summit in April 2010 was a reflection of our commitment to
the region.
Australia is responding to the climate change challenge in South Asia by assisting the
collection and analysis of river flow data to better manage water supplies for drinking,
irrigation and industry as well as improve flood prediction and warning systems. Australia
has also provided assistance in the wake of major natural disasters as well as providing
humanitarian assistance to communities affected by conflict in Sri Lanka and Nepal.
In 2009–10, Australia’s aid program to South Asia focused on:

• improving basic service delivery in health, education and water and sanitation for
the poor
• community rehabilitation, peace building and effective response to
humanitarian concerns
• responding to climate change by improving water resource management
• building strategic linkages between Australian Government agencies and universities
and their counterparts in South Asia.
The South Asia program has worked to increase the accessibility and quality of basic and
technical education by supporting education system reforms, which include strengthened
school management, improved teaching standards and assessment, and support
for curriculum development. Health systems have also been strengthened through
interventions in nutrition, water and sanitation, HIV/AIDS prevention and health research.
Australian aid has worked to improve infant and child feeding to reduce infant mortality,
and to build capacity and skills in trauma care to support the victims of conflict. Australia
has also maintained a focus on social inclusion by targeting women, minority groups such
as dalits (untouchables) and migrant communities, as well as people with disability.
1 01
Figure 12: Estimated Total Australian Official Development Assistance to South Asia by
Country 2009–10
Regional and other (3%)

Bhutan (3%)
Maldives (3%)
Bangladesh (35%)
SECT ION 2
Sri Lanka (35%)
India (11%)
Nepal (10%)
Bangladesh
In 2009–10, AusAID’s country program aid to Bangladesh totalled $62.8 million.
Increased spending on education by the country program contributed to a higher Australian
total ODA outcome compared to the 2009–10 estimated outcome ($59.5 million) at
May 2010. The Australian total ODA includes AusAID’s country, regional and global
programs, and aid from other Australian government departments.
Australia is helping Bangladesh to improve the health, education and livelihoods of
the very poor, with aid delivered through trusted partners such as the United Nations
Children’s Fund and BRAC (formally the Bangladesh Rural Advancement Committee), a
large Bangladeshi non-government organisation. In 2009, Australia also launched a new
program of disaster risk reduction to assist communities affected by climate change.
The country has experienced a relatively stable year in politics following democratic
elections in December 2008. These elections were held after two years of caretaker
administration, and the new government has pursued a strong reform agenda since
taking office.
Bangladesh has fared relatively well through the global economic crisis. Economic growth
did slow in 2009–10 as a result of the recession which reduced demand for the country’s
exports and slowed the flow of remittances from Bangladeshi workers abroad. However,
in 2010–11 growth is expected to exceed 2009’s real gross domestic product rate of
5.6 per cent.
Despite this recent progress Bangladesh faces considerable development challenges.
Around one-third of Bangladeshis—some 56 million people—still live below the poverty
line. Food insecurity is widespread and the level of child malnutrition continues to be
among the highest in the world. Bangladesh is also vulnerable to the impacts of climate
change and natural disasters including floods and cyclones, and the increasing intensity
and frequency of these natural disasters is a growing challenge for development.
1 02
SECT ION 2
A student in a BRAC school located in Chittagong, Bangladesh. BRAC—the largest non-government organisation in
Bangladesh—provides quality education to disadvantaged rural and urban children who have either never enrolled in or
have dropped out of formal primary school
Photo: Shahriar Islam

• helping to improve access to primary and pre-primary education for almost 1.6 million
children who would not have attended schooling otherwise—65 per cent of these
children were girls. More than 305 200 students graduated from BRAC primary
schools, while 260 259 students sat the grade five terminal examinations with a pass
rate of 96 per cent
• improving teacher and classroom quality through support for the multi-donor funded
government of Bangladesh Second Primary Education Development Program. Over
160 000 teachers were trained in improved interactive teaching methods and
23 127 schools received funds for infrastructure repairs, classroom resources and to
hire assistant teachers. Over 5 million children are benefiting from this support
• supporting over 30 million people in 11 districts with a range of maternal and child
health programs. Australia helped to reduce maternal mortality by 13 per cent in target
districts between 2007 and 2009 by improving the skills and support systems for
16 200 community health workers and community volunteers to care for women during
pregnancy and childbirth
• improving the livelihoods of 97 000 extremely poor rural women and families by
supporting income generating activities through BRAC’s Challenging the Frontiers of
Poverty Reduction program. The program continues to demonstrate sustained results
with 98 per cent of participants remaining above their previous poverty levels after
completing the program
• increasing community resilience to the impacts of climate change through disaster risk
reduction activities such as the construction of cyclone shelters
• awarding 45 scholarships for Bangladeshi students to pursue higher studies in
Australia, including scholarships for students from the Chittagong Hill Tracts.
103
Sri Lanka
In 2009–10, AusAID country program aid to Sri Lanka totalled $45.7 million. Other
The long running and violent civil conflict in Sri Lanka ended in May 2009 with the
defeat of the Liberation Tigers of Tamil Eelam (LTTE) by the Sri Lankan military.
SECT ION 2
Approximately 280 000 civilians were displaced in the final phase of the conflict and were
accommodated in camps in the northern part of the country. The Australian Government
responded quickly by increasing humanitarian support for internally displaced people, their
resettlement and the rehabilitation of their communities. An estimated $57.3 million was
provided for food relief, clean water, shelter and other basic necessities.
Sri Lanka is on track to achieve some of the Millennium Development Goals, however
there are persistent social inequalities in parts of the country including the north,
east and central provinces. Around 15 per cent of the population lives below the
national poverty line and child malnutrition continues to be a concern. While school
enrolment is relatively high, not all children have access to good quality education and
the country faces a range of environmental challenges including soil erosion and solid
waste management.
Australia’s efforts in Sri Lanka are focused on humanitarian assistance, strengthening

livelihoods, community rehabilitation, natural resource management, basic education
and scholarships.

• increasing food security for people displaced through civil conflict by providing
10 000 metric tonnes of food aid
• supporting the resettlement and re-establishment of livelihoods for displaced
communities through grants that will help up to 85 000 families purchase essential
household items and tools
• helping displaced people return home by funding de-mining work which has cleared
60 square kilometres of land, and also facilitated the training and employment of
178 locally employed manual de-mining personnel
• providing long-term shelter for 14 000 people through the repair and reconstruction of
approximately 3600 homes in northern Sri Lanka
• increasing access to basic education for 134 000 disadvantaged or marginalised
children in targeted districts, and boosting the quality of teaching by providing training
for over 2000 school officials and teachers in contemporary approaches to education.
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Housing the victims of conflict

One of the main impacts of the protracted, violent conflict in northern and eastern
Sri Lanka has been the damage and destruction of as many as 230 000 houses,
particularly in the districts of Kilinochchi, Mullaitivu and North Vavuniya. Families
displaced by the conflict started to return to these areas in late 2009, and one of
the most pressing challenges in supporting their safe and dignified return has been
SECT ION 2
the availability of adequate shelter.
In addition to working with the World Bank and Asian Development Bank to
help returning communities rebuild and repair permanent homes, the Australian
Government is working with United Nations Habitat to help returning communities
rebuild and repair permanent homes. Around 2500 homes will be repaired and 1100
completely rebuilt through Australia’s contribution of $10 million to United Nations
Habitat. The program is using an owner-driven approach which provides grants to
homeowners so that they can rebuild their houses in the way that best suits their
family. At June 2010, work was underway on 350 new homes.
Thambimuththu stands in front of his badly damaged In just over a month, repairs have been completed
house in Mullaitivu (May 2010) with the support of United Nations Habitat and
AusAID
Photos: UN Habitat Sri Lanka
Nepal
In 2009–10, AusAID’s country program aid to Nepal totalled $17.4 million. Increased
budget support contributed to a higher Australian total ODA outcome compared to the
2009–10 estimated outcome ($17.3 million) as at May 2010. The Australian total ODA
includes AusAID’s country, regional and global programs, and aid from other Australian
government departments.
Nepal is the poorest country in South Asia and one of the poorest in the world. The
country endured 10 years of civil war in the decade to 2006, and the restored peace
remains unstable. Australia’s development aid aims to improve the lives of the Nepalese
people by reducing poverty, improving access to basic health and education facilities and
supporting micro-entrepreneurs. Australia is also supporting Nepal’s progress toward
democratisation and stability to help ensure that all Nepalese people can enjoy the
benefits of peace.
105
Despite the political uncertainty, Nepal has made steady progress towards achieving
some of the Millennium Development Goals. The country is currently on track to
meet Millennium Development Goal 4 on child mortality, with the number of deaths
per 1000 live births decreasing from 118 in 1996 to 61 in 2006. The maternal mortality
rate has also halved between 1990 and 2000 and primary education completion rates
have improved from 51 per cent in 1991 to 76 per cent in 2006. Poverty has declined by
11 per cent in the last decade but income inequality is increasing and 55 per cent of the
population still lives on less than US$2 a day.
SECT ION 2
AusAID’s program in Nepal focuses on supporting access to essential community health

services, generating improvements in primary education access and quality—particularly
for girls and disadvantaged children, strengthening democratic practices, and improving
the livelihoods of the rural poor and marginalised groups, including women. In line
with Australia’s commitment to the Paris Principles and the Accra Agenda for Action,
AusAID works in close partnership with the United Nations Development Programme, the
United Nations Children’s Fund and the United Kingdom Department for International
Development to implement programs in Nepal. In the health and education sectors,
AusAID is also working with other aid donors to support the Nepalese government’s health
and education programs.

• supporting the government of Nepal’s national health program to help reduce the
child mortality rate to 50 per 1000 live births and reduce the maternal mortality
rate to 229 per 100 000 live births through maternal, neo-natal and nutritional
health interventions
• continuing long-term support for the National Vitamin A Program and the community
based Integrated Management of Childhood Illness Program which saves the lives of
15 000 children each year
• improving access to education for more than 1.6 million girls and dalit (untouchable)
children from poor families, as well as children with disability, through joint donor
support to the Nepalese Government’s Education For All program. As a result of this
program, all primary school students receive free text books and girls from various
castes and ethnic groups now account for almost half of all children enrolled in
primary school
• contributing to the Micro-entrepreneurship Development Program which enabled
16 805 new micro-entrepreneurs to increase income and create employment. Within
this program, 70 per cent of participants were women, 45 per cent came from ethnic
minority groups, and 25 per cent were dalits (untouchables)
• supporting the Rights Democracy and Inclusion Fund which enabled 300 000 people
to gain an understanding of their democratic rights and responsibilities through
community based projects, and which supported the constitution drafting process in
being inclusive and democratic.
106
Other South Asian nations

In 2009–10, AusAID country program aid to India, the Maldives and Bhutan totalled
$10.9 million. Other Australian assistance through AusAID’s regional and global programs
and other government departments brought total ODA to an estimated $28.2 million.
Australia is committed to moving India to the front line of bilateral relations. India has
achieved impressive growth over the last decade but poverty and social exclusion remain
SECT ION 2
daunting challenges. India welcomes technical cooperation particularly on matters of
regional and global significance. AusAID is working closely with a range of Australian
Government departments to facilitate increased use of renewable energy, improved energy
efficiency and better water resource management. AusAID is also working in partnership
with the World Bank, the Asian Development Bank and United Nations agencies on policy
and institutional reforms that can make a strategic contribution.
Australian assistance to India, Bhutan and the Maldives also targets human resource
capacity development, HIV/AIDS prevention and care, post-disaster reconstruction, and
improved water and sanitation infrastructure.
• providing 31 new tertiary scholarships for students from Bhutan and 18 for students
from the Maldives, as well as four Australian Leadership Awards for students in India
• restoring water and sanitation facilities in 50 schools affected by the September 2009
earthquake in Bhutan
• meeting the nutritional and education needs of over 8000 children from poor rural
families in Bhutan
• increasing linkages with senior influential Indian policy makers—including ministers
and heads of departments to elevate our relationship in the areas of energy security,
water management, agriculture and quarantine
• establishing a working relationship with The Energy and Resources Institute (TERI)
of India and convening a successful forum in Canberra on Environment and Energy
security: bridging the gap between research and policy, which was attended by
more than 70 participants from TERI, the Australian Government and selected
Australian universities
• improving planning, service delivery and pricing policies in water and sanitation,
transport, and power supply through a partnership with the World Bank Water and
Sanitation Program and the South Asia Region Infrastructure for Growth Initiative
• strengthening the public sector’s capacity to respond to HIV/AIDS infections in high
prevalence states in the north east of India by supporting a sub-national office of the
National AIDS Control Organisation
• limiting the spread of HIV/AIDS from intravenous drug use in South Asia by
strengthening civil and government capacity and advancing peer-based interventions.
1 07
Middle East and Central Asia
Figure 13: Estimated total Australian official development assistance to Middle East and
Central Asia by country 2009–10
Iraq (16%)
Pakistan (24%)
SECT ION 2
Palestinian Territories and

Afghanistan (47%)
other Middle East (13%)
Iraq
In 2009–10, AusAID country program aid to Iraq totalled $39.4 million. Other Australian
The relationship between Iraq and Australia continues to strengthen, and Prime Minister
Nouri Al-Maliki made the first visit to Australia by an Iraqi Prime Minister in March 2009.
During the visit, the two countries agreed that as the security situation in Iraq improves,
there is increasing scope to strengthen and broaden the bilateral relationship. Six bilateral
memoranda of understanding were negotiated on agriculture, resources and energy,
trade cooperation, education, training and research, public health and security and
border control.
In line with the memoranda of understanding, AusAID’s program is centred on areas where
Australia has specialist expertise, including supporting agriculture, delivering basic health,
education, water and sanitation services, improving public sector governance and helping
vulnerable populations. The program has been designed to meet the priorities set by the
government of Iraq through its national development plan and support Iraq’s efforts to
achieve the Millennium Development Goals.

• providing over 100 agricultural scholarships to Iraqi officials and training more than
260 Iraqi government employees in Australia and Jordan on modern agricultural
practices, human rights, trade, financial management and customs and quarantine
108
• establishing 50 crop trials to develop and demonstrate more profitable and

sustainable farming techniques for Iraqi farmers in northern Iraq and establishing a
micro-lending program for rural businesses in Babylon, Karbala and Najaf
• expanding the Emergency Medical Care Development Program, which has trained
770 paramedics and doctors in emergency medicine since 2008 and seen patient
deaths halve in one Baghdad emergency department
• rehabilitating 12 schools in Baghdad and northern Iraq to benefit over 11 000
SECT ION 2
students, and upgrading water and sanitation infrastructure and establishing specialist
classrooms for children with disability in a further 200 schools nationwide
• supporting local police, social workers and medical practitioners to address violence
against women and girls in northern Iraq through activities which will benefit over
6700 women and girls
• clearing landmines and explosive remnants of war from 24 million square metres of
land, educating children on the risk of mines and providing health services, training
and business grants which will help mine victims reintegrate into their communities
and provide for their families.
Farmers testing low-till machinery in Iraq as part of an Australian Government aid project. The project partners
Iraqi scientists with Australian and international researchers, and will enable farmers to adopt conservation farming
techniques and more suitable crop varieties to increase crop yields, boost farm profits and use more sustainable farming
methods. Low-till techniques help Australian grain growers retain soil moisture, reduce erosion and bring down farm costs
in environments similar to those in northern Iraq
Photo: courtesy ACIAR
109
Customs and border control

The Australian Government-funded Iraq Customs and Border Control Project is
designed to build the capacity of Iraq’s quarantine and customs agencies and
contribute to improved trade, agriculture and civil border control in Iraq. The program
expands the skills and capacity of Iraqi personnel, facilitates agency reform, helps
develop a self-sufficient, ongoing training capacity, and supports Iraq’s accession to
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the World Trade Organization.
The project, which is run by the Centre for Customs and Excise Studies at the
University of Canberra, commenced in November 2009 and will run until May 2011.
In total, it aims to train 630 Iraqi customs and border agency officials. Five senior
management development programs, four operational management development
programs, three train-the-trainer courses and 23 vocational courses will be delivered
to the customs and quarantine agencies. These vocational courses encompass
customs commercial training, the international conventions governing both customs
and quarantine agencies, joint agency container inspection and examination, risk
management, ethics and conduct.
The project promotes a good working relationship between the customs and
quarantine agencies, showing that a better understanding of each agency’s policies
and procedures will lead to better border control overall.
Container examination training, as part of the Iraq Customs and Border Control Project
Photo: Centre for Customs and Excise Studies
110
Palestinian Territories
In 2009–10, AusAID’s country program aid to the Palestinian Territories totalled
$43.3 million. Increased budget support for Palestinian authorities linked to reforms
in public financial management contributed to a higher Australian total ODA outcome
compared to the 2009–10 estimated outcome ($36.3 million) at May 2010. The
Australian total ODA includes AusAID’s country, regional and global programs, and aid
from other Australian Government departments.
SECT ION 2
The goal of the Australian Government’s aid program to the Palestinian Territories is to
reduce human suffering and poverty. Australia is also supporting sustainable development
and promoting the Middle East peace process to foster a secure, stable and effective
Palestinian state, especially through support to the Palestinian Authority and the United
Nations Relief and Works Agency.
A man clears rubble from his home in the southern city of Rafah after a military incursion into the Gaza Strip. More
than half of Gaza’s 1.5 million people are children. The United Nations Relief and Works Agency is the lead humanitarian
organisation in occupied Palestinian Territories, and has been providing relief aid and shelter to more than 50 000 people
during the conflict
Photo: UNICEF/Iyad El Baba

• helping over 470 000 Palestinian refugees attend school in the West Bank, Gaza,
Lebanon, Syria and Jordan through support to the Palestinian Authority and the
United Nations Relief and Works Agency. Fifty per cent of school enrolments were girls
• supporting 4200 health workers to provide health care to Palestinian refugees in
134 centres across West Bank, Gaza, Lebanon, Syria and Jordan in partnership with
the Palestinian Authority and the United Nations Relief and Works Agency
111
• improving water and sanitation facilities in 105 schools and constructing

2.5 kilometres of sewerage networks in the West Bank and Gaza in cooperation with
the United Nations Children’s Fund and Australian non-government organisations
• increasing income generation and improving food security for over 50 000 vulnerable
Palestinians, and increasing the capacity of 66 community-based organisations to
deliver services, in partnership with Australian non-government organisations
• assisting the Palestinian Authority through a World Bank multi-donor trust fund which
SECT ION 2
aims to progressively strengthen private sector activity, improve internal security and
continue improving financial management systems
• providing emergency and humanitarian assistance through short-term employment for
up to 54 000 refugees
• facilitating health care for 15 000 Palestinian refugee children in schools through
United Nations Relief and Works Agency activities, and providing health care for
160 000 pregnant women and mothers in Gaza in partnership with the United Nations
Population Fund
• promoting the peace process by providing a secondee to the Office of the Middle
East Quartet Representative, which works to improve conditions for Palestinians and
promote a lasting peace agreement.
Afghanistan
In 2009–10, AusAID country program aid to Afghanistan totalled $53.3 million. Other
Australia’s assistance to Afghanistan aims to help build an accountable and functional

Afghan state that can provide health, education and employment opportunities to its
people and sustain stability. AusAID provides assistance to stabilise conflict-affected
communities and strengthen the capacity of the Afghan government to deliver basic
services, infrastructure and economic growth.
Development in Afghanistan faces major challenges because of the serious security

situation and the degradation of infrastructure and services caused by decades of conflict.
However, international efforts to assist Afghanistan are having a positive impact. School
enrolments have increased from one million in 2001 to over six million in 2009. Basic
health services, which were available to just 5 per cent of the population under the
Taliban, have now been extended to around 80 per cent of Afghanistan’s people. Australia
has contributed to these achievements through ongoing support to national health and
education programs, including those delivered through the Afghanistan Reconstruction
Trust Fund.
Australia’s aid and military efforts also work together with the initiatives of the Afghan
government to promote security and stability in Uruzgan Province, which is one of the
poorest and least developed areas of Afghanistan.
112

• doubling the number of functioning primary health care facilities and reducing child
mortality by 26 per cent through contributions to the Basic Package of Health
Services program
• building over 700 schools and training over 32 000 teachers, enabling national school
enrolments to reach 6.79 million children, through contributions to the Education
Quality Improvement Program
SECT ION 2
• helping to build the capacity of four key central government ministries health,
education, agriculture, and rural rehabilitation and development through an integrated
program of training and scholarships for staff and expert technical assistance
• improving access to health services for people in conflict-affected areas by supporting
10 International Committee of the Red Cross health care centres across the south
of Afghanistan
• training 30 master teacher trainers in Malaysia through the Malaysia Australia
Education Project, who have already led skills training for over 2000 teachers
in Afghanistan
• supporting the return of 54 000 displaced Afghans to their homes through the
United Nations High Commissioner for Refugees, including Afghan refugees returning
from neighbouring Pakistan and Iran
• providing $6 million to support the World Food Programme’s food security
interventions nationally and in Uruzgan province, including emergency relief, school
feeding and food-for-work programs
• introducing stress tolerant wheat and maize varieties through the Australian Centre for
International Agricultural Research, which resulted in a 50 per cent increase in yields
in target areas.
In Uruzgan Province, key achievements in 2009–10 included:

• providing drought relief for 1100 vulnerable farmers in remote communities through
the provision of 220 metric tonnes of feed
• improving food security through the distribution of wheat and other food items,
including take-home rations for female school students
• supporting health promotion through the provision of basic health and hygiene
education to 1780 primary school students, 34 per cent of whom are girls
• supporting community de-mining and mine risk education by training 117 local people
in mine safety and clearing 132 348 square metres of contaminated land
• generating employment through the rehabilitation of 6 kilometres of road, which
created 17 397 days of employment for vulnerable Afghans.
113
The Afghanistan Health Development Service

Dr Noor, the Director of the Afghanistan Heath Development Service, is a young man
of 34. He took up the position in 2006 after the previous director, a doctor and two
nurses were killed by a remote controlled bomb in the north of Uruzgan Province.
At the time, Dr Noor was able to convince 17 doctors to continue working in the
SECT ION 2
province after they threatened to resign because of the violence.
He is now in charge of 165 village heath clinics through Uruzgan. Australia is funding
the Afghanistan Health Development Service to provide community health services,
immunisations and vaccinations, and midwife training programs across the province.
A particular aim of the service is to increase the number of women giving birth
in hospitals or health clinics, rather than at home. Afghanistan has one of the
highest maternal mortality rates in the world, second only to Sierra Leone. A total of
1600 mothers die for every 100 000 births, a rate more than 250 times higher than
in Australia. The situation is also extremely poor for young children as around one in
five children in Afghanistan die before they reach their fifth birthday.
But progress is being made. In 2004, just 2.5 per cent of pregnant women gave
birth in a hospital or health clinic—now it is more than 11 per cent, which is a
fivefold increase in just five years.
Australia and other donors are also providing pre and post-natal heath education.
In 2004, 20 per cent of children were being immunised, but the figure has now
risen to more than 70 per cent. In many clinics, pregnant women are now asking for
vaccinations, which was very rare five years ago.
Left, Dr Noor, Director of the Afghanistan Heath Development Service, with AusAID’s Development Adviser Kate
Elliot in the service’s pharmacy
Photo: Lorrie Graham
114
Supporting women
Australia is helping to improve the lives of Afghan women and girls through support for
nationwide services that benefit women. Australian-supported health clinics provide
safe motherhood programs including antenatal, postnatal and children’s health support.
Community organised primary education programs promote girls’ education in remote
communities, while school-feeding programs run by the World Food Programme promote
girls’ attendance at school by providing take-home rations.
SECT ION 2
Significant progress has been made in the status of Afghan women and girls since 2001.
School enrolments have increased from 1 million to over 6 million, and 35 per cent—over
2 million—of these students are girls, up from zero under the Taliban. The female literacy
rate has more than doubled as a result, although it remains low at 21 per cent.
Under the Australian-funded National Solidarity Program, women have a key role in
community decision-making through representation on more than 22 000 community
development councils across the country. Australia supports a gender adviser in the
Ministry of Agriculture, Irrigation and Livestock to help increase the participation of women
in rural development, which is the main source of income for the majority of Afghans.
Australia also supported the training of 200 local Afghan female election observers to
increase women’s participation in the electoral process.
Pakistan
In 2009–10, AusAID’s country program aid to Pakistan totalled $70.3 million.
Increased spending on humanitarian assistance by the country program contributed to
a higher Australian total ODA outcome compared to the 2009–10 estimated outcome
($67.9 million) at May 2010. The Australian total ODA includes AusAID’s country, regional
and global programs, and aid from other Australian Government departments.
Australia’s aid program to Pakistan has grown sharply in recent years, reflecting an
increased focus by the Australian Government and the international community on
Pakistan’s stability and security. Humanitarian and development assistance to Pakistan
in 2009–10 helped alleviate the impacts of conflict in north-west Pakistan and the global
recession, and supported continued progress towards the Millennium Development Goals.
Australia’s support has contributed to improved health services, better primary education,
the promotion of rural livelihoods and improved standards of governance, as well as the
provision of urgently needed humanitarian assistance.
Pakistan is a fragile and complex environment, which makes achieving development gains
difficult. On several occasions in the past year, the international community was forced to
reassess its ability to deliver assistance safely and effectively following violence against
aid workers.

• supporting improved child and maternal health care services within the national
system of Pakistan by training 8871 midwives employed by the government’s maternal
and child health program
11 5
• preventing avoidable blindness by training 15 ophthalmologists from Khyber

Pakhtunkhwa and Punjab to provide effective laser treatment to those at risk
of blindness
• supporting a further 51 students to begin studying in Australia under the Australian
Development Scholarships and the Carnegie Mellon awards program, with 48 per cent
of the awardees being women
• increasing the participation of citizens, particularly women and youth, in democratic
SECT ION 2
processes and improving the accountability of government by training 1588 people in

human rights, democracy and good governance through civil society organisations
• supporting 30 per cent of farmers to adopt improved farm management practices in
Central Punjab in partnership with the Australian Centre for International Agricultural
Research, which has increased milk production by 1 litre of milk a day per animal and
increased farm incomes by 50 cents a day
• improving food security for 2.6 million internally displaced people in Khyber
Pakhtunkhwa and the Federally Administered Tribal Area by providing 330 000 metric
tonnes of food assistance through a partnership with the World Food Programme.
Australia also supported the delivery of food aid, clean water, sanitation services and
educational support to communities displaced by conflict in Pakistan’s north-west in
2008 and 2009. Australia was the tenth largest bilateral donor to the humanitarian crisis
in 2009.
In cooperation with the United Nations Children’s Fund, Australia has supported the enrolment of 46 000 girls in primary
schools in Balochistan Province, with a retention rate of 89 per cent
Photo: UNICEF Pakistan/ASAD ZAIDI
Latin America
The Australian Government has expanded its development assistance into Latin America.
In 2009–10, AusAID’s country and regional program aid to Latin America totalled
$2.1 million. Other Australian assistance through AusAID’s global programs brought total
ODA to an estimated $9.3 million.
This included $5 million in emergency relief and reconstruction following the earthquake
and tsunami in Chile in February 2010, and $0.5 million in humanitarian assistance to
Guatemala in the wake of the eruption of Pacaya and tropical storm Agatha.
116

• commencing a $2 million microfinance project in Peru to provide financial literacy
training for approximately 100 000 female micro entrepreneurs
• expanding eligibility for the Human Rights Small Grants Scheme to Latin American
countries and awarding five grants to Argentina, Belize, Chile, Mexico and Nicaragua
• launching two $1 million microfinance projects in Colombia targeting poor and
disadvantaged communities in post-conflict regions, in partnership with the
SECT ION 2
Inter-American Development Bank, the government of Colombia, and local Colombian
non-government organisations
• expanding eligibility for Australian Leadership Award scholarships and fellowships to
applicants from Latin America
• announcing up to 200 short and long-term scholarships—including Australian
Leadership Awards—which will be awarded to applicants from Latin America over the
next four years
• establishing an AusAID office within the Australian Embassy in Santiago, Chile, as a
hub for Australian development assistance in Latin America, and appointing a first
secretary for development cooperation.
During 2009–10 AusAID established new relationships with some of the wealthier
countries in Latin America, including Argentina, Brazil, Chile and Mexico, to potentially
work together in providing development assistance to poorer countries in South and
Central America and the Caribbean. A small number of initiatives are expected to
commence in 2010–11, including a partnership with Brazil to deliver assistance in Haiti
following the devastating impact of the earthquake in February 2010.
11 7
PROGRAM 1.4 ODA—Emergency,

humanitarian and
refugee programs
SECT ION 2

At least 75 per cent of 88 per cent of the aggregated 100 per cent of the aggregated
emergency, humanitarian and quality ratings for emergency, quality ratings for emergency,
refugee activities receive a humanitarian and refugee humanitarian and refugee
quality rating of satisfactory programs were satisfactory programs were satisfactory
or higher; or higher. or higher.
At least 75 per cent of program N/A* 100 per cent of program
strategy objectives fully or strategy objectives were fully or
partially achieved. partially achieved.
Organisations’ significant Organisations’ significant

outputs; significant outputs and humanitarian
humanitarian results. results are highlighted on
pages 118 to 122.
During the year, AusAID contributions to emergency, humanitarian and refugee programs
totalled $240.0 million. Additional humanitarian expenditures under a range of other
AusAID programs brought total humanitarian aid by AusAID in 2009–10 to an estimated
$412.3 million.

• responding to more than 30 rapid-onset emergencies and conflicts in Africa, Asia, the
Pacific, Latin America and Europe
• partnering with the World Food Programme to deliver more than 175 000 tonnes of
food into emergency situations and supporting nutrition programs for children and
pregnant and lactating women
• supporting international humanitarian coordination by chairing the United Nations
Office for the Coordination of Humanitarian Affairs Donor Support Group, and
successfully co-facilitating a consensus adoption of the humanitarian resolution in the
2009 United Nations Economic and Social Council
• deploying 109 Australian humanitarian experts into overseas disaster zones to save
lives and deliver emergency relief. This included 30 to work with the Red Cross
Movement through the Australian Red Cross, 66 to United Nations agencies through
RedR Australia and 13 members of AusAID’s Rapid Response Team
• fielding an international group of 70 engineers through the Australia-Indonesia Facility
for Disaster Reduction to assess 4000 sites damaged by the Padang earthquake to
determine why some buildings collapsed and others didn’t, and to develop standards
for more resilient reconstruction.
118
PROGRAM 1.4 ODA—EMERGENCY, HUMANITARIAN & REFUGEE PROGRAMS
Responding to emergencies
Australia is an important player in responding to international humanitarian emergencies.
In our immediate region we have responded to floods, cyclones, earthquakes, droughts
and tsunamis in Indonesia, Samoa, Tonga, Fiji, Laos, Timor-Leste, Vietnam and the
Philippines. Beyond our region, Australia assisted with disasters that struck Haiti, Chile,
Guatemala, Tajikistan, China, El Salvador, Mongolia, Syria, Kenya and Ethiopia.
Australia also engaged with the international community to alleviate the suffering of
SECT ION 2
people caught up in protracted conflicts in the Sudan, Democratic Republic of Congo,
Sri Lanka, Pakistan and Yemen. In June 2010 Australia provided $2 million to help the
Kyrgyzstan and Uzbekistan governments sustain people made homeless by the civil unrest
in southern Kyrgyzstan.
AusAID continued to help build the capacity of key responders in the region by
developing new partnerships with the World Food Programme, the United Nations Office
for the Coordination of Humanitarian Affairs, the United Nation’s Central Emergency
Response Fund and by working with governments and communities in vulnerable
countries. AusAID also improved Australia’s ability to respond to overseas disasters by
expanding our prepositioned emergency stores and establishing more effective response
systems between AusAID, key government agencies and humanitarian non-government
organisations to mount large-scale responses.
Australia’s response capacity relies on Australia’s diplomatic missions being able

to rapidly coordinate and align our efforts with the national government and wider
International community. During the year AusAID has held regional disaster preparedness
training programs for staff in Australia’s missions in the Pacific and Asia in preparation for
the annual cyclone seasons.
In 2009–10, AusAID joined the United Nation’s International Search and Rescue Advisory
Group steering committee to oversee its practice and accreditation systems for deploying
international urban search and rescue teams. AusAID supports the engagement of
Australian urban search and rescue teams in the group’s system and helps prepare
them for deployment into overseas disasters, as happened in October 2009 following the
Padang earthquake.
Minister for Foreign Affairs, Mr Smith, views the Ambacang Hotel in Padang, West Sumatra, which was damaged by an
earthquake. The 7.6-magnitude quake struck on 30 September 2009, killing at least 1100 people and injuring more than
3000 people as it destroyed thousands of buildings in Padang and outlying areas
Photo: Australian Defence Force
11 9
Australia responds to six simultaneous disasters

Australia was the only donor country to respond to six simultaneous requests for
international disaster assistance during the final days of September and first week of
October 2009. The affected countries were Samoa and Tonga (Tsunami), Indonesia
(Padang earthquake), Philippines, Vietnam and Laos (Typhoon Ketsana).
AusAID deployed members of its rapid response team to Samoa, Tonga and Padang
SECT ION 2
to coordinate Australia’s response to those countries. Ninety-two Australian federal,

state and territory government relief workers and 35 tonnes of emergency stores and
equipment arrived in Samoa in the first 36 hours. Further relief materials and support
staff were transported on the HMAS Tobruk.
In the first 24 hours after the 30 September 2009 earthquake in Padang, Indonesia,
Australia released 1250 family kits and 50 tents from prepositioned stores in Jakarta,
deployed a 20 person Australian Defence Force medical and engineering team and a 37
person NSW urban search and rescue team to locate and recover victims from collapsed
structures.
The Australia-Indonesia Facility for Disaster Risk Reduction supported an international

group of 70 engineers to assess 4000 sites damaged by the Padang earthquake to
determine why some buildings collapsed and others didn’t. The facility developed a ‘build
back better’ campaign using radio, television and print media in and around Padang to
prepare the region for further earthquakes.
At the same time AusAID provided a total of $3.6 million to key Australian humanitarian
non-government organisations to respond to typhoon damage in Laos, Vietnam and the
Philippines as well as $1.7 million for the Padang earthquake and Samoa tsunami.
Building resilience to natural disasters

Australia continues to be a leading donor in disaster risk reduction. Significant investment
and achievements at the regional, bilateral and community level in over 30 countries
are guided by a strong policy statement on reducing the threat of disasters through the
aid program.
In 2009–10, Australia increased investment in disaster risk reduction, spending over

$50 million on targeted prevention and preparedness activities. In addition, AusAID
continued efforts to integrate disaster risk reduction principles into development
programs, with integration being piloted in AusAID’s Indonesia and Philippines bilateral
programs and infrastructure development in the Pacific. Such efforts help ensure
investment in health, education, infrastructure and other sectors are disaster-resilient
and do not create new forms of vulnerability. Tools and training on integration have been
developed and training has been delivered for AusAID staff in Canberra, the Mekong,
Indonesia and the Philippines.
AusAID is also committed to ensuring disaster risk reduction informs decision-making

on humanitarian assistance, including integrating the ‘build back better’ principle into
recovery and reconstruction. In 2009–10, AusAID provided $2 million to the Global
Facility for Disaster Reduction and Recovery to support post disaster needs assessments
in Indonesia, Samoa, Tonga, Philippines, Cambodia and Laos to inform sustainable
reconstruction efforts.
1 20
PROGRAM 1.4 ODA—EMERGENCY, HUMANITARIAN & REFUGEE PROGRAMS
Australian support for food aid

The United Nations World Food Programme is the largest United Nations humanitarian
agency and demonstrates ongoing capacity to deliver life saving assistance in the most
difficult of circumstances, including in response to food aid crises in the Horn of Africa
and in high-risk environments such as Afghanistan, Pakistan, Sudan and Zimbabwe.
The programme provides emergency food assistance to people facing severe and life
threatening hunger, often as a result of conflict or natural disaster.
SECT ION 2
Australia has been a key supporter of the World Food Programme since 1963, providing
over $1 billion in the last 12 years. In October 2009, Australia signed a $180 million
strategic partnership agreement with the programme, and also supports it in areas other
than direct food aid, such as funding for innovative capacity building projects including
strengthening emergency preparedness and response in the Asia Pacific region, a food
technologist, a commodity officer, a nutritionist and the enhancement of the humanitarian
early warning service.
Supporting a stronger international response to
humanitarian crises
Australia continues to provide critical humanitarian support to refugees and internally
displaced people. Australia provided $14.3 million to the United Nations High
Commissioner for Refugees and additional allocations to support its operations in
countries including Afghanistan, Pakistan, Sri Lanka, the Philippines, Iraq and the
Democratic Republic of Congo. In addition, Australia provided a $16 million to the
International Committee of the Red Cross and additional funding to emergency appeals
to support the committee’s mandate to protect and assist civilians affected by
armed conflict.
AusAID continued to build the capacity of the United Nations to support protection and
gender in humanitarian action through a combined contribution of $1 million to the
United Nations Protection Standby Capacity (ProCAP) and the Gender Standby Capacity
(GenCAP) projects. This contribution has increased the capacity of humanitarian agencies
to mainstream protection and gender to ensure the safety, security and dignity of men,
women, boys and girls in humanitarian emergencies.
In 2009–10, Australia announced a $60 million, four-year funding commitment to the

United Nations Central Emergency Response Fund to allow for the rapid disbursement of
funds to United Nations agencies involved in humanitarian action. During 2009, the fund
rapidly disbursed critical humanitarian funding to over 40 humanitarian crises, including
Haiti, the Democratic Republic of Congo, Somalia, Sudan, Burma, Kenya and Zimbabwe.
Australia was the world’s tenth largest contributor to the fund in 2009.
Australia’s leadership role in humanitarian action was further strengthened by its role
as chair of the United Nations Office for the Coordination of Humanitarian Affairs Donor
Support Group in 2009–10. The 24-member group acts as a source of advice on policy
and management questions. As chair, Australia focused on a range of issues including
the office’s role in disaster preparedness and capacity building of states and regional
organisations to respond to disasters, particularly in the Asia Pacific region. Australia
also provided $6 million in core funding to the office in 2009–10 as part of its ongoing
partnership framework agreement.
1 21
Australia responds to a stricken Haiti

A 7.0 magnitude earthquake hit Haiti on 12 January 2010. More than 2 million
people were affected, with 222 517 dead, 310 928 injured and more than 285 000
houses destroyed.
Australia responded immediately to the earthquake in Haiti by providing $10 million

SECT ION 2
in emergency relief through the United Nations World Food Programme, the
International Federation of the Red Cross and Red Crescent Societies, the United
Nations Office for the Coordination of Humanitarian Affairs and the Caribbean
Disaster Emergency Management Agency. Support was also provided through six
Australian non-government organisations to deploy eight Australian humanitarian
experts to work with United Nations agencies in Haiti.
Australian funding to the World Food Programme helped provide 3.5 million people
with food in the weeks after the earthquake struck. Our support also helped the
Red Cross and Australian non-government organisations to deliver life saving
interventions such as clean water and shelter, and importantly, education and
protection for children and orphans. By supporting the United Nations office for the
Coordination of Humanitarian Affairs and the Caribbean Disaster Emergency Agency
Australia helped these key agencies to mount the most challenging emergency
response coordination effort since the 2004 Indian Ocean Tsunami.
Given the unprecedented scale of the Haiti disaster, Australia provided $14 million
to support early recovery and reconstruction efforts. Of this, $2.5 million was
provided to the United Nations Development Programme’s Cash for Work program,
which was a key early activity in kick starting Haiti’s recovery. The program provided
immediate employment for thousands of Haitians, a critical injection of cash into the
local economy, and helped local businesses get back on their feet quickly.
A further $10 million was provided to the World Bank’s Haiti Reconstruction Fund.
This streamlined donor funding mechanism was well supported and provides Haiti’s
government and its partners with the confidence to implement the government’s
national plan and vision to rebuild a more functional Haiti that is better prepared to
withstand future disasters. Of the remaining $1.5 million, half has been provided to
Caribbean Community to assist improved coordination and support to Haiti, and the
remainder has been allocated to working with Brazil in Haiti.
1 22
PROGRAMS 1.5 & 1.6 ODA—UNITED NATIONS, COMMONWEALTH & OTHER
PROGRAMs 1.5 and 1.6

ODA—United Nations,
Commonwealth and other
International Organisations
and Multilateral
SECT ION 2
Replenishments
At least 75 per cent of 97 per cent of the quality 100 per cent of the quality
organisations receive a rating ratings for United Nations, ratings for United Nations,
of satisfactory or higher; Commonwealth and other Commonwealth and other
International Organisations and International Organisations and
Multilateral organisations were Multilateral organisations were
satisfactory or higher. satisfactory or higher*.
At least 75 per cent of N/A** 100 per cent of program
fully or partially achieved. partially achieved.
Organisations’ significant Organisations’ significant
outputs; significant outputs and development
development results. results are highlighted on
pages 123 to 135.
* These satisfaction ratings refer to core funding and Global programs with Multilateral partners. The satisfaction ratings of country program
co-financing arrangements with Multilaterals are assessed within specific country programs ratings.
** This indicator was introduced in 2009–10 and was not reported against in 2008–09.19
Multilateral organisations are key partners for AusAID and extend the reach of the aid
program. By partnering with multilateral organisations, AusAID is able to participate in
projects on a scale and scope that would not be possible bilaterally. Channelling our aid
through multilateral funds also ensures greater harmonisation across donors. Australia
provides funding to multilateral organisations in line with the priorities of the aid program
and country strategies as well as their effective performance.
The United Nations, multilateral development banks and Commonwealth organisations

are important partners in implementing the aid program. Their convening power, depth
of technical and financial resources and global reach complement Australia’s bilateral
country programs.
Multilateral organisations play a crucial role in researching, analysing and shaping

international development cooperation efforts. In 2009–10, Australia worked closely with
1 23
these organisations in mitigating the impacts of the global economic crisis on developing
countries, particularly in the Asia and Pacific regions.
Being fully engaged in the multilateral system provides Australia, as a middle power,
with an avenue to influence global affairs in line with our national interests, and an
opportunity to work with nations on development and humanitarian issues. Australia’s
engagement with multilateral organisations provides us with an opportunity to engage
with all the members and observers to that organisation, including other donors and
SECT ION 2
developing countries.
United Nations agencies

The United Nations is at the heart of global efforts to realise the Millennium Development
Goals. Over the past two years, the Australian aid program has revitalised engagement
with the United Nations through developing partnerships with selected United
Nations agencies that have demonstrated they can deliver effective development and
humanitarian outcomes.
In 2009–10, the Australian Government signed new partnership agreements with the
World Food Programme, the United Nations Population Fund and the International
Labour Organization. These build on agreements signed with six leading United Nations
development and humanitarian agencies in 2008–09. The partnerships commit to joint
efforts to accelerate progress towards achieving the Millennium Development Goals. They
also provide multi-year funding certainty and a framework for structured discussion of
priorities and results.
Australia has continued to promote reform aimed at improving the efficiency and
effectiveness of the United Nations, both as a whole and at an agency level. Australia has
supported the “One UN” reform initiative, which aims to improve the effectiveness of the
United Nations by improving coordination between agencies at a country level. Australia
provided funding for the One UN pilot exercise in Vietnam and encouraged an informal One
UN pilot in Papua New Guinea.
Four senior United Nations officials visited Australia in 2009–10: United Nations
Development Programme Administrator Helen Clark, United Nations Population Fund
Executive Director Thoraya Obaid, World Food Programme Executive Director Josette
Sheeran and United Nations Development Fund for Women Executive Director Ines Alberdi.
These visits provided opportunities to discuss agency priorities and performance and to
further deepen Australia’s engagement with the United Nations.
1 24
Partnership with the World Food Programme

Australia’s partnership with the World Food Programme was signed in October 2009.
The major benefit is to ensure predictable and guaranteed funding to maximise
efficiency in planning. The partnership also allows for support for emergency food
assistance in case of a natural or man-made disaster. Australia is the first donor to
provide predictable multi-year funding to assist the World Food Programme plan and
SECT ION 2
deliver more effective food aid operations. Over the four-year life of the partnership,
Australia guaranteed $140 million of funding for the programme’s global operations
and $40 million support for school feeding programs. World Food Programme
Director Josette Sheeran has stated that the partnership with Australia is first of its
kind among donors and represents global best practice.
In October 2009, Minister for Foreign Affairs, Mr Smith, and Executive Director of the United Nations World Food
Programme, Josette Sheeran, signed a new $180 million agreement to strengthen our partnership in the fight
against global hunger, which affects more than one billion people
Photo: AUSPIC
United Nations agency funding

AusAID core contributions to United Nations development and humanitarian organisations
in 2009–10 totalled approximately $117 million. Other Australian assistance through
AusAID’s country, regional and global programs brought total ODA delivered by AusAID
through United Nations organisations to approximately $460 million.
The United Nations World Food Programme is a key partner with Australia in tackling
food insecurity in developing countries. AusAID provided over $50 million during the year
through the World Food Programme, supporting food aid operations in 18 countries.
The United Nations Children’s Fund is also a highly valued partner for Australia,
particularly in addressing maternal and child health. AusAID provided over $104 million to
the United Nations Children’s Fund in 2009–10 for programs targeting vaccination, better
nutrition, basic education and water and sanitation.
1 25
Core contributions were also made to the following United Nations development and
humanitarian organisations:
• United Nations Development Operations Coordination Office (UNDOCO)
• United Nations Development Programme (UNDP)
• United Nations Population Fund (UNFPA)
• United Nations Development Fund for Women (UNIFEM)
SECT ION 2
• Joint United Nations Programme on HIV/AIDS (UNAIDS)

• World Health Organization (WHO)
• Office of the United Nations High Commissioner for Refugees (UNHCR)
• United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA)
• United Nations and Relief and Works Agency for Palestine Refugees in the
Near East (UNRWA)
• International Atomic Energy Agency (IAEA)
• United Nations Office on Drugs and Crime (UNODC)

• United Nations Environment Programme (UNEP)
• Office of the United Nations High Commissioner for Human Rights (OHCHR)
• United Nations Central Emergency Response Fund (UNCERF)
• United Nations Development Program Bureau for Crisis Prevention and Recovery
(UNDP BCPR)
• United Nations Peacebuilding Fund (UNPF)
• International Labour Organisation (ILO).
AusAID also works closely with United Nations organisations at the country level.
For example:
• Australia is working with the United Nations Development Programme to support
community-based climate change adaptation initiatives in the Pacific and parts of Asia
• the United Nations Development Programme and Australia are also providing economic
and fiscal policy support to the Tuvalu government, with a particular focus on food
prices and education and health spending
• Australia, Nauru and the United Nations Development Programme have established an
enterprise resource centre in Nauru to train entrepreneurs and small business owners
• through Australia’s support to the United Nations Children’s Fund, the Indonesian
government is being assisted to combat malaria through a prevention program that
includes the mass distribution of insecticide-treated mosquito nets, which have
reduced the number of deaths amongst children under five by about 20 per cent
• through the United Nations Children’s Fund Multi-Donor Education Fund in Burma,
AusAID funds have:
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— expanded early childhood development programs in 269 community-based centres

and improved the quality of services at preschools, benefitting about 16 800
children aged two to five
— provided more equitable education access through 3900 child-friendly schools in
25 targeted townships
— helped families with out-of-pocket school costs by providing basic school
supplies including textbook and essential learning packages to approximately
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575 000 children.
• Australia has contributed $10.46 million over the past five years to support
immunisation and child protection activities under the United Nations Children’s Fund’s
Pacific Multi-Country Program. As a result, fewer cases and no sizable outbreaks of
disease have been reported in areas targeted by immunisation activities.
Multilateral development banks and replenishments
World Bank Group
In 2009–10, Australia provided $490.98 million to the World Bank Group. This included
over 100 co-financing projects, such as:
• $5 million towards assisting Benin, Burkina Faso, the Democratic Republic of Congo,
Ethiopia, Kenya, Mozambique, Niger, Rwanda, Senegal, Tanzania, Uganda and Zambia
to strengthen water policies and undertake sector reforms to increase poor people’s
access to water and sanitation services.
• $15 million through the Poverty Reduction Fund to support people in rural villages in
Laos build infrastructure and put local people in charge of their future. The Poverty
Reduction Fund has empowered the poor, women and ethnic minorities to create safe
water supply, build health clinics, schools and bridges, and upgrade roads, which has
helped to alleviate poverty.
• $2.4 million to assist the Philippines develop effective social safety nets following the
global financial crisis. The program provides target households with cash benefits if
their children attend school and receive basic health and nutritional care services.
The World Bank Group, the world’s largest source of official finance for the world’s
poorest countries, is one of Australia’s key global partners. The World Bank is a global
leader in development because it commands substantial resources, has 186 member
countries and has the convening power to bring together donors, governments,
multilaterals, civil society and the private sector. It has extensive expertise, knowledge
and analytical capabilities. Working with the World Bank Group extends the reach, quality
and impact of Australia’s aid program.
Australia’s membership and funding of the World Bank Group provides opportunities to
influence priorities and programs in our region and across the globe.
AusAID also works closely with the International Financial Corporation, which is the private
sector arm of the World Bank Group. In the Pacific, the corporation has been working
to reduce barriers to female participation in business by building women’s voices on
1 27
business issues, empowering women by creating networks, facilitating women’s access to

business formalisation, and training female mediators.
International Development Association

Australia is the 12th largest donor to the International Development Association, the
World Bank’s concessional lending facility that assists the world’s 79 poorest countries
with grants and low interest loans. In 2009–10, the aid program made payments totalling
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$160.3 million to meet commitments on previously negotiated International Development

Association replenishments. Negotiations for the 16th replenishments commenced in
March 2010 and will conclude by December 2010. Replenishment negotiations are one of
the key ways Australia influences the policy directions and operational effectiveness of the
World Bank.
Asian Development Bank

The Asian Development Bank is a central development partner in the Asia and Pacific
regions, providing an important source of analytical work, policy advice and program
delivery expertise. The bank’s mission is to help its developing country members reduce
poverty and improve the quality of life of their people. It is made up of 67 members,
including 48 from the Asia Pacific region.
In September 2009, AusAID and the Asian Development Bank signed a partnership
framework on development designed to build a stronger and more robust partnership
and promote efforts to assist member countries to achieve the Millennium Development
Goals. The framework is built around three objectives:
• working together in Asia and the Pacific, emphasising a strong Asian Development
Bank presence in accordance with the 2009 Cairns Compact on Strengthening
Development Coordination in the Pacific
• promoting greater effectiveness, particularly through donor coordination
and harmonisation
• building awareness of the partnership, including improved public information on the
nature of results of Australia’s contributions.
In 2009–10, AusAID also worked with the Asian Development Bank on more than 20 joint
activities worth about $63 million, mainly targeting infrastructure, health, education and
private sector development in the greater Mekong sub-region and the Pacific. For example,
Australia is working with the bank to upgrade large-scale transport infrastructure in the
greater Mekong sub-region, especially Vietnam and Cambodia, to improve access to
markets and ultimately to promote economic growth.
Asian Development Fund

Australia is the third largest donor to the Asian Development Fund, the arm of the Asian
Development Bank that provides grants and highly concessional loans to low income
countries. In 2009–10, the aid program made payments totalling $54.1 million as core
contributions to the Asian Development Bank as part of Australia’s 2008 pledge of
$333 million to the ninth replenishment of the Asian Development Fund.
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Giving children a future—helping the World Bank fund

education in the world’s poorest nations
Education is key to expanding opportunities for children, but primary school
enrolments remain a problem in many developing countries. In Bangladesh, one‑third
of children drop out before completing elementary school and about three million
school-age children have never received formal education. Australian support
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through the World Bank is providing educational opportunities for disadvantaged
children with the aim of eventually integrating them as students into the formal
school system. Some 500 000 formerly out-of-school children are now receiving
primary education in about 15 000 learning centres in Bangladesh.
The end of the school day at Mauchak Scout High School in Bangladesh
Photo: Scott Wallace, World Bank
Heavily Indebted Poor Countries Initiative and Multilateral Debt

Relief Initiative
The Heavily Indebted Poor Countries initiative provides multilateral and bilateral debt
relief to the world’s poorest and most heavily indebted countries that have shown a
commitment to reform. At June 2010, 35 out of 40 potentially eligible countries had
received debt relief under the initiative.
AusAID committed $40.8 million in 2008–09 to the World Bank’s costs for the Multilateral
Debt Relief Initiative. The initiative cancels debt owed by eligible poor countries to major
international financial institutions, including the International Development Association,
the International Monetary Fund, and the African Development Fund. At June 2010,
28 out of 40 potentially eligible countries had received debt relief under the initiative.
Australia’s contribution will be paid from 2016–17 until 2018–19.
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Commonwealth organisations
Australia supports the Commonwealth’s role in fostering democracy, good governance,
human rights and the rule of law in member countries. The Commonwealth has an
important role to play in promoting the special development needs of small and vulnerable
island states.
In 2009–10, Australia provided $10.8 million through Commonwealth agencies with the

majority of support directed to the Commonwealth Fund for Technical Cooperation, the
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Commonwealth Youth Programme and the Commonwealth Foundation. The Australian aid
program also supports Commonwealth small states offices in New York and Geneva to
allow small states to have representation at the United Nations.

• deploying Commonwealth observer groups to monitor elections in Ghana, Malawi,
Swaziland, Maldives, Antigua and Barbuda
• conducting initial assessments through the aid program of the impact of the global
recession on trade in Commonwealth small states

• providing grants to more than 100 civil society organisations to increase their
voice in the areas of culture, governance and democracy, human development and
communities and livelihoods.
Working with other donors to enhance multilateral effectiveness

Australia works with other donors through the governing boards of multilateral
organisations to ensure a strong focus by each multilateral organisation on improving the
effectiveness of programs. This includes ensuring a close attention by management to
development results in the design, monitoring and reporting of activities and adequate
oversight by internal and independent evaluation bodies. The World Bank, Asian
Development Bank and most United Nations agencies have taken specific measures to
strengthen their focus on development results over the past year.
Australia also worked closely with other donors to advance multilateral effectiveness
through the 16-member Multilateral Organisation Performance Assessment Network
and the OECD Development Assistance Committee. Australia joined the assessment
network in January 2009 and has been an active member. In 2010, Australia is leading
the network’s institutional assessment for the Asian Development Bank and is a country
co-lead for the network’s Indonesia and Afghanistan surveys.
Partnering with other donors to enhance development effectiveness

In 2009–10, AusAID and the United States Agency for International Development (USAID)
formed a strategic partnership to work together on reducing poverty in developing
countries. A memorandum of understanding was signed on 10 June 2010 by AusAID’s
Director General, Peter Baxter, and USAID Administrator, Rajiv Shah. The new partnership
complements existing strategic development partnerships already in place with the UK’s
Department for International Development, the German Ministry for Economic Cooperation
and Development, the European Union, and the Korean Ministry of Foreign Affairs and
1 30
Trade. Coordination and collaboration between donors aims to improve the efficiency
and effectiveness of development activities, making the best use of limited resources
and avoiding duplication. This fits with the principles of harmonisation and coordination
outlined in the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action.
The OECD Development Assistance Committee

In 2009–10 Australia contributed to the policy work of the OECD Development Assistance
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Committee (DAC) through the International Network on Conflict and Fragility. Australia
supported development of new international policy recommendations on improving
ways that donors can deliver financial assistance to countries moving out of conflict to
situations of more sustainable development. Australia participated as an “examining”
country with the UK, in the Development Assistance Committee peer review of Germany’s
aid program. During the year, Australia along with other committee members, promoted
efforts to increase outreach to non-DAC donors, emerging economies, vertical funds and
private foundations.
G20
In 2009, leaders designated the G20 as the premier forum for international economic
cooperation. In recognition of the significant impact of the financial, fuel and food crises
on low-income countries, G20 leaders took a number of steps to provide support for the
most vulnerable. The G20 supported significant increases in multilateral development
bank lending and work is underway to improve the capacity of international financial
institutions to provide greater support to low income countries in times of crisis. The
G20 has also taken a strong leadership role on food security, endorsing the G8’s
US$20 billion L’Aquila Food Security Initiative and tasking the World Bank to establish the
Global Agriculture and Food Security Program.
Importantly, G20 leaders agreed to establish a framework for strong, sustainable

and balanced growth and recognised that steps to reduce the development gap can be an
important driver of global growth. G20 leaders have asked the World Bank to advise them
on progress in promoting development and poverty reduction as part of the rebalancing
of global growth, and have also committed to work together to ensure that their fiscal,
monetary, trade and structural policies are collectively consistent with more sustainable
and balanced trajectories of growth.
To take forward these commitments, the G20 agreed at its June 2010 meeting in
Toronto to establish a high-level working group on development. The working group, which
Australia will actively participate in, has a mandate to focus on measures to promote
and sustain economic growth in developing countries. The working group will prepare a
development agenda and multi-year action plans to be adopted by G20 Leaders in Seoul in
November 2010. Australia is working to ensure the G20 development agenda is coherent
and manageable.
International health programs

AusAID has expanded its efforts to contribute directly to the achievement of Millennium
Development Goal 4 on child mortality, Millennium Development Goal 5 on maternal
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health and Millennium Development Goal 6 on HIV, malaria and other diseases. In

addition to developing strong health programs at a regional and country level, Australia
has reinforced its collaboration with key international health organisations.
In September 2009, in the margins of the United Nations General Assembly, the
Australian Government announced a $250 million commitment over 20 years to expanding
the GAVI Alliance’s successful International Finance Facility for Immunisation, which
is designed to support countries’ health systems. The facility uses pledges of future
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aid to raise money from international capital markets for health and immunisation
programs in 70 of the poorest countries. These funds will help countries tackle health
system challenges such as providing maternal and child health care services (including
immunisation), training health staff, building and renovating health facilities and supplying
essential drugs.
Australia also signed a partnership framework with the Joint United Nations Programme on
HIV/AIDS for $25.5 million over four years to help developing countries combat the spread
of HIV. This partnership will assist in implementing Australia’s international development
strategy for HIV, Intensifying the response: halting the spread of HIV, with a focus on the
Asia Pacific region.
Australia further expanded its engagement with key multilateral organisations by

signing a partnership framework with the United Nations Population Fund in December
2009. The agreement provides the fund with $42.5 million over four years to improve
reproductive health and safe motherhood, reduce HIV, eliminate gender-based violence
and promote gender equality in developing countries. It also includes funds to support the
organisation’s programs in the Pacific.
Achievements from the first full year of AusAID’s partnership framework with the World
Health Organization included strengthening the use of health information in decision-
making processes, and supporting planning, policy and sectoral reviews in several
countries including Papua New Guinea, Fiji, Samoa, Solomon Islands, Cambodia
and Vietnam.
In Lao PDR, the World Health Organization supported the establishment of the first ever
field epidemiology training program through the Ministry of Health to address significant
public health human resource needs in dealing with infectious diseases. The first one-year
course provided trainees with the skills to play significant roles in the Lao PDR response
to the swine flu pandemic in 2009, disease surveillance during the Southeast Asian
Games in December 2009, and to respond to anthrax cases in southern Laos in 2009. It
also allowed the establishment of an ongoing laboratory surveillance network for diarrheal
diseases in Vientiane.
AusAID increased its core funding for multilateral health programs to $86.5 million in
2009–10, which included $46.5 million to the Global Fund to Fight AIDS, Tuberculosis and
Malaria (the Global Fund), $13 million to the World Health Organization, $9.9 million to the
GAVI Alliance, $9 million to the United Nations Population Fund and $8 million to the Joint
United Nations Programme on HIV/AIDS. AusAID’s support to these major international
health agencies complements Australia’s bilateral support to developing countries and
has contributed to some significant achievements in the health sector:
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• Since its creation in 2002, programs supported by the Global Fund have saved an
estimated 5.7 million lives, provided HIV treatment for more than 2.8 million people
and tuberculosis treatment for 7.0 million people, and distributed 122 million bed nets
for the prevention of malaria worldwide.
• By December 2009, more than 257 million children had been immunised with
GAVI‑supported vaccines and 5.4 million future deaths had been prevented through
routine immunisation.
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• In 2009–10, the United Nations Population Fund supported access to sexual and
reproductive health services and supplies in the wake of conflict and disasters in a
number of countries such as Sri Lanka and Pakistan.
• The Joint United Nations Programme on HIV/AIDS launched the report of the
Commission on AIDS in the Pacific drawing global attention to Papua New Guinea’s
HIV epidemic.
AusAID’s is supporting prominent Australian academic institutions to establish Knowledge

Hubs for Health through the Strategic Partnerships for Health Initiative. The four hubs
cover health policy and health financing, human resources for health, information systems
and burden of disease, and women’s and children’s health. In 2009–10, the knowledge
hubs started to provide for improved quality and effectiveness in Australia’s increased
engagement in the health sector, especially in the Asia Pacific region. For example, the
women’s and children’s hub conducted an extensive review of child survival strategies
in developing countries in our region. The review found that some interventions are not
being widely used despite strong evidence that they can reduce child mortality (Millennium
Development Goal 4). In 2010, the knowledge hub is identifying ways to tackle this,
including how to make zinc more widely available for the treatment of diarrhoea and
malnutrition. The knowledge hubs for health model is helping to improve the evidence
base for health interventions and generating interest from international stakeholders such
as the World Health Organization and the World Bank.
International environment programs

Sustainable management of environment provides the foundation for poverty reduction
and development. Many people living in poverty in developing countries depend on
environmental resources to meet their basic needs and are therefore especially vulnerable
when environments are damaged. The combined resources of many nations are required
to deal with global and regional environmental issues and to help developing countries
adopt solutions. AusAID supports multilateral organisations to develop large-scale
responses to urgent regional environmental challenges, and to help partner countries
engage in global environmental governance and meet their obligations under multilateral
environmental agreements.
Australia continues to work as a key partner to the World Bank-led Climate Investment
Funds, providing $26.6 million in 2009–10 as part of a total commitment of $150 million
over three years from 2008–09. Australia’s role on the governing bodies of the Climate
Investment Funds has enabled us to take an active role in establishing the policies,
priorities and programs of the sub-funds.
133
The funds Pilot Program on Climate Resilience is working with developing countries to
identify risks from climate change and ways to adapt. The program is currently developing
activities in several countries in the Asia Pacific, including Bangladesh, Cambodia, Nepal,
Papua New Guinea, Samoa and Tonga. Australia is closely engaged in development of the
Pacific pilots. The Climate Investment Fund’s Clean Technology Fund also approved eight
projects amounting to $US624 million in Mexico, Thailand, Egypt, and Turkey for cleaner
technologies in the energy and transport sectors.
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Australia contributed a further $9 million to the United Nations Least Developed Countries
Fund to support priority climate change adaptation activities in the world’s poorest
countries. Australia also provided $1 million in core funding to the United Nations
Environment Programme to support the promotion of international cooperation and
global environmental policy. Both contributions recognised the key role of United Nations
organisations and funds in environment and climate change policy.
Global Environment Facility

Working through the multilateral development banks, United Nations agencies and civil
society organisations, the Global Environment Facility helps developing countries address
environmental challenges. The facility funds practical programs and shapes policy reform
to tackle areas including climate change, biodiversity loss, ozone depletion, contamination
by persistent organic pollutants, degradation of land, and transboundary water systems. In
2009–10, AusAID provided $17.4 million to support the facilities’ activities.
Through its participation as the Global Environment Facility Council member for the
Australia, New Zealand and Korea constituency during 2009–10, AusAID ensured the
approval of environment and climate change projects in the Pacific region totalling
US$95 million. AusAID also reviewed the performance of the facility during the fourth
replenishment (covering 2006 to 2010) and shaped reforms to the fund’s resource
allocation system that will improve equitable access to funding for Pacific Island countries
during the facilities’ fifth replenishment.
During 2009–10, Australia negotiated with other donor countries the fifth replenishment
(2010 to 2014) with a record US$4.29 billion funding, representing an increase of
54 per cent in resources compared to the fourth replenishment. Australia supported
the adoption of a significant institutional reform program to improve the efficiency and
effectiveness of the Global Environment Facility and to ensure its programs better
represent the priorities of developing countries. Australia’s contribution of $105 million to
the fifth replenishment will be appropriated in 2010–11.
Montreal Protocol Multilateral Fund

This multilateral fund helps developing countries to comply with their obligations under
the Montreal Protocol to phase out the use of ozone-depleting substances. Since 1990,
developing countries have permanently phased out their consumption of around 240 000
potential tonnes of ozone depleting substances, and have eliminated the production of
over 160 000 tonnes of ozone depleting substances, which represents over 90 per cent
of developing country totals. Funding is also provided to strengthen local institutions and
support and develop local capacity to implement the Montreal Protocol commitments and
meet phase-out targets.
1 34
In 2009–10, Australia provided $3.4 million as part of its total commitment of

$9.4 million to the 2009–2011 replenishment. In 2009, Australia held the seat of the
Canada, Australia and New Zealand constituency on the Multilateral Fund’s Executive
Committee, whose duties include monitoring the implementation of projects. The first
hydrochlorofluorocarbons phase-out projects were approved in November 2009 and
12 ozone depleting substance disposal projects were approved. In addition, new projects
were established to assist developing countries with their 2013 and 2015 targets
in relation to methyl bromide, methyl chloroform and the accelerated phase-out of
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hydrochlorofluorocarbons.
In September 2009, the Montreal Protocol became the first multilateral environment
agreement to achieve universal participation, with East Timor being the 196th country to
ratify the protocol.
135
PROGRAM 1.7
ODA—Non-government
organisations, volunteer and
community programs
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At least 75 per cent of non- 100 per cent of non-government 100 per cent of the quality
government organisations, organisations, volunteer and ratings for non-government
volunteer and community community programs received organisations, volunteer and
activities receive a quality a quality rating of satisfactory community programs were
rating of satisfactory or higher. or higher. satisfactory or higher.
At least 75 per cent of N/A* 100 per cent of program

fully or partially achieved. partially achieved.
Significant organisation Organisations’ significant
outputs; significant outputs and development
development results. results are highlighted on
pages 136 to 159.
In 2009–10, AusAID assistance to programs supporting Australian non-government

organisations, volunteer and community programs totalled $106.9 million:
• $56.4 million for support to Australian non-government organisations
• $34.7 million for volunteer programs
• $5.92 million for community engagement and development education
• $9.9 million allocated to fund development research.
Non-government organisations (NGOs) play a key role in international development. In

recognition of this, over 8 per cent of Australia’s official development assistance is
provided to Australian and international organisations, as well as local non-government
organisations in developing countries. Non-government organisations are often preferred
partners in delivering development assistance through country, sector—health, education
and water supply—and other programs. AusAID also provides direct long-term funding
support to 42 accredited Australian non-government organisations and funds over
1200 Australian volunteers working overseas. In 2009–10, the government’s support
helped Australian organisations and volunteers to assist some of the poorest and most
vulnerable people in our region, including women, children, ethnic minority communities
and people with disability.
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PROGRAM 1.7 ODA—NON-GOVERNMENT ORGANISATIONS & OTHER

• delivering over 350 poverty reduction activities in nearly 50 countries across Asia, the
Pacific, Africa, the Middle East and Latin America, resulting in improved food security,
better access to education, and improved health care for approximately 2 million
people living in poverty
• placing more than 1200 Australian volunteers in more than 30 countries to work
with communities, organisations and governments to build the capacity of developing
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countries in health, water supply, disaster preparedness and disability inclusive activity
• signing five strategic partnership agreements with Australian non-government
organisations, to better align government and non-government efforts to help poor
communities with child protection, gender equality, food security, and climate change
• designing a new Australian volunteer program and expanding outreach within the
Australian community.
A stronger AusAID–NGO Cooperation Program—ANCP
In 2009–10, the Australian Government provided $55.1 million under the AusAID–NGO
Cooperation Program, an increase of $12.5 million on 2008–09. This funding supported
over 350 poverty reduction activities carried out by 42 Australian non-government
organisations. Activity level reporting indicates that 95 per cent of activities completed
under the program were successful in meeting their planned objectives. AusAID also
undertook a performance review of the program in 2009 which cross-referenced non-
government organisation activity reporting with the findings of independent reviews and
cluster evaluations, and this confirmed the high performance of Australian non-government
organisations against their expected outcomes.
The AusAID–NGO Cooperation Program provided more than $3.5 million to Australian

organisations to deliver 29 HIV/AIDS projects across Asia, the Pacific and Africa. An
example of this was the provision of voluntary testing, counselling and care services in
Kenya for people and their families affected by HIV/AIDS as well as people at risk of HIV/
AIDS. The project enabled more than 1062 people, at least half whom were women, to
voluntarily access HIV/AIDS testing. Of these people, 2.6 per cent were found to be HIV
positive and are being supported with counselling, care and community support activities.
In the water, sanitation and hygiene sector over $2.5 million was provided for 26 projects
to deliver safe water and related sanitation benefits to poor communities in developing
countries. This included $0.8 million for integrated water and sanitation projects for poor
and remote villages in East Timor, and the provision of new water supply and sanitation
facilities for over 600 school children in Vietnam.
Enhanced partnership and engagement approaches with the

non-government sector
During 2009–10, reforms were implemented to enhance accessibility and engagement
between Australian non-government organisations and AusAID. These reforms have
included more predictable funding, support for small and emerging non-government
1 37
organisations to access AusAID accreditation, and working in partnership on joint

poverty alleviation goals. The reforms have successfully promoted partnerships and
improved relationships between non-government organisations, AusAID and local and
international stakeholders.
In 2009–10, the government held a consultative forum on aid and established new senior
level discussions, including biannual partnership review meetings with both the Australian
Council for International Development and the heads of Australian non‑government
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organisations working in the humanitarian response and poverty alleviation fields. The
Minister for Foreign Affairs and Trade and the Parliamentary Secretary for International
Development formally attended over 70 meetings and events with Australian
non-government representatives during 2009–10 to discuss specific development issues
and the government’s policy approach.
ACFID partnership
In 2009 AusAID signed a partnership with the Australian Council for International
Development, which is the peak body for Australian development non-government
organisations. This partnership establishes regular discussions and formal feedback

mechanisms between the Australian Government and Australian non-government
organisations working in the development sector. In November 2009, AusAID, the council
and La Trobe University worked together to deliver a successful international conference
titled Meeting the Millennium Development Goals: old problems, new challenges. AusAID,
the council and the Committee for Development Cooperation—a joint AusAID-non-
government organisation advisory and consultative body—also commenced joint work to
enhance and streamline due diligence and grants funding processes for non-government
organisations across AusAID’s programs.
ANCP partnerships
In December 2009 partnership agreements were signed with five Australian non-
government organisations with significant community support: World Vision Australia, Plan
International Australia, Oxfam Australia, Caritas Australia, and ChildFund Australia. Under
these agreements, AusAID and the partnering organisations are working jointly to address
child protection, gender, food security and climate change and to accelerate joint efforts
towards the Millennium Development Goals.
Community programs
Community Call to Action
A new pilot program titled Community Call to Action was launched in October 2009.
Thirteen organisations were selected to raise awareness in the Australian community
about global poverty and the Millennium Development Goals through grant funding for
specific activities.
Across Australia, an estimated 25 000 people have been engaged in activities to raise
awareness about the Millennium Development Goals. A review of the pilot in 2010–11 will
inform decisions on the nature and scope of any follow-on program.
1 38
63rd United Nations Department of Public Information Non-Government

Organisation Conference
In 2009, the Australian Government agreed to host the 63rd annual United Nations
Department of Public Information Non-Government Organisation Conference in Melbourne
from 30 August to 1 September 2010. The theme of the 2010 event is Advance global
health—achieve the Millennium Development Goals. AusAID has worked closely with the
United Nations Department of Public Information, the United Nations Information Centre
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for Australia, New Zealand and the South Pacific, the Australian Council for International
Development, and Australian non-government organisations to prepare for this event.
Hosting the event in Australia provides the opportunity for non-government organisations
from Australia, Asia and the Pacific to strengthen their linkages with the United Nations
and with those from other regions.
Increasing program accountability, innovation and effectiveness

In 2009–10, the AusAID–NGO Cooperation Program’s Innovations Fund was established
to help small, medium-sized and niche organisations undertake innovative programs and
share their learning to improve the effectiveness of Australia’s government and non-
government efforts against poverty overseas. The fund supported 12 projects, including
one by WaterAid Australia, which compiled case studies to promote the importance of
hygiene to the achievement of the Millennium Development Goals. Through this support, it
was demonstrated that the simple intervention of hand washing with soap can reduce the
number of deaths caused by diarrhoea, a major killer of children under five, by between
40 and 50 per cent. This information is being used to inform Australia’s support for water,
sanitation and hygiene programs internationally which was estimated at $165 million
in 2009–10.
Volunteers
In 2009–10, the Australian Government allocated $35 million to the volunteer program.
This supported over 1200 Australian volunteers, including 401 Australian Youth
Ambassadors for Development, in 30 countries to work with communities, organisations
and governments, building valuable people-to-people links. During the year the volunteer
program expanded into more countries in Africa—including Ethiopia, Namibia, Tanzania,
Ghana and Kenya—and Australian Youth Ambassadors were deployed to Africa for the
first time.
Following a review in February 2009 of Australian Government support for a range of

volunteer-sending programs, AusAID developed a new and more integrated volunteer
program for implementation in 2010–11. In December 2009, three ‘core partners’
were selected through a competitive process to work with AusAID in the design and
implementation of the new program. They are Australian Volunteers International,
Australian Red Cross and a consortium led by Austraining International. AusAID undertook
the program’s design during 2009–10 in close consultation with core partners, other
volunteering organisations and partner governments.
1 39
The new program will draw together all AusAID-funded international development
volunteering initiatives into one readily identifiable Australian Government program with
common branding and one web portal. New systems and processes will make it easier for
skilled Australians to volunteer in developing countries. The Australian Youth Ambassadors
for Development initiative will be a component of the new program.
Volunteers in Africa
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In 2009–10, the number of new Australian volunteers deployed to African countries

increased from 10 to 30 as part of Australia’s strategy of re-engagement with the
continent. This included placements in Ethiopia, Ghana, Lesotho, Malawi, Namibia, South
Africa, Swaziland and Tanzania. Volunteer placements in Africa will increasingly be aligned
with Australia’s priority areas for support in Africa focused on water and sanitation,
maternal and child health, and food security.
140
Sowing seeds for prosperity in Malawi

In south east Africa’s Malawi, food security remains a daily concern. Approximately
80 per cent of Malawi’s population lives in rural areas and many of them are living
below the poverty line of US$1.25 a day. Malawi has also been devastated by
HIV/AIDS, which is the leading cause of death amongst adults and is a major factor
in the country’s low life expectancy of 43 years.
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The Australian Government, through its volunteer program, sends skilled and
experienced Australians to developing countries like Malawi to help address
problems such as food security. For example, Pat Boland of Narrabundah in the
ACT is a field veterinary officer on a volunteer assignment funded by the Australian
Government to assist local farmers in Malawi. Based in Lilongwe, the capital of
Malawi, where he had previously spent four years in the early 1990s, Pat is now
working with a local non-government organisation called the Small Scale Livestock
Promotion Program helping it expand the delivery of training and assistance to
community animal health workers. This approach is enabling small holder farmers
(including a significant number of women) to access a basic level of animal health
care from within their communities without having to rely on thinly stretched
government services.
Pat commenced his volunteer assignment in December 2008 and will finish in
December 2010. In addition to the formal training he provides, Pat is also often
asked by local farmers to directly assist with injured or sick animals. In a country
like Malawi, which has suffered a prolonged food crisis and large loss of skilled
workers due to HIV/AIDS, the assistance provided by the Australian Government in
sending volunteers can have far reaching benefits for poor rural communities which
rely heavily on livestock for both income and sustenance.
Pat’s assignment demonstrates how

international development volunteers
supported by the Australian Government
are making a difference around the world.
Photo: courtesy of Emma Judge, Australian

Volunteers International
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PROGRAM 1.A ODA—Cross

regional activities21
Development scholarships
The Australian Government recognises the power of education in helping individuals to
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achieve their potential and societies to be stronger and more productive. Education is
central to the achievement of all the Millennium Development Goals and a flagship of
Australia’s overseas aid program. Good quality education produces strong leaders and
develops the skills and knowledge required to strengthen economies, teach children,
provide health care and lead effective governments. Developing countries face challenges
in their efforts to provide quality education to build leadership and the human resources
required to drive development.
Australia has a world standard education system that can be effectively harnessed
by developing countries to build their capacity to drive development. Development

scholarships implemented by AusAID under the Australia Awards banner provide
opportunities for current and emerging leaders from developing countries to study at
Australian universities and education institutions or to undertake short courses or
professional development opportunities. Australia’s development scholarships are
integrated into the broader Australian aid engagement which is closely aligned with the
needs of developing partner countries and Australia’s national interest. By building skills
and knowledge and enriching leadership qualities through scholarships, partner countries
are better equipped to drive and influence economic and social development in the future.
In 2009–10, the Australian Government invested an estimated $167 million towards

scholarships for study in Australia representing 4.4 per cent of total Australian ODA.
Over 1850 new scholars from 45 developing countries commenced courses at Australian
universities and education institutions or undertook a short course or professional
development within Australian organisations. The major fields of study were public
administration and governance (24 per cent), society and culture (21 per cent) and
agriculture and environmental studies (17 per cent).
A total of 1143 AusAID scholars graduated from their courses during the year, including
50 PhD and 958 Masters level scholars, adding to the strong alumni network which
fosters linkages and partnerships with Australia around the world. There is a growing
number of high profile and prominent development scholarship alumni in the political,
bureaucratic and private spheres, including the Indonesian Vice-President and Minister for
Foreign Affairs, Papua New Guinea’s Deputy Prime Minister, Chief Ombudsman and Deputy
Governor of the Bank of Papua New Guinea, and the Vietnamese Foreign Minister. Recent
surveys of alumni in Indonesia show that almost one in five returned scholars have been
appointed to positions of significant influence in government, academia and the private
sector. Indonesia’s Trade Minister recently commented on how valuable scholarships had
been to her ministry, which includes around 30 Australian alumni.
21 These are significant thematic programs which cross geographic boundaries but are not described separately
in the agency’s Portfolio Budget Statements 2009–10, Budget related paper No. 1.9, Foreign Affairs and
Trade portfolio.
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PROGRAM 1.A ODA—Cross regional activities
The Australian Government recognises the importance of nurturing leaders who have the
capacity to positively influence development and reform in their country or region. The
best and brightest students receive additional training to hone their leadership skills and
build strong networks to draw on in the future and to address development challenges.
Scholars selected for the leadership training participate in a Leadership Development
Program, which includes a conference, workshops, leadership coaching and a short work
placement. The 2010 Leadership Development Conference featured a range of high profile
presenters, including the Australian Governor-General, Ms Quentin Bryce AC, and was
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attended by nearly 200 scholars from 26 countries. Since 2007, over 660 scholars have
participated in the Leadership Development Program. The standard of scholars remains
high, with selection based on leadership qualities and academic excellence.
The development scholarships short course programs provide flexibility to respond quickly
to the needs of developing countries. The scholarships are awarded twice a year for
short-term professional development programs in Australia that are hosted by Australian
organisations. The organisations include Australian, state and territory government
departments, universities, not-for-profit organisations, private businesses, and research
and industry bodies. In 2009–10, 672 scholarships were provided to recipients from
34 countries to undertake short assignments in 45 Australian organisations. The
short course scholarships address regional development themes including education,
pandemics, governance, climate change, health, disability and development, international
trade and security.
Australia Awards
The Australia Awards were announced by the government in November 2009
to strengthen the international scholarship programs and support enduring
ties between Australia and its neighbours. The initiative brings together the
scholarships managed by AusAID and the Department of Education, Employment
and Workplace Relations to ensure that Australian international scholarship
programs are consolidated, better branded and delivered to support Australia’s
long-term interests.
Parliamentary Secretary for International Development Assistance, Bob McMullan, with AusAID scholarship
awardees at the 2010 Leadership Development Conference in Canberra. The conference is the central event in the
Leadership Development Program offered to all Australian Leadership Scholars in addition to their studies, and
featured speakers from a broad range of leadership backgrounds
Photo: Eventpix
1 43
Governance
Good governance underpins a country’s security, stability, economic growth, development
and, ultimately, its achievements of the Millennium Development Goals. For this reason,
strengthening governance in developing countries continues to be a priority for the
Australian aid program, with around 28 per cent of total aid in 2009–10 directed to key
areas such as public administration, political governance, leadership, law and justice,
anti‑corruption and civil society sectors.
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The international community is increasingly recognising that governance and institutions

are shaped by political and leadership processes. However, there is still limited
understanding of how these processes function in the countries where we work, and
the nature of their impact on development—a gap that AusAID and its partners are now
addressing.
In 2009–10, AusAID deepened its understanding of governance beyond just government

and formal institutions of the state, by looking more deeply at the importance of
leadership, political dynamics, and the significance of informal institutions in contributing
to development outcomes. This work has focused on the relationships between politics,
state and society, justice, security and anti-corruption efforts, and improving the capacity
and effectiveness of the public sector.

• establishing an international multi-stakeholder Leadership program: developmental
leaders, elites and coalitions that is promoting the importance of leadership and
political dynamics in shaping governance institutions and developmental outcomes.
Program partners and collaborators include New Zealand, Germany, Asia Foundation,
Transparency International, Oxfam, LEAD and Leadership PNG with new partnerships
expected to be established over the next 12 months. The program will develop and
disseminate influential policy, program and operational advice to AusAID and the
international community to support the emergence of developmental leadership in
partner countries. A steering committee of eminent international development experts
was established to lead this work
• extending and strengthening Australia’s partnership with the World Bank Justice
for the Poor program by supporting community level research and pilot activities
in Indonesia, East Timor, Vanuatu, Solomon Islands and Papua New Guinea. The
evidence and analytical data generated by these activities will help shape local justice
and governance reform efforts. For example, in Indonesia, Justice for the Poor helped
uncover new information about the effectiveness of village-level dispute resolution
mechanisms from the viewpoint of the poor and marginalised, especially women,
ethnic minorities and youth. This work has highlighted how legal issues relating to
divorce, inheritance and domestic violence can be barriers for women’s participation in
economic and social life. Lessons learned from this research, as well as pilot activities
in legal aid and court access, were used by Indonesia’s government to inform its first
ever national strategy on access to justice launched in October 2009
• supporting better electoral processes through the work of the Building Resources
in Democracy, Governance & Elections (BRIDGE) program. BRIDGE is hosted by the
Australian Electoral Commission, in partnership with International IDEA, International
144
Foundation of Electoral Systems, United Nations Development Program and the United
Nations Electoral Assistance Division. In the last year, BRIDGE training was undertaken
in 12 countries, including Indonesia, Pakistan, Solomon Islands, South Africa and
Vanuatu. In 2010 BRIDGE won first prize in the United Nations Public Service Award in
the category of ‘Improving the delivery of public services’.
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Participants at a pilot of the Building Resources in Democracy, Governance and Elections course in Bhutan
Photo: Michael Bergmann
Water, sanitation and hygiene

The 2008–09 international development assistance budget included $300 million over
three years for the Water and Sanitation Initiative. The initiative will improve access
to basic sanitation and water supply, increase the focus on urban water supply and
sanitation issues while maintaining a strong rural program, and emphasise scaling up
of successful approaches. The initiative is being implemented through non‑government
organisations, partner governments and multilateral organisations. In 2009–10,
$100 million was provided for program planning, design and implementation of the
initiative. This work was focused in Asia, Africa and the Pacific.
AusAID worked closely with civil society organisations during the year. The agency is
providing more than $31 million to help 11 civil society organisations deliver 44 projects
across sub-Saharan Africa, South and Southeast Asia and the Pacific including providing
toilets and clean water, and promoting hand washing with soap in developing countries.
Australia is a key donor, along with Denmark and the Netherlands, in helping the
government of Vietnam improve access to water and sanitation for the poor through
the National Target Program for Rural Water and Sanitation. The program was piloted in
nine provinces in 2007 and 2008, and with support from donors and the government
of Vietnam, is being delivered in all 60 provinces from 2009. In 2009–10, Australia
contributed $12.7 million which helped to provide around 1200 new piped water schemes,
as well as many small water schemes. These schemes provided approximately 2.5 million
people with access to clean water.
145
AusAID is also working with multilateral organisations and partner countries to implement
the initiative. For example, Australia supports the World Bank Water and Sanitation
Program in Africa. In Mozambique, the program is working with a local community, the
local water utility and the non-government organisation WaterAid to provide water supply to
3600 homes in Costa del Sol.
Infrastructure
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The Australian Government has provided substantial funding to help partner countries
address critical infrastructure constraints to economic growth. The 2009–10 international
development assistance budget provided $454.2 million over four years for the
Economic Infrastructure Initiative. This complements the $505.8 million provided in the
2007–08 Budget for the Infrastructure for Growth Initiative and is also in addition to the
$127 million over four years provided in the 2008–09 Budget for the Pacific Regional
Infrastructure Facility.
AusAID is working with multilateral organisations to implement the Infrastructure for

Growth and Economic Infrastructure initiatives. For example, AusAID is funding the
World Bank to develop approaches that strengthen policy and regulatory environments and
enhance infrastructure planning and management. From this, the World Bank launched in
2009–10 the Eco2 Cities initiative. This will help cities plan, design, invest in and manage
entire, integrated urban systems and focus on long‑term, multi‑sectoral approaches.
AusAID is also working bilaterally to implement infrastructure programs. For example,

in 2009, the Indonesia Infrastructure Initiative conducted training at Palembang, Jambi,
Medan and Bandung for road safety engineers. Such training is important because
research suggests that in Indonesia at least 40 000 people a year die and many times
that number are seriously injured from road crashes. This training will help Indonesian
officials identify where and why accidents are occurring and propose solutions.
Food security through rural development

Food security exists when populations have access on an ongoing basis to
sufficient, safe and nutritious food to meet their dietary needs and food
preferences for an active and healthy life. In 2009 the number of people around
the world suffering from hunger reached more than one billion for the first time.
This significant increase was largely attributable to the food price crisis in 2008
and the global recession. In response, the Australian Government developed a
comprehensive approach targeting the immediate impacts of the crisis on the
poorest, while also strengthening the foundations of long-term global food security.
This response included emergency food assistance, increased funding for rural
development and international collaboration to prioritise food security issues and
pursue trade policy reforms.
In 2009–10, Australia increased spending on rural development to $272 million, or

8 per cent of official development assistance. A further $106 million was provided
in emergency food assistance, largely through the World Food Programme.
146
In 2009–10 AusAID began designing and implementing a four-year $464 million food

security initiative which aims to:
• increase agricultural productivity through research and development
• improve the functioning of markets to increase crop prices for farmers and
promote job opportunities and incomes for the rural poor
• support social protection measures such as cash transfers and school feeding
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programs that build the resilience of vulnerable communities most likely to go
hungry in times of crisis.
Over $38 million of the budget measure was allocated in 2009–10 for

initiatives including:
• developing partnerships between the Australian Centre for International
Agricultural Research and African research centres to substantially boost
agricultural production and improve market opportunities for farmers in eastern
and southern Africa
• increasing support to the Consultative Group on International Agriculture
Research for research and development into the productivity of the world’s most
important food commodities (including rice, wheat, and maize)
• ongoing assistance in social protection to the ultra-poor in Bangladesh through
BRAC, the country’s largest non-government organisation. This includes
programs in economic, health and education support, and assistance to women
establishing small businesses to support their families
• undertaking a study of poverty and vulnerability in the Pacific to inform social
protection approaches in the region, complementing traditional systems of
support while promoting better service delivery.
Australia was also actively engaged in international efforts to improve food security
during the year. In July 2009, the then Prime Minister Kevin Rudd signed the L’Aquila
Food Security Initiative at a G8 meeting in Italy, committing Australia to increased
focus and investment in food security. Australia’s $50 million contribution to the
World Bank’s Global Food Crisis Response Program has also continued to help
address the impacts of food price volatility in 2009–10. Assistance included social
protection measures and programs to buy agricultural products such as seeds as
a means of stimulating food production. Countries benefiting from the program
included Senegal, Cambodia, Vietnam, Sierra Leone, Zimbabwe, Solomon Islands
and Kiribati.
In October 2009, Australia signed a $180 million, four-year strategic partnership

agreement with the World Food Programme to provide food assistance to those in
need. This will be supplemented by emergency funding as crises arise.
1 47
Disability and development

People with disability are the world’s largest and most disadvantaged minority accounting
for at least 20 per cent of the poor in developing countries. Of the estimated 650 million
people with disability (over 10 per cent of the global population), about 80 per cent live
in developing countries. The Millennium Development Goals cannot be achieved unless
people with disability are included in and benefit from development.
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In 2009–10, AusAID began to implement the government’s strategy Development

for all: towards a disability inclusive Australian aid program 2009–2014, a strategy
that will further enhance Australia’s reputation as an international leader on disability
inclusive development. Investment in disability-specific activities was $3.7 million while
$21.5 million was used to reduce preventable impairments. In 2009–10, the Australian
Government confirmed its commitment to ensuring that people with disability share
equally in development with a new four-year budget measure, Disability: fair development
accessible to all, which provided $30.2 million to continue the commitment to addressing
barriers to participation by people with disability.

• leading a process resulting in adoption of a resolution that calls on governments and
United Nations bodies to step up work to include people with disability in their efforts
to achieve the Millennium Development Goals at the United Nations 64th General
Assembly in November 2009
• providing $200 000 for the Pacific Islands Forum Secretariat to convene the first ever
meeting of Pacific Ministers with responsibility for disability in the Cook Islands. The
forum promoted active participation of disability organisations and led to endorsement
of the first Pacific Regional Strategy on Disability 2010–2015 at the Leaders Meeting
• contributing $1.2 million to the US-based Disability Rights Fund to support disability
organisations in promoting the rights of people with disability. Australia’s support
made the fund available to Pacific Island countries for the first time with disability
organisations in the Federated States of Micronesia, Fiji, Papua New Guinea and
Solomon Islands receiving grants
• providing $116 000 to the Pacific Disability Forum to strengthen the capacity of Pacific
disability organisations to be effective advocates for inclusive development
• adding new targets to the Australian Development Scholarship programs in Africa and
Pakistan for scholarships for people with disability or for study in a disability related
field. Jakarta post negotiated a support package for an Indonesian scholarship
awardee, which for the first time funded the cost of a carer to accompany the award
recipient for the duration of their scholarship
• ensuring Australia’s 2009 Human Rights Small Grants Scheme included a focus on
disability rights in five of the successful 36 projects. Almost $400 000 was also
provided to organisations promoting rights of people with disability globally in Burkina
Faso, Iraq, Jamaica, Somaliland and Togo
1 48
• funding three proposals through the Australian Development Research Awards to build
an understanding of disability inclusive development. They include:
— $554 017 to the Institute for Social Development Studies to investigate the
economic costs of disability-related stigma in Vietnam and implications for
disability-inclusive policies
— $417 803 to the Nossal Institute for Global Health to examine ways to improve
access for people with disability through inclusive infrastructure development in
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rural and urban Papua New Guinea
— $392 798 to Monash University to examine gender-based violence, disability, rights
violations and access to related services among women in Cambodia.
• providing $1.5 million over three years to support government, disability organisations
and non-government organisations in Cambodia to achieve progress on inclusive
national development. The law for protection and promotion of rights for people with
disability was signed in July 2009 and in August 2009 the government adopted a
national plan of action for people with disability including survivors of landmines and
explosive remnants of war
• providing $300 000 to help the East Timor Ministry of Social Solidarity finalise a draft
national disability strategy and implementation framework, and to support its work in
the area of community based rehabilitation
• providing $1.3 million for the Samoa Inclusive Education Demonstration Program to
support the transition of children with hearing impairment and intellectual disability
from primary to secondary school. The program will also support a position within
the Ministry of Education, Sports and Culture to further develop inclusive education
policies and programs and create linkages with wider government disability policy.
1 49
Australia influences global action on disability

and development
Australia’s increased focus and leadership on disability inclusive development
has been strongly welcomed by the international development community. In
September 2009, Australia’s Parliamentary Secretary for International Development,
Bob McMullan, led a delegation that included the Australian Disability Discrimination
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Commissioner, Graeme Innes AM, to the 2nd Conference of States Parties on

the Convention on the Rights of Persons with Disabilities (UNCRPD). Mr McMullan
highlighted the important link between the implementation of the convention and the
achievement of the Millennium Development Goals.
As a part of the conference, Mr McMullan hosted a side event with the United
Nations Children’s Fund: Meeting the needs of children and young people through
the UNCRPD. Hilde Johnson, United Nations Children’s Fund Deputy Executive
Director, Victor Pineda of the Victor Pineda Foundation, and Graeme Innes AM
formed a panel which focused on actions development partners can take to protect
the rights and improve the life prospects of children who live with disability. The
event was attended by nearly 100 people including ambassadors, parliamentarians
and high-level conference delegates. Mr McMullan announced that Australia would
partner with the United Nations Children’s Fund to help strengthen its child friendly
schools toolkit and to support programs to ensure that education is accessible for
children with disability.
Around 200 million children or 10 per cent of children globally have impairments,

many of which are preventable. They remain especially vulnerable to poverty, neglect
and exploitation. One third of out-of-school primary aged children have disability.
Mr McMullan said that focusing on young people and children “…is imperative. Every
child has a right to education, and the Millennium Development Goal of universal
primary education can only be truly met if we include children with disability”.
Australia also committed to supporting the Victor Pineda Foundation, which focuses
on educating all youth on the rights of children with disability through the It’s about
ability campaign. Mr Pineda stressed the importance of respecting differences
among people and recognising that people with disability are citizens with rights and
contributions to make.
L–R: Victor Pineda (Victor Pineda Foundation),

Bob McMullan (Parliamentary Secretary for
International Development), Hilde Johnson
(United Nations Children’s Fund Deputy
Executive Director), Graeme Innes AM
(Australia’s Disability Discrimination
Commissioner), at the Australia-UNICEF side
event Meeting the needs of children and
young people through the UNCRPD at the
Conference of State Parties to the UNCRPD,
September 2009
Photo: AusAID
150
Development, national security and fragile states

In 2009–10, over 60 per cent of Australia’s bilateral aid program went to countries that
are fragile, conflict-affected or recovering from conflict. Such countries face grave poverty
and development challenges and are at high risk of further decline. In 2009–10, AusAID
provided $9.8 million in direct support for international, regional and bilateral initiatives
to identify and address the causes and consequences of violent conflict, and to build
peace through initiatives to strengthen state and community resilience and improve aid
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effectiveness in conflict-affected countries.
The Australian Government recognises that development and national security are
intrinsically linked. Conflict and insecurity in states and regions can reverse development
gains. AusAID is working as part of Australia’s whole-of-government responses in our
region and globally. Getting the global response right in these situations has the potential
to lift close to a billion people out of poverty, stabilise entire sub-regions and lead to a
more secure and peaceful world.
AusAID’s Crisis Prevention, Stabilisation and Recovery Group focuses on improving
development effectiveness in countries and regions where the capacity to deliver services
is weak and the risk of conflict is high. It also facilitates a more effective engagement in
the Australian Government’s national security policy agenda.

• leading international efforts to improve development assistance approaches in
complex settings in cooperation with the Organisation for Economic Co-operation and
Development (OECD) Development Assistance Committee’s International Network on
Conflict and Fragility
• working with the World Bank as it develops its 2011 World Development Report on
Conflict, Security and Development, focusing on the development impacts of violence
and conflict, including in Melanesia
• working with East Timor in its role as the co-chair of the International Dialogue on
Peacebuilding and Statebuilding to promote the recently established g7+ Forum of
Fragile States
• delivered training programs and participated in joint exercises with the Australian
Defence Force and Australian Federal Police, to assist agencies to work together in
conflict situations.
The Australian Government’s engagement in peacekeeping and peace building operations

regionally and around the globe has highlighted the need for AusAID to engage with
international organisations contributing to development in fragile and conflict affected
countries. AusAID has been supporting the work of United Nations organisations to
improve the international community’s ability to respond to the challenges that these
situations create for development and security.

• supporting key United Nations Security Council Resolutions on women, peace and
security (1325 and 1820) by working with the Centre for Humanitarian Dialogue to
support women across Asia and the Pacific in senior levels of peace negotiations and
151
processes, and strengthening the Pacific Regional Women’s Community Media Network
on women, peace and security in Fiji, Bougainville, Solomon Islands and Tonga
• supporting the work of the United Nations Peacebuilding Commission. Australia
assumed a seat in the Commission in January 2010 and contributed to its work
through supporting a mission to Sierra Leone and Burundi to discuss possible peace
building activities and providing $2 million to the United Nations Peacebuilding Fund
• supporting the United Nations Department of Political Affairs conflict prevention
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capacity and mediation efforts in emerging crises

• contributing to the United Nations Development Programs Bureau for Crisis Prevention
and Recovery’s work on conflict prevention and peace building efforts in complex
emergencies, including in Haiti following the January 2010 earthquake
• working with the United Nations Children’s Fund to help children caught up in armed
conflict and support former child soldiers, including in Cote D’Ivoire and Nepal
• assisting the United Nations Special Court for Sierra Leone by providing $500 000 to
assist the court in its mandate to try those responsible for crimes committed during
the civil conflict

• cooperating with the Australian Department of Defence to support United Nations
peace operations by developing a handbook on field management for use by
civilian peacekeepers.
Australian Civilian Corps

AusAID is committed to strengthening Australia’s preparedness, response capabilities
and international approaches to stabilisation, recovery and state building. On 25 October
2009, the then Prime Minister Kevin Rudd announced the establishment of the Australian
Civilian Corps. The Civilian Corps enables the Australian Government to rapidly deploy
civilian specialists to assist stabilisation and recovery in countries affected by natural
disasters or conflict.

• developing an interim Civilian Corps capability, comprising a register of 22 civilian
specialists ready to deploy. This number will be built up progressively to approximately
500 by 2014
• developing a comprehensive induction training program, delivered to the first cohort
of register personnel. The training course was developed in coordination with several
Australian government agencies and non-government organisations
• establishing a whole-of-government office for the Australian Civilian Corps within
AusAID with staff seconded from the Department of Defence, Australian Federal
Police, the Australian Government Solicitor, the Department of Foreign Affairs and
Trade and the Department of the Prime Minister and Cabinet
• introducing the Australian Civilian Corps Bill into parliament through the Parliamentary
Secretary for International Development Assistance, Bob McMullan. The bill will create
a legal framework for the effective and fair employment and management of Civilian
Corps personnel
1 52
• working with the United Nations to improve stabilisation and peace building outcomes
internationally. This included supporting the United Nations Peacebuilding Support
Office Review of International Civilian Capabilities and the United Nations Office for the
Coordination of Humanitarian Affair’s Operating in High Threat Environments Review
• harmonising the coordination of peace building capabilities amongst partners. As part
of this AusAID developed a strategic partnership between the Australian Civilian Corps
and the United States Office of the Coordinator for Reconstruction and Stabilization.
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AusAID Director General Peter Baxter (middle) with the first cohort of Australian Civilian Corps register personnel. The
group took part in a two-week intensive pilot training program in March to prepare them for potential rapid deployments
into countries affected by conflict or natural disaster
Photo: Michael Wightman
Mine action
In November 2009, AusAID launched a new $100 million Mine Action Strategy for the
Australian aid program covering the five years 2010–2014. The goal of the strategy is to
reduce the threat and socio-economic impact of landmines, cluster munitions and other
explosive remnants of war.
The intended outcomes are improved quality of life for victims, reduced number of deaths
and injuries, enhanced capacity of countries to manage their mine action programs,
effective leadership and advocacy by Australia on mine action.
Australia will continue to focus on assisting affected countries in the Asia Pacific region
with flexibility to respond to emerging needs and priorities.
The strategy will be delivered through bilateral programs targeting priorities identified by
partner governments, and supporting the work of multilateral bodies and Australian and
international non-government organisations.
This strategy will bring Australia’s support for mine action to a total of $275 million since
signing the Mine Ban Convention in December 1997 in Ottawa.
During the year, AusAID contributions to global mine action totalled an estimated
$27.3 million.
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• meeting Australia’s pledge to provide $75 million through the aid program under the
Mine Action Strategy 2005–2010 in August 2009, almost one year ahead of schedule
• continuing support for global efforts to address the needs of landmine victims, their
rehabilitation and reintegration, and to reduce the threat of landmines and explosive
remnants of war to civilians. For example, Australia has provided prostheses,
wheelchairs, rehabilitation and other support for thousands of survivors and many
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more lives have been saved through education about the risks and by clearing
landmines to create productive land. Australia has supported removal of these devices
from nearly 12 million square metres of land across Cambodia and Laos, which is now
used for schools, roads and productive fields
• helping affected countries achieve their mine action goals and obligations through
initiatives such as a $1 million contribution to a mine clearance project in Jordan which
will further help the country progress its obligations under the Anti-Personnel Mine
Ban Convention
• continuing support of integrated mine action programs in Laos and Cambodia—an
area in which Australia is considered a leader. This involves improving the social
and economic well-being of mine-affected communities by incorporating mine action
activities into broader development programs. For example, through a partnership with
ActionAid in Cambodia, Australia supported mine clearance in affected communities,
combined with the provision of water and community infrastructure, and agricultural
and skills training for vulnerable groups, particularly landmine victims
• supporting mine clearance in Afghanistan, Iraq and Lebanon which is helping to create
a secure environment for humanitarian operations and early recovery
• playing an active role in global efforts to universalise the Mine Ban Convention,
particularly in the Asia Pacific, by supporting the work of organisations such as the
International Campaign to Ban Landmines and the Geneva International Centre for
Humanitarian Demining.
Demining activity in Laos

Photo: Jim Holmes
154
Human rights
The Australian aid program advances human rights through engagement in global and
regional initiatives, bilateral partnerships and support to civil society and non-government
organisations. There is also a dedicated human rights fund, valued at $5.8 million in
2009–10, which provides support to the United Nations Office of the High Commissioner
for Human Rights, the Asia Pacific Forum of National Human Rights Institutions and the
Australian Government’s Human Rights Grants Scheme.
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• increasing awareness and protection of human rights by funding 36 community
projects worth $2.95 million across Asia, the Pacific, Africa, the Middle East,
Latin America and the Caribbean, through the Human Rights Grants Scheme
• strengthening international and regional human rights capacity by providing funding
to the United Nations Office of the High Commissioner for Human Rights. Australia’s
funding supported implementation of the office’s global programs and its regional
office for the Pacific
• supporting the Asia Pacific Forum of National Human Rights Institutions (a regional,
member-based organisation consisting of national institutions in the Asia Pacific)
and the Pacific Regional Rights Resource Team (which specialises in human rights
advocacy, law and education relevant to the Pacific region)
• building on Australia’s human rights dialogues with China and Vietnam through
country specific Human Rights Technical Cooperation programs to strengthen the
promotion and protection of human rights
• finalising and launching Australia’s Framework for Law and Justice Engagement with
the Pacific. The framework outlines the commitment by Australia to the development
of law and justice initiatives which support and protect human rights, including the
promotion of human rights through access to justice, particularly for women.
Financial services for the poor

More than 2 billion people around the world do not have access to banking services,
which exacerbates the challenges poor people face and makes it more difficult for them
to find their way out of poverty. The Australian Government is continuing to prioritise
efforts to improve access to financial services for the poor. This includes services such
as savings, credit, payment and transfer services, and insurance. In 2009–10, the
government spent about $18 million on a range of activities in the sector, a significant
increase on the $13 million spent in 2008–09.
Spending will continue to grow in coming years, informed by the recently published
Financial services for the poor: a strategy for the Australian aid program 2010–2015,
launched by the Parliamentary Secretary for International Development Assistance
Bob McMullan in March 2010.
155
The strategy focuses on:

• building the capacity of financial institutions to offer quality, affordable and fair
financial services to the poor, including through new technologies such as mobile
phone banking
• supporting financial literacy programs for clients to help them understand and use
financial services effectively
• assisting governments to create a policy and regulatory environment that facilitates
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the expansion of financial services while protecting consumers.
In 2009–10, Australia’s microfinance activities expanded to new countries and regions,

including Iraq and Latin America. AusAID continued to support microfinance activities
in the Pacific, Papua New Guinea and East Timor that are implemented by the Asian
Development Bank, International Finance Corporation and the United Nations Capital
Development Fund. Through AusAID’s support for a mobile banking project in Cambodia,
more than 100 000 new banking clients, including people in rural areas, will now have
access to financial services. Australia has also provided $2 million for a joint project with
the Inter American Development Bank in Peru, to stimulate support for the microfinance
sector in Latin America. Financial literacy training is being delivered to up to 100 000
micro and small business entrepreneurs across Peru with a focus on women. AusAID
is supporting greater competition and enhanced delivery of microfinance services in
Indonesia by encouraging greater participation of commercial banks. In Iraq, Australia
has committed to expanding access to microfinance for poor rural farming households
by partnering with established and reputable non-government organisations. Financial
products specifically targeting the development needs of women are a key part of
the program.
Australia is also working with the international community to promote increased focus
on, and new approaches to, microfinance. With Brazil, Australia currently co-chairs a
sub‑group of the G20’s Financial Inclusion Experts Group, which is seeking to increase
poor people’s access to financial services through innovation such as branchless banking.
The sub‑group developed principles for innovative financial inclusion which were endorsed
by the G20 Leaders in Toronto in June 2010, and it will work with the financial services
sector to support the implementation of these principles. Australia also continued its
membership of the Consultative Group to Assist the Poor, an independent policy and
research centre dedicated to advancing financial access for the world’s poor.
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Expanding access to finance through innovation in Vanuatu

AusAID is supporting the National Bank of Vanuatu to deliver better banking services
for Vanuatu’s rural population. The bank is the only one in Vanuatu which provides
services outside the urban centres of Port Vila and Luganville, providing micro-
loans to rural customers and holding more than 600 million vatu (AUD$7 million)
in deposits in its rural branches. However, only four of its 25 branches have had
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access to electricity or suitable telecommunications, reducing the reliability of
the bank’s service. AusAID provided $500 000 to allow the bank to commission
renewable energy solutions and satellite communication systems to increase the
number of online branches to 13 by the end of 2010.
These online facilities allow rural branches to connect to the central banking system
and customers of other banks are able to use its rural e-banking network. The
facilities also enable mobile microfinance officers and third party bank agents to
conduct transactions by communicating with the central banking system. At the
same time, the bank is increasing its efforts to improve the financial and banking
literacy of its clients. These improvements will be critical to help the bank double its
microfinance loan portfolio over the next three years.
To date, the National Bank of Vanuatu has lent more than 800 million vatu
($9.4 million) to small businesses in rural areas since 2005. This innovative
approach is not only improving access to financial services, but increasing cash
flows in rural communities, and supporting economic growth and development.
This is particularly important in a country where it is estimated that 70 per cent
of the population does not have access to financial services and 1 billion vatu
($11.7 million) is held outside the formal banking system. Mobile phone banking is
also helping make access to financial services more secure, quick and cheap.
Mobile phones are among the technologies making access to finance easier for the poor in Vanuatu
Photo: Rob Maccoll
157
Development Research
In 2009–10, AusAID invested more than $100 million in development research. This
amount represents an increase of 33 per cent on 2008–09. Research funding was
disbursed through partnerships, commissioning research, strategic grants and competitive
research grant schemes.
The challenges faced by developing countries are complex. Good evidence on both
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pressing and future concerns is fundamental to shaping effective solutions that help the
poor. 2009–10 marked the second year of the AusAID Development Research Strategy
2008–2010 which is building a practical evidence base for policy and programs.
Achievements
In 2009–10 AusAID established a number of long-term partnerships with domestic
research groups and think tanks including the Australian Centre for International
Agricultural Research, the Commonwealth Scientific and Industrial Research Organisation,
Geoscience Australia and the Lowy Institute for International Policy. Within the region,
research partnerships were developed with the Economic Institute for ASEAN and East
Asia and with the International Development Research Centre to support demand driven
research on emerging infectious diseases in Southeast Asia. International partnerships
were established with research groups including the World Bank, the GAVI Alliance, and
the Brookings Institution.
In 2009–10, AusAID administered the third round of the research grants scheme—the
Australian Development Research Awards—funding 12 projects focused on disability,
economics and gender. A workshop was held for research award recipients on
communicating research results and engaging end-users.
In 2009–10, strengthening partner country capacity to solve local problems remained

a priority for the research program. For example, together with NZAID, AusAID funded
a key Pacific regional research network—the Oceanic Development Network—to build
sustainable research capacity in the Pacific.
The agency continued to increase its focus on better research communication and
evaluation to assist the translation of research into development policy and practice. This
included:
• investing in organisations that actively work to link research into policy in our region
such as the Pacific Institute for Public Policy based in Vanuatu
• requiring communication and engagement strategies for research funded through the
Australian Development Research Awards
• engaging in dialogue with research partners through seminars, workshops and
conferences.
1 58
Research impacts
AusAID funded research has motivated changes to mobile labour and remittances
schemes in the Pacific, informed the development of a formula for education funding in
the Philippines, and enhanced agricultural productivity in Afghanistan.
The 2009 Solomon Islands Family Health and Safety Study: a study on violence against
women and children has generated strong interest across government and civil society
in taking action to end violence against women. This national survey was carried out
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by the Secretariat of the Pacific Community in partnership with the Solomon Islands
Government, with funding from AusAID and the United Nations Population Fund. Using this
evidence base, the Solomon Islands government has adopted a national policy and action
plan on eliminating violence against women. The results of the study are also informing
legal reform of the penal code, being undertaken by the Solomon Islands Law Reform
Commission.
International Seminar Support Scheme
In 2009–10 the International Seminar Support Scheme supported 430 people from
developing countries to participate in more than 70 international development oriented
conferences and seminars. These covered a range of issues including health, education,
environment, climate change, disability, human rights, governance, law and justice, gender
and child protection.
1 59
Departmental support—
Outcome 1
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Increased awareness of, The information, education The information, communication

and support for, Australia’s and communication programs and education programs
international development effectively promoted the role effectively promoted the role
assistance program among of Australia’s development of Australia’s development
international, rural, regional assistance and supported assistance and supported
and metropolitan audiences. relevant stakeholders in relevant stakeholders.
2008–09.
Ministerial and Parliamentary In 2008–09, the Parliamentary The Parliamentary Secretaries
Secretary satisfaction. Secretaries and Minister and Minister expressed
expressed satisfaction with the satisfaction with the high quality
high quality support services support services provided by

provided by AusAID and the AusAID and the provision of
provision of timely and accurate timely and accurate documents.
documents.
Implementation of the aid N/A* AusAID continued to make
program’s performance progress in implementing the
management and evaluation performance management and
policy, including the production evaluation policy. There was
of the Annual Review of 97 per cent compliance with
Development Effectiveness. reporting at the implementation
stage of the activity cycle and
8123 per cent compliance with
annual performance reports
at the program level. The
2009 review was tabled in
Parliament in August 2010 and
the 2010 review is currently
being prepared by the Office of
Development of Effectiveness.
Implementation of Paris In 2008–09, AusAID made N/A**
Declaration on Aid improvements in implementing
Effectiveness covering the Paris Declaration on Aid
partner country ownership, Effectiveness.
harmonisation, alignment,
mutual accountability and
managing for results.
** This indicator was phased out in 2009–10. 2223
23 Annual Program Reports have not yet been prepared for the following programs: Pakistan, due to the recent
natural disaster and postponement of partnership talks; Nauru, due to the caretaker government arrangements;
Pacific Regional and Fiji.
1 60
Departmental support—Outcome 1
Increasing awareness and support for development assistance

AusAID’s information, education and communication programs are designed to build
support for the Australian Government’s overseas development program by informing the
community of the importance of international development, the challenges we face and
the successes we achieve.
In 2009–10, AusAID emphasised extending the reach of communication activities through
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high quality publications and associated media and online activities.
Communication activities delivered results in five key public information areas: media,
engagement with civil society, global education, internet and publications.
Media
AusAID provided timely and effective public affairs support for a number of disasters
including the earthquake in Sumatra, the tsunami in Samoa and Cyclone Tomas in Fiji.
A television documentary No ordinary journey was made during the year to promote the
Australian Youth Ambassadors for Development program and Australia’s work in the region
to help countries reach their Millennium Development Goal targets. The documentary was
broadcast nationally on Network Ten on 30 August 2009 and was broadcast throughout
the Asia Pacific region on the Australia Network later in the year.
A series of five-minute special television reports were produced by AusAID during the year
highlighting a range of development issues in the Asia Pacific, from clearing unexploded
bombs in Laos to tackling climate change in Kiribati. They were screened on Sky News
as part of Aid Week from 17 to 21 August and were subsequently placed on AusAID’s
YouTube channel. The stories highlighted Australia’s work to assist some of its poorest
neighbours achieve the Millennium Development Goals.
AusAID also helped fund a documentary about the life of East Timor doctor Raimundo
dos Santos who, despite coming from a poor rural village in East Timor, has achieved his
dream of becoming a doctor and making a difference to his people. Dr dos Santos gained
his medical qualifications with the help of an Australian scholarship. The documentary was
broadcast on ABC television and the Australia Network.
A visit by Australian performer Robyn Archer to the Wan Smolbag theatre company in
Vanuatu was arranged during the year. The company performs plays on contemporary
issues on islands where literacy levels are low. The company also produces a TV series
called Love patrol which deals with HIV and other social issues. Ms Archer’s visit was
filmed by ABC TV and was broadcast on Art nation and the ABC arts gateway.
161
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Re p o rt o n p e r fo r m a n c e AUSAID ANNUAL REPORT 2009–2010
Robyn Archer on the set of Love patrol

Photo: Elizabeth James
AusAID escorted two Australian journalists and a photographer to Afghanistan to broaden

understanding of the challenges of delivering aid in that country. The visit achieved good
media coverage including a front-page article in the Good Weekend magazine, a four-page
article in Women’s Day magazine, a four-page feature in The Age’s Insight section and an
article in The Age, bringing the story to an estimated total audience of 3.6 million people.
Engagement with civil society

AusAID sought to engage with the Australian community and stakeholders through
various communications activities during the year, some undertaken alone and some in
partnership with non-government organisations and community groups.
Activities undertaken during the year included:

• AusAID joined forces with World Vision and the International Women’s Development
Agency to present a series of free, monthly after-work forums about global poverty
and development. In February, a forum featuring the Parliamentary Secretary for
International Development, Bob McMullan, attracted more than 900 people. A further
700 people attended a forum about gender and development in March which coincided
with International Women’s Day.
• AusAID sponsored International Women’s Day breakfasts around Australia hosted by
the United Nations Development Fund for Women. The breakfasts were used to raise
awareness of gender issues and AusAID materials were distributed nationally.
• AusAID continued to work with Caritas to tour its interactive exhibition on the
Millennium Development Goals Blueprint for a better world across Australia. During the
year the exhibition visited 13 locations and reached an audience of 20 408 people.
1 62
• The Hamlin Fistula Hospital in Ethiopia, founded by Australian doctors Reg and
Catherine Hamlin, celebrated its 50th anniversary in October 2009. AusAID funded a
documentary on the work of the hospital which was launched in Australia in October to
coincide with the anniversary.
• AusAID supported Refugee Realities, an Oxfam-led initiative to give Australians a
chance to experience life as a refugee in a mock refugee camp. The project developed
tools and resources to enable community groups to run Refugee Realities simulation
events throughout Australia.
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• AusAID hosted information stalls at several locations around Australia to help engage
with the community on poverty, the Millennium Development Goals, the work of AusAID
and how people can get involved in the aid program. Stalls were hosted at Fairtrade
Labelling Australia and New Zealand’s ‘Fairtrade Fiesta’ in Melbourne and Sydney, the
Local Government Managers Australia Business Expo in Adelaide and several careers
fairs around the country.
• AusAID supported Make Poverty History Australia to coordinate STAND UP in Australia.
STAND UP is an annual, worldwide initiative generating mass public awareness and
support for achieving the Millennium Development Goals. Events were held across
Australia including a concert at Federation Square, Melbourne. More than 225 334
Australians joined a record 173 045 325 people across the world to stand up and
take action against extreme poverty.
• AusAID supported the development of Independent future, a documentary showcasing
Australian aid at work in East Timor, which was screened in April 2010. The program
featured Network Ten newsreader Sandra Sully who profiled a series of CARE Australia
projects funded by AusAID and emphasised the positive outcomes these projects have
had on women and girls in East Timor.
• AusAID has contributed a number of expert speakers to the World Bank’s Praxis
discussion series. The monthly panel discussion features three specialists on a
select topic relating to international development, and is often replayed on ABC Radio
National. AusAID staff spoke on topics such as development in post-conflict states,
natural disasters, climate change and women in international development.
• AusAID partnered with ActionAid to coordinate the 1GOAL Education for All Campaign
in the lead up to the World Cup in South Africa. The 1GOAL campaign encouraged the
public to pledge its support for 1GOAL and make the legacy of this year’s football
world cup Education for All.
Relief in sight, a national travelling photographic exhibition on Australia’s humanitarian

assistance, was entered into two competitions. It won the Public Relations Institute
of Australia’s Award for Excellence at the state level, a commendation at the national
Golden Target Awards and a merit award at the International Association of Business
Communicators Gold Quill awards. The exhibition, which concluded in December 2008,
reached an estimated audience of 698 000, received over 180 000 website hits
and generated print and electronic media with an estimated audience of more than
6.4 million people.
1 63
Blueprint for a better world

The Blueprint for a better world: the Millennium Development Goals and you is a
multimedia exhibition developed by Caritas Australia which gives a practical face
to the eight Millennium Development Goals. AusAID has partnered with Caritas
Australia to tour the exhibition nationally.
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Each of the eight Millennium Development Goals are presented as a blueprint

for positive social change in our world highlighting how Caritas Australia and
its community partners—supported by the Australian public and the Australian
Government through AusAID—are engaged in the challenge of tackling poverty for
the world’s poorest.
The exhibition opened in Brisbane on Monday 23 February 2009 marking the

beginning of a national tour travelling to 24 venues, including 15 regional locations.
The exhibition will complete its tour in October 2010.
It is a powerful tool to reach a significant proportion of the population who are yet
to gain an understanding of the importance of the Millennium Development Goals.
To date 20 408 people have visited the exhibition, there have been 14 627 visits
to the website, 15 255 viewings of exhibition related online movies and print media
circulation of 1.1 million.
Students at St Patrick’s Wangaratta

Photo: AusAID
Global education
In 2009–10, AusAID helped train more than 22 000 primary, secondary and student
teachers across Australia in development education. As Australia plays a greater role
on the international stage, greater emphasis is being placed on developing a global
perspective across school curriculums.
1 64
Curriculum materials were developed and more than 60 000 curriculum documents were
distributed. The global education website was also popular with 558 640 visits during the
year. Fifteen electronic publications were added to the website.
AusAID website
The AusAID website received more than 5.5 million page views during the year, with
visitors spending an average of nearly four minutes on the website per visit.
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The website was redesigned in-house, with the new version going live in April. It received a
positive response from users.
AusAID responded to around 3498 public requests for information through the website.
Further information is provided in appendix F.
Social media
During the year there were two significant developments relating to the use of social
media by government departments:
• the government 2.0 taskforce recommended greater engagement between APS
employees and the Australian public
• the Australian Public Service Commission released a protocol for online
media participation.
The AusAID website’s social media tools, including a Flickr online photo library and a
YouTube video channel, reached out to different sections of the Australian community and
provided information about the aid program using popular media.
Twitter was used to communicate news, and the technology required to provide access to
other forms of social media, such as blogs and wikis, was researched.
Publications
AusAID’s flagship magazine, Focus, is published three times a year and has a strong
focus on stories about people and is illustrated with high-quality photography. It is a well-
established publication that shows the complexities of the aid program in a way that is
simple and easy to understand and that is designed to capture community interest in
AusAID’s efforts to reduce poverty and promote sustainable development.
Copies are distributed free through a subscription database, mainly to the Australian

public. Other recipients include government departments, overseas posts, professionals
such as doctors and dentists, schools and universities, non-government organisations and
businesses. Further copies are distributed on request, for example, as one-off special
orders for school classes or through events arranged by AusAID. The current print run
is 50 000.
Visitors to AusAID website can also view Focus online—a web-based version of the
magazine—or download articles or the whole magazine. Further details of AusAID
publications can be found at appendix E.
165
Ministerial and Parliamentary Secretary satisfaction

During the last reporting period, AusAID served the Minister for Foreign Affairs, Mr Smith
and the Parliamentary Secretary for International Development Assistance, Mr McMullan.
AusAID also provided policy support and advice to the Parliamentary Secretary for Pacific
Island Affairs, Duncan Kerr.
The agency provided policy advice over the year on a range of development issues
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and the agency also prepared responses to correspondence for the Minister and the
Parliamentary Secretary.
The Minister and Parliamentary Secretaries expressed appreciation for the work of the
agency and satisfaction with the agency’s performance. This feedback was conveyed in
meetings with AusAID executive and staff and in comments on written submissions. The
feedback from the Ministerial and Parliamentary Secretaries’ offices helped ensure that
the provision of AusAID’s services to the Minister and Parliamentary Secretaries was of a
high standard throughout the year.
Administrative support to the portfolio ministers and

parliamentary secretary
AusAID provides high quality policy advice and support to our portfolio minister and
parliamentary secretaries. Throughout 2009–10, AusAID produced 487 ministerial
submissions, 488 meeting briefs and 212 records of conversation for, or on behalf of,
our portfolio minister and parliamentary secretaries.
AusAID also responded to, or contributed to whole-of-portfolio responses to,

28 parliamentary questions on notice and questions in writing.
In addition to providing policy advice and support, the agency responded to 2058 items of
correspondence during 2009–10 on a range of issues. Major themes included support for
the Millennium Development Goals, the Australian Government’s international aid goals,
responses to humanitarian crises and development assistance to Africa.
One hundred and six staff attended various training courses in ministerial, parliamentary
services and possible parliamentary questions. Quick guides relating to a number of
functions were developed and disseminated for the ongoing training and development of
staff in Canberra and at post. Agency-wide training seminars were also held on meeting
the Minister and Parliamentary Secretaries’ needs. In addition, one-on-one on the job
training was also provided to numerous staff on using various Ministerial databases.
Under an agreement with the Department of Foreign Affairs and Trade, AusAID manages
portfolio-related international travel for the Parliamentary Secretary for International
Development Assistance, Bob McMullan. During 2009–10, Mr McMullan undertook
11 international visits to 19 countries.
Under the same agreement with the Department of Foreign Affairs and Trade, AusAID
manages Mr McMullan’s portfolio-related entitlements.
1 66
One Just World

One Just World is a national series of free, after-work forums aimed at involving
the Australian community in debate on key international development issues facing
Australia and the world.
The series is a partnership between AusAID, World Vision Australia and the
International Women’s Development Agency and a partner university in each state.
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Since the launch of the series by the Parliamentary Secretary for International
Development Assistance, Bob McMullan, in July 2008, more than 7000 Australians
have attended 25 forums in cities across the country. The series has engaged
more than 100 expert speakers, high-level MCs and entertainers from Australia
and overseas.
In February 2010, more than 900 people attended a debate on What responsibilities
do Australians owe the global poor? at the University of Melbourne. The debate,
which was aired nationally on ABC TV, featured panellists such as Mr McMullan,
CEO of World Vision Australia, Tim Costello, and world-renowned ethicist and author,
Peter Singer. The series has also generated media attention through radio, daily
newspapers and community press.
Forums have also been held at the Melbourne Writers’ Festival, WOMAD Music
Festival in Adelaide and with regional schools at Geelong.
More than 2000 subscribers receive news about development issues and
upcoming forums from the One Just World website where videos of each event are
also available.
www.onejustworld.com.au
John Roskam, Robyn Archer, Tim Costello, Lisa Cameron and Bob McMullan discuss what responsibilities Australia
has to assist people in developing countries at a One Just World forum in Melbourne, February 2010
Photo: courtesy of One Just World
1 67
Representation at international forums

The Minister for Foreign Affairs and the Parliamentary Secretary for International
Development Assistance attended a number of significant meetings with a wide range
of partners during the year on aid and development issues. These included Mr Smith’s
participation in the Pacific Islands Forum in Cairns in August 2009, the United Nations
General Assembly in September 2009, meetings with the United Nations Development
Program and UNAIDS, participation in the Commonwealth Heads of Government Foreign
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Ministers Meeting in November 2009 in Trinidad and Tobago, the London Foreign Ministers
Conference on Afghanistan in January 2010, and the Council on Foreign and Community
Relations meeting of the Caribbean Community in Dominica in May 2010.
Mr McMullan participated in a number of meetings on aid and development issues,

several with an emphasis on inclusiveness of people with disability. These meetings
included the Pacific Islands Forum in Cairns in August 2009, a United Nations conference
on the Conventions of the Rights of Persons with Disabilities in New York in September
2009, the Pacific Disability Ministers’ Meeting in the Cook Islands in October 2009,
African Water Week in South Africa in November 2009, the United Nations Cartagena
Summit on a Mine-free World in Colombia in December 2009, the Forum for East Asia-
Latin America Cooperation in Japan in January 2010, the International Labour Organization
Conference on Decent Work for Sustainable Development in the Pacific, the United
Nations Development Programme’s conference on the Human Face on the Global Financial
Crisis in Vanuatu in February 2010, and the United Nations High-level Advisory Group on
Climate Change Financing in the United Kingdom in April 2010.
The Director General attended a range of high-level meetings during the year, including
the Pacific Islands Forum, the London Conference on Afghanistan and annual partnership
talks for Papua New Guinea and Vanuatu. The Director General travelled to Washington
in March 2010 where he attended discussions with senior officials from the United
States Government and the World Bank, and met with senior management of the Asian
Development Bank in Manila in June 2010. Also in June 2010, the Director General
attended the 42nd Annual Tidewater Meeting of donor country aid officials and ministers
in Baltimore. While in the United States in June 2010, he signed a memorandum of
understanding on international development cooperation with the administrator of USAID.
AusAID was represented at a range of other significant meetings during the year including
the World Bank and Asian Development Bank annual meetings.
Involvement with other government departments and agencies

In 2009–10, AusAID continued to work closely with other Australian government
departments and agencies in the delivery of the aid program. AusAID leads whole-
of-government implementation of the aid program through its chairmanship of the
interdepartmental Development Effectiveness Steering Committee and through a series
of strategic partnership agreements with particular agencies. New agreements were
entered into with Department of Climate Change and Energy Efficiency and with the
Commonwealth Scientific and Industrial Research Organisation. AusAID participated in a
range of interdepartmental committee meetings and regular formal and informal meetings
during the course of the year, including the International Economic Policy Group.
1 68
In 2009–10, AusAID also worked closely with:

• the Department of the Prime Minister and Cabinet, Treasury, the Department
of Foreign Affairs and Trade and other relevant departments to ensure effective
Australian engagement in the G20 as the premier forum for international economic
cooperation and to deliver on G20 Leaders’ commitments
• the Department of Immigration and Citizenship, Department of Foreign Affairs and
Trade, Department of the Prime Minister and Cabinet, Attorney-General’s Department,
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Department of Finance and Deregulation, Australian Federal Police and Department
of Defence in addressing transnational issues such as people smuggling and
drug trafficking
• the Department of Climate Change and Energy Efficiency on climate change policy
and jointly managed programs including the International Climate Change Adaptation
Initiative and the International Forest Carbon Initiative
• nine government agencies on the continuing implementation of the Strongim Gavman
Program in Papua New Guinea, ranging from Treasury and the Department of Finance
and Deregulation, to the Australian Customs and Border Protection Service, the
Australian National Audit Office, and the Department of Infrastructure, Transport,
Regional Development and Local Government
• the Department of Finance and Deregulation, Treasury, and the Australian Office
of Financial Management as part of the Regional Assistance Mission to the
Solomon Islands
• the Department of Foreign Affairs and Trade, Department of Finance and Deregulation,
Treasury, Department of the Prime Minister and Cabinet and the Australian Public
Service Commission on Australia’s partnership with Indonesia, in addition to several
other government agencies working in partnership with the Indonesian government on
governance improvements.
Implementing performance assessment and management

policy and production of the Annual Review of Development
Effectiveness
In 2009–10, AusAID adopted new measures to support the implementation and
management of Australia’s aid program. It introduced a new policy on country strategy
development to better guide the delivery of Australian aid, which was endorsed by the
Minister for Foreign Affairs, Mr Smith, in April 2010. The policy promotes stronger analysis
underpinned by whole-of-government engagement and will enable better decisions to be
made on the use of Australian aid. Country strategies will articulate what development
priorities Australia’s aid will target and why, including the shared development outcomes
agreed to by Australia and a partner government, and Australia’s role in contributing
to these outcomes. The strategies will also describe how AusAID will work towards
achieving Australia’s contribution to these shared development outcomes. This strategy
development process is intended to guide policy engagement, program development and
management and resourcing to achieve quality results that ensure value for money.
1 69
AusAID has improved its internal guidance for selecting the most effective implementation
arrangements for aid delivery. The aid program is delivered in a number of ways,
ranging from use of partner government systems and joint financing arrangements to
implementing stand-alone, discrete activities. As part of this work AusAID is implementing
systems to assess and, where deemed appropriate, to use selected partner government
systems to deliver assistance.
Compliance with the Performance Management and Evaluation Policy continues to

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improve. In 2009–10, compliance for activity-level quality at implementation reporting

increased to 97 per cent, compared with 96 per cent in the previous year. Annual
performance reports have been completed for 81 per cent of programs that are required
to submit them. Annual program reports have not been prepared for the following
programs: Pakistan, due to the recent natural disaster and postponement of partnership
talks; Nauru, due to the caretaker government arrangements; Pacific Regional and Fiji.
To improve operational efficiency, the guidance that supports implementation of the

Performance Management and Evaluation Policy was revised in 2009–10 to better align
business and reporting processes with program management needs.
1 70
PROGRAM 2.1 ODA—EAST ASIA
Program 2.1 ODA—

East Asia (Australia-
Indonesia Partnership
for Reconstruction
and Development)
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At least 75 per cent 88 per cent of the 88 per cent of the aggregated quality
of activities receive aggregated quality ratings for the Australia-Indonesia
a quality rating of ratings for the Australia- Partnership for Reconstruction and
satisfactory or higher. Indonesia Partnership Development were satisfactory or higher.
for Reconstruction and
Development were
satisfactory or higher.
At least 75 per cent N/A* Achievement of program strategy
of program strategy objectives are reported and assessed
objectives fully or within the Indonesia program
partially achieved. portfolio. On 20 March 2008, the
Reconstruction and Development
Secretaries’ Committee agreed that
partnership funded programs would
be reported on within the Australia
Indonesia Partnership Country Strategy
2008–2013.
Significant development Significant development results and
results; significant activity outputs are reported on pages
activity outputs. 171 to 173.
The governments of Australia and Indonesia jointly agreed to the Australia–Indonesia

Partnership for Reconstruction and Development following the 2004 Indian Ocean
tsunami. The five-year $1 billion agreement covers a range of large-scale social
and economic development programs across Indonesia, and reconstruction in Aceh
and Nias. The program includes $500 million in grants and $500 million in highly
concessional loans.
At 30 June 2010 the Australian Government had disbursed all of the $500 million
grant funds and $291.3 million in loans to a range of road infrastructure and education
programs. Approximately $200 million of loans are yet to be dispersed through the
partnership’s Eastern Indonesia National Roads Improvement Project because of land
acquisition and procurement challenges common in the infrastructure sector. To overcome
these challenges, the Indonesian government has allocated additional resources in its
budget and adopted a civil works management action plan.
17 1
The Eastern Indonesia National Roads Improvement Project made good progress
throughout 2009. The Australian and Indonesian governments are working closely to
ensure high quality roads are constructed, including through the use of new supervision,
contracting and monitoring arrangements. Road and bridge designs have been completed
and building has started on 12 road and bridge projects. Better and more durable roads
will provide a model for future work and ensure economic and social benefits for local
communities are sustained into the future. The directorate general of highways and the
World Bank are using the high standard of documentation developed by the project as
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a benchmark for their own work. A second program of Australian work on roads, the
Indonesia Infrastructure Initiative, will conduct road safety audits of the designs supported
by the roads improvement project to identify potential improvements. Accident rates on
the existing Tohpati—Kusamba road in Bali currently average one fatality per kilometre per
year, so the new roads that are being constructed under this project have the potential to
save many lives.
The Australia Indonesia Basic Education Program completed construction activity in

June 2010. A total of 2074 schools, comprising 1570 schools and 504 madrasah
(Islamic schools), were either constructed or rehabilitated across 21 provinces. More than
330 000 junior secondary places have been created as a result of the program and its
success has laid the foundations for additional investments in the sector.
The Smallholder Agribusiness Development Initiative was completed in June 2010. This

program has helped to achieve a sustained increase in household incomes through
productivity gains, better access to markets, and value-added activities in four target
provinces of Eastern Indonesia. For example, new models for enhanced peanut
productivity were developed and peanut yields increased up to 67 per cent for more than
7500 farmers.
The smallholder initiative worked with the Ministry of Trade to provide greater access
to finance and markets for poor farmers through piloting a warehouse receipts system.
Nineteen farmers’ groups were provided with warehouse space where they could safely
store their produce. The farmers were provided a transferable receipt for their produce,
which they could either sell to a trader or use as collateral to borrow money. The success
of the pilot in facilitating access to finance and markets has led to the system being
implemented across Indonesia by the Ministry of Trade.
The Aceh and Nias reconstruction program has been a high profile element of the
Australia–Indonesia Partnership for Development. With priority relief and construction
programs now completed, Australia’s commitment has moved to working with Indonesia to
support long-term peace and prosperity in Aceh. The partnership will continue to support
the Acehnese to help improve government services, education, livelihoods and community
participation in decision-making in the region.

• completing 2074 schools by June 2010, helping Indonesia sustain progress against
its goal to provide nine years of education for its children. Forty-eight per cent of
students enrolled in basic education program schools are from families earning around
US$2 a day and 70 per cent now travel less than three kilometres to go to school
1 72
PROGRAM 2.1 ODA—EAST ASIA
• commencing 12 road and bridge construction projects, which will result in

240 kilometres of road and 57 bridges
• completing the Australian Partnership Scholarships program which saw 600
scholarships in Australia awarded in the economic governance, education and public
sector management sectors, with most students having already returned to Indonesia
• assisting Indonesian research institutions to support around 1700 smallholder cattle
farmers in more than 25 villages to adopt new cattle management models. This led to
SECT ION 2
higher incomes for smallholder farmers through increases of productivity of up to 50
per cent. The Nusa Tengara Barat provincial government recognised the relevance and
effectiveness of this activity, which resulted in the launch of its own program: one cow,
one calf, one year.
1 73
Financial results
The Australian National Audit Office was unqualified in its opinion that AusAID’s 2009–10
financial statements are fairly stated and presented.
Departmental financial performance

SECT ION 2
AusAID’s departmental outcome for the year ended 30 June 2010 was an operating
surplus of $7.309 million.
Actuals Actuals
2009–10 2008–09
Departmental operating statement ($’000) ($’000)
Operating Revenue Outcome 1 135 548 124 767
Operating Revenue Outcome 2 6009 6482

Operating Expense Outcome 1 131 235 128 695
Operating Expense Outcome 2 3013 3020

Operating Result 7309 (465)
Cash reserves are reflected in cash on hand at 30 June as well as the appropriation
receivable, totalling approximately $29.575m. Cash reserves increased in 2009–10 as a
result of the surplus.
Administered financial performance

Total overall administered expenses in 2009–10 were $3.058 billion, with 99 per cent of
the agency’s regular appropriation for the aid program being expensed.
Actuals Actuals
2009–10 2008–09
Administered expenses and liabilities ($’000) ($’000)
Outcome 1 2 971 148 3 362 842
Outcome 2 86 991 203 429
Total expenses 3 058 139 3 566 271
Total liabilities 1 104 867 1 394 595
Outcome 1—To assist developing countries reduce poverty and achieve sustainable
Administered expenses were $2.971 billion. In 2009–10, AusAID continued a significant

package of initiatives under Outcome 1 in the areas of governance, education,
infrastructure, health, humanitarian and emergencies, rural development and environment.
Total expenditure against this package was 100 per cent.
One of the main differences between administered expenses and cash flows (detailed in
section 4) arises from recognition of multi-year commitments to multilateral development
174
Financial results
institutions. The total expense is recognised in the year the commitment agreement is
signed with the cash paid and liability subsequently discharged—and official development
assistance—over following financial years. In 2009–10 there were no new multilateral
agreements signed, which is reflected in the reduction in expenses from 2008–09
to 2009–10, despite the official development assistance budget increasing over the
same period.
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The total appropriation of $1 billion for the Australia-Indonesia Partnership for

Reconstruction and Development was received through the 2004–05 Portfolio
Supplementary Additional Estimates and was credited equally to two special accounts—
one for grants and one for loans. A total of $28.539 million of partnership grants
were expensed and $69.614 million of partnership loans were disbursed in 2009–10.
$208.7 million remains available in loan funding. Supplementary administrative costs
for the implementation and management of the partnership are funded through Bill 1
appropriations. In 2009–10, $3.243 million of the supplementary administrative costs for
the partnership were expensed.
175
Below Sabina Moce, a student at the Fiji Society

for the Blind, at her desk working through
maths exercises with AusAID Counsellor for
Fiji Sarah Goulding. The school is the only
specialised facility for vision impaired children
in the Pacific, and support from AusAID has Below Felicity Miller conducts an in-house
included funding for supplies and equipment, financial management training course as part of AusAID’s
internet access, boarding facilities and an core learning suite. Rebecca Bryant appears on the left and
outreach program in rural areas Kate Hacking on the right
Photo: Anthony De La Fosse Photo: Angus Braithwaite
1 76
Management
and
accountability
Section 3
Corporate governance
External scrutiny
Management of human resources
Purchasing and assets
Executive Committee
(at 30 June 2010)
Peter Baxter, Director General

Peter Baxter was officially appointed AusAID’s Director General on
12 May 2010 following nine months as Acting Director General.
He came to AusAID as an experienced senior career officer within
the Department of Foreign Affairs and Trade portfolio.
Peter joined the Department of Foreign Affairs and Trade in 1988.

He has been on a number of overseas postings including Fiji,
Solomon Islands and Vietnam, and was Deputy Chief of Mission
in Washington from 2002 to 2005. In 2000, he was appointed as
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Special Envoy of the Foreign Minister to Solomon Islands.
Before moving to AusAID, Peter headed the Department of Foreign Affairs and Trade’s
Consular, Public Diplomacy and Parliamentary Affairs Division. His previous Canberra
assignments with the department included senior management roles heading the Consular
and Passports (2000), Corporate Management (2000 to 2001), Market Development
(2001 to 2002) and North Asia (2005 to 2008) divisions.
Richard Moore, Deputy Director General—Asia Division

Ma n ag e me n t a nd acco u n ta bi li ty
Richard Moore is AusAID’s Deputy Director General for Asia and

Gender Advocate—positions he has held since 2007. Before this
he was Alternate Executive Director on the Board of the Asian
Development Bank in Manila. Richard’s corporate responsibilities
include chairing AusAID’s Program Committee. He joined AusAID
in 1995 and since then has worked on Papua New Guinea and
the Pacific, United Nations programs, the 1997 Independent
Review of the Australian Aid Program, and as Branch Head for
Mekong, South Asia and Africa.
Murray Proctor, Deputy Director General—Program Enabling Division and

Australian Ambassador, HIV/AIDS
Murray Proctor commenced duties as Australian Ambassador,
HIV/AIDS in 2007, a role he fills concurrently with his position as
Deputy Director General for the Program Enabling Division. Murray
has more than 25 years experience in aid and development.
Before his current role, Murray was Deputy Director General of
AusAID’s Asia Division, and before that managed the AusAID
Office of Review and Evaluation and Australia’s aid program to
Papua New Guinea. He worked from 1999 to 2001 in the World
Bank on East Timor reconstruction and public sector reform.
1 78
Catherine Walker, Deputy Director General—Africa, West Asia, Middle East

and Humanitarian Division
Catherine Walker was appointed to the position of Deputy Director
General in AusAID in 2008. She joined the agency in 1992 as
Director Public Affairs. She has served as Director Humanitarian
and Emergencies Section and was posted to Rome as Counsellor
Development Cooperation from 1996 until 1999. She has also
headed up AusAID’s North Asia Section. Early in 2000 she was
seconded to the United Nations Transitional Administration in
East Timor as the Chief of Donor Coordination in the Office of the
Special Representative of the Secretary-General. Catherine was
appointed as the Regional Assistance Mission Solomon Islands’
Development Coordinator, based in Honiara, from January 2004 until March 2006. From
March 2006 until October 2007 she was Assistant Director General,
Papua New Guinea Group.
Jamie Clout, Deputy Director General—Corporate Enabling Division
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Jamie Clout took up his current position at AusAID in 2007,
coming from the Department of Health and Ageing where he had
headed the Portfolio Strategies Division since 2006. Before that
he managed the portfolio budget function from 2003. Before
joining the Department of Health and Ageing he spent nine years
in the Department of Finance and Administration, was seconded
to work on projects in the Australian Quarantine and Inspection
Service, and was involved in Australian Government activity in
M a n age m e n t a nd accou nta b il i ty

Beijing and Port Moresby. Jamie has also worked in the
Department of the Prime Minister and Cabinet, the Department of
Industry, Science and Technology, and the Productivity Commission.
Robin Davies, Deputy Director General—Sustainable Development and

Partnerships Division
Robin Davies was appointed as head of AusAID’s Sustainable
Development and Partnerships Division in 2010 with
responsibility for AusAID’s multilateral engagements, climate
change and environment policies and programs, non-government
organisation and other community partnerships, the Australian
Civilian Corps and assistance to Latin America. He joined AusAID
in 1993 and has worked in a variety of program management,
multilateral and aid policy roles. Robin was AusAID’s first
permanent representative on the OECD’s Development Assistance
Committee from 1999 to 2002 and also served on the board of
the World Food Programme in the same period. From 2003 to 2006, he was Minister-
Counsellor (Development Cooperation) in Indonesia.
1 79
Blair Exell, Acting Deputy Director General—Pacific and PNG Division

Blair Exell began as Acting Deputy Director General for the Pacific
and PNG Division in February 2010 following a posting in
Indonesia as Minister Counsellor and AusAID’s senior
representative to the Australian Embassy in Jakarta. Blair began
his career in the development sector in Cambodia and Vietnam in
1993 before joining AusAID in 1997. He has worked in AusAID’s
policy, program and corporate areas covering Asia and the Pacific.
Blair has had postings to Cambodia, Solomon Islands and
Indonesia, and was a member of the Bougainville Peace
Monitoring Group in 1998.
Governance and the executive

AusAID has seven governance committees which assist the Director General in the
strategic oversight of program and corporate performance. The governance committees
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comprise the:
• Executive Committee: which is chaired by the Director General and sets the agency’s
overall policy direction and development agenda, managing and overseeing corporate
relationships (particularly ministerial and whole-of-government), and acting as a board
of management to provide strategic oversight
• Corporate Reform Committee: which is chaired by the Director General and coordinates
and directs AusAID’s reform and change agenda
• Audit Committee: which assists the Director General and the Executive Committee with
Ma n ag e m e nt a n d accou n ta bi li ty
legislative, corporate governance, risk management and financial responsibilities

• Resources Committee: which assists the Director General and the Executive
Committee to analyse management information, and makes recommendations on
financial, human and physical resources
• Postings Committee: which recommends staff placements in Canberra and for
postings overseas
• Information and Communication Technology Steering Committee: which reviews,
promotes and proposes activities which align information and communication
technology systems, services and investments with the needs of AusAID
• Program Committee: which assists the Director General to provide high-level strategic
direction and leadership to the agency’s program strategies and program quality
and effectiveness.
180
Corporate reform
The agency’s operating environment has changed significantly in the 15 months since
the release of Building on the 2010 blueprint: a reform agenda for 2015, the key report
articulating the direction of AusAID’s reform agenda. With the appointment of the new
Director General, the agency is now entering a new phase in its reform agenda.
The Corporate Reform Committee, chaired by the Director General, was established in
April 2010 to direct AusAID’s ambitious change agenda. The committee will oversee the
cultural and business changes necessary to deliver the significantly expanded program
that the agency will be required to deliver by 2015. The committee will take a driving
role for both internal changes such as development of business policies, processes and
externally driven processes such as implementation of the APS-wide reforms outlined in
the Moran Review.
AusAID established an Executive Branch in February 2010 to provide policy, coordination

and implementation support across a range of agency reform activities.
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Corporate planning
AusAID’s strategic planning framework builds a clear connection between higher-level
strategic priorities right down to individual performance management. This strongly
interlinked planning process clearly articulates the agency’s policy and planning goals and
provides clear business objectives grounded in accountability at all levels.
The business unit planning process provides a concrete basis for managing operations,
performance planning, review and reporting by all AusAID business units. It supports
M a n age m e n t an d acco un ta b il it y
effective and efficient budgeting, corporate planning, workforce planning, and delivery of
corporate services. It also provides the AusAID executive with an aggregated assessment
of progress in achieving corporate goals and identifying critical emerging issues requiring
executive attention.
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Strategic planning framework

AusAID’s strategic planning framework is underpinned by the following policies
and strategies.
2009 Policy statement

on Australia’s International Development Assistance
Director General’s statements of priorities
Country/regional strategies
Program enabling strategies
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Corporate enabling policies
Business unit plans

Section workplans
Performance and development plans
Aid advisory and coordination mechanisms

Development Effectiveness Steering Committee
The Development Effectiveness Steering Committee is a whole-of-government committee
established to strengthen coordination of the aid program and to advise government on
major official development assistance strategy and budget proposals. The committee is
chaired by AusAID’s Director General and comprises deputy secretaries of the Department
of the Prime Minister and Cabinet, Treasury, Department of Finance and Deregulation,
1 82
and the Department of Foreign Affairs and Trade, as well as AusAID’s Deputy Director
General—Corporate Enabling Division. The committee focuses on four themes:
• effectiveness
• whole-of-government country and regional strategies
• official development assistance budget strategy
• implementation of policy priorities.
The committee played a central role in the development of the 2010–11 aid budget.
It also reviewed and commented on the policy coherence, quality and development
effectiveness of budget proposals.
Committee for Development Cooperation

The Committee for Development Cooperation is a joint AusAID-non-government
organisation advisory and consultative body. In 2009–10, the committee had eight
members: four from the non-government organisation community and four from AusAID.
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The committee meets at least three times a year to review accreditation reports and to
make recommendations to AusAID on the accreditation of non-government organisations.
The committee also provides a mechanism for consultation with the community sector.
The committee had four official meetings in 2009–10 and considered seven accreditation
reports. Forty-one Australian non-government organisations are accredited with AusAID.
Internal audit
Audit Committee
Section 46 of the Financial Management and Accountability Act 1997 requires the Director
General to establish and maintain an audit committee with functions that include:
• assisting AusAID to comply with obligations under the Financial Management and
Accountability legislation
• providing a forum for communication between the Director General, senior managers
and AusAID’s internal and external auditors.
In 2009–10, the committee ensured AusAID complied with its obligations under
the legislation by reviewing and, where necessary, recommending improvements to
management systems and key business processes, the corporate governance framework
and financial reporting processes.
The committee also provided a forum for both formal and informal communication
between key stakeholders, including the Director General, the executive, senior managers,
the Performance Review and Audit Section, other areas of AusAID with governance
responsibilities and the Australian National Audit Office.
In addition to performing these two key functions, the committee also provided
independent assurance to the Director General on AusAID’s risk management
arrangements (including fraud control), controls framework, public accountability
responsibilities, and internal and external audit activities.
183
In performing these roles and responsibilities, the committee contributed to strong audit
and governance arrangements for AusAID.
The committee is chaired by the Deputy Director General—Program Enabling Division

and includes two external (independent) members and four internal members with
responsibilities for corporate, operations policy and support, and program management.
AusAID’s Director of Performance Review and Audit Section, the Chief Finance Officer and
representatives of the Australian National Audit Office attended committee meetings as
observers, which were held each quarter.
Performance Review and Audit Section

The Performance Review and Audit Section focuses on improving the quality,
accountability, efficiency and effectiveness of the functions and processes used to
manage, administer and account for the Australian aid program.
The section develops and manages the delivery of an internal audit and review program
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which is designed to identify areas for improvement of AusAID’s administrative and

program functions and processes. The internal audit and review program is delivered using
a combination of internal resources and external providers.
In 2009–10, the annual internal audit and review program included:

• nine reviews of business processes, systems and internal functions
• compliance audits of seven commercial contractors, four non-government organisations
and two tertiary institutions
• 11 performance audits of program administration.
The section provides support and advice to the Audit Committee and reports to the
committee on the outcome of audit and review activities.
Risk management
Effective management of risk enables AusAID to work successfully in a complex,
challenging and changing environment to achieve aid and development outcomes. Risk
management is used by AusAID to identify and be conscious of the risks it faces, make
informed decisions about managing those risks and to identify and harness potential
opportunities. The Performance Review and Audit Section is responsible for developing
and disseminating risk management polices, guidance, training and high level plans.
The section performs compliance assessments by sampling the implementation of risk
management throughout the agency.
Fraud control
The Performance Review and Audit Section is responsible for AusAID’s fraud
control framework.
In 2009–10, the section monitored the implementation of AusAID’s Fraud Control Plan VII
(2009–2011). The plan, including a fraud risk assessment, was developed in accordance
184
with the Commonwealth Fraud Control Guidelines 2002. It emphasises AusAID’s zero-
tolerance towards fraud and the requirement that all cases of suspected and detected
fraud be reported to the Director of Performance Review and Audit Section. The section
oversees the management of suspected and detected fraud cases to ensure that:
• cases are investigated
• offenders are prosecuted where possible
• misappropriated funds and assets are recovered and penalties are applied
wherever possible.
Fraud control data is reported to the AusAID executive each quarter, and to the Australian
Institute of Criminology each year.
In 2009–10, the Performance Review and Audit Section participated in a survey as

part of the Australian National Audit Office’s Fraud Control in Australian Government
Agencies Audit.
In accordance with AusAID’s Fraud Control Plan VII, the section also provided training to
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staff and implementing partners in Australia and overseas on fraud awareness and their
responsibilities for fraud control.
Certification of compliance with the Commonwealth Fraud Control

Guidelines 2002
I certify that I am satisfied that for the 2009–10 financial year, AusAID has complied
with the requirements of the Commonwealth Fraud Control Guidelines 2002,
including the agency’s responsibilities for:
(a) fraud prevention

(b) fraud investigation case handling
(c) reporting of fraud information
(d) fraud control training.
Peter Baxter
Director General
185
Ethics and values

AusAID continues to promote the ethics and values contained in the Australian Public
Service Values and Code of Conduct, as set out in the Public Service Act 1999, and
AusAID’s Enterprise Agreement 2009–2011.
The agency supports the importance of ethics and values in the workplace including a
workplace that encourages diversity and is free from discrimination and harassment.
Internal policies and circulars providing guidance for staff include procedures for
dealing with:
• offers of gifts, benefits, hospitality and sponsored travel
• conflict of interest and SES declaration of personal interests
• AusAID’s code of conduct for overseas employees
• contracting close relatives
• workplace harassment and anti-bullying.
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The need to maintain high ethical standards is promoted through induction courses for
new AusAID employees, training for employees before postings overseas and for whole-
of-government officials deployed overseas by AusAID, and through individual performance
management agreements. All AusAID personnel in Australia and overseas are responsible
for ensuring strong, robust and effective fraud control. AusAID maintains a ‘zero tolerance’
attitude towards fraud and requires that any case of suspected or detected fraud must be
reported immediately to the Director, Audit. Fraud awareness training is also provided to
staff in Australia and overseas.
AusAID also continues to implement existing policies and guidelines that support the
importance of ethics and values in the workplace by training staff in Australia and
overseas on how to comply with AusAID’s child protection policy, enhancing AusAID’s
capacity to manage and reduce risks of child abuse associated with delivering
aid activities.
AusAID’s relationship with its implementing partners is based around shared values and
a commitment to achieving the objectives of the aid program. AusAID’s agreements and
contracts clearly define the agency’s expectations that its partners meet the highest
standards of ethical behaviour. In agreements with contractors and other government
agencies, AusAID stipulates that contractor personnel and whole-of-government deployees
working on AusAID’s projects must be of good fame and character and must conduct
themselves in a manner consistent with the Public Service Act 1999, and in accordance
with Australian Public Service Values and the Australian Public Service Code of Conduct.
Similarly, AusAID includes provisions in its agreements with non-government organisations,
which require them to comply with relevant government policies in implementing the
Australian aid program. Agreements with non-accredited non-government organisations
also incorporate a statement of international development principles, which articulates the
minimum standards and commitments AusAID expects from all not-for-profit organisations
that it funds.
186
External scrutiny
External scrutiny
Judicial scrutiny
There were no judicial decisions or decisions of administrative tribunals in 2009–10 that
had, or may have, a significant impact on the operations of the agency.
Ombudsman
The Commonwealth Ombudsman conducted no formal investigations of AusAID’s activities
during the year.
Privacy Commissioner
No investigations were conducted by the Privacy Commissioner in 2009–10.
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Parliamentary committees
In 2009–10, AusAID contributed to six parliamentary committees with either written
submissions, appearances or both. These included:
• Senate Standing Committee on Foreign Affairs, Defence and Trade: Senate Budget
Estimates (3 June 2010)
• Senate Standing Committee on Foreign Affairs, Defence and Trade: Senate Additional
Budget Estimates (11 February 2010)
• Senate Standing Committee on Foreign Affairs, Defence and Trade: Supplementary
Budget Estimates (22 October 2009)
• Senate Standing Committee on Foreign Affairs, Defence and Trade—Inquiry into
Matters Relating to the Torres Strait Region (18 December 2009)
• Joint Standing Committee on Foreign Affairs, Defence and Trade—Inquiry into
Australia’s relationship with the countries of Africa (20 April 2010)
• Joint Committee of Public Accounts and Audit—ANAO Report on AusAID’s management
of the expanding aid program (17 March 2010).
1 87
Management of human
resources
Improving planning for, and management of, human resources and the systems that
support them is a critical component of the AusAID change agenda. The agency’s
increased investment in human resource management has helped improve effectiveness
in managing and developing staff to achieve agency objectives. In 2009–10, AusAID’s
workforce planning approaches and professional development opportunities were
strengthened to encourage better planning and support for future resource growth and
skill changes. Human resource management continues to be modernised and a number
of reforms aimed at stronger core systems and greater predictability of processes were
implemented. For example, the reporting capability of the human resource information
system was improved and recruitment and posting processes were reformed.
Workforce planning
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AusAID increased its investment in workforce planning resources in 2009–10. Activities

focused on establishing, integrating and maturing strategic and operational workforce
planning approaches, processes and practices. As part of these activities, evidence
has been collected and analysed from a variety of sources on a wide range of issues.
These include staff attraction, retention and mobility, skill matching and development,
performance management, strategic secondments and readiness for posting. Drafting
of the agency-wide workforce plan commenced and a number of smaller business area
specific workforce planning activities were undertaken.
Remuneration, Australian workplace agreements and the

AusAID Enterprise Agreement 2009–2011
AusAID’s staff are employed under the AusAID Enterprise Agreement 2009–2011,
Australian workplace agreements or common law agreements.
Senior executive remuneration

Statistics on senior executive service (SES) salaries in 2009–10 are in Section 5,
Appendix D. SES staff are now employed under a common law agreement.
Performance pay
In 2009–10, a total of 37 SES staff received a performance pay bonus related to
performance during 2008–09. The aggregate was $387 890 with the average being
$10 484. The minimum payment was $4192 and the maximum $20 284. Non-SES staff
do not have access to a performance-linked bonus system. Effective performance is
rewarded through salary advancement.
188
AusAID Enterprise Agreement 2009–2011

AusAID negotiated a new enterprise agreement in late 2009, which aims to retain
competitive, flexible and inclusive conditions and reinforces AusAID’s commitment to
being an employer of choice.
The agreement includes changes to official travel and a number of administrative

reforms which will provide productivity gains to offset planned salary increases.
Performance management continued to be a key driver for AusAID to meet strategic

objectives, increase productivity, improve communication and encourage professional
and managerial development. The AusAID Enterprise Agreement 2009–2011
introduced changes that linked performance assessment to salary advancement
in the performance management system, which resulted in process improvements.
The introduction of a more streamlined and effective performance management
system under the agreement aims to strengthen the existing links between
individual work performance, business unit plans and AusAID’s corporate goals. The
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performance management system will be subject to a further review during the life
of the agreement.
A commitment to introducing an AusAID consultative forum will lead to enhanced

communication with staff on conditions of service matters and improve consultative
mechanisms within the agency.
The agreement introduced a number of environmental initiatives which enhance

AusAID’s commitment to a sustainable workplace.

Staff voted overwhelmingly to accept the agreement with 96 per cent voting ‘yes’.
The agreement was approved by Fair Work Australia and came into operation on
15 January 2010.
In accordance with the Australian Government employment framework, AusAID is now

using flexibility agreements within the enterprise agreement to adapt remuneration and
employment conditions to the agency’s needs and individual circumstances. At 30 June
2010, 20 staff remain on Australian workplace agreements. The agency continued the
process of replacing Australian workplace agreements with flexibility agreements under the
enterprise agreement.
The salary ranges and number of APS employees by classification level covered
by enterprise or collective agreements, section 24(1) determinations, common law
agreements and Australian workplace agreements is included at Section 5, Appendix D.
1 89
Non-salary benefits under the enterprise agreement, common

law agreements and Australian workplace agreements
AusAID has introduced a range of updated policies to provide flexibility for staff,
including home-based work, part-time and job sharing, condensed hours, flextime and
time off in-lieu. Other benefits include half-pay maternity leave, paternity leave, the
ability to purchase additional leave, adoption leave, expanded maternity leave and free
flu vaccinations. All employees are given paid time off for the two normal working days
between Christmas and New Year’s Day.
Non-salary benefits covered in determinations and common law agreements for senior
executive service employees include a vehicle and fuel card, car parking at work, mobile
phone, airline club membership and home access to office systems.
The enterprise agreement also provides a package of conditions for staff posted overseas,
which is intended to acknowledge the sometimes difficult circumstances for attaining a
good work/life balance while on posting.
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Learning and development

In 2009–10 AusAID built on the reforms of 2008–09 to align learning outcomes with
AusAID’s program objectives in the short to medium term.
In 2009–10 AusAID:
• commenced a more strategic approach to learning and development including:
— developing processes and tools for the learning and development stages of needs
assessment, learning, evaluation and reporting

— designing an eLearning platform to include a learning management system and
increased use of online learning resources
• identified key learning pathways such as deployment and induction to address key
business requirements and provide opportunities for staff to build the necessary skills
and knowledge
• implemented a robust deployment program for high threat environments including
participation by staff from whole-of-government partner agencies
— the program incorporates a comprehensive training pathway, including tailored
modules integrated with Australian Defence Force standard operational procedures.
It ensures AusAID officers have a clear understanding of their roles and
responsibilities when working under Australian Defence Force command and are
well prepared to perform effectively
• designed curriculum development templates for use by AusAID’s internal subject
matter experts to develop best practice training.

• training 25 participants in the inaugural Australian Civilian Corps program which met
AusAID’s duty of care responsibilities and prepared civilian corps personnel to assist
in the stabilisation and recovery efforts of countries experiencing or emerging from
natural disaster or conflict
1 90
• strengthening our knowledge base through a 10 per cent increase in study support
assistance covering a range of priorities such as management, international relations,
development studies, law and environmental science
• building more effective and efficient outcomes in learning and development policy
and practice by establishing a portfolio-wide learning and development network to
strengthen collaboration and resource sharing with the Department of Foreign Affairs
and Trade, Austrade and the Australian Centre for International Agricultural Research
• completing a review of language requirements and effective training delivery methods
to strengthen the survival language skills of Canberra staff posted to non-English
speaking countries, and to improve the English as a Second Language skills of
overseas based staff through eLearning training packages
• strengthening the capability of overseas based staff—who made up 30 per cent of all
training participants during 2009–10—in a range of areas including Australian public
sector skills, development program specific skills, financial and risk management and
management and leadership. This training was predominantly delivered in AusAID’s
largest posts including Jakarta, Port Moresby and Honiara
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• strengthening core agency and public sector skills by providing a total of 376 training
opportunities and achieving an average of four training days per employee in 2009–10.
The most heavily run courses focused on the priority areas of enhanced public sector
skills, program skills and the professional development of new starters and graduates.
Table 1: LEARNING AND DEVELOPMENT ACTIVITY SUMMARY
Q1 Q2 Q3 Q4 2009–10
Average days learning per employee 1.35 0.96 0.93 0.89 4.13
Number of training opportunities 136 77 93 70 376
Note: data excludes external training funded through devolved training funds at overseas posts.
FIGURE 14: LEARNING AND DEVELOPMENT ACTIVITY BREAKDOWN BY TRAINING TYPE
Public sector skills (19%) Program specific (18%)
New starters
and graduate (11%)
Pre-deployment (10%)
Management and
leadership (2%)
Thematic conferences
and events (7%)
Overseas based staff (30%) External courses (3%)
19 1
Occupational health and safety (OHS)

AusAID demonstrates its commitment to providing a safe and healthy workplace
through the health and safety management arrangements and various OHS policies and
procedures. The arrangements provide the framework that enables effective cooperation
between AusAID managers and employees on OHS matters in our workplaces.
AusAID’s OHS Committee meets quarterly and is the mechanism for continuing
consultation between management and staff on OHS matters. There are nine designated
work groups in AusAID Canberra—each has a health and safety representative who is a
member of the committee. Larger work areas also have a deputy health and safety officer.
There are currently 13 elected or nominated health and safety representatives.
Measures taken to ensure the health, safety and welfare at work of

employees and contractors
Measures to address health, safety and welfare in the workplace in 2009–10 included:
• establishing an in-house psychologist and external employee assistance program to
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provide counselling services for staff working in Australia and overseas

• implementing an annual influenza vaccination program—317 staff were vaccinated
during the year
• undertaking 87 ergonomic workstation assessments to ensure workstations were set-
up appropriately
• subsidising yoga and Pilates classes
• subsidising eyesight testing and a contribution towards the costs of glasses and
contact lenses if required for screen-based work
• providing briefings at induction training and pre-post training to raise OHS awareness
• establishing a first aid room at the Allara Street building in Canberra
• providing OHS training to overseas based staff during their corporate training program
and facilitation of a number of office safety workshops
• delivering ergonomic information sessions to support staff relocated within
Canberra offices.
AusAID also developed and implemented a workplace incident reporting process during
the year to improve the identification and prevention of workplace hazards.
As our presence overseas continues to increase, effective support for this component
of our workforce becomes increasingly important. Staff counselling and welfare services
were improved during the year through the services of a dedicated in-house counsellor
and the provision of a new employee assistance program provider with extended access
to overseas based staff. The in-house counsellor’s services continue to be particularly
valuable for staff and their families overseas, especially the growing number of those
serving in remote or difficult locations or where an emergency or disaster situation has
occurred. The new employee assistance program provider can be accessed via telephone,
internet and through face-to-face appointments. The program also provides fact sheets to
help employees manage different aspects of their lives including health and wellbeing.
1 92
AusAID participated in the 2010 Safe Work Australia Week program, which promotes
workplace wellbeing strategies. Information sessions were held to raise staff awareness
about health risks associated with sedentary lifestyles, sleep deprivation, dehydration,
smoking, stress and excessive alcohol consumption.
AusAID is also committed to the safety and security of its officials. Its duty of care
extends to officials travelling overseas and those posted to locations outside Department
of Foreign Affairs and Trade missions, as well as whole-of-government officials deployed
under AusAID-managed programs. An overseas security risk management framework is
being implementing that outlines the processes, systems, standards and responsibilities
to ensure AusAID meets its duty of care and security responsibilities.
Security measures are in place for officials deployed overseas, and these continue to be
enhanced. Personal security awareness training is provided, including specialised security
training for those deployed to high-risk locations.
Reporting requirements under the Act
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There were no incidents during the year that required a section 68 notice to Comcare.
No notices were issued under section 29, section 46 or section 47 of the Public Service
Act 1999. No directions were given to the Department of Foreign Affairs and Trade under
section 45. There were no investigations conducted.
Human resource systems

Improvements were made to Aurion, AusAID’s human resource information system, to
increase reporting capability and align post-specific human resource practices into the
broader corporate framework. The Aurion system was introduced into a post environment
for the first time. It was delivered to Jakarta to manage overseas staff records and salary
payments. This has provided a number of process improvements and productivity gains
and has enabled greater accuracy of human resource information. AusAID will use the
lessons from this exercise to look at expanding the reach of the on-shore human resource
systems to provide greater consistency between posts and Canberra operations.
Recruitment
AusAID, like many other employers, operates in an environment of increasing skills
shortage and tough competition for appropriately experienced and skilled people. However,
despite the increasing competition within the labour market, AusAID has continued to
attract large numbers of applicants for its positions.
AusAID continued to concentrate on providing enhanced recruitment services to ensure

its business functions were being met, with a focus on targeted recruitment strategies
to source the right people with the right skills. This year, specific recruitment rounds
were used more often than generic recruitment rounds. In particular, a large number of
information technology permanent positions were filled as part of the whole-of-government
policy of converting information and communications technology contractor positions to
Australian Public Service positions.
1 93
Graduate recruitment
The 2010 graduate recruitment campaign resulted in an intake of 19 graduates from a
total of 1360 applicants. The successful applicants came from a variety of backgrounds
with qualifications in areas such as international relations, development studies, politics,
commerce, law, Asian studies, history, psychology, natural resource management,
anthropology, creative industries, community development, education and business.
The level of work experience also varied significantly, ranging from recent graduates with
only limited workforce experience to those who have been working internationally or in
their chosen field for several years.
The successful candidates were selected for their skills, experience, qualifications and
ability to contribute effectively to AusAID’s work.
The 2010 graduate program commenced on 9 February 2010 and will conclude on
24 December 2010. It provides three job placements over 11 months across AusAID’s
business areas. In each rotation the graduates undertake a specifically designed work
plan to give them a comprehensive understanding of AusAID and its whole-of-government
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engagement in delivering the aid program. The graduates participate in an intensive

induction program that presents an overview of AusAID’s role in developing aid policy
and delivering the aid program and in addition, undertake formal training blocks between
each placement.
AusAID’s successful graduates in 2010. back left: Sarah Barns, Meg Berryman, Paul Zeccola, Tamsin Coryn-Wyllie,
Daniel Kark, Jo O’Sullivan, Steve Hills, Giles O’Brien-Hartcher. Middle right: Debbie Wong, Mel Powell, Gemma Edgar,
Khadhraa Glenn, Jane Racancoj, Russell Harwood, Than Tun. Front row: Andrew Cooper, Nura Ghaeni, Mia Thornton and
Sasha Purcell
1 94
Graduate career fairs

AusAID’s presence at graduate career fairs is a cost effective way to promote employment
opportunities with the agency to graduates. AusAID continued its focus on graduate
recruitment by attending fairs in major capital cities throughout the year.
AusAID’s employment programs manager, recruitment officers and former graduates

attended graduate fairs in Canberra, Perth, Brisbane, Melbourne, Sydney, Wollongong
and Adelaide.
The campaign for the 2011 graduate program resulted in 1210 applications. AusAID also
recruited for and received 149 applications for a newly developed corporate graduate
program due to commence later in 2011.
Workplace diversity
AusAID’s Workplace Diversity Program 2007–2010 outlines the agency’s commitment
to provide a fair and equitable work environment for all employees. Through the diversity
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program, AusAID continues to promote equity and diversity principles in the workplace and
aims to achieve a work environment free from discrimination, harassment and bullying.
AusAID participated in the Australian Public Service Commission Indigenous Graduate,

Horizons and Pathways programs.
AusAID organised activities to celebrate National Aborigines and Islanders Day Observance
Committee (NAIDOC) Week in July 2009. These activities raise employee awareness of
indigenous culture and demonstrate AusAID’s commitment to recognising and supporting
cultural diversity in the workplace.

Cross cultural training is a core learning requirement for new staff, new managers and
staff preparing for posting overseas. The training promotes and supports workplace
diversity issues and the special place of Aboriginal and Torres Strait Islanders as
Australia’s first people.
Commonwealth disability strategy

The AusAID Disability Action Plan 2007–2010 outlines the agency’s ongoing commitment
to meeting the needs of people with disability through reasonable adjustments to our
work environment, employment procedures, staff management, training and development.
The action plan is consistent with the Disability Discrimination Act 1992 and reflects the
agency’s role as an ‘employer’ and ‘purchaser’. AusAID does not have the role of ‘policy
adviser’, ‘regulator’ or ‘provider’ for the purposes of this strategy.
AusAID has a centralised fund that is used to provide staff with reasonable adjustments
to meet their needs in the workplace. In 2008–09, AusAID continued to implement the
principles of reasonable adjustment by:
• obtaining professional advice to identify specific requirements for employees
• providing specialised equipment, including voice activated software
195
• providing support for staff, supervisors and managers

• assisting people with disability with the recruitment process.
A more targeted strategy is currently being developed to employ people with disability.
In the role of ‘purchaser’, AusAID contracts out the implementation of aid activities in
accordance with the Australian Government’s purchasing policies and guidelines. The
following measures are in place which meet the performance indicators in the disability
action plan:
• AusAID contracts contain a standard clause requiring the contractor to comply with
Australian laws, regulations and policies including compliance with the provisions of
the Disability Discrimination Act 1992
• the AusAID website contains information about the Disability Discrimination Act 1992
in the list of laws with which contractors undertaking activities for AusAID must comply
• AusAID’s website conforms to Australian Government standards and W3C web content
requirements, ensuring that purchasing information is accessible to members of the
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public with disability

• purchasing specifications for major procurements are advertised on the
AusTender website which meets W3C standards for accessibility
• procurement and contract related complaints and grievances are managed under
the AusAID contracts charter and complaints handling policy. External options are
available where a complaint has not been satisfactorily resolved through AusAID’s
internal mechanisms.
When providing any services and procuring supplies, contractors must also have regard
to, and operate in accordance with, AusAID’s strategy Development for all: towards a
disability-inclusive Australian aid program 2009–2014. This strategy sets out approaches
to guide the Australian aid program in meeting the needs and priorities of people with
disability in developing countries.
Staff awards—Australia Day Achievement Awards

Australia Day Achievement Awards are presented to staff who have made an especially
valuable contribution to AusAID over the past year or number of years. The Director
General presented 11 awards in 2009–10, comprising five team awards and six individual
awards. Award recipients are detailed in Section 5, Appendix D.
1 96

Purchasing
During the year, AusAID entered into 3212 agreements to deliver the aid program to
a value of approximately $2.5 billion. Of these, 1258 were agreements with other
Australian Government departments, non-government organisations, multilateral agencies
and partner governments totalling approximately $1.7 billion. The remainder were
contracts with commercial entities. At 30 June 2010, there were 4091 agreements
under management totalling $9.8 billion. Of these, 2479—which were valued at about
$6.5 billion—were with non-commercial organisations.
Procurement contracts awarded and managed

A total of 1954 new procurement contracts were entered into during the year with a value
of approximately $798 million. The number of new contracts decreased from the previous
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year when 1962 procurement contracts were let with a value of about $689 million. At
30 June 2010, AusAID was managing approximately 692 procurement contracts, with a
total value of about $2.9 billion.
Service orders issued under AusAID’s period offers made up 57 per cent of all new
procurement contracts by number. Period offers are standing offers with individuals and
organisations to provide short-term specialist advice and services on an as-required basis
for set fees. There were 298 period offer agreements in place at 30 June 2010, providing
access to 793 contractors across 28 development sectors. An open tender process is
used to assess personnel for technical quality and value for money.
Purchasing for departmental purposes—consultants
During 2009–10, 14 new consultancy contracts were entered into involving total actual
expenditure of $538 254. In addition, four ongoing consultancy contracts were active
during the year, involving total actual expenditure of $56 916. Details of each new
consultancy worth $10 000 or more are provided in Appendix G.
The selection process for consultancy services is consistent with the Commonwealth
Procurement Guidelines (December 2008).
Details of contracts, agreements and consultants

This annual report contains information about actual expenditure on contracts for
consultancies in 2009–10. Information on the value of contracts and consultancies is
available on the AusTender website www.tenders.gov.au
In accordance with the Senate Order on Departmental and Agency Contracts, all contracts,
agreements and consultancies let over $100 000 are also listed each calendar and
financial year on AusAID’s website. The Senate Order Listing for 2009–10 will be tabled in
Parliament in August 2010 and available at www.ausaid.gov.au in September 2010.
197
Continuous improvement in contracting

AusAID continually improves its design and contracting procedures by developing and
promoting new business processes and supporting tools and guidelines. Training on
activity design and contracting is provided regularly to agency staff.
Exempt contracts
No contracts in excess of $10 000 or standing offers were exempted by the Director
General from being published in AusTender.
Purchasing policy
AusAID’s procurement framework reflects the core principle governing Australian
Government procurement—value for money. AusAID conducts all procurement in
accordance with the Commonwealth Procurement Guidelines and with the agency’s own
Chief Executive Instructions and procurement guidelines. AusAID’s procurement framework
encourages competition and ensures that the agency uses resources efficiently, effectively
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and ethically, and makes decisions in a transparent and accountable manner. Procurement
practices are non-discriminatory and Australian aid is untied.
Procurements undertaken for the direct purpose of providing foreign assistance are
exempt from the mandatory procedures outlined in the Commonwealth Procurement
Guidelines. From 1 July 2005, however, the agency elected to apply the mandatory
procedures to program procurements above a value threshold, with limited exceptions, to
adopt best practice policies and procedures. A centralised team of experts in Canberra
conducts all procurements to which the mandatory procedures apply (major procurements)
and probity advisers are appointed for high-risk procurements.
In 2009–10, major procurements were advertised on the AusTender website, in The

Weekend Australian and in other major capital city newspapers where appropriate.
Following the April 2006 decision to untie the Australian aid program, major procurements
also continue to be advertised on the Development Assistance Committee untied aid
website of the Organisation for Economic Co-operation and Development. This notifies and
enables international organisations to bid for Australian development opportunities. Major
procurements were also advertised on other key international development websites,
such as the United Nations. AusAID’s website contains information about the agency’s
procurement policy and other topics relevant to companies interested in tendering for
program procurements.
Responsibility for small value procurements and the management of all contracts is
devolved to activity managers in Australia and overseas. The agency supports this
approach by providing detailed guidance material, standard tendering, contracting and
approval documentation, and expert advice from specialist procurement officers in
Canberra. In 2009–10, AusAID continued to deliver an expanded training program in
Canberra and overseas to ensure compliant procurement practices were employed
across the agency. Specialist procurement officers are operating in key overseas posts
to further support devolved procurement practices. The specialist procurement officers
in country enable timely and direct support for all small value procurement and contract
management activities at post.
1 98
AusAID’s tender documentation defines the tender conditions, requirements, assessment

procedures and selection criteria for each procurement. In accordance with the
Commonwealth Procurement Guidelines, preferred tenderers are selected on the basis
of value for money. In the majority of instances, value for money is assessed based on
a total score that combines a technical score against weighted selection criteria and a
price score using a like-for-like price assessment of the financial proposals. Alternatively,
value for money may be based on a combined technical and price assessment. The past
performance of tenderers may also be considered.
Contractor performance reports are maintained to keep track of the quality of service
being provided and remain current for 12 months. Probity advice is sought, where
considered necessary, and tenderers may request a debrief on their bids.
AusAID’s in-house legal advisers and, where appropriate, external legal advisers, ensure
that the contracts AusAID enters into are clear, enforceable and comply with all relevant
government policy and legislation.
AusAID conducts a range of mandatory and recommended due diligence checks
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before entering into an agreement with an organisation. The purpose of these checks
is to identify and manage key reputational and programmatic risks associated with
implementing partners, such as fraud, misrepresentation, financial mismanagement
and corruption.
AusAID’s contracts charter articulates the agency’s approach to partnerships with

contractors and improves delivery quality of aid activities. The charter describes AusAID’s
expectations of contractors and what contractors can in turn expect from AusAID. The
charter can be found at www.ausaid.gov.au/business/pdf/charter.pdf
Grants policy
The new Commonwealth Grants Guidelines came into effect in July 2009. Under the
Financial Management Act Regulations 1997, certain arrangements are taken not to be
grants, including “a payment of assistance for the purposes of Australia’s international
development assistance program, which is treated by the Commonwealth as official
development assistance”.
AusAID is therefore exempted from the Commonwealth Grants Guidelines which includes
exemption from reporting grants on the AusAID website. However, AusAID has determined
that grant administration in the agency will be consistent with the key principles of the
guidelines. A suite of internal guidance is being developed and progressively rolled out
throughout the agency.
Australian National Audit Office access clauses

In 2009–10, all contracts of $100 000 or more (inclusive of GST) specified that the
Auditor General be given access to the contractor’s premises.
199
Assets
AusAID undertakes strategic property and asset management centrally to ensure
maximum efficiency of its property portfolio around the globe. This ensures
responsiveness and integrated services to staff are maintained at consistently high levels
at all our locations.
All overseas property is managed in accordance with the Australian Public

Service standards, legislative requirements, the Building Code of Australia and
Australian standards.
Property management
AusAID is located in two buildings in Canberra, at 255 London Circuit and 20 Allara Street.
It has a presence in 37 countries:
Afghanistan
Bangladesh
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Burma
Cambodia
Chile
China
East Timor
Fiji
France—to represent the Australian Government at the Development Assistance
Committee of the Organisation for Economic Co-operation and Development. The
Development Assistance Committee is a forum comprising 23 donor members of the
Organisation for Economic Co-operation and Development and an important partner

for Australia
Ghana
India
Indonesia
Iraq
Kenya
Kiribati
Laos
Micronesia
Nauru
Nepal
New Caledonia—where AusAID manages the selection and departure of Australian
Development Scholarship recipients as well as the arrival and support of Australian
Regional Development Scholarship recipients
Pakistan
Palestinian Territories
Papua New Guinea
Philippines
Samoa
Seychelles
Singapore—an AusAID officer has been seconded to the APEC Secretariat
200
Solomon Islands
South Africa
Sri Lanka
Switzerland—for representation and engagement with the United Nations and key
international non-government organisations, and to strengthen partnerships on
development and humanitarian matters
Thailand
Trinidad and Tobago
Tonga
United States of America—for representation and engagement at United Nations
meetings, and to strengthen partnerships with United Nations development and
humanitarian agencies
Vanuatu
Vietnam
Zimbabwe
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20 1
Below A market trader in Bantul, Indonesia

counts some of the money she made after
joining an Australian-funded microfinance
scheme. The scheme was set up to help Below AusAID Direct General, Peter Baxter, signs AusAID’s
rebuild the livelihoods of those affected by financial statements for 2009–10. The Australian National Audit
the devastating 2006 Yogyakarta earthquake Office provided unqualified acceptance of the statements
Photo: Ahmad Salman Photo: Angus Braithwaite
202
Financial
statements
Section 4
SECTI O N 4 F i n a n c i a l state me n ts
204
Fin a n ci a l state m e n ts SECTI O N 4
financial statements
20 5
SECTI O N 4 F i n a n c i a l state me nts
206
Australian Agency for International Development

STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2010
Statement of Comprehensive Income
2010 2009
Notes $'000 $'000
EXPENSES
Employee benefits 3A 86,551 81,238
Suppliers expenses 3B 41,364 43,873
Depreciation and amortisation 3C 6,021 6,138
Finance costs 3D 174 201
Fin a n ci a l state m e n ts
Write-down and impairment of assets 3E 78 234
Losses from asset sales 3F 45 13
Foreign exchange losses 3G 15 18
Total expenses 134,248 131,715
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services 4A 58 458
Total own-source revenue 58 458
Gains
Foreign exchange gains 4B 23 25
Other 4C 183 548
Total gains 206 573
Total own-source income 264 1,031
Net cost of (contribution by) services 133,984 130,684
Revenue from Government 4D 141,293 130,219
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Surplus (Deficit) attributable to the Australian Government 7,309 (465)
OTHER COMPREHENSIVE INCOME

Changes in asset revaluation reserves 252 -
Total other comprehensive income* 252 -
7,309 (465)
Total comprehensive income (loss) attributable to the Australian
7,309 (465)
Government
The above statement should be read in conjunction with the accompanying notes. 1
207

BALANCE SHEET
As at 30 June 2010
Balance Sheet
2010 2009
Notes $'000 $'000
ASSETS
Financial Assets
Cash and cash equivalents 5A 586 267
Trade and other receivables 5B 29,526 21,500
Total financial assets 30,112 21,767
F i n a n c i a l state me n ts
Non-Financial Assets
Leasehold improvements 6A,6C 17,988 17,632
Infrastructure, plant and equipment 6B,6C 9,899 7,018
Intangibles 6D,6E 1,163 2,642
Other 6F 3,089 2,944
Total non-financial assets 32,139 30,236
Total Assets 62,251 52,003
LIABILITIES
Payables
Suppliers 7A 4,810 4,388
Other 7B 2,124 1,172
Total payables 6,934 5,560
Provisions
Employee provisions 8A 21,064 19,838
Other 8B 4,692 4,923
Total provisions 25,756 24,761
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Total Liabilities 32,690 30,321
Net Assets 29,561 21,682
EQUITY
Contributed equity 21,245 20,928
Retained surplus (accumulated deficit) 7,690 380
Asset revaluation reserves 626 374
Total Equity 29,561 21,682
208
STATEMENT OF CHANGES IN EQUITY
Statement of Changes in Equity
Retained Earnings Asset Revaluation Reserves Contributed Equity/Capital Total Equity
2010 2009 2010 2009 2010 2009 2010 2009
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Opening balance
Balance carried forward from previous period 380 842 374 374 20,928 19,106 21,682 20,322
Adjustment for errors * 1 3 - - - - 1 3
Adjustment for changes in accounting policies - - - - - - - -
Adjusted opening balance 381 845 374 374 20,928 19,106 21,683 20,325
Comprehensive income
Other comprehensive income - - 252 - - - 252 -
Surplus (Deficit) for the period 7,309 (465) 252 - - - 7,561 (465)
Total comprehensive income 7,309 (465) 252 - - - 7,561 (465)
Transactions with owners:
Contributions by owners
Appropriation (equity injection) - - - - 2,828 1,822 2,828 1,822
Other1: - - - - (2,511) - (2,511) -
Sub-total transactions with owners - - - - 317 1,822 317 1,822
Closing balances attributable to the
Australian Government 7,690 380 626 374 21,245 20,928 29,561 21,682
* Rounding in prior period result.
1. The reduction is consistent with the Government’s decision to extinguish appropriation for unused depreciation and amortisation (Refer to Note 21 Table A1)
20 9
SECTI O N 4 Fin a n ci a l state m e n ts


CASH FLOW STATEMENT
Statement
2010 2009
Notes $'000 $'000
OPERATING ACTIVITIES
Cash received
Goods and services 699 732
Net GST received 2,901 3,108
Appropriations 127,395 125,116
Employee provision transfers 814 -

Total cash received 131,809 128,956
Cash used
Employees 85,051 77,625
Suppliers 44,589 46,300
Total cash used 129,640 123,925
Net cash from (used by) operating activities 9 2,169 5,031
INVESTING ACTIVITIES
Cash received
Proceeds from sales of infrastructure, plant and equipment 23 111
Total cash received 23 111
Cash used
Purchase of infrastructure, plant and equipment 4,939 3,608
Purchase of leasehold improvements 2,707 1,956
Purchase of intangibles 19 343
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Net cash from (used by) investing activities (7,642) (5,796)
FINANCING ACTIVITIES
Cash received
Contributed equity 5,792 -
Total cash received 5,792 -
Net cash from (used by) financing activities 5,792 -
Net increase/(decrease) in cash held 319 (765)

Cash and cash equivalents at the beginning of the reporting period 267 1,032
Cash and cash equivalents at the end of the reporting period 5A 586 267
210

SCHEDULE OF COMMITMENTS
As at 30 June 2010
Schedule of Commitments
2010 2009
$'000 $'000
BY TYPE
Commitments receivable
GST recoverable on commitments (7,764) (8,126)
Total commitments receivable (7,764) (8,126)
Commitments payable
Other commitments
Operating leases1 113,239 109,231
2
Other commitments 5,798 5,072
Total other commitments payable 119,037 114,303
Net commitments by type 111,273 106,177
BY MATURITY
One year or less (1,085) (1,073)
From one to five years (2,495) (2,355)
Over five years (4,184) (4,698)
Operating lease commitments

One year or less 15,210 15,912
From one to five years 47,713 37,931
Over five years 50,316 55,388
Total operating lease commitments 113,239 109,231
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Other commitments
One year or less 4,090 4,850
From one to five years 1,708 222
Over five years - -
Total other commitments 5,798 5,072
Net commitments by maturity 111,273 106,177
NB: Commitments are GST inclusive where relevant
1. Operating leases are effectively non-cancellable and comprise:

Nature of lease General description of leasing arrangement
Domestic leases for office Lease payments are subject to annual increases in accordance with upwards
accommodation movements in the Consumer Price Index. In some cases AusAID holds an
option to extend office accommodation leases. Leases vary in duration from 4 to
13 years and lease payments are subject to the terms and conditions of each
lease.
Overseas leases for office The terms and conditions of these leases vary depending on the location of the
accommodation property and the local market conditions. Leases vary in duration from 1 to
9 years, and are subject to market rental reviews.
Overseas leases for The terms and conditions of these leases vary depending on the location of the
residential accommodation property and the local market conditions. Leases vary in duration from 1 to
10 years, and are subject to market rental reviews.
The above schedule should be read in conjunction with the accompanying notes. 5
21 1

SCHEDULE OF COMMITMENTS
As at 30 June 2010
Operating leases are effectively non-cancellable and comprise of (continued):

Nature of lease General description of leasing arrangement
Leases for motor vehicles to AusAID leases motor vehicles to support its business activities. Payments are
senior executive officers made monthly and are fixed at a constant rate for the duration of each lease. At
the expiration of each lease the motor vehicles are disposed of by the lessor.
Leases for computer AusAID leases business IT office equipment to support its business activities.
equipment Leases are for various items of computer equipment and are generally for 3
F i n a n c i a l state me nts
years, with the risks associated with ownership held by the lessor.
2. Other commitments include commitments relating to provision of IT and general office services.

SCHEDULE OF CONTINGENCIES
As at 30 June 2010
Schedule of Contingencies
There are no quantifiable contingent assets and liabilities as at 30 June 2010 (nil: 30 June 2009). Refer to Note 10 for
details of unquantified contingencies.
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212
SCHEDULE OF ASSET ADDITIONS
Schedule of Asset Additions
The following non-financial non-current assets were added in 2009-2010:
Computer
Infrastructure, software- Computer
Leasehold plant & internally software
improvements equipment developed purchased Total
$'000 $'000 $'000 $'000 $'000
By purchase - appropriation equity 853 4,939 - - 5,792
By purchase - appropriation ordinary annual services 1,854 - - 19 1,873
By purchase - donated funds - - - - -
By purchase - other - - - - -
By finance lease - - - - -
Assets received as gifts/donations - - - - -
From acquisition of entities or operations (including restructuring) - - - - -
Total additions 2,707 4,939 - 19 7,665

Computer
$'000 $'000 $'000 $'000 $'000
By purchase - appropriation equity - - - - -
By purchase - appropriation ordinary annual services 1,956 3,608 - 342 5,906
By purchase - other - - - - -
Total additions 1,956 3,608 - 342 5,906
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SCHEDULE OF ADMINISTERED ITEMS
Schedule of Administered Items

2010 2009
Notes $'000 $'000
Income Administered on Behalf of Government
Revenue
Non-Taxation Revenue
Interest 14A 3,476 2,057
Total non-taxation revenue 3,476 2,057
Total revenues administered on behalf of Government 3,476 2,057
Gains
Sale of assets 14B 112 39
Foreign exchange gains 14C 3,866 -
Other 1.3,14D 339,706 317
Total gains administered on behalf of Government 343,684 356
Total income administered on behalf of Government 347,160 2,413
Expenses Administered on Behalf of Government

For the period ended 30 June 2010
International development assistance 15A 2,525,662 2,277,308

Grants 15B 396,329 536,587
Finance costs 15C 134,069 373,501
Depreciation and amortisation 15D 2,009 1,631
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Write-down and impairment of assets 1.3,15E 70 377,244

Total expenses administered on behalf of Government 3,058,139 3,566,271
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2010 2009
Notes $'000 $'000
Assets Administered on Behalf of Government
As at 30 June 2010
Financial Assets
Cash and cash equivalents 16A 14,604 11,306
Loans and receivables 16B 65,060 43,177
Investments 16C 1,146,053 887,015
Total financial assets 1,225,717 941,498
Leasehold improvements 16D,F 5,564 1,390
Infrastructure, plant and equipment 16E,F 5,930 1,841
Intangibles 16G,H 4,933 2,906
Other 16I 1,956 368
Total non-financial assets 18,383 6,505
Total assets administered on behalf of Government 1,244,100 948,003
Liabilities Administered on Behalf of Government

As at 30 June 2010
Payables
Grants 17A 336,279 435,904
Other 17B 760,373 950,803
Total payables 1,096,652 1,386,707
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Provisions
Other 17C 8,215 7,888
Total liabilities administered on behalf of Government 1,104,867 1,394,595
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2010 2009
Notes $'000 $'000
Administered Cash Flows
OPERATING ACTIVITIES
Cash received
Net GST received 62,494 61,058

Other 791 1,620
Total cash received 63,285 62,678
Cash used
International development assistance 2,700,100 2,005,282
Grant payments 495,954 437,016
Concessional finance costs 134,054 352,141
Total cash used 3,330,108 2,794,439
Net cash flows from (used by) operating activities (3,266,823) (2,731,761)
INVESTING ACTIVITIES
Cash received
Proceeds from sale of infrastructure, plant and equipment 131 39
Total cash received 131 39
Cash used
Purchase of infrastructure, plant and equipment 10,891 1,710
Purchase of concessional financial instruments 14,452 136,656
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Net cash flows from (used by) investing activities (25,212) (138,327)
Net Increase (Decrease) in cash held (3,292,035) (2,870,088)
Cash at beginning of the reporting period 11,306 5,751
Cash from the Official Public Account for:

Appropriations 3,317,213 2,893,227
Capital injections 61,332 56,355
3,378,545 2,949,582
Cash to the Official Public Account for:

Appropriations (16,037) (14,312)
GST transferred to the OPA (67,175) (59,627)
(83,212) (73,939)
Cash at the end of the reporting period 14,604 11,306
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2010 2009
Notes $'000 $'000
Administered Commitments
As at 30 June 2010
BY TYPE
GST recoverable on commitments (220,186) (189,514)
Commitments payable
Other commitments
Operating leases 6,188 559
Other commitments1 2,712,972 2,461,244
Total other commitments payable 2,719,160 2,461,803
Net commitments by type 2,498,974 2,272,289
BY MATURITY
One year or less (140,547) (92,018)
From one to five years (78,970) (96,284)
Over five years (669) (1,212)
Operating lease commitments

One year or less 4,383 354
From one to five years 1,805 205
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Over five years - -
Total operating lease commitments 6,188 559
Other commitments
One year or less 1,802,756 1,339,252
From one to five years 898,140 1,108,660
Over five years 12,076 13,332
Total other commitments 2,712,972 2,461,244
Net commitments by maturity 2,498,974 2,272,289
NB: Commitments are GST inclusive where relevant.
1. Other commitments represent the value of goods, services, grants and loans yet to be delivered (recognised)
under agreements currently on issue within AusAID’s overseas development assistance program.
Administered Contingencies
As at 30 June 2010
There are no quantifiable Administered contingent assets and liabilities as at 30 June 2010 (nil: 30 June 2009).
Refer to Note 10 for details of unquantified Administered contingencies.
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Administered Asset Additions

for the period ended 30 June 2010

Computer
$'000 $'000 $'000 $'000 $'000
By purchase - appropriation ordinary annual services - - - - -
By purchase - other 4,490 4,061 2,166 174 10,891
Total additions 4,490 4,061 2,166 174 10,891

Computer
$'000 $'000 $'000 $'000 $'000
By purchase - appropriation ordinary annual services - - - - -
By purchase -other 95 702 - - 797
Total additions 95 702 - - 797

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
Note 1. Significant Accounting Policies
1.1 Objectives of Australian Agency for International Development
The objective of Australia’s overseas aid program is to assist developing countries to reduce poverty and
achieve sustainable development, in line with Australia’s national interest. The Australian Agency for
International Development (AusAID) administers the majority of Australia’s Official Development Assistance
(ODA) for developing countries including the Australian Indonesian Partnership for Reconstruction and
Development (AIPRD).
The Agency is structured to meet two outcomes:
Outcome 1: To assist developing countries to reduce poverty and achieve sustainable development,
in line with Australia’s national interest.
Outcome 2: Australia’s national interest advanced by implementing a partnership between Australia

and Indonesia for reconstruction and development.
AusAID activities contributing toward these outcomes are classified as either departmental or administered.
Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by
AusAID in its own right. Administered activities involve the management or oversight by the Agency, on behalf
of the Government, of items controlled or incurred by the Government.
Outcome 1 has seven Administered Programs which are:
Program 1.1: Official Development Assistance – PNG & Pacific,
Program 1.2: Official Development Assistance – East Asia,
Program 1.3: Official Development Assistance – Africa, South and Central Asia, Middle East and
Other,
Program 1.4: Official Development Assistance – Emergency, Humanitarian and Refugee Programs,
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Program 1.5: Official Development Assistance – Multilateral Replenishments,
Program 1.6: Official Development Assistance – UN Commonwealth and Other International

Organisations, and
Program 1.7: Official Development Assistance – NGO, Volunteer and Community Programs.
Outcome 2 has one Administered Program being Program 2.1: East Asia.
Both Outcomes 1 and 2 have Departmental support.
The continued existence of AusAID in its present form and with its present programs is dependent on
Government policy and on continuing appropriations by Parliament for AusAID’s administration and programs.
1.2 Basis of Preparation of the Financial Statements
The financial statements and notes are required by Section 49 of the Financial Management and Accountability
Act 1997 and are General Purpose Financial Statements.
The statements have been prepared in accordance with:
x Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2009; and
x Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board
(AASB) that apply for the reporting period.
The financial statements have been prepared on an accruals basis and are in accordance with the historical
cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the
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effect of changing prices on the results or the financial position.
The financial statements are presented in Australian dollars and values are rounded to the nearest thousand
dollars unless otherwise specified.
Unless an alternative treatment is specifically required by an Accounting Standard or the FMOs, assets and
liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits
will flow to the entity or a future sacrifice of economic benefits will be required and the amounts of the assets or
liabilities can be reliably measured. However, assets and liabilities arising under agreements equally
proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and
assets that are unrecognised are reported in the schedule of commitments and the schedule of contingencies.
Unless alternative treatment is specifically required by an Accounting Standard, income and expenses are
recognised in the income statement when and only when the flow, consumption or loss of economic benefits
has occurred and can be reliably measured.
Administered revenues, expenses, assets and liabilities, and cash flows reported in the schedule of
administered items and related notes are accounted for on the same basis and using the same policies as for
departmental items, except where otherwise stated at Note 1.20.
1.3 Significant Accounting Judgements and Estimates
No departmental accounting assumptions or estimates have been identified that have a significant risk of
causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.
In 2007 AusAID obtained professional valuation advice and refined the estimate of fair value for its
administered financial instruments based upon then new developments and information available. The effect
of the change in estimate was recognised in accordance with AASB 108 and AASB 139, respectively, by
adjusting the carrying amount of the financial instruments disclosed at Note 16C with gains recognised at Note
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15D for the comparative reporting period.
The fair value of the administered financial instruments in 2009-2010 has been determined on a basis
consistent with that used in 2007 and 2008, again utilising professional valuation advice. The fair value of the
financial instruments reported in future periods will be affected by variables such as discount rates, exchange
rates and possible impairment. The effect of changes to the assumptions used to value the financial
instruments is disclosed at Note 19D.
1.4 New Australian Accounting Standards
Adoption of new Australian Accounting Standard requirements
No accounting standard has been adopted earlier than the application date as stated in the respective
standard.
No other new standards/revised standards/interpretations/amending standards that were issued prior to the
signing of The Statement by the Chief Executive and Chief Finance Officer that are applicable to the current
reporting period, had a financial impact, and are not expected to have a future financial impact on the entity.
Future Australian Accounting Standard requirements
New standards, reissued standards, amendments to standards or interpretations (“the new requirements”)
applicable to future reporting periods have been issued by the Australian Accounting Standards Board during
the year. It is anticipated that the new requirements will have no material financial impact on future reporting
periods.
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No other new standards/revised standards/interpretations/amending standards that were issued prior to the
signing of The Statement by the Chief Executive and Chief Finance Officer that are applicable to the current
reporting period, had a financial impact, and are not expected to have a future financial impact on the entity.
1.5 Revenue
Revenue from Government
Amounts appropriated for departmental outputs appropriations for the year (adjusted for any formal additions
and reductions) are recognised as revenue when AusAID gains control of the appropriation, except for certain
amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it
has been earned.
Appropriations receivable are recognised at their nominal amounts.
Revenue from government includes $1,910,891 in funding quarantined by the Department of Finance and
Deregulation (DoFD) pending the outcome of a review by the Departments of Foreign Affairs and Trade and
Finance and Deregulation of funding of the Overseas Property Office (OPO) and the payment of amortisation
to OPO for selected properties overseas. AusAID does not have any legal commitment to make payments and
has therefore not recognised any amortisation expense.
Resources Received Free of Charge
Resources received free of charge are recognised as revenue when, and only when, a fair value can be
reliably determined and the services would have been purchased if they had not been donated. Use of those
resources is recognised as an expense.
Resources received free of charge are recorded as either revenue or gains depending on their nature.
Other Types of Revenue

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the
reporting date. The revenue is recognised when:
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x the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
x the probable economic benefits associated with the transaction will flow to the entity.
The stage of completion of contracts at the reporting date is determined by reference to the proportion that
costs incurred to date bear to the estimated total costs of the transaction.
Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due
less any impairment allowance. Collectability of debts is reviewed at balance date. Provisions are made when
collectability of the debt is no longer probable.
Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial
Instruments: Recognition and Measurement.
1.6 Gains
Resources Received Free of Charge
Resources received free of charge are recognised as gains when and only when a fair value can be reliably
determined and the services would have been purchased if they had not been donated. Use of those
resources is recognised as an expense.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their
fair value when the asset qualifies for recognition, unless received from another government agency as a
consequence of a restructuring of administrative arrangements (Refer to Note 1.7). Resources received free of
charge are recorded as gains.
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Sale of Assets
Gains from disposal of non-current assets are recognised when control of the asset has passed to the buyer.
1.7 Transactions with the Government as Owner
Equity injections
Amounts appropriated that are designated as ‘equity injections’ for a year (less any formal reductions) are
recognised directly in Contributed Equity in that year.
Other distributions to owners
The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a
dividend. AusAID had $2,511,000 of such distributions (refer to footnote 2, Table A2 of Note 21) in 2009-10
(nil: 2008-09).
1.8 Employee Benefits
Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have
not been settled.
Liabilities for ‘short-term employee benefits’ (as defined by AASB 119 Employee Benefits) and termination
benefits due within twelve months of balance date are measured at their nominal amounts. The liability for
wages and salaries recognised as at 30 June represents outstanding contributions for the final five days of the
2009 financial year (2008: 4 days).
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to
be made in respect of services provided by employees up to the reporting date.
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Leave
The liability for employee benefits includes provision for annual leave and long service leave. No provision has
been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by
employees of AusAID is estimated to be less than the annual entitlement for sick leave. In the case of staff at
posts, where the entitlement is vested, a liability has been recognised.
The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates
(including AusAID’s employer superannuation contribution rates) that would apply at the time leave is expected
to be taken.
The liability for long service leave has been determined by reference to the work of the Australian Government
Actuary as at April 2010 which allows for estimation of the present value of the liability taking into account
forecast staff attrition rates based upon period of service and pay increases through promotion and inflation.
The estimate of the liability for annual leave takes into account future pay increases where the increase affects
the amount required to settle the obligation.
Separation and Redundancy
Provision is made for separation and redundancy benefit payments. AusAID recognises a provision for
separation and redundancy when it has developed a detailed formal plan and has informed those employees
that will be affected by that plan that it will carry out those terminations of employment.
In some countries, staff at overseas posts are entitled to separation benefits. The provision for the benefits has
been classified as employee benefits.
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Superannuation
Staff of AusAID are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector
Superannuation Scheme (PSS) or the PSS Accumulation Plan (PSSap).
The CSS and PSS are defined benefit schemes for the Commonwealth. From 1 July 2005, new employees
are eligible to join the PSSap scheme. The PSSap is a defined contribution scheme.
The liability for defined benefits is recognised in the financial statements of the Australian Government and is
settled by the Australian Government in due course. AusAID contributes superannuation for overseas staff in
compliance with local labour laws. This liability is reported by the Department of Finance and Deregulation as
an administered item.
AusAID makes employer contributions to the employee superannuation schemes at rates determined by an
actuary to be sufficient to meet the cost to the Government of the superannuation entitlements of AusAID’s
employees. AusAID accounts for all contributions as if they were contributions to defined contribution plans.
The liability for superannuation recognised as at 30 June represents outstanding contributions for the final days
of the financial year.
1.9 Leases
A distinction is made between finance leases and operating leases. Finance leases effectively transfer from
the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased non-current
assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively
retains substantially all such risks and benefits.
AusAID does not have any finance leases.
Operating lease payments are expensed on a basis representative of the pattern of benefits derived from the
leased assets being the contracted nominal amounts less any lease incentive allocated. Lease incentives are
recognised as other payables and amortised over the period of the lease on a straight line basis.
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The net present value of future net outlays in respect of surplus space under non-cancellable lease
agreements is expensed in the period in which the space becomes surplus.
1.10 Cash
Cash means notes and coins held and any deposits held at call with a bank or financial institution. Cash is
recognised at its nominal amount. The balance of the departmental cash account is non-interest bearing.
1.11 Financial Assets
Financial Assets are recognised when control over future economic benefits is established and the amount of
the benefit can be reliably measured. Financial assets are assessed for impairment at each balance sheet
date. AusAID classifies its financial assets in accordance with AASB 139: Financial Instruments: Recognition
and Measurement in the following categories:
x Available-for-sale financial assets; or
x Loans and receivables.
At 30 June 2009 and 2010, AusAID’s Departmental financial assets were all in the category of Loans and
receivables.
Accounting policy for Administered financial assets is provided at Note 1.20.
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Trade receivables
For trade receivables an impairment allowance is made based upon a review of the collectability of those debts
at the balance date. A provision is made where the collection of the debt is judged to be less rather than more
likely. 71% of departmental receivables are with entities internal to the Commonwealth and 29% of receivables
are with entities external to the Commonwealth. All trade receivables are on 30 day credit terms.
1.12 Financial Liabilities

Financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and
derecognised when contractual provisions of the instrument are established and fulfilled.
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with
interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments through the expected life of the financial liability, or, where
appropriate, a shorter period.
Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the
goods or services have been received (and irrespective of having been invoiced).
Accounting policy for Administered financial liabilities is provided at Note 1.20.
1.13 Contingent Liabilities and Contingent Assets

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Contingent liabilities and assets are not recognised in the Balance Sheet but are reported in the relevant
schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent
an existing liability or asset in respect of which settlement is not probable or the amount cannot be reliably
measured. Contingent assets are disclosed when settlement is probable, and contingent liabilities are
disclosed when settlement is greater than remote.
1.14 Acquisition of Assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair
value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at
their fair value plus transaction costs where appropriate.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at
their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative
arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at
which they were recognised in the transferor agency’s accounts immediately prior to the restructuring.
1.15 Property, Plant and Equipment
Asset Recognition Threshold
Purchases of infrastructure, plant and equipment are recognised initially at cost in the Balance Sheet, except
for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they
form part of a group of similar items which are significant in total).
The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring
the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken
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up by AusAID where there exists an obligation to restore the property to its original condition. These costs are
included in the value of AusAID’s leasehold improvements with a corresponding provision for the ‘make good’
recognised.
Revaluations
Fair values for each class are determined as shown below:
Asset class: Fair value measured at:
Leasehold improvements Depreciated replacement cost
Infrastructure, plant & equipment Market selling price
Following initial recognition at cost, infrastructure, plant and equipment are carried at fair value less
accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient
frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as
at the reporting date. The regularity of independent valuations depends upon the volatility of movements in
market values for the relevant assets. The revaluation of leasehold improvements, infrastructure, plant and
equipment to fair value was undertaken by the Australian Valuation Office effective at 30 April 2010.
Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the
heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of
the same asset class that was previously recognised through the surplus (deficit). Revaluation decrements for
the same class of assets are recognised directly in the surplus (deficit) except to the extent that they reverse a
previous revaluation increment for that class.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the
asset and the asset restated to the revalued amount.
Depreciation
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Depreciable infrastructure, plant and equipment assets are written-off to their estimated residual values over
their estimated useful lives to AusAID using, in all cases, the straight-line method of depreciation. Leasehold
improvements are depreciated on a straight-line basis over the lesser of the lease term or 10 years.
Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustments
are recognised in the current, or current and future reporting periods, as appropriate.
Depreciation rates applying to each class of depreciable asset are based on the following useful lives:
2010 2009
Leasehold Improvements Lesser of lease term & 10 years Lesser of lease term & 10 years
Plant and Equipment 3 to 25 years 3 to 25 years
Impairment
All assets were assessed for impairment at 30 June 2010. Where indications of impairment, exist the asset’s
recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less
than its carrying amount.
The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value
in use is the present value of the cash flows expected to be derived from the asset. Where the future economic
benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset
would be replaced if AusAID were deprived of the asset, its value in use is taken to be its depreciated
replacement cost.
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1.16 Intangibles
AusAID’s intangibles comprise internally developed and commercially purchased software for internal use.
These assets are carried at cost except for purchases costing less than $2,000, which are expensed in the
year of acquisition.
Software is amortised on a straight-line basis over its anticipated useful life. The useful life of AusAID’s
software is 5 to 10 years (2009: 5 to 10 years).
All software assets were assessed for indications of impairment as at 30 June 2010.
1.17 Taxation
AusAID is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the goods and services tax
(GST).
Revenues, expenses and assets are recognised net of GST, except for:
x where the amount of GST incurred is not recoverable from the Australian Tax Office; and
x receivables and payables.
1.18 Foreign Currency Transactions
Transactions denominated in a foreign currency are converted at the exchange rate at the date of the
transaction. Foreign currency receivables and payables are translated at the exchange rates current as at
balance date. Associated currency gains and losses are not material.
1.19 Insurance
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AusAID has insured for risks through the government’s risk management fund, Comcover. Workers
compensation is insured through Comcare Australia.
1.20 Reporting of Administered Activities
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of
Administered Items and related Notes.
Except where otherwise stated below, administered items are accounted for on the same basis and using the
same policies as for departmental items, including the application of Australian Accounting Standards.
Administered Cash Transfers to and from Official Public Account
Revenue collected by AusAID for use by the Government rather than AusAID is administered revenue.
Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and
Deregulation. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation
on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held
by AusAID on behalf of the Government and reported as such in the Statement of Cash Flows in the Schedule
of Administered Items and in the Administered Reconciliation Table in Note 21. Thus the Schedule of
Administered Items largely reflects the Government’s transactions, through AusAID, with parties outside the
Government.
Revenue
All administered revenues are revenues relating to the course of ordinary activities performed by AusAID on
behalf of the Australian Government. Interest is accrued on the amortised cost of loan receivables using the
effective interest method (AASB 139).
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Expenses
The difference between the fair value of a loan entered at below market rates and the present value of the
future cash flows is expensed in the period in which the loan agreement is first recognised.
Grants
AusAID administers a number of grants on behalf of the Australian Government.
Grants are made to a number of international, United Nations (UN) and Commonwealth organisations. Grant
and subsidy liabilities are recognised to the extent that (i) the services required to be performed by the grantee
have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been
made. A commitment is recorded when the Government enters into an agreement to make these grants but
services have not been performed or criteria satisfied. Multi-year grants of a non-reciprocal nature are
recorded as liabilities in the year the agreement is signed at fair value, using relevant Australian Government
bond rates to discount the future cash flows to their present value. The value of the discount applied is
recognised as concessional finance costs in subsequent years.
Financial Assets
AusAID administers material financial assets on behalf of the Australian Government. The Australian
Government is the holder of these financial instruments, with the issuers being partner foreign governments
and multi-lateral aid organisations including the Asian Development Fund (ADF) and the International
Development Association (IDA). Financial instruments are recognised on a trade date basis.
The financial instruments are held consistent with aid program objectives.
Administered financial assets are recognised in accordance with AASB 139 as:
1. ‘loans and receivables’ where loan receivables are initially recognised at fair value and subsequently
measured at amortised cost using the effective interest rate method. These are non-derivative
financial assets with fixed or determinable payments which are not quoted in an active market. They
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are classified as non-current where the maturity date is greater than 12 months after balance date;
and
2. non-monetary ‘available for sale’ debt instruments (investments) measured at fair value based upon
professional valuation advice as to the estimated present value of the recoverable cash flows
foregone. Foreign exchange translation differences on non-monetary financial assets are reported as
part of the change in the fair value of the instruments. Changes in fair value of non-monetary
available for sale financial assets are recognised in equity.
Financial assets are assessed at each reporting date to determine whether there is any objective evidence of
impairment. Where an ‘available for sale asset’ has been impaired, the cumulative loss is removed from equity
and recognised in the Schedule of Administered Revenues and Expenses.
The difference between the fair value of financial assets at acquisition and the fair value of the commitment
entered is recognised as concessional finance cost in the year the commitment is first entered.
The Australian Government holds these assets long term for policy reasons and the AASB 139 technical
definition of ‘available for sale’ does not indicate intent to trade these assets.
Financial Liabilities
Financial liabilities are recognised when a present obligation to another party is entered into and the amount of
the liability can be reliably measured. The liabilities are recognised at fair value. Gains and losses related to
re-measurement of financial liabilities are recognised in the Schedule of Administered Revenues and
Expenses.
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Aid Program Accruals
Trade creditors and accruals are recognised at their nominal amounts, being the amounts at which the
liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received
(and irrespective of having been invoiced). Settlement is usually made net 30 days.
Multi-lateral Aid Agreements
Multi-lateral aid agreements include agreements between the Australian Government and the International
Development Association (IDA), Asian Development Fund (ADF), Global Environment Fund (GEF), Heavily
Indebted Poor Countries (HIPC) and Montreal Protocol Multilateral Fund (MPMF), Multilateral Debt Relief
Initiative (MDRI) and Clean Technology Fund (CTF). Accounting for these agreements is in accordance with
the accounting policies detailed above.
Nauru settlement
The Nauru settlement has been recognised in accordance with the accounting policies above with an expense
and liability recorded at the time of the settlement, with payment to be made by instalment until 2013-14.
1.21. Administered Prior Year Error

During 2010, it was discovered that in the 2008-09 Financial Statements AusAID incorrectly recorded its
financial liabilities and expenses. This prior year error was a result of transactions not taken into consideration
when calculating the value of AusAID’s multiyear commitments to multi-lateral organisations. The net impact to
the financial statements was an understatement of $21,322,061 in liabilities and finance costs as at 30 June
2009.
An adjustment has been made to the comparative financial information for 30 June 2009 to correct the
understatement. The table below reflects the impact:
2009-10 Reported Restated

Note 2008-09 2008-09
SECTI O N 4
Reference $’000 $’000

Expense Administered on Behalf of Government
International development assistance 15A 2,277,308 2,277,308

Grants 15B 536,587 536,587
Finance costs 15C 352,179 373,501
Depreciation and amortisation 15D 1,631 1,631
Write-down and impairment of assets 15E 377,244 377,244
Total expenses administered on behalf of Government 3,544,949 3,566,271
Liabilities Administered on Behalf of Government
Payables
Grants 17A 414,582 435,904
Other 17B 950,803 950,803
Total payables 1,365,385 1,386,707
Provisions
Other 17C 7,888 7,888
Total liabilities administered on behalf of Government 1,373,273 1,394,595
23
228

Note 2. Events After the Balance Sheet Date
In 2009 the Australian National Audit Office (ANAO) recommended in Report No. 15 AusAID’s Management of
the Expanding Australian Aid Program for AusAID to improve transparency and accountability for aid
expenditure. The report recommended AusAID seek clarification from the Department of Finance and
Deregulation (DoFD) on the administered and departmental framework. In early 2010 AusAID and DoFD
agreed on a new framework for classifying administered and departmental expenses with effect from 1 July
2010. An initial amount of $45,000,000 was transferred from the administered to the departmental
appropriation in the 2010-11 Portfolio Budget Statements with a further adjustment to be recognised through
the 2010-11 Portfolio Additional Estimates. The new framework is not a change in accounting treatment and
does not affect the 2009-10 Financial Statements.
SECTI O N 4
24
229

Note 3. Expenses
2010 2009
$'000 $'000
Note 3A. Employee Benefits

Wages and salaries 66,099 61,873

Superannuation:
Defined contribution plans 2,914 2,492
Defined benefit plans 8,176 8,146
Leave and other entitlements 7,310 6,507
Separations and redundancies - -
Fringe benefits tax 2,052 2,220
Total employee benefits 86,551 81,238
Note 3B. Suppliers
Goods and services

Consultants 617 619
Contractors 5,112 5,658
Stationery 206 353
Travel 2,378 2,582
IT, communications and property 3,867 6,279
Training and deployment 3,623 3,637
Other 10,006 9,165
Total goods and services 25,809 28,293
SECTI O N 4
Goods and services are made up of:

Rendering of services – related entities 1,502 2,118
Rendering of services – external parties 24,307 26,076
Total goods and services 25,809 28,194
Other supplier expenses

Operating lease rentals – external parties:
Minimum lease repayments 15,325 15,058
Workers compensation expenses 230 522
Total other supplier expenses 15,555 15,580
Total supplier expenses 41,364 43,873
25
230

2010 2009
$'000 $'000
Note 3C. Depreciation and Amortisation
Depreciation
Infrastructure, plant and equipment 2,221 2,491
Leasehold improvements 2,302 2,347
Total depreciation 4,523 4,838
Amortisation
Intangibles:
Computer software 1,498 1,300
Total amortisation 1,498 1,300
Total depreciation and amortisation 6,021 6,138
Note 3D. Finance Costs
Unwinding of discount – restoration obligation 174 201

Total finance costs 174 201
Note 3E. Write-Down and Impairment of Assets
Asset write-downs and impairments from:

Impairment of financial instruments - -
Impairment of leasehold improvements, infrastructure, plant and equipment 71 227
SECTI O N 4
Impairment of intangibles - -
Bad and doubtful debts 7 7
Total write-down and impairment of assets 78 234
Note 3F. Losses from Asset Sales
Leasehold improvements
Proceeds from sale - -
Carrying value of assets sold - 92
Selling expense - -
Net loss on sale of leasehold improvements - 92
Infrastructure, plant and equipment

Proceeds from sale (23) (111)
Carrying value of assets sold 68 32
Selling expense - -
Net gain from infrastructure, plant and equipment 45 (79)
Total losses from asset sales 45 13
26
231

2010 2009
$'000 $'000
Note 3G. Foreign Exchange Losses

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS15
Non-speculative 18
Total foreign exchange
Australian Agencylosses
for International
Development 15 18
NOTES TO AND
Note 4. Income
FORMING PART OF THE FINANCIAL STATEMENTS
2010 2009
Note 4. Income $'000 $'000
Revenue 2010 2009

$'000 $'000
Note 4A. Sale of Goods and Rendering of Services
Revenue
Rendering of services – related entities 23 180
Note 4A. Sale of Goods and Rendering of Services
Rendering of services – external parties 35 278
Total sale of goods and rendering of services 58 458
Rendering of services – related entities 23 180
Rendering of services – external parties 35 278
Gains
Total sale of goods and rendering of services 58 458
Note 4B. Foreign Exchange Gains
Gains
Non-speculative 23 25
Note 4B. Foreign Exchange Gains
Total foreign exchange gains 23 25
SECTI O N 4
Non-speculative 23 25
Note 4C. Other Gains
Total foreign exchange gains 23 25
Resources received free of charge 124 118

Note 4C. Other Gains
Assets first found 1 94
Gain on restoration obligation 58 336
Resources
Total otherreceived
gains free of charge 124 118
183 548
Gain on restoration obligation 58 336
Total other gains 183 548
Note 4D. Revenue from Government
Appropriations:
Note 4D. Revenue from Government
Departmental outputs 141,293 130,219
Total revenue from Government 141,293 130,219
Appropriations:
Departmental outputs 141,293 130,219
Total revenue from Government 141,293 130,219
27
232

Note 5. Financial Assets
2010 2009
$'000 $'000
Note 5A. Cash and cash equivalents
Cash on hand or on deposit 480 267
Cash held by outsiders 106 -
Total cash and cash equivalents 586 267
Note 5B. Trade and other receivables
Goods and services:

Goods and services – related entities 77 -
Goods and services – external parties 31 371
Total receivables for goods and services 108 371
Appropriations receivable:
for existing outputs 28,672 20,249
Total appropriations receivable 28,672 20,249
Other receivables:
GST receivable from the Australian Taxation Office 399 291
Other 356 614
Total other receivables 755 905
Total trade and other receivables (gross) 29,535 21,525
SECTI O N 4
Less impairment allowance account:
Goods and services (9) (25)
Total impairment allowance account (9) (25)
Total trade and other receivables (net) 29,526 21,500
Receivables are expected to be recovered in:

No more than 12 months 29,526 21,500
More than 12 months - -
Total trade and other receivables (net) 29,526 21,500
Receivables are aged as follows:

Not overdue 29,514 21,153
Overdue by:
Less than 30 days 4 243
30 to 60 days 8 41
61 to 90 days - 17
More than 90 days 9 71
Total receivables (gross) 29,535 21,525
29
233

2010 2009
$'000 $'000
The impairment allowance account is aged as follows:

Not overdue - -
Overdue by:
Less than 30 days - -
30 to 60 days - -
61 to 90 days - -
More than 90 days (9) (25)
Appropriations receivable are appropriations controlled by AusAID but held in the OPA under the Government’s
just-in-time drawdown arrangements introduced on 1 July 2003.
Reconciliation of the impairment allowance account:
Movement in relation to 2010

Goods and
services Total
$'000 $'000
Opening balance 25 25
Amounts written off - -
Amounts recovered and reversed (16) (16)
Increase/decrease recognised in net surplus - -
Closing balance 9 9
SECTI O N 4

Goods and
services Total
$'000 $'000
Opening balance 53 53
Amounts written off - -
Amounts recovered and reversed (28) (28)
Increase/decrease recognised in net surplus - -
Closing balance 25 25
30
234

Note 6. Non-Financial Assets
2010 2009
$'000 $'000
Note 6A. Leasehold Improvements
Work in progress 1,808 1,075
Fair value 17,050 20,763
Accumulated depreciation (870) (4,206)
Accumulated impairment losses - -
Total leasehold improvements 17,988 17,632
No indicators of impairment were found for leasehold improvements.
No leasehold improvements are expected to be sold or disposed of within the next 12 months.
Note 6B. Infrastructure, Plant and Equipment
Gross carrying value (at fair value) 10,463 11,040

Accumulated impairment losses - -
Total infrastructure, plant and equipment 9,899 7,018
A revaluation of leasehold improvements, infrastructure, plant and equipment to fair value was undertaken by
the Preston Howe Paterson at 30 April 2010 and is used as the basis for ensuring carrying amounts for
AusAID’s non-financial assets do not differ materially from that which would be determined using fair value at the
SECTI O N 4
reporting date. An annual stock take was again completed in 2009-2010 and used to confirm the condition and
existence of AusAID’s non-financial assets.
31
235

Note 6C. Analysis of Infrastructure, Plant and Equipment
TABLE A – Reconciliation of the opening and closing balances of infrastructure, plant and equipment (2009-
2010)
Infrastructure,
Leasehold plant and
Improvements equipment Total
$'000 $'000 $'000
As at 1 July 2009
Gross book value 21,838 11,040 32,878
Accumulated depreciation/amortisation and impairment (4,206) (4,022) (8,228)
Net book value 1 July 2009 17,632 7,018 24,650
Additions:
By purchase 2,707 4,939 7,646
Revaluations and impairments recognised in other - 252 252
comprehensive income
Impairments recognised in the operating result (28) (43) (71)
Reversal of impairments recognised in the operating result - - -
Reclassification (21) 21 -
Assets held for sale or in a disposal group held for sale - - -
Depreciation/amortisation expense (2,302) (2,221) (4,523)
Other movements - 1 1
Disposals:
Other disposals - (68) (68)
Net book value 30 June 2010 17,988 9,899 27,887
Net book value as of 30 June 2010 represented by:

SECTI O N 4
Gross book value 18,858 10,463 29,321

Accumulated depreciation/amortisation (870) (564) (1,434)
17,988 9,899 27,887
32
236

TABLE B – Reconciliation of the opening and closing balances of infrastructure, plant and equipment (2008-
2009)
Infrastructure,
Leasehold plant and
Improvements equipment Total
$'000 $'000 $'000
As at 1 July 2008
Gross book value 19,887 8,336 28,223
Additions:
By purchase 1,956 3,608 5,564
Revaluations and impairments recognised in other (5) (222) (227)
Depreciation/amortisation expense (2,347) (2,491) (4,838)
Assets (net) transferred in/(out) 94 - 94
Disposals:
Other disposals (92) (32) (124)

Gross book value 21,838 11,040 32,878
Accumulated depreciation/amortisation (4,206) (4,022) (8,228)
17,632 7,018 24,650
SECTI O N 4
33
237

2010 2009
$'000 $'000
Note 6D. Intangibles
Computer software
Internally developed – in use 4,812 4,812
Purchased 3,985 4,746

Total computer software (gross) 8,797 9,558
Accumulated amortisation (7,634) (6,916)
Total computer software (net) 1,163 2,642
Total intangibles 1,163 2,642
No indicators of impairment were found for intangible assets.
No intangibles are expected to be sold or disposed of within the next 12 months.
Note 6E. Analysis of Intangibles
TABLE A – Reconciliation of the opening and closing balances of intangibles (2009-2010)

Computer
software – Computer
internally software –
developed purchased Total
$'000 $'000 $'000
As at 1 July 2009
Gross book value 4,812 4,746 9,558
SECTI O N 4

Net book value 1 July 2009 1,659 983 2,642
Additions:
By purchase or internally developed - 19 19
Impairments recognised in the operating result - - -
Amortisation (962) (536) (1,498)
Disposals:
Other disposals - - -
Net book value 30 June 2010 697 466 1,163

697 466 1,163
34
238

TABLE B – Reconciliation of the opening and closing balances of intangibles (2008-2009)

Computer
$'000 $'000 $'000
As at 1 July 2008
Additions:
By purchase or internally developed - 342 342
Amortisation (963) (337) (1,300)
Disposals:
Net book value 30 June 2009 1,659 983 2,642

1,659 983 2,642

2010 2009
$'000 $'000
SECTI O N 4
Note 6F. Other Non-Financial Assets
Prepayments 3,008 2,914

Other 81 30
Total other non-financial assets 3,089 2,944
Other non-financial assets are expected to be recovered in:

More than 12 months 414 255
Total other non-financial assets 3,089 2,944
35
239

Note 7. Payables
2010 2009
$'000 $'000
Note 7A. Suppliers

Trade creditors 4,810 4,388

Total supplier payables 4,810 4,388
Supplier payables expected to be settled within 12 months:

Related entities 794 222
External parties 4,016 4,166
Total 4,810 4,388
Supplier payables expected to be settled in greater than 12 months:
Related entities - -
External parties - -
Total - -
Total supplier payables 4,810 4,388
Settlement is usually made within 30 days.
Note 7B. Other Payables
Salaries and wages 1,962 1,046

Superannuation 162 126
Other - -
SECTI O N 4
Total other payables 2,124 1,172
Other payables are expected to be settled in:

37
24 0

Note 8. Provisions
2010 2009
$'000 $'000
Note 8A. Employee Provisions
Leave 21,064 19,838
Other - -
Total employee provisions 21,064 19,838
Employee provisions are expected to be settled in:

More than 12 months 8,539 2,955
Total employee provisions 21,064 19,838
The classification of current includes amounts for which there is not an unconditional right of deferral of one year, hence
in the case of employee provisions the above classification does not equal the amount expected to be settled within one
year of reporting date. Employee provisions expected to be settled in one year were $13,887,644 (2008-2009:
$6,828,000) and in excess of one year were $7,176,900 (2008-2009: $13,423,000).
Note 8B. Other Provisions
Provision for:
Restoration obligations 1,928 1,761
Lease incentives 2,346 2,749
Fringe benefits tax 418 413
SECTI O N 4
Total other provisions 4,692 4,923
Other provisions are expected to be settled in:

Reconciliation of other provisions:

Restoration Lease Fringe
obligations incentives benefits tax Total
$'000 $'000 $'000 $'000
Opening balance 1 July 2009 1,761 2,749 413 4,923
Additional provisions made 159 - 418 577
Amounts used (1) (403) (413) (817)
Amounts reversed (116) - - (116)
Unwinding of discount or change in discount rate 125 - - 125
Closing balance 30 June 2010 1,928 2,346 418 4,692
38
241

Note 9. Cash Flow Reconciliation
2010 2009
$'000 $'000
Reconciliation of cash and cash equivalents as per Balance Sheet to Cash
Flow Statement
Report cash and cash equivalents as per:

Cash Flow Statement 586 267
Balance Sheet 586 267
Difference - -
Reconciliation of net cost of services to net cash from operating activities

Net cost of services 133,984 130,684
Add revenue from Government 141,293 130,219
Adjustments for non-cash items

Net losses from sale of assets 45 13
Other income not providing cash - -
Depreciation and amortisation 6,021 6,138
Net write-down of assets 71 227
Changes in assets/liabilities
Decrease/(increase) in net receivables (13,501) (5,100)
Decrease/(increase) in other non-financial assets (145) (399)
Increase/(decrease) in employee provisions 1,226 3,036
Increase/(decrease) in suppliers payable 422 1,202
SECTI O N 4
Increase/(decrease) in other provisions (231) (107)

Increase/(decrease) in other payables 952 486
Net cash from / (used by) operating activities 2,169 5,031
Note 10. Contingent Liabilities and Assets
Quantifiable Contingencies
During the financial year AusAID received a claim from a former contractor that has yet to be resolved but the
potential liability has been estimated not to exceed $11,000.
Unquantifiable Contingencies
At 30 June 2010 AusAID did not have any unquantifiable contingencies.
39
242

Note 11. Senior Executive Remuneration
Note 11A. Actual Remuneration Paid to Senior Executives
Executive Remuneration
2010 2009
The number of senior executives who received:
Less than $145,000* 2 1
$145,000 to $159,999 1 1
$160,000 to $174,999 3 2
$175,000 to $189,999 2 3
$190,000 to $204,999 6 8
$205,000 to $219,999 3 4
$220,000 to $234,999 4 1
$235,000 to $249,999 5 6
$250,000 to $264,999 2 1
$265,000 to $279,999 1 -
$280,000 to $294,999 - 1
$295,000 to $309,999 - -
$310,000 to $324,999 - 1
$325,000 to $339,999 - -
$340,000 to $354,999 - 1
Total 29 30
* Excluding acting arrangements and part-year service where the $145,000 threshold was not reached during the year.
Total expense recognised in relation to Senior Executive employment

$ $
Short-term employee benefits:
SECTI O N 4
Salary (including leave taken) 4,208,932 4,439,471
Changes in annual leave provisions 65,305 48,843
Performance bonus 270,680 299,109
1
Other 640,759 450,212
Total Short-term employee benefits 5,185,677 5,237,634
Superannuation (post-employment benefits) 799,248 842,918
Other long-term benefits (21,691) 411,387
Total 5,963,233 6,491,940
Notes:
1. "Other" includes motor vehicle allowances and other allowances.
During 2009-10 AusAID paid no termination benefits to senior executives (2008-09: nil).
40
24 3

Note 11B. Salary Packages for Senior Executives
Average annualised remuneration packages for substantive Senior Executives
Remuneration packages Remuneration packages

as at 30 June 2010 as at 30 June 2009
Base salary Total Base salary Total
(including remuneration (including remuneration
1 1
No. SES annual leave) package No. SES annual leave) package
Total remuneration:
Less than $145,000* - - - - - -
$145,000 to $159,999 - - - - - -
$160,000 to $174,999 - - - 3 139,734 173,304
$175,000 to $189,999 - - - 1 128,116 186,907
$190,000 to $204,999 22 143,073 200,555 13 139,644 198,590
$205,000 to $219,999 3 149,007 213,943 3 144,668 212,686
$220,000 to $234,999 3 167,402 229,334 3 166,901 228,223
$235,000 to $249,999 6 174,705 243,741 6 171,878 240,409
$250,000 to $264,999 3 182,792 255,385 3 171,280 254,295
$265,000 to $279,999 - - - 1 171,280 269,332
$280,000 to $294,999 - - - - - -
$295,000 to $309,999 - - - 1 213,811 300,166
$310,000 to $324,999 1 226,172 314,384 - - -
Total 38 34
* Excluding acting arrangements and part-year service where the $145,000 threshold was not reached during the year.
Notes:
1. Non-Salary elements available to Senior Executives include motor vehicle allowance and superannuation. As long
service leave and performance bonus entitlements are variable, these have been excluded from the total remuneration
SECTI O N 4
package disclosed above.
Major differences between Note 11A and 11B

Note 11A discloses senior executive remuneration based upon:
(a) Actual salary paid during the year (including payment for leave taken),
(b) Movement in annual leave and long service leave provisions (including revaluations of provisions),
(c) Superannuation (post-employment benefits),
(d) Motor vehicle and other allowances,
(e) Reportable fringe benefits.
These amounts may differ to the remuneration package disclosed in Note 11B depending upon: the amount of leave
taken during the year, part-year service; periods of leave without pay; acting arrangements; changes to base salary,
salary for superannuation purposes and allowances during the year; and revaluations of employee provisions.
Note 11A includes acting arrangements and part year service where the $145,000 threshold was reached during the
year. Note 11B reflects only substantive senior executive packages in existence as at 30 June.
41
24 4

Note 12. Remuneration of Auditors
2010 2009
$'000 $'000
Financial statement audit services are provided free of charge to AusAID.
The fair value of the services provided was: 124 118
124 118
No other services were provided by the Auditor-General.

Note 13. Financial Instruments
Note 13A. Categories of Financial Instruments

2010 2009
$'000 $'000
Financial assets
Cash and cash equivalents 586 267
Total 586 267
Loans and receivables:
Goods and services (net) 99 346
Total 99 346
Carrying amount of financial assets 685 613
SECTI O N 4
Financial liabilities
At amortised cost:
Total 4,810 4,388
Carrying amount of financial liabilities 4,810 4,388
Note 13B. Net Income and Expense from Financial Liabilities

2010 2009
$'000 $'000
Financial liabilities – at amortised cost
Interest expense - -
Exchange gains/(loss) 7 7
Gain/loss on disposal - -
Net gain/(loss) financial liabilities – at amortised cost 7 7
Fair value through profit and loss

Held for trading:
Exchange gains/(loss) - -
Designated as such:
Net gain/(loss) at fair value through profit and loss - -
Net gain/(loss) from financial liabilities 7 7
42
245

Note 13C. Fair Value of Financial Instruments

Carrying Carrying
amount amount Fair value Fair value
2010 2009 2010 2009
$'000 $'000 $'000 $'000
Financial Assets
Goods and services (net) 99 346 99 346
Total 99 346 99 346
Trade creditors 4,810 4,388 4,810 4,388
Total 4,810 4,388 4,810 4,388
NB. AusAID had no departmental financial assets or liabilities that were designated at fair value through profit
and loss, classified as available for sale nor reclassified between categories in 2009-2010.
Note 13D. Credit Risk
Credit risk is the possibility that a debtor will not repay some or all of a receivable in a timely manner, causing
loss to AusAID. The maximum exposure AusAID has to credit risk at the reporting date in relation to each class
of recognised financial assets is the carrying amount of those assets indicated in the Balance Sheet. AusAID
has no significant exposures to concentrations of credit risk. The following table illustrates AusAID’s gross
exposure to credit risk, excluding any collateral or credit enhancements.
2010 2009
$'000 $'000
Financial assets
SECTI O N 4
Goods and services (net) 99 346

Total 99 346
Total 4,810 4,388
Credit quality of financial instruments not past due or individually determined as impaired
Not past Not past

due nor due nor Past due or Past due or
impaired impaired impaired impaired
2010 2009 2010 2009
$'000 $'000 $'000 $'000
Goods and services (net) 99 346 - -
Total 99 346 - -
44
24 6

Ageing of financial assets that were past due but not impaired for 2010
0 to 30 31 to 60 61 to 90 90+
days days days days Total
$'000 $'000 $'000 $'000 $'000
Goods and services (net) - - - - -
Total - - - - -
Ageing of financial assets that were past due but not impaired for 2009
0 to 30 31 to 60 61 to 90 90+
days days days days Total
$'000 $'000 $'000 $'000 $'000
Goods and services (net) - - - - -
Total - - - - -
SECTI O N 4
45
247

Note 13E. Liquidity Risk
AusAID’s activities expose it to normal commercial financial risk. The probability of AusAID encountering
difficulties in meeting its Departmental financial obligations as they fall due is less than remote, noting that the
continued existence of AusAID in its present form and with its present programs is dependent on Government
policy and on continuing appropriations by Parliament for AusAID’s administration and programs.
Maturities for non-derivative financial liabilities 2010

On Within 1 1 to 2 2 to 5 >5
demand year years years years Total
$'000 $'000 $'000 $'000 $'000 $'000
Trade creditors - 4,810 - - - 4,810
Total - 4,810 - - - 4,810
On Within 1 1 to 2 2 to 5 >5
demand year years years years Total
$'000 $'000 $'000 $'000 $'000 $'000
Trade creditors - 4,388 - - - 4,388
Total - 4,388 - - - 4,388
Note 13F. Market Risk
AusAID holds basic Departmental financial instruments that do not expose AusAID to either interest or price risk.
Credit terms for both receivables and payables are normally 30 days net.
SECTI O N 4
Currency Rate Risk
The only currency related items on the balance sheet are the ‘Cash on Hand’ and ‘Supplier Payables’ where
currency rate risk is limited to the extent of the currency fluctuation at the date of translation.
46
248

Note 14. Income Administered on Behalf of Government
2010 2009
$'000 $'000
Revenue
Non-Taxation Revenue
Note 14A. Interest
Loan and receivable discount unwinding 3,476 2,057

Total interest 3,476 2,057
Gains
Note 14B. Sale of Assets
Leasehold improvements
Proceeds from sale - -
Carrying value of assets sold - -
Selling expense - -
Net gain on sale of leasehold improvements - -
Infrastructure, plant and equipment

Proceeds from sale 131 42
Carrying value of assets sold (19) (3)
SECTI O N 4
Selling expense - -
Net gain from infrastructure, plant and equipment 112 39
Total gains from asset sales 112 39
Note 14C. Foreign Exchange Gains
Non-speculative 3,866 -
Total foreign exchange gains 3,866 -
Note 14D. Other Gains
Gains from remeasuring financial liabilities - at fair value through profit & loss - 20
Gains from remeasuring financial liabilities - at amortised costs 338,890 -
Total other gains 339,706 317
The Australian Government holds financial instruments long term for policy reasons. Any gains (and if relevant,
write downs) on these financial instruments are recognised in accordance with the accounting policies stated at
Note 1. (Refer also to Note 1.20 and Note 19).
47
249

Note 15. Expenses Administered on Behalf of Government
2010 2009
$'000 $'000
Expenses
Note 15A. International Development Assistance
Development cooperation program 2,525,662 2,277,308

Total international development assistance 2,525,662 2,277,308
During the year, there was, at any one time, a maximum of 201 (2009: 182) AusAID staff directly involved in the
design and delivery of aid programs. The salary and associated on-costs for employees working directly on the
design and delivery of aid is charged as an international development assistance expense. The total amount
charged for the year was $27,046,456 (2009: $23,043,308).
Note 15B. Grants
Overseas 396,329 536,587

Total grants 396,329 536,587
Note 15C. Finance Costs
Discount expense for liabilities at fair value through profit & loss 61,444 272,609
Discount expense for liabilities at amortised cost* 72,620 99,948
Restoration obligation 5 61
SECTI O N 4
Employee provisions - 883

Total finance costs 134,069 373,501
* Refer to Note 1.21 Administered Prior Year Error for explanation of restated 2008-09 balance reported.
Note 15D. Depreciation and Amortisation
Depreciation:
Leasehold improvements 291 12
Infrastructure, plant and equipment: 1,405 1,297
Amortisation:
Intangibles 313 322
Total depreciation and amortisation 2,009 1,631
Note 15E. Write-Down and Impairment of Assets
Asset write-downs and impairments from:

Impairment on financial instruments – ‘available for sale’ financial assets - 376,934
Impairment of financial instruments – amortised cost 24 230
Impairment of infrastructure, plant and equipment 44 80
Impairment of intangibles 2 -
Total write-down and impairment of assets 70 377,244
48
250

Note 16. Assets Administered on Behalf of Government
2010 2009
$'000 $'000
Financial Assets
Note 16A. Cash and Cash Equivalents
Cash on hand or on deposit 14,604 11,306

Total cash and cash equivalents 14,604 11,306
Note 16B. Receivables
Other receivables:
Loan receivable 48,540 30,627
GST receivable from the Australian Taxation Office 15,483 11,514
Other 1,417 1,668
Total other receivables 65,440 43,809
Total receivables (gross) 65,440 43,809
Less: impairment allowance account:

Other receivables (380) (632)
Total impairment allowance account: (380) (632)
Total receivables (net) 65,060 43,177
Receivables are expected to be recovered in:
SECTI O N 4
Receivables were aged as follows:

Not overdue 64,401 42,117
Overdue by:
Less than 30 days 27 624
30 to 60 days 128 209
61 to 90 days 184 21
More than 90 days 700 838
The impairment allowance account is aged as follows:

Not overdue - -
Overdue by:
Less than 30 days - -
30 to 60 days - -
61 to 90 days - -
More than 90 days (380) (632)
49
251

Administered appropriation receivables are not recognised, in accordance with FMO Section 102, as the earliest
point of recognition for administered appropriations is when appropriations are drawn down. Administered
appropriation balances are disclosed at Note 21 as ‘appropriations receivable’ and ‘cash on call held in the
OPA,’ respectively, with no change to the comparative amounts.
Reconciliation of the impairment allowance accounts:
Movement in relation to 2010:

Taxation Advances Other
Receivables and Loans Receivables Total
$'000 $'000 $'000 $'000
Opening balance - - 632 632
Amounts written off - - (169) (169)
Amounts recovered and reversed - - (48) (48)
Increase/decrease recognised in net surplus - - (35) (35)
Closing balance - - 380 380
Movement in relation to 2009:

Taxation Advances Other
Receivables and Loans Receivables Total
$'000 $'000 $'000 $'000
Opening balance - - 1,248 1,248
Amounts written off - - (616) (616)
Amounts recovered and reversed - - - -
Increase/decrease recognised in net surplus - - - -
SECTI O N 4
Closing balance - - 632 632
50
252

2010 2009
$'000 $'000
Financial Assets
Note 16C. Investments
Non-monetary 'available for sale' debt instrument - fair value 1,146,053 887,015
Total investments 1,146,053 887,015
The Australian Government holds these investments long term for policy reasons. The AASB 139 technical
definition ‘available for sale’ does not indicate an intention to trade these investments. The investment
represents subscription-based membership rights (not control) held by the Australian Government in accordance
with the articles of association for the International Development Association (IDA) and the Asian Development
Fund (ADF). There is no observable market value for these investments and fair value has been determined
through professional valuation advice (Refer also to Notes 1.3, 1.20 and Note 19).
Investments are expected to be recovered in:

No more than 12 months - -
More than 12 months 1,146,053 887,015
Total investments 1,146,053 887,015
Note 16D. Leasehold Improvements
SECTI O N 4
Fair value 5,790 1,435
Work in progress – at cost - -
Accumulated depreciation (226) (45)
Total leasehold improvements 5,564 1,390
No indicators of impairment were found for leasehold improvements.
Note 16E. Infrastructure, Plant and Equipment
Fair value 6,279 4,141

Work in progress – at cost - -
Total infrastructure, plant and equipment 5,930 1,841
A revaluation of leasehold improvements, infrastructure, plant and equipment to fair value was undertaken by
the Preston Howe Paterson at 30 April 2010 and is used as the basis for ensuring carrying amounts for
AusAID’s non-financial assets do not differ materially from that which would be determined using fair value at the
reporting date. An annual stock take was again completed in 2009-2010 and used to confirm the condition and
existence of AusAID’s non-financial assets.
51
253

Note 16F. Analysis of Infrastructure, Plant and Equipment
TABLE A – Reconciliation of the opening and closing balances of infrastructure, plant and equipment
(2009-2010)
Infrastructure,
Leasehold plant and
improvements equipment Total
$'000 $'000 $'000

As at 1 July 2009
Accumulated depreciation/amortisation and impairment (45) (2,300) (2,345)
Additions:
By purchase * 4,490 4,061 8,551
Revaluations recognised in the operating result - 1,471 1,471
Impairments recognised in the operating result - (44) (44)
Depreciation/amortisation expense (291) (1,405) (1,696)
Other movements ** (25) 25 -
Disposals:
Other disposals - (19) (19)

Accumulated depreciation/amortisation (226) (349) (575)
Accumulated impairment losses
5,564 5,930 11,494
SECTI O N 4
* Includes assets first found as per Note 14D.

** Other Movements: Work-in-progress as at balance date to be capitalised upon completion of project.
52
254

TABLE B – Reconciliation of the opening and closing balances of infrastructure, plant and equipment
(2008-2009)
Infrastructure,
Leasehold plant and
improvements equipment Total
$'000 $'000 $'000
As at 1 July 2008
Gross book value 269 3,469 3,738
Accumulated depreciation/amortisation and impairment (7) (1,162) (1,169)
Net book value 1 July 2008 262 2,307 2,569
Additions:
By purchase * 95 702 797
Revaluations and impairments recognised in other - - -
Reclassification - - -
Depreciation/amortisation expense (322) (1,292) (1,614)
Other movements ** 1,358 124 1,482
Disposals:
Other disposals (3) - (3)

Accumulated depreciation/amortisation (45) (2,454) (2,499)
Accumulated impairment losses - - -
1,390 1,841 3,231
SECTI O N 4
* Includes assets first found as per Note 14D.
** Other Movements: Work-in-progress as at balance date; to be capitalised upon completion of project.
53
255

2010 2009
$'000 $'000
Note 16G. Intangibles
Computer software:
Internally developed – in progress - 2,245
Internally developed – in use 5,329 917
Purchased 232 62
Total computer software (gross) 5,561 3,224
Accumulated amortisation (628) (318)
Total computer software (net) 4,933 2,906
Total intangibles 4,933 2,906
No indicators of Agency
Australian impairmentfor
wereInternational
found for intangible assets.
Development
No intangibles are expected to be sold or disposed of within the next 12 months.
Note 16H. Intangibles Reconciliation Table
TABLE A – Reconciliation of the opening and closing balances of intangibles (2009-2010)

SECTI O N 4
Computer
$'000 $'000 $'000
As at 1 July 2009
Gross book value 3,162 62 3,224
Accumulated depreciation/amortisation and impairment (288) (30) (318)
Additions:
By purchase or internally developed 2,166 174 2,340
Reversal of impairments recognised in the operating result - - -
Reclassification - (1) (1)
Amortisation (266) (47) (313)
Other movements * 1 - 1
Disposals:

Accumulated depreciation/amortisation (554) (74) (628)
Accumulated impairment losses
4,775 158 4,933
* Other Movements: Work-in-progress as at balance date; to be capitalised upon completion of project. 54
256

TABLE B – Reconciliation of the opening and closing balances of intangibles (2008 -2009)
Computer
$'000 $'000 $'000
As at 1 July 2008
Accumulated depreciation/amortisation and impairment - (18) (18)
Additions:
By purchase or internally developed - - -
Impairments recognised in the operating result - (4) (4)
Reclassification - - -
Amortisation - (12) (12)
Other movements (give details below) 992 - 992
Disposals:

Accumulated depreciation/amortisation and impairment (288) (30) (318)
2,874 32 2,906

SECTI O N 4
2010 2009
$'000 $'000
Note 16I. Other Non-Financial Assets
Prepayments 1,956 368

Total other non-financial assets 1,956 368
Total other non-financial assets are expected to be recovered in:

No more than 12 months 1,956 368
Total other non-financial assets 1,956 368
56
257

Note 17. Liabilities Administered on Behalf of Government
2010 2009
$'000 $'000
Payables
Note 17A. Grants
Overseas – amortised cost* 336,279 435,904

Total grants 336,279 435,904
Grants are expected to be settled in:

Total grants 336,279 435,904
* The 2008-09 comparative has increased by $21,322,061 (Refer to Note 1.21) from the financial statements
published in the 2008-09 Annual Report.
Note 17B. Other Payables
Development Cooperation Program - amortised cost 252,916 278,383

Development Cooperation Program - fair value through profit & loss 507,457 672,420
Other payables are expected to be settled in:

SECTI O N 4

All grants and subsidies are to entities that are not part of the Australian Government. Settlement is usually
made according to the terms and conditions of each grant.
58
258

Note 17. Liabilities Administered on Behalf of Government
2010 2009
$'000 $'000
Provisions
Note 17C. Other Provisions
Provision for:
Employees 8,188 7,736
Restoration obligations 27 152
Other provisions are expected to be settled in:

More than 12 months 1,821 602
Reconciliation of other provisions:

Employee Restoration
provisions obligations Total
$'000 $'000 $'000
Carrying amount 1 July 2009 7,736 152 7,888
Additional provisions made 4,225 10 4,235
SECTI O N 4
Amounts used (3,714) - (3,714)
Amounts reversed - (135) (135)
Unwinding of discount or change in discount rate (59) - (59)
Closing balance 30 June 2010 8,188 27 8,215
59
259

Note 18. Administered Reconciliation Table

2010 2009
$'000 $'000
Opening administered assets less administered liabilities as at 1 July (446,592) 167,684
Adjustment for change in accounting policies - -
Opening balance adjustment: rounding - -
Adjusted opening administered assets less administered liabilities (446,592) 167,684
Plus: Administered income 347,160 2,413

Less: Administered expenses (non CAC) (3,058,139) (3,566,271)
Administered transfers to/from Australian Government:
Appropriation transfers from OPA:
Annual appropriations for administered expenses (non CAC) 3,317,213 2,967,166
Transfers to OPA (16,037) (14,312)
Appropriation transfers from OPA - -
Return of GST appropriations to the OPA (67,175) (59,627)
Administered revaluations taken to/from reserves 1,471 -
Capital Injections 61,332 56,355
Actuarial gains/losses - -
Currency translation gain/loss - -
Closing administered assets less administered liabilities as at 30 June 139,233 (446,592)
SECTI O N 4
60
26 0

Note 19. Administered Financial Instruments
Note 19A. Categories of Financial Instruments 2010 2009

$'000 $'000
Financial Assets
Cash and cash equivalents 14,604 11,306
Total 14,604 11,306
Loans and receivables:
GST receivables from the Australian Taxation Office 15,483 11,514
Loan receivables 48,540 30,627
Other receivables net 1,037 1,036
Total 65,060 43,177
Available for sale:
Non-monetary available for sale debt instrument - fair value 1,146,053 887,015
Total 1,146,053 887,015
Carrying amount of financial assets 1,225,717 941,498
At amortised cost:
IDA 124,268 172,607
ADF 98,672 100,405
MPMF 2,996 5,811
GEF 34,189 46,158
HIPC 12,376 24,349
Nauru Settlement 12,538 15,236
CTF 23,788 46,145
MDRI 27,452 25,193
SECTI O N 4
Development Cooperation Program 252,916 341,770
Total 589,195 777,674
Fair value through profit and loss:
IDA 304,659 432,354
ADF 202,799 240,066
Total 507,458 672,420
Carrying amount of financial liabilities 1,096,653 1,450,094
61
261

Administered Financial Instruments
Note 19B. Net Income and Expense from Financial Assets 2010 2009
$'000 $'000
Loans and receivables
Interest revenue 3,476 2,057
Impairment 24 230
Net gain/(loss) loans and receivables 3,500 2,287
Available for sale

Interest revenue - -
Gain/loss recognised in equity 106,646 139,327
Amounts reversed from equity:
Impairment - 376,934
Fair value changes reversed on disposal - -
Net gain/(loss) available for sale 106,646 516,261
Net gain/(loss) from financial assets 110,146 518,548

SECTI O N 4
Note 19C. Net Income and Expense from Financial Liabilities 2010 2009
$'000 $'000
Financial liabilities – at amortised cost
Interest expense* (72,620) (99,948)
Net gain/(loss) financial liabilities – at amortised cost (72,620) (99,948)
Fair value through profit and loss

Held for trading:
Interest expense (61,444) (272,609)
Gains recognised in income 338,890 20
Net gain/(loss) at fair value through profit and loss 277,446 (272,589)
Net gain/(loss) from financial liabilities 204,826 (372,537)
62
262

Note 19D. Fair Value of Financial Instruments

Carrying Carrying Fair value Fair value
amount amount
2010 2009 2010 2009
$'000 $'000 $'000 $'000
Financial Assets
GST receivable from the ATO 15,483 11,514 15,483 11,514
Other receivables (net) 1,037 1,036 1,037 1,036
Loan receivable 48,540 30,627 48,540 30,627
Investments - available for sale 1,146,053 887,015 1,146,053 887,015
Total 1,211,113 930,192 1,211,113 930,192
Grants payable - at amortised cost* 336,279 435,904 336,279 435,904
Other payables - at amortised costs 252,916 278,383 252,916 278,383
Other payables - at fair value through profit and loss 507,457 672,420 507,457 672,420
Total 1,096,652 1,386,707 1,096,652 1,386,707
SECTI O N 4
64
263

Valuation method used for determining the fair value of financial instruments
The following table identifies for those assets and liabilities (those at fair value through profit and loss or
available for sale) carried at fair value (above) whether fair value was obtained by reference to market prices or
by a valuation technique that employs observable market transactions and inputs, or one that uses non-
observable market inputs to determine a fair value.
2010:
Valuation technique utilising

Level 1: Level 2: Level 3: Total
Market Market Non-market
values inputs inputs
$'000 $'000 $'000 $'000
Financial assets at fair value
Non-monetary available for sale debt instrument - fair
- - 1,146,053 1,146,053
value
The Australian Government holds the ‘available for sale’ financial assets for policy reasons and there is
no intention to trade these assets.
2010: Valuation technique utilising

Level 1: Level 2: Level 3: Total
Market Market Non-market
$'000 $'000 $'000 $'000
Grants payables and other payables - 843,736 - 843,736

SECTI O N 4
Market Market Non-market Total

$'000 $'000 $'000 $'000
Financial assets at fair value
Non-monetary available for sale debt instrument - fair
- - 887,015 887,015
value
The Australian Government holds the ‘available for sale’ financial assets for policy reasons and there is
no intention to trade these assets.

Market Market Non-market Total
$'000 $'000 $'000 $'000
Grants payables and other payables* - 1,108,324 - 1,108,324
65
26 4

Fair value measurement

at reporting date
Non-
monetary
available
for sale
debt
instrument
- fair value Total
Opening balance 1/7/09 887,015 887,015
:ULWHGRZQRIQRQPRQHWDU\DYDLODEOHIRUVDOHGHEW
259,038 259,038
LQVWUXPHQWWRIDLUYDOXH
Closing balance 30/6/10 1,146,053 1,146,053
Gains or losses in profit or loss for assets held at the

259,038 259,038
end of the reporting period
SECTI O N 4
66
265

Note 19E. Credit Risk
Credit risk is the possibility that a debtor will not repay all or a portion of a loan or will not repay in a timely
manner and will therefore cause a loss to AusAID. AusAID has exposure to concentrations of credit risk with
regard to the ‘Loan Receivable’ and the ‘Non-monetary available for sale debt instrument at fair value’. The
maximum exposure AusAID has to credit risk at reporting date in relation to each class of recognised financial
assets is the carrying amount of those assets as indicated in the Schedule of Administered Assets and
Liabilities.
The following table illustrates AusAID’s gross exposure to credit risk, excluding any collateral or credit
enhancements.
2010 2009
$'000 $'000
Financial assets
GST receivable from the ATO 15,483 11,514
Other receivables (net) 1,037 1,036
Loan receivable 48,540 30,627
Available for sale 1,146,053 887,015
Total financial assets 1,211,113 930,192
At amortised cost* 589,195 714,287
Through the profit and loss 507,457 672,420
Total financial liabilities 1,096,652 1,386,707
SECTI O N 4
Credit quality of financial instruments not past due or individually determined as impaired
Not Past Not Past Past Due Past Due Or

Due Nor Due Nor Or Impaired Impaired
Impaired Impaired
2010 2009 2010 2009
$'000 $'000 $'000 $'000
GST receivable from the ATO 15,483 11,514 - -
Other receivables (net) 378 628 659 408
Loan receivable 48,540 30,627 - -
Available for sale 1,146,053 887,015 - -
Total 1,210,454 929,784 659 408
67
26 6

Ageing of financial assets that are past due but not impaired for 2010
0 to 30 31 to 60 61 to 90 90+ days Total

days days days
$'000 $'000 $'000 $'000 $'000
GST receivable from the ATO - - - - -
Other receivables (net) 27 128 184 320 659
Loan receivable - - - - -
Available for sale - - - - -
Total 27 128 184 320 659
Ageing of financial assets that are past due but not impaired for 2009
0 to 30 days 31 to 60 61 to 90 90+ days Total

days days
$'000 $'000 $'000 $'000 $'000
GST receivable from the ATO - - - - -
Other receivables (net) 408 - - - 408
Loan receivable - - - - -
Available for sale - - - - -
Total 408 - - - 408
SECTI O N 4
68
267

Note 19F. Liquidity Risk
The continued existence of AusAID in its present form and with its present programs is dependent on
Government policy and on continuing appropriations by Parliament for AusAID’s administration and programs.
The probability of the Government encountering difficulties meeting its Administered financial obligations is less
than remote.
The following tables illustrate the maturities for financial liabilities.
On Within 1 1 to 5 >5 Total

demand year years years
$'000 $'000 $'000 $'000 $'000
Financial Liabilities - 464,370 150,546 481,736 1,096,652
Total - 464,370 150,546 481,736 1,096,652
On demand Within 1 1 to 5 >5 Total

year years years
$'000 $'000 $'000 $'000 $'000
Financial Liabilities* - 562,409 200,513 623,785 1,386,707
Total - 562,409 200,513 623,785 1,386,707
SECTI O N 4
Note 19G. Market Risk
Market risk is defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises the following types of risk, either alone or in
combination: interest rate risk, sovereign risk and liquidity risk (for the purposes of discounting the future value of
the Non-monetary ‘available for sale’ debt instrument); currency risk (for the purposes of converting to Australian
dollars the discounted United States dollar value of the Non-monetary ‘available for sale’ debt instrument); and
the 10-year government bond rate for the purposes of discounting future liabilities relating to multilateral loan
and grant commitments. The following sensitivity analysis discloses the effect that a reasonable possible
change in each risk variable, either alone, or in total, would have on AusAID’s Administered income and
expenses.
Sensitivity analysis of the risk that AusAID is exposed to for 2010:
Change in Effect on
Risk risk Profit and Equity
variable variable loss
% $'000 $'000
Currency risk A$/US$ 14.00% (140,743) (140,743)
A$/US$ - 14.00% 186,567 186,567
Interest rate risk * 01.50% 2,557 2,557

* - 01.50% (2,715) (2,715)
69
26 8

Sensitivity analysis of the risk that AusAID is exposed to for 2009:
Effect on
Risk Change in Profit and Equity
variable risk variable loss
% $'000 $'000
Currency risk
A$/US$ 12.00% (95,037) (95,037)
A$/US$ - 12.00% 120,957 120,957
Interest rate risk
* 00.75% (9,857) (9,857)
* - 00.75% 10,466 10,466
* Interest rate risk reflects the impact on assets and liabilities of movements, either alone or in combination, of
the following interest rate variables: i) United States dollar 30-year Government bond rate; ii) the currency risk,
liquidity risk and sovereign risk premiums (obtained via independent professional advice) as they apply to the
borrowing countries party to the International Development Association and Asia Development Fund; and, iii)
the 10-year Australian government bond rate.
Note 20. Administered Contingent Liabilities and Assets
Quantifiable Administered Contingencies

As at 30 June 2010 AusAID did not have any quantifiable Administered contingencies.
Unquantifiable Administered Contingencies
SECTI O N 4
At 30 June 2010 AusAID did not have any unquantifiable Administered contingencies.
70
269
SECTI O N 4 F i n a n c i a l state me n ts

270
Note 21. Appropriations
Table A1. Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations
Administered Expenses
Departmental Outputs Total
Outcome 1 Outcome 2
2010 2009 2010 2009 2010 2009 2010 2009
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance brought forward from previous period (Appropriation Acts) 1,076,625 1,161,457 2,321 1,757 16,624 12,440 1,095,570 1,175,654
Appropriation Act:
Appropriation Act (No. 1 & 3) 2009-2010 as passed 2,833,400 2,870,468 3,868 4,386 140,924 130,218 2,978,192 3,005,072
Appropriations reduced (Appropriation Act sections 10, 11 & 12) (175,739) (261,880) (178) (111) (2,511) - (178,428) (261,991)
Advance to the Finance Minister (Appropriation Act section 13) 29,381 - - - - - 29,381 -
FMA Act:
Repayments to the Commonwealth (FMA Act section 30)2 32,401 25,062 - 574 13 32,975 25,075
Appropriations to take account of recoverable GST (FMA Act section 30A)1 71,102 63,761 - 2,446 2,953 73,548 66,714
Relevant agency receipts (FMA Act section 31) - 59 1,536 824 1,536 883
Total appropriation available for payments 3,867,170 3,858,927 6,011 6,032 159,593 146,448 4,032,774 4,011,407
Cash payments made during the year (GST inclusive) (3,221,369) (2,782,302) (2,898) (3,711) (131,525) (129,824) (3,355,792) (2,915,837)
Balance of authority to draw cash from the Consolidated Revenue Fund for ordinary annual services 645,801 1,076,625 3,113 2,321 28,068 16,624 676,982 1,095,570
appropriations and as represented by:
Cash at bank and on hand 14,604 11,306 - - 586 268 15,190 11,574
Departmental appropriations receivable 27,452 16,065 27,452 16,065
Net GST payable (to)/from ATO - - - - 399 291 399 291
Adjustments under section 101.13 of the Finance Minister's Orders not reflected above - - - - (369) - (369) -
Undrawn, unlapsed administered appropriations 631,197 1,065,319 3,113 2,321 634,310 1,067,640
Total as at 30 June 645,801 1,076,625 3,113 2,321 28,068 16,624 676,982 1,095,570
1. The amounts in this line item are calculated on an accrual basis to the extent that an expense may have been incurred that includes GST but has not been paid by year end.
2. Administered section 30 appropriations includes return of funds relating to prior years. Section 104.55P of the Finance Minister’s Orders requires all returns relating to prior years to be paid to the OPA.
71
Table A2. Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations Reduction in Administered Items
Administered Expenses Departmental
Total
Outcome 1 Outcome 2 Outputs
2010 2009 2010 2009 2010 2009 2010 2009
$ $ $ $ $ $ $ $
Reduction in administered items1
Total administered items appropriated 2,862,781,000.00 2,870,468,000.00 3,868,000.00 4,386,000.00 - - 2,866,649,000.00 2,874,854,000.00
Less administered items required by the agency per Appropriation Act s112:
Appropriation Act (No. 1) 2009-20103 2,861,639,107.28 2,694,728,618.95 3,242,615.02 4,207,589.02 - - 2,864,881,722.30 2,698,936,207.97
Total administered items required by the agency 2,861,639,107.28 2,694,728,618.95 3,242,615.02 4,207,589.02 - - 2,864,881,722.30 2,698,936,207.97
Total reduction in administered items - effective 2010-2011 1,141,892.72 175,739,381.05 625,384.98 178,410.98 - - 1,767,277.70 175,917,792.03
1. Numbers in this section of the table must be disclosed to the cent.
2. Administered items for 2009-10 were reduced to these amounts when these financial statements were tabled in the Parliament as part of AusAID's 2009-10 annual report. This reduction is effective in
2010-11 and the amounts in the Total Reduction row will be reflected in Table A1 in the 2010-11 financial statements in the row 'Appropriations reduced (Appropriation Act sections 10, 11 & 12)'.
Departmental and non-operating appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental or non-operating appropriation is not
required and request the Finance Minister to reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament. In 2009-10,
the Finance Minister determined a reduction in departmental outputs appropriations following a request by the Minister for Foreign Affairs. The amount of the reduction determined under Appropriation Act
No.1 of 2008-09 was: $2,511,000 (Refer Table A1).
3. Total outcome 1 administered expenses of $2,694,728,618.95 were incurred in 2008-09 and disclosed as Appropriation Act (No. 1) 2008-09. However, $155,939,882.73 was related to Appropriation Act
(No. 3) 2008-09.
27 1
72


272
Table B1. Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Appropriations
Operating Non-operating
Outcome 1 Outcome 2 Previous Years’ Admin assets and Total
Equity Loans
SPPs NAE SPPs NAE Outputs liabilities
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance brought forward from previous period - - - - - - - - 4,184 2,362 - - - - 670,779 466,587 674,963 468,949
Appropriation Act:
Appropriation Act (No. 2 & 4) 2009-2010 as - - - - - - - - 2,828 1,822 - - - - 6,252 260,547 9,080 262,369
passed
FMA Act:
*Appropriations to take account of recoverable - - - - - - - - 455 - - - - - - - 455 -
GST (FMA Act section 30A)1

Total appropriations available for payments - - - - - - - - 7,467 4,184 - - - - 677,031 727,134 684,498 731,318
Cash payments made during the year (GST - - - - - - - - (6,247) - - - - - (90,315) (56,355) (96,562) (56,355)
inclusive)
Balance of authority to draw cash from the - - - - - - - - 1,220 4,184 - - - - 586,716 670,779 587,936 674,963
consolidated revenue fund for other than

ordinary annual services appropriations and
as represented by:
*Departmental appropriation receivable 1,220 4,184 - - - - 1,220 4,184
*Undrawn, unlapsed administered - - - - - - - - - - - - - - 586,716 670,779 586,716 670,779
appropriations
Total as at 30 June - - - - - - - - 1,220 4,184 - - - - 586,716 670,779 587,936 674,963
1. The amounts in this line item are calculated on an accrual basis to the extent that an expense may have been incurred that includes GST but has not been paid by year end.
73

Note 22. Special Accounts
Account Name: Services for Other Government and Non-Agency Bodies Account
Establishing Instrument: Financial Management and Accountability Act 1997; section 20
Purpose: for expenditure in connection with services performed on behalf of other Governments and bodies that
are not FMA agencies.
This account is non-interest bearing.
2010 2009
$'000 $'000
Balance carried from previous period 571 4,215
Other receipts 11,431 2,102
Total credits 12,002 6,317
Payments made to suppliers (6,000) (5,746)
Total debits (6,000) (5,746)
Balance carried to next period and represented by: 6,002 571
Cash – held in the Official Public Account 6,002 571
Total balance carried to the next period 6,002 571
Account Name: Australian-Indonesia Partnership for Reconstruction and Development (Grants) Special
Account
Purpose: Grants for relief, rehabilitation and reconstruction assistance to areas in the Republic of Indonesia
directly affected by the Tsunami and economic and social development assistance to all areas of the Republic of
Indonesia.
2010 2009
$'000 $'000
SECTI O N 4
Balance carried from previous period 57,094 165,142
Total debits (49,457) (108,048)
Balance carried to next period (excluding investment balances) and
represented by: 7,637 57,094
Cash – held in the Official Public Account 7,637 57,094
Total balance carried to the next period 7,637 57,094
74
273

Account Name: Australian-Indonesia Partnership for Reconstruction and Development (Loans) Special
Account
Purpose: Loans for relief, rehabilitation and reconstruction assistance to areas in the Republic of Indonesia
directly affected by the Tsunami and economic and social development assistance to all areas of the Republic of
Indonesia.
2010 2009
$'000 $'000
Balance carried from previous period 278,345 362,372
Total debits (69,613) (84,027)
Balance carried to next period (excluding investment balances) and
represented by: 208,732 278,345
Cash – held in the Official Public Account 208,732 278,345
Total balance carried to the next period 208,732 278,345

Note 23. Compensation and Debt Relief
Departmental
No ‘Act of Grace’ payments were made under subsection 33(1) of the Financial Management and Accountability
SECTI O N 4
Act 1997 (2008-2009: No payments).
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the
Financial Management and Accountability Act 1997 (2008-2009: No waivers).
No payment made under the Compensation and Detriment caused by Defective Administration (CDDA) Scheme
(2008-2009: No payments).
No ex-gratia payments were provided for the reporting period (2008-2009: No payments).
No payments made in special circumstances relating to APS employment pursuant to s73 of the Public Service
Act 1999 (PS Act).
Administered
During the year, ComSuper made Act of grace pension payments totalling $109,436 to four former PNG
Government employees covered by the Papua New Guinea Superannuation Scheme (2008-09: $32,018).
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the
Financial Management and Accountability Act 1997 (2008-2009: No waivers).
No payment made under the Compensation and Detriment caused by Defective Administration (CDDA) Scheme
(2008-2009: No payments).
No ex-gratia payments were provided for the reporting period (2008-2009: No payments).
No payments made in special circumstances relating to APS employment pursuant to s73 of the Public Service 75
Act 1999 (PS Act).
274

Note 24. Reporting of Outcomes
Note 24A. Net Cost of Outcome Delivery
Outcome 1 Outcome 2 Total

2010 2009 2010 2009 2010 2009
$'000 $'000 $'000 $'000 $'000 $'000
Expenses
Administered* 2,971,148 3,362,842 86,991 203,429 3,058,139 3,566,271
Departmental 131,235 128,571 3,013 3,144 134,248 131,715
Total 3,102,383 3,491,413 90,004 206,573 3,192,387 3,697,986
Income from non-government sector

Administered
Activities subject to cost recovery 112 39 - - 112 39
Other 3,879 - 3,463 2,057 7,342 2,057
Total administered 3,991 39 3,463 2,057 7,454 2,096
Departmental
Activities subject to cost recovery 183 548 - - 183 548
Other 23 25 - - 23 25
Total departmental 206 573 - - 206 573
Total 4,197 612 3,463 2,057 7,660 2,669
Other own-source income

Administered 339,706 317 - - 339,706 317
Departmental 58 458 - - 58 458
Total 339,764 775 - - 339,764 775
SECTI O N 4
Net cost/(contribution) of outcome 2,758,423 3,490,026 86,541 204,516 2,844,964 3,694,542
Outcomes 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that are
eliminated in calculating the actual Budget Outcome. Refer to Note 24B and Note 24C below.
77
275

Note 24. Reporting of Outcomes
Note 24B. Major Classes of Departmental Expenses, Income, Assets and Liabilities by Outcomes

2010 2009 2010 2009 2010 2009
$'000 $'000 $'000 $'000 $'000 $'000
Departmental Expenses:
Employee benefits 84,498 78,704 2,053 2,534 86,551 81,238

Suppliers expenses 40,480 43,519 884 354 41,364 43,873
Depreciation and amortisation 5,945 6,006 76 132 6,021 6,138
Finance costs 174 201 - - 174 201
Write-down and impairment of assets 78 234 - - 78 234
Losses from asset sales 45 13 - - 45 13
Foreign exchange losses 15 18 - - 15 18
Total 131,235 128,695 3,013 3,020 134,248 131,715
Departmental Income:
Revenue from Government 135,284 123,736 6,009 6,482 141,293 130,218
Sale of goods and rendering of services 58 458 - - 58 458
Foreign exchange gains 23 25 - - 23 25
Other gains 183 548 - - 183 548
Total 135,548 124,767 6,009 6,482 141,557 131,249
Departmental Assets:
Cash and cash equivalents 586 267 - - 586 267
Trade and other receivables 29,526 21,500 - - 29,526 21,500
SECTI O N 4
Leasehold improvements 17,988 17,632 - - 17,988 17,632

Infrastructure, plant and equipment 9,899 7,018 - - 9,899 7,018
Intangibles 1,163 2,642 - - 1,163 2,642
Other non-financial assets 3,089 2,944 - - 3,089 2,944
Total 62,251 52,003 - - 62,251 52,003
Departmental Liabilities:
Supplier payables 4,810 4,388 - - 4,810 4,388
Other payables 2,124 1,172 - - 2,124 1,172
Employee provisions 21,064 19,838 - - 21,064 19,838
Other provisions 4,692 4,923 - - 4,692 4,923
Total 32,690 30,321 - - 32,690 30,321
Outcomes 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that are eliminated in
calculating the actual Budget Outcome.
78
276

Note 24C. Major Classes of Administered Income, Expenses, Assets and Liabilities by Outcomes

2010 2009 2010 2009 2010 2009
$'000 $'000 $'000 $'000 $'000 $'000
Administered Expenses:
International development assistance 2,522,373 2,273,100 3,289 4,208 2,525,662 2,277,308
Grants* 367,790 413,495 28,539 123,092 396,329 536,587
Other 80,985 676,247 55,163 76,129 136,148 752,376
Total 2,971,148 3,362,842 86,991 203,429 3,058,139 3,566,271
Administered Income:
Interest 15 - 3,461 2,057 3,476 2,057
Foreign exchange gains 3,864 - 2 - 3,866 -
Other gains 339,818 356 - - 339,818 356
Total 343,697 356 3,463 2,057 347,160 2,413
Administered Assets:
Cash and cash equivalents 14,604 11,306 - - 14,604 11,306
Loans and receivables 16,520 12,549 48,540 30,628 65,060 43,177
Investments 1,146,053 887,015 - - 1,146,053 887,015
Other non-financial assets 18,381 6,505 - - 18,381 6,505
Total 1,195,558 917,375 48,540 30,628 1,244,098 948,003
Administered Liabilities:
Grants payables* 336,279 435,904 - - 336,279 435,904
Other payables 760,373 950,803 - - 760,373 950,803
SECTI O N 4
Other provisions 8,215 7,888 - - 8,215 7,888
Total 1,104,867 1,394,595 - - 1,104,867 1,394,595
* The 2008-09 comparative has increased by $21,322,061 (Refer to Note 1.21) from the financial statements published in
the 2008-09 Annual Report.
79
277
Below AusAID officer Marianne Jago (centre right) and United

Below AusAID officer Sonya Neufeld Nations Children’s Fund officer Daw Ma La (centre left) consult
inspects a degraded peat swamp forest village women on the effectiveness of emergency child-friendly
in Central Kalimantan, Indonesia spaces for aiding post disaster recovery
Photo: Josh Estey Photo: Joyce Win, UNICEF, for AusAID
278
Appendices
Section 5
A. Minister and Parliamentar y Secretaries

B. Agency resource statement 2009–10
C. Aid program expenditure
D. Staffing over view
E. Freedom of information
F. Information available on the internet
G. Consultancy ser vices
H. Advertising and market research
I. Ecologically sustainable development
and environmental per formance
J. Statement of material errors
A. Minister and Parliamentary

Secretary
Minister for Foreign Affairs and Trade, The Hon. Stephen Smith, MP
Mr Smith has responsibility for the Foreign Affairs and Trade
portfolio, including administration of the Department of Foreign
Affairs and Trade. He is responsible for bilateral political
relationships, international political, multilateral and legal issues,
including the treaty-making process, UN engagement, human
rights, arms control and disarmament issues.
Mr Smith is responsible for pursuing Australia’s trade and
investment interests through trade and economic diplomacy and
negotiations. He is responsible for Australia’s engagement with
the World Trade Organization, including the Doha Development
Round of world trade talks, trade dispute settlement and other key global trade matters,
along with Organisation for Economic Co-operation and Development (OECD) trade issues.
Mr Smith chairs the 19 Member Cairns Group of agricultural trading nations. Mr Smith
actively pursues Australia’s trade and economic interests, through the Asia-Pacific
Economic Cooperation (APEC) forum, the ASEAN–Australia–New Zealand FTA, negotiations
to advance the Trans-Pacific Partnership and PACER Plus with our South Pacific neighbours
and through the pursuit of other free trade agreements with trading partners.
Mr Smith is responsible for development assistance, consular and passport functions and
A p p e n d i c es
the management of Australia’s overseas estate.

Mr Smith has primary carriage of public affairs activities and questions of protocol.
Mr Smith shares responsibility for international security and counter terrorism issues with
the Minister for Defence.
He has responsibility for the administration and management of AusAID, the Australian
Secret Intelligence Service, the Australian Safeguards and Non-Proliferation Office, the
Australian Centre for International Agricultural Research, Austrade (including the Export
Market Development Grants Scheme, TradeStart, Investment Attraction and Brand
Australia) and the Export Finance and Insurance Corporation.
S ECT IO N 5
Parliamentary Secretary for International Development Assistance

The Hon. Bob McMullan, MP
Mr McMullan supports the Minister for Foreign Affairs and Trade
to implement Australia’s international development policy and is
responsible for the day-to-day management of issues related to
the aid program. This involves working closely with AusAID,
international development partners, other donor governments and
international organisations to advance Australia’s development
objectives. He is also responsible for raising the awareness of the
government’s aid policies and priorities among the Australian
public through the media and public events.
28 0
APPENDIX B. Agency resource statement 2009–10
B. Agency resource
statement 2009–10
Table 2: Agency resource statement 2009–10
Actual
available Payments
appropriations made Balance
for 2009–10 2009–10 remaining
$’000 $’000 $’000
Ordinary annual services:
Departmental appropriation:
Prior year departmental appropriation 16 624
Departmental appropriation 140 924 131 525 9 399
s31 Relevant agency receipts 1 536 1 536
Total 159 084 131 525 10 938
Administered expenses
Outcome 1 3 867 170 3 221 369 645 801
Outcome 2 6 011 2 898 3 113
Total 3 873 181 3 224 267 648 914
Total ordinary annual services 4 032 265 3 355 792 659 852
Other services:
Administered revenue1:
Outcome 1 29 394 29 394
A p p e n d i c es
Total 29 394 29 394
Departmental non-operating:
Equity injections 2 828 1 608 1 220
Total 2 828 1 608 1 220
Administered non-operating:
Administered assets and liabilities 677 031 90 315
Total 677 031 90 315
Total other services 709 253 121 317
Total available annual appropriations 4 741 518 3 477 109
SECT IO N 5
Special accounts:
Other government and non-agency bodies:
Opening balance 571
Non-appropriation receipts 11 431 6 000 6 002
12 002 6 000 6 002
Reconstruction & Development:
Opening balance: grants 57 094 49 457 7 637
Opening balance: loans 278 345 69 613 208 732
335 439 119 070 216 369
Total special accounts 347 442 125 070 222 371
Total resources available 5 088 960 3 602 179
Note to table
1 The majority of this funding relates to unused funds returned from contractors and non-government organisations and taxation paid to partner
governments and returned to AusAID, which were appropriated in former years and were returned to the Official Public Account (OPA).
281
C. Aid program expenditure

Table 3: Total Australian official development assistance to partner countries 2009–10
Estimated outcome1
2009–102
Country/Regional Programs $m
Papua New Guinea 445.9
Solomon Islands3 212.5
Vanuatu 60.3
Fiji 35.9
Tonga 25.6
Samoa 40.6
Kiribati 21.8
Tuvalu 8.1
Nauru 24.6
Regional Pacific4 149.6
Papua New Guinea and Pacific 1024.9
Indonesia (ongoing program) 347.8

Indonesia (AIPRD) 106.9
A p p e n d i c es
Philippines 127.3
Vietnam 113.3
Cambodia 60.1
Laos 37.0
East Timor 94.7
Burma 29.8
China 41.8
Thailand 7.2
East Asia Regional 4
89.5
S ECT IO N 5
Total Indonesia and East Asia 1055.4
282
APPENDIX C. Aid program expenditure
Estimated outcome1
2009–102
Country/Regional Programs $m
Africa 157.3
Bangladesh 59.5
Sri Lanka 60.2
India 18.2
Nepal 17.3
Maldives 4.6
Bhutan 5.4
South Asia Regional4 4.9
Pakistan 67.9
Afghanistan 130.1
Iraq 45.8
Palestinian Territories and Other Middle East4 36.3
South & Central America 36.8
Total Africa, South and Central Asia, and Middle East 644.3
Core contributions to multilateral organisations and other ODA not attributed 1079.1
to particular countries or regions5
Adjustments6 –14.9
Funds approved but not yet allocated 7
32.2
A p p e n d i c es
Total ODA (cash) 3820.9
Notes to table 2
1 Shows total expenses, minus commitments to new multi-year liabilities (for example, the International Development Association (IDA) or the
Heavily Indebted Poor Countries (HIPC) Initiative), plus cash payments for these multi-year liabilities.
2 Estimated official development assistance for 2009–10 represents expected outcomes as estimated at May 2010.
3 Solomon Islands includes official development assistance eligible Australian Government expenditure under the Regional Assistance Mission
to Solomon Islands (RAMSI).
4 Regional Pacific, Regional East Asia, Regional South Asia and Other Middle East include multi-country and regional activities and small
bilateral programs.
5 Core contributions to multilateral organisations and other official development assistance not attributed to particular countries or regions
includes payments to some UN and Commonwealth organisations, and official development assistance eligible departmental expenditure. The
official development assistance eligible components of cash payments to IDA, ADF, GEF, HIPC and MPMF are also included in this line item.
6 Adjustments includes the reconciliation of expenses to official development assistance, which is reported on a cash basis and takes into
account non-official development assistance eligible expenditure. These adjustments include accrual adjustments to adjust expenses to cash,
SECT IO N 5
and adjustments to exclude non official development assistance eligible departmental and administered expenditure. The adjustments exclude
non official development assistance eligible departmental expenditure such as receipts under section 31 of the Financial Management and
Accountability Act 1997, GST payments, and fringe benefits tax. The adjustments also exclude non-official development assistance eligible
administered expenditure such as miscellaneous receipts and GST payments.
7 These funds were expended by AusAID on the following government priorities—International Rice Research Institute ($12.2m), Global
Agriculture and Food Security Program ($10m) and Palestinian Reform and Development Plan ($10m).
283
Table 4: Country and regional programs expenditure 2006–2010
Country Expenses ($m)

2006–07 2007–08 2008–09 2009–10
PAPUA NEW GUINEA 297.0 334.9 344.6 384.0
Retirement benefits 12.2 11.9 11.7 10.9
Subtotal PNG 309.2 346.8 356.3 394.9
PACIFIC
Solomon Islands 101.8 97.4 105.7 109.0
Vanuatu 22.1 30.3 41.9 45.6
Fiji 17.8 18.0 19.5 17.6
Tonga 9.1 13.4 13.5 16.8
Samoa 12.9 12.4 23.7 25.9
Kiribati 6.5 5.7 10.8 13.0
Tuvalu 3.3 4.0 4.7 5.4
Nauru 0.5 1.9 2.1 1.5
Nauru additional 18.9 17.8 16.2 14.9
Micronesia1 1.4 1.3 2.6 2.2
Cook Islands 1.7 2.7 2.7 2.2
Niue and Tokelau 1.1 1.4 1.5 1.6
Pacific Regional 78.6 121.3 155.5 191.6
A p p e n d i c es
Subtotal Pacific 275.9 327.7 400.5 447.3

EAST ASIA
Indonesia (ongoing program) 125.1 155.2 185.2 286.3
Indonesia (AIPRD) 2
169.3 205.9 211.3 101.4
Philippines 58.5 87.9 104.2 109.6
Vietnam 62.0 71.5 77.8 98.2
Cambodia 25.6 31.7 40.5 51.2
Laos 12.6 16.2 17.6 29.6
East Timor 40.6 56.7 59.7 74.9
S ECTI O N 5
Burma 2.6 7.1 6.9 20.7

China 34.2 30.7 24.9 25.2
Mongolia 2.4 2.4 8.0 3.2
Thailand 1.6 0.2 0 1.0
East Asia Region 74.0 103.7 89.6 55.2
Subtotal East Asia 608.5 769.2 825.5 856.5
28 4
APPENDIX C. Aid program expenditure
Country Expenses ($m)

2006–07 2007–08 2008–09 2009–10
SOUTH ASIA
Bangladesh 21.3 33.9 34.5 62.8
Sri Lanka 9.0 9.3 12.2 45.7
India 1.7 2.3 2.2 4.3
Nepal 3.4 4.7 5.7 17.4
Maldives 2.8 2.2 2.5 3.4
Bhutan 1.1 1.4 2.0 3.2
South Asia Regional 11.4 13.1 10.9 15.2
Subtotal South Asia 50.8 66.8 70.0 152.0
Middle East and Central Asia
Pakistan 14.8 19.6 29.6 70.3
Afghanistan 0 0 41.5 53.3
Iraq 0 0 39.5 39.4
Palestinian territories and other Middle East 17 23.9 38.4 43.3
Subtotal Middle East and Central Asia 32 43.5 149.0 206.3
OTHER
Africa 34 42.9 70.6 103.1
South and Central America 0 0 0 19.5
Subtotal other 34.0 42.9 70.6 122.6
A p p e n d i c es
CROSS REGIONAL PROGRAMS 63.9 141.6 253.2 220.3
TOTAL COUNTRY PROGRAMS 3
1374.1 1738.5 2125.1 2399.9
Notes to table 3
1 For the purposes of this table, Micronesia includes the Federated States of Micronesia, Palau and the Republic of the Marshall Islands.
2 Includes Joint Management, grants and loans.
3 Differences between the 2006–07 country and global program data published as part of the 2006–07 and 2007–08 annual reports and
Australia’s International Development Assistance Program 2008–09 include outcomes from changes in program reporting structures which
affect data from 2006–07 onwards, as well as the result of rounding differences.
SECTI ON 5
285
Table 5: Global programs expenditure 2006–2010
2006–07 2007–08 2008–09 2009–10

EMERGENCY, HUMANITARIAN AND REFUGEE AID 195.2 298.4 358.9 240.0
of which: 23.8 29.8 75.0 15.0
World Food Programme
MULTILATERAL REPLENISHMENTS 1

ADF 0 0 332.8 0
IDA 0 583.0 4.8 0
MDRI 136.2 0 40.8 0
IFAD 0 0 0 0
Heavily Indebted Poor Countries Initiative 0 34.8 27.5 0
GEF 59.8 0 0 0
MPMF 0 0 9.4 0
World Bank Clean Technologies Fund 0 0 100.0 0
Subtotal 196.0 617.8 515.3 0
OTHER INTERNATIONAL ORGANISATIONS
United Nations agencies 36.7 60.9 58.9 78.2
Commonwealth organisations and other 13.0 12.6 13.0 10.8
Other international programs 2
28.8 81.8 122.0 154.4
Subtotal 78.5 155.3 193.9 243.4
A p p e n d i c es
COMMUNITY PROGRAMS
Non-government organisations 28.0 38.4 45.3 56.4
Volunteer programs 16.0 16.7 20.4 17.9
AYAD 15.5 15.1 14.9 16.8
Subtotal 59.5 70.1 80.7 91.1
COMMUNICATION, EDUCATION AND INFORMATION
Public information / development education 3.0 3.9 6.0 5.9
Development research 4.8 6.9 11.5 10.0
Seminar support 1.5 1.3 1.8 1.4
S ECT IO N 5
Subtotal 9.3 12.1 19.3 17.3

TOTAL GLOBAL PROGRAMS 3
538.4 1153.7 1168.1 591.8
Notes to table 4
1 New commitments to the multilateral development banks and, Montreal Protocol Global Environment Facility are recorded as liabilities at the
time of commitment.
2 Other international programs include the Global Alliance for Vaccines & Immunization, Global Crop Diversity Trust Fund, International Tropical
Timber Organisation and the Global Fund to Fight Aids, Tuberculosis and Malaria.
3 Differences between the 2006–07 country and global program data published as part of the 2006–07 and 2007–08 annual reports and
Australia’s International Development Assistance Program 2008–09 include outcomes from changes in program reporting structures which
affect data from 2006–07 onwards, as well as the result of rounding differences.
28 6
APPENDIX D. Staffing overview
D. Staffing overview
Table 6a: All APS employees by classification, location and gender, 30 June
2010—departmental and administered budgets
FEMALE MALE
Australia Overseas Australia Overseas Total
APS 2 1 1 2
APS 3 6 3 9
Graduate–APS3 12 7 19
APS 4 32 14 46
APS 5 87 1 32 1 121
APS 6 138 27 63 20 248
EL 1 164 64 99 38 365
EL 2 60 17 45 22 144
SES 9 5 29 7 50
Total 509 114 293 88 1004
Note: Does not include unpaid, inoperative employees. Data reflects substantive classifications only.
Table 6b: All APS employees by classification, location and gender, 30 June 2010—
administered budget only
A p p e n d i c es
FEMALE MALE
APS 4 4 2 6
APS 5 8 5 1 14
APS 6 18 15 10 16 59
EL 1 19 28 16 16 79
EL 2 15 6 15 6 42
SES 1 1 4 3 9
Total
SECT IO N 5
65 50 52 42 209
287
Table 7a: APS employees by status and attendance type, 30 June 2010—departmental and
administered budgets
ONGOING NON-ONGOING
Full-time Part-time Sub-total Full-time Part-time Sub-total Total
Female 514 73 587 32 4 36 623
Male 325 24 349 28 4 32 381
Total 839 97 936 60 8 68 1004
Table 7b: APS employees by status and attendance type, 30 June 2010—administered
budget only
ONGOING NON-ONGOING
Full-time Part-time Sub-total Full-time Part-time Sub-total Total
Female 94 11 105 10 10 115
Male 67 5 72 19 3 22 94
Total 161 16 177 29 3 32 209
Table 8a: Senior executive service, 30 June 2010—departmental and administered budgets
FEMALE MALE
A p p e n d i c es
SES 1 8 4 23 6 41
SES 2 1 1 5 1 8
SES 3 1 1
Total 9 5 29 7 50
Table 8B: Senior executive service, 30 June 2010—administered budget only
FEMALE MALE
S ECTI O N 5

SES 1 1 3 2 6
SES 2 1 1 1 3
Total 1 1 4 3 9
28 8
Table 9A: All APS employees by location and gender, 30 June 2010—departmental and
administered budgets and overseas-based staff
LOCATION APS staff Overseas-based staff Total staff

FEMALE MALE FEMALE MALE
Australia 509 293 802
Accra 1 1 2
Addis Ababa 1 1
Apia 1 1 7 9
Baghdad 1 1
Bangkok 1 3 6 3 13
Beijing 1 1 9 3 14
Colombo 1 1 3 2 7
Dhaka 2 3 7 12
Dili 3 3 4 13 23
Geneva 1 2 1 4
Hanoi 3 15 8 26
Harare 1 1 2 1 5
Islamabad 2 2 6 10
Jakarta 25 13 72 44 154
Kabul 1 1
Kandahar 1 1
A p p e n d i c es
Kathmandu 3 1 4
Manila 3 4 22 9 38
Nairobi 1 2 1 4
Nauru 1 1 2
New Delhi 3 3
New York 2 3 5
Noumea 1 1
Nuku’alofa 1 9 2 12
SECTI ON 5
Paris 1 2 3
Phnom Penh 2 1 5 8 16
Pohnpei 1 1
Port of Spain 1 1 2
Port Moresby 29 20 46 31 126
Port Vila 2 4 9 4 19
Pretoria 1 3 6 1 11
Ramallah 1 1
Rangoon 2 2 2 6
Rome 1 1
289
LOCATION APS staff Overseas-based staff Total staff

FEMALE MALE FEMALE MALE
Santiago 1 1 2
Seychelles 1 1
Solomon Islands 13 12 23 18 66
Suva 8 6 14 11 39
Tarawa 1 1 8 2 12
Tarin Kowt 2 3 5
Vientiane 1 2 10 5 18
Seconded Out 3 1 4
Total 623 381 292 191 1487
Table 9B: Employees by location and gender, 30 June 2010—administered budget only
LOCATION FEMALE MALE Total staff

Australia 65 52 117
Accra 0
Addis Ababa 0
Apia 0
Baghdad 1 1
A p p e n d i c es
Bangkok 0
Beijing 0
Colombo 0
Dhaka 0
Dili 1 1
Geneva 0
Hanoi 0
Harare 1 1
Islamabad 0
S ECTI O N 5
Jakarta 8 8 16
Kabul 0
Kandahar 0
Kathmandu 0
Manila 2 2
Nairobi 0
Nauru 0
New Delhi 0
New York 1 1
290

Noumea 0
Nuku’alofa 0
Paris 0
Phnom Penh 0
Pohnpei 0
Port of Spain 0
Port Moresby 17 14 31
Port Vila 1 2 3
Pretoria 1 1
Ramallah 0
Rangoon 2 2
Rome 0
Santiago 0
Seychelles 1 1
Solomon Islands 12 7 19
Suva 4 3 7
Tarawa 1 1
Tarin Kowt 0
Vientiane 1 1
Seconded Out 3 1 4
A p p e n d i c es
TOTAL 115 94 209
Table 9C: Overseas-based employees by location and gender, 30 June 2010

Accra 1 1
Addis Ababa 0
Apia 7 7
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Baghdad 0
Bangkok 6 3 9
Beijing 9 3 12
Colombo 3 2 5
Dhaka 3 7 10
Dili 4 13 17
Geneva 2 1 3
Hanoi 15 8 23
Harare 2 1 3
29 1

Islamabad 2 6 8
Jakarta 72 44 116
Kabul 0
Kandahar 0
Kathmandu 3 1 4
Manila 22 9 31
Nairobi 2 1 3
Nauru 1 1
New Delhi 3 3
New York 3 3
Noumea 1 1
Nuku’alofa 9 2 11
Paris 2 2
Phnom Penh 5 8 13
Pohnpei 1 1
Port of Spain 1 1
Port Moresby 46 31 77
Port Vila 9 4 13
Pretoria 6 1 7
Ramallah 1 1
A p p e n d i c es
Rangoon 2 2 4
Rome 1 1
Santiago 1 1
Seychelles 0
Solomon Islands 23 18 41
Suva 14 11 25
Tarawa 8 2 10
Tarin Kowt 0
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Vientiane 10 5 15
TOTAL 292 191 483
292
Table 10: Employees covered by the enterprise agreement, Australian workplace agreements and section 24(1) determinations under the Public
Service Act 1999 as at 30 June 2010
ENTERPRISE AGREEMENT AWA SECTION 24(1) DETERMINATION TOTAL

APS CLASSIFICATION SALARY RANGE No. SALARY RANGE No. SALARY RANGE No. No.
AusAID trainee $39 166 to $42 399 0 n/a 0 n/a 0 0
APS 1 $39 166 to $42 399 0 n/a 0 n/a 0 0
APS 2 $44 471 to $48 137 2 n/a 0 n/a 0 2
Graduate–APS 3 $50 286 19 n/a 0 n/a 0 19
APS 3 $50 286 to $53 363 9 n/a 0 n/a 0 9
APS 4 $56 381 to $59 835 46 n/a 0 n/a 0 46
APS 5 $62 645 to $65 176 121 n/a 0 n/a 0 121
APS 6 $69 069 to $76 257 245 $69 069 to $86 011 2 $69 069 to $86 011 1 248
EL 1 $86 011 to $94 069 352 $86 011 to $117 105 10 $86 011 to $117 105 3 365
EL 2 $103 988 to $117 105 120 $103 988 to $155 000 8 $103 988 to $155 000 16 144
Total 914 20 20 954
293
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Table 11: AusAID SES employee salary range, 30 June 2010
CATEGORY SALARY RANGE NUMBERS OF STAFF

SES Band 1 specialist $130 000 – $174 999 3
SES Band 1 $130 000 – $189 999 38
SES Band 2 and 3 $160 000 – $239 999 9
Note: Includes SES employees paid from department and administered budgets.
Table 12: All APS employees by workplace diversity category and level, 30 June 2010—
departmental and administered budgets
Culturally and Aboriginal

linguistically and Torres
Total diverse Strait People with
staff Female backgrounds* Islanders* disability*
% % % %
APS 1 0 0 0.00% 0 0.00% 0 0.00% 0 0.00%
APS 2 2 1 50.00% 0.00% 0.00% 0.00%
APS 3 28 18 64.29% 2 7.14% 2 7.14% 0.00%
(includes
graduates)
APS 4 46 32 69.57% 7 15.22% 1 2.17% 0.00%
APS 5 121 88 72.73% 6 4.96% 3 2.48% 4 3.31%
APS 6 248 165 66.53% 23 9.27% 3 1.21% 2 0.81%
A p p e n d i c es
EL 1 365 228 62.47% 23 6.30% 2 0.55% 3 0.82%

EL 2 144 77 53.47% 6 4.17% 3 2.08% 2 1.39%
SES 50 14 28.00% 0.00% 0.00% 1 2.00%
TOTAL 1004 623 62.05% 67 6.67% 14 1.39% 12 1.20%
*Only identifies people who have volunteered this information.
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294
Table 13: AusAID winners of Australia Day Achievement Awards, 2010
AusAID’s Pacific Islands Forum Team

Financial and Management Accounting Section
AusAID Samoa Tsunami Team
Zimbabwe Program Team
Sri Lanka Team
Caroline Mulas
Vanessa Hayes
Deborah Fulton
Leonie Oates-Mercier (overseas-based)
Witta Katoppo (overseas-based)
Dannie Masoe (overseas-based)
Table 14: AusAID learning and development participants for 2009–10
Public sector skills 521

Program specific skills 516
New starters/graduates 311
Management and leadership 69
Thematic/conferences and events 186
External courses 97
A p p e n d i c es
Overseas based staff 830
Pre-deployment 276
Total 2806
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295
E. Freedom of information
This statement is provided in accordance with section 8 of the Freedom of Information Act
(FOI Act) 1982 and is correct at 30 June 2010.
The FOI Act extends the right to obtain access to documents in the government’s
possession. Access is limited only by exemptions that, for example, protect essential
public interests and the private and business affairs of people about whom departments
and statutory authorities collect and hold information. During 2009–10, the agency met its
obligations under the Act, processing five requests.
Members of the public seeking access to documents should lodge a formal FOI request.
This must be made in writing and include a contact name, an Australian address to which
notifications can be sent, telephone number and fax number (if available). The Ministerial
and Parliamentary Services Section of the agency is responsible for the management of
FOI matters. All FOI enquiries should be directed to:
Freedom of Information Coordinator

Ministerial and Parliamentary Services Section
AusAID
GPO Box 887
Canberra ACT 2601
Tel: (02) 6206 4619 Fax: (02) 6206 4613
AusAID levies the applicable fees and charges imposed under the FOI regulations. Such
A p p e n d i c es
fees and charges may be remitted, reduced or not imposed if grounds for financial
hardship or general public interest can be established.
Amendments to the FOI Act come into force on 1 November 2010 and during 2009–10
AusAID commenced preparations for implementing the new FOI provisions.
Program management functions

AusAID exercises the following decision-making powers and administrative functions:
• authorising expenditure on Australia’s overseas aid program including:
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— supporting international organisations

— contracting the supply of goods and services under the aid program
— supporting accredited non-government organisations and community groups
— managing programs to send Australian volunteers overseas to undertake
development cooperation activities
296
APPENDIX E. Freedom of informatio n
• managing development cooperation activities and programs including:

— maintaining systems of program management and accountability, including systems
of performance information monitoring, analysis and reporting
— administering the management and outcomes of appraisals, reviews and
evaluations of development cooperation activities
— accrediting and administering funding to non-government organisations (as well as
assessing Australian non-government organisation applications for tax deductibility
under the overseas aid gift deduction scheme)
— inviting tenders and selecting and managing contractors to provide services to
implement development cooperation activities
— monitoring the performance of contractors that receive funding through Australia’s
aid program
— overseeing the scholarship management program.
Participation and consultation

Members of the public are able to write to the Minister and Parliamentary Secretary about
the range of policy and other matters dealt with by the agency.
Enquires can be emailed to infoausaid@ausaid.gov.au
AusAID engages in a number of community forums as a way of consulting and seeking the
views of a wide range of people. Events include the One just world series which debates
issues around international development.
A p p e n d i c es
The agency is also open to the views of outside organisations and provides opportunities
for the community to contribute to aspects of Australia’s overseas development program
through consultations with:
• the Committee for Development Cooperation
• consultative forums on aid
• state and territory governments
• industry associations, peak bodies and organisations
• companies and business people
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• non-government organisations and public interest and community groups

• academic institutions
• individuals seeking consultation
• calls for public submissions
• statutory authorities
• foreign and strategic policy institutions
• Commonwealth agencies with relevant technical competencies.
297
AusAID documents
AusAID produces a range of documents on administering the aid program including:
• submissions to portfolio Ministers and Parliamentary Secretaries, AusAID’s Director
General and executive, and other government agencies
• records of parliamentary related business such as responses to questions on notice,
briefings for parliamentary delegations and parliamentarians
• possible parliamentary questions, written submissions to parliamentary committees
and responses to questions from parliamentary committee inquiries
• replies to ministerial and departmental correspondence
• texts of speeches and press statements
• briefs, reports and documents on international and Australian aspects of aid
policy issues
• treaties, memorandums of understanding and other agreements between the
Australian and partner governments
• documents relating to program and financial management, contracts and tenders
• reviews, evaluations and audit reports on management systems, controls and the
efficiency and effectiveness of aid programs and activities
• guidelines, policies and procedures relating to strategies and corporate planning,
project planning and implementation, including risk assessment and fraud prevention
policies and strategies
A p p e n d i c es
• materials relating to staff development, training, personnel management and

general administration
• brochures, newsletters and magazines on the aid program.
AusAID publications are available on the website at www.ausaid.gov.au/publications

or from:
National Mailing and Marketing

Tel (02) 6269 1050
Fax (02) 6260 2770
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Email: books@ausaid.gov.au
Mailing address: PO Box 7077, Canberra BC, ACT, 2610
298
APPENDIX F. Informatio n available on the internet
F. Information available on
the internet
AusAID’s website provides comprehensive information on the Australian Government’s
overseas aid program. Major corporate publications available on the website include
the AusAID annual report, the budget statement and a wide range of publications
about specific aspects of Australia’s aid program. The website also provides details on
country program activities, Australia’s response to humanitarian crises and major online
information resources.
Online business is supported and users can apply online for scholarships, research
grants and employment opportunities. Information provided to the Australian business
community includes how to access current tender opportunities, advice on AusAID
business and tender processes and how to apply for a range of funding schemes available
through AusAID.
Visitors to the website can also subscribe to a range of email news and information alerts.
Internet and disability access

AusAID’s aims to comply with all Australian Government Information Management Office
guidelines and World Wide Web Consortium (WC3) web content accessibility guidelines in
all online communication.
A p p e n d i c es
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29 9
G. Consultancy services
Table 15: Summary of consultancy contracts
2007–08 2008–09 2009–10

AusAID AusAID AusAID
consultancy contracts1 consultancy contracts1 consultancy contracts1
Financial Financial Financial
limits limits limits
Number of new Number of new Number of new
of new contracts 2007–08 of new contracts 2008–09 of new contracts 2009–10
contracts awarded expenditure contracts awarded expenditure contracts awarded expenditure
awarded ($’000)2 ($’000)2 awarded ($’000)2 ($’000)2 awarded ($’000)2 ($’000)2
Total 4 284 244 7 270 324 16 827 538
Notes to table 15
1 The details of each new consultancy let for $10 000 or more during 2009–10 are provided in table 16. Information on contracts and
consultancies of $10 000 or more are also available on the AusTender website at www.tenders.gov.au AusAID also publishes details of
contracts and agreements of $100 000 or more in accordance with the Senate Order for Departmental and Agency Contracts on its business
website at www.ausaid.gov.au/business/
2 All figures are GST-inclusive. Expenditure figures include total expenditure on new and ongoing consultancies during the relevant financial year.
A p p e n d i c es
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30 0
APPENDIX G. Consultancy s ervices
Table 16: Consultancy services let during 2009–10 of $10 000 or more
Contract Selection
Consultant name Description price process1 Justification2
AdminIntelligence Aurion redevelopment project $13 750 Direct B
Octo Consulting Business process mapping $27 412 Direct B
Pty Limited
Dynamic Edge Pty Ltd Provision of Microsoft $51 432 Direct B
Dynamics GP maintenance
and support services
Click IT Recruitment Business analyst for $35 420 Direct B
Australian Civilian
Corps register
GHD Pty Ltd Developing a security risk $57 420 Direct B
assessment and risk register
GHD Pty Ltd Developing a framework for a $62 700 Select B
security team
Indigo Spark Pty Ltd as Australian civilian business $41 250 Direct B
Trustee for Inheart Trust process analysis
Dimension Data Services Iptel $18 480 Select B
Australia Pty Ltd
Octo Consulting Business process $400 840 Open B
Pty Limited reform services
Hay Group Pty Ltd Scenario planning for $13 310 Direct B
workforce plan
A p p e n d i c es
Universal Financial Design services for the Office $36 405 Direct B
Management of the Australian Civilian Corps
TP3 Pty Ltd T/A Curriculum documentation and $16 500 Direct B
Tactics Consulting control process
Infront Systems Pty Ltd Professional services for $31 416 Select B
detailed virtualisation design
Infront Systems Pty Ltd Professional services for $20 856 Select B
detailed storage design
Notes to table 16
1 Explanation of selection process terms drawn from the Commonwealth Procurement Guidelines (December 2008):
Open tender: a procurement procedure in which a request for tender is published inviting all businesses that satisfy the conditions for
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participation to submit tenders. Public tenders are generally sought from the Australian Government AusTender internet site.
Select tender: a procurement procedure in which the procuring agency selects which potential suppliers are invited to submit tenders. This
procurement process may only be used under certain defined circumstances.
Direct sourcing: a form of restricted tendering, available only under certain defined circumstances, with a single potential supplier or suppliers
being invited to bid because of their unique expertise and/or their special ability to supply the goods and/or services sought.
Panel: an arrangement under which a number of suppliers, initially selected through an open tender process, may each supply property or
services to an agency as specified in the panel arrangements. Quotes are sought from suppliers that have pre-qualified on the agency panels
to supply to the government. This category includes standing offers (including AusAID’s period offers) and supplier panels where the supply of
goods and services may be provided for a pre-determined length of time, usually at a pre-arranged price.
2 Justification for decision to use consultancy:
A—skills currently unavailable within agency.
B—need for specialised or professional skills.
C—need for independent research or assessment.
30 1
H. Advertising and
market research
Table 17: Advertising and market research expenditure
Agencies/organisations Description Amount

Advertising agencies
n/a
Market research organisations
Instinct and Reason Consumer market research $100 000*
Polling organisations
n/a
Direct mail organisations
National Mailing and Marketing Processing and mailing AusAID publications $219 816.99*
Media advertising
HMA Blaze Pty Ltd Recruitment advertising $32 873.62
Adcorp Marketing Communications Recruitment advertising $712 636.64*
Australian Public Recruitment advertising $9595.84*
Service Commission (Gazette subscription)
Unimail Recruitment advertising (Graduate Program) $6550.00*
A p p e n d i c es
Graduate Careers Australia Recruitment advertising (Graduate Program) $7125.00*

Total $1 088 598.09
* Excluding GST
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302
APPENDIX I. ecologically sustainable developmenT
I. Ecologically sustainable
development and
environmental performance
AusAID reports on its environmental performance and its contribution to ecologically
sustainable development in 2009–10 against section 516A of the Environment Protection
and Biodiversity Conservation Act 1999 (Cth).
Compliance with the Environment Protection and Biodiversity

Conservation Act 1999 (Cth)
AusAID’s policies require that potential environmental impacts be considered when
designing and implementing all aid activities. AusAID ensures that its activities are
assessed and managed in accordance with the Act by requiring staff to answer prescribed
environmental and climate change impact assessment marker questions embedded
within AusAID’s program management system (AidWorks) before any new initiative or
activity commences.
How the activities and the administration of legislation by

AusAID in 2009–10 accorded with the principles of ecologically
sustainable development (section 516A(6)(a))
A p p e n d i c es
AusAID administers Australia’s overseas development program in accordance with
the principles of ecologically sustainable development using the following four broad
categories of policies and laws:
• AusAID’s development cooperation policies and partnership agreements
• Commonwealth environmental legislation and regulations including the Environment
Protection and Biodiversity Conservation Act 1999 (Cth)
• environmental laws and regulations of partner governments
• relevant multilateral environment agreements.
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Through these policies and laws, AusAID works with partner governments to implement
policies and programs that integrate long and short-term economic, environmental and
social considerations. When appropriate, AusAID works with partner governments to
conserve biological diversity, prevent irreversible environmental damage, and ensure that
the diversity and productivity of the environment is preserved for future generations.
303
How the outcomes specified for AusAID contributed to

ecologically sustainable development in 2009–10
(section 516A(6)(b))
The overall outcome specified for AusAID in 2009–10 is:
To assist developing countries to reduce poverty and achieve sustainable development,

in line with Australia’s national interest
A range of programs developed to achieve this outcome in 2009–10 contributed to

the principles of ecologically sustainable development at the country, regional and
global levels.
Working with our whole-of-government partners, AusAID continued to support the

International Climate Change Adaptation Initiative through funding of $328.2 million over
five years. In 2009–10, this support contributed to the launch and implementation of
the first ever region-wide community-based adaptation program which helps fund local
level adaptation responses. AusAID assistance also helped to develop and implement a
climate change higher education program at the University of the South Pacific, which is
strengthening the region’s capacity to make informed adaptation decisions. In partnership
with the Department of Climate Change and Energy Efficiency, AusAID also provided
$273 million over six years to the International Forest Carbon Initiative to demonstrate
that reducing emissions from deforestation and forest degradation in developing countries
can be part of an equitable and effective future. Implementation continued on a number of
bilateral environment and climate change programs, including the International Water and
Sanitation Initiative, which has been allocated $300 million in funding over three years.
A p p e n d i c es
AusAID also managed substantial contributions to various multilateral environment

programs to deliver further environmental benefits. This included contributions to the
Coral Triangle Initiative which is working with Indonesia, the Philippines, Malaysia,
East Timor, Papua New Guinea and Solomon Islands to build the resilience of productive
coastal ecosystems to the impacts of climate change. AusAID also continued to support
a range of energy programs through development partnerships and bilateral programs,
focusing primarily on the Mekong and Pacific regions. Promoting less greenhouse gas
intensive development through renewable energy has been an important focus of this
support, as well as progressing national energy sector reforms and extending reliable
energy services to poor and remote communities. Working with multilateral partners,
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AusAID continued to help countries transition to lower carbon economies and address
the impacts of climate change. This included providing $100 million from 2008–09 to
2010–11 to the World Bank-administered Clean Technology Fund.
These and other investments represent a significant increase in environment and climate
change-related activities for the Australian overseas development program.
30 4
Effects of AusAID activities on the environment in 2009–10

and measures AusAID is taking to minimise these impacts
(section 516A(6)(c) and (d))
AusAID undertook a range of actions during the year to help ensure positive environmental
effects were achieved from Australia’s overseas development program. These
actions included:
• continuing to increase environment and climate change related activities
• continuing to apply the environmental management system to reduce possible negative
environment effects of AusAID activities
• delivering in-house training to over 150 staff in Canberra and at post to help staff
integrate environment and climate change initiatives in the design and implementation
of aid activities
• updating the environment and climate change marker questions embedded within
AusAID’s program management system (AidWorks) that AusAID staff must respond
to when starting a new initiative or activity to better capture environment and climate
change-related impacts
• monitoring new AusAID initiatives to ensure that staff are properly identifying
environment and climate change impacts
• updating AusAID’s quality system to ensure that environment and climate change
considerations are properly identified before project implementation
• enhancing AusAID’s capacity to integrate environment and climate change
A p p e n d i c es
considerations across the aid program by having full-time environment and climate
change advisers
• piloting specific country action plans in Indonesia and Philippines to integrate
environment, climate change and disaster risk reduction into programs.
AusAID mechanisms for reviewing and increasing the

effectiveness of these measures in 2009–10
(section 516A(6)(e)
AusAID has quality and monitoring and evaluation mechanisms in place to ensure that its
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activities achieve their intended objectives. These mechanisms include:

• peer reviewers and independent reviewers to assess whether the environmental and
climate change marker questions prescribed in AusAID’s AidWorks system have been
adequately addressed in the design document
• AusAID’s initiatives and activities set specific targets that must be achieved, and
against which project implementation can be monitored.
AusAID’s development assistance program is guided by the agency’s Environmental

management guide for Australia’s aid program (2003). This guide outlines the steps
involved in undertaking environmental assessments of the agency’s activities and in
managing potential environmental impacts. AusAID also has a corporate environment
305
management system that guides office-based activities in Canberra and outlines the
process of environmental assessment and management planning for Canberra-based
office operations.
Corporate environment policy

As well as the actions described above, AusAID’s corporate environment policy sets
priorities for areas of AusAID’s operations that have the greatest environmental impact.
AusAID monitors agency-wide environmental performance against benchmarked targets

and objectives outlined in the corporate environmental policy. ISO14001 provides
guidelines for auditing and reporting under AusAID’s environmental management system
and the details provided in the tables below provide evidence of the positive approach and
results being achieved.
Environmental awareness campaign

AusAID continues to provide environmental awareness campaigns to educate staff
in Canberra about sound corporate environmental practices in their day-to-day office
activities. For example:
• both Canberra offices participated in the Earth Hour campaign in March 2010
• daily notices were issued to all Canberra staff encouraging them to turn off computers
and screens at the end of the day
• garbage bins in all kitchen and breakout rooms have been updated to clearly identify
and separate waste into recyclables and waste.
A p p e n d i c es
Green building
AusAID has two premises in Canberra: at 255 London Circuit and levels 5 through to 11
at 20 Allara Street.
255 London Circuit features the latest in environmentally sustainable cooling systems—
chilled beams, which work by reticulating chilled water through beams in the ceiling space
and radiating cooled air through a perforated metal ceiling grid.
The office space is also supplied with 100 per cent fresh air and natural light, making it
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a productive and efficient working environment. Storm water is captured onsite as grey
water and used in toilets and for watering surrounding gardens. Low volatile organic
compound materials and a high component of recyclable construction materials have been
combined with the leading edge technological cooling systems to create a building that
has received an accredited 4.5 star National Australian Built Environment Rating System
energy rating for offices.
An upgrade of mechanical and hydraulic services by the owners of the 20 Allara

Street premises has delivered a 4 star National Australian Built Environment Rating
System rating.
30 6
AusAID continues to consider the embodied energy required to complete current and
future building projects and is implementing initiatives to minimise the impact on the
environment when undertaking any building works.
Green energy
AusAID purchases 10 per cent green energy for all of its domestic energy needs.
Paper and printing

Paper with at least at 80 per cent recycled content is used throughout the agency and
multi-functional devices have been defaulted to printing in black and white and duplex.
Video conferencing
Enhanced video conferencing facilities have been installed to reduce air travel.
Ride to Work initiative

To reduce carbon emissions from motor vehicle use, AusAID supports staff riding to work
by providing secure bike storage and quality shower and locker facilities. The agency also
supports and engages in the Department of Health and Ageing’s Ride to Work initiative.
ICT procurement
All computer desktops that need replacing or that are reaching the end of their life cycle
will be replaced with laptop computers as part of the strategic ICT procurement and
A p p e n d i c es
maintenance rollout.
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307
Energy consumption
The table below shows the agency’s energy consumption and associated greenhouse gas
emissions over the past five years.
Table 18: AusAID’s energy consumption and greenhouse gas emissions for 2006–2010
Office—tenant light
and power 2005–06 2006–07 2007–08 2008–09 2009–10*
Electricity usage (kWh) 1 266 427 1 499 069 1 056 784 1 363 166 1 518 643
Green power usage (kWh) –101 314 –121 556 –105 678 –11 392 –151 864
Area (m ) 2
9948 10 100 12 515 12 515 13 709
Number of buildings 1 2 2 2
Occupancy (people) 622 673 718 827 854
MJ/m2 458 534 303.8 274 297
MJ/building 5 396 48 1 902 000 1 716 683 2 034 668
MJ/people 7330 8 019 5298 4 152 4765
m /person
2
16 15 17.4 15 16
Stationary energy total (GJ) 4559 5397 3404 4766 5467
Transport energy (GJ) 1 128 1275 1708 1468 1473
AusAID total energy (GJ) 5687 6671 5112 6235 6940
Gross greenhouse gas 1414.52 1661.82 1231.26 1285.83 1488
emissions (tonnes)
A p p e n d i c es
Source: AusAID: OSCAR Report
Table 19: AusAID waste management/recycling (tonnes) 2006–2010
2006–07 2007–08 2008–09 2009–10*

Type of Waste (tonnes) (tonnes) (tonnes) (tonnes)
Classified/ unclassified paper – 35.27 51.34 48.04
and cardboard
Commingled waste 0.51 8.80 8.75 10.56
Waste to landfill 20.32 18.62 26.61 25.36
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*yet to be determined
30 8
APPENDIX J. Statement of material errors
J. Statement of material
errors
The following corrections are made to the AusAID Annual Report 2008–09.
On page 191 under the heading Consultants, there was an error in the total of four
ongoing consultancy contracts stated as $207 million. The correct amount was $207 000.
On page 100, there were errors in figure 11: Estimated total ODA to Africa by country
2008–09. The corrected table was published in the online version of the report with a
note explaining that it included corrections to errors appearing in the printed version. The
corrected information is as follows:
ESTIMATED TOTAL ODA TO AFRICA BY COUNTRY 2008–09
Other Africa (6%)

Mozambique (2%)
Malawi (3%)
South Africa (4%)
Zimbabwe (30%)
Kenya (6%)
Egypt (7%)
A p p e n d i c es
Congo,
Dem. Rep. (8%)
Ethiopia (9%) Africa unspecified (14%)
Sudan (11%)
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30 9
Below Papua New Guinea nurse

Rebecca Christopher and Australian volunteer
theatre nurse Lyndell Adato providing
life‑saving heart surgery to children with
heart defects at Port Moresby General
Hospital through the AusAID funded Below Naovanglee Norvaly is fitted with a new prosthetic leg
Operation Open Heart initiative. AusAID by Sommai at the AusAID-funded Cooperative Orthotic and
has provided more than $3.2 million to the Prosthetic Enterprise (COPE) Rehabilitation Centre. He will
initiative since 1993 receive ongoing support from COPE
Photo: Rocky Roe Photo: Jim Holmes
31 0
Glossary and
indexes
Section 6
Glossar y
Abbreviations
Compliance index
Index
Glossary
Accountability Obligation to demonstrate that work has been conducted in
compliance with agreed rules and standards.
Accra The Accra Agenda for Action, endorsed in September 2008,

commits donors, partner governments and multilateral
development organisations to undertake actions to
accelerate implementation of the Paris Declaration.
Additional estimates Where amounts appropriated at budget time are insufficient,

Parliament may approve more funds to agencies through the
Additional Estimates Appropriation Acts.
Administered items Revenues, expenses, assets or liabilities managed by

agencies on behalf of the Commonwealth. Agencies do not
control administered items. Administered expenses include
grants, subsidies and benefits. In many cases, administered
expenses fund the delivery of third party outputs.
Agency Agencies are departments of state, departments of the

Parliament and ‘prescribed agencies’ for the purposes of the
Financial Management and Accountability Act 1997.
Aid modalities The way donor support is channelled to the activities to

be funded.
Alignment Donors base their overall support on partner countries’

national development strategies, institutions and processes
G lossary an d i n d e xes
(Paris Declaration).
Appropriation An authorisation by Parliament to spend money from the

Consolidated Revenue Fund.
Bilateral aid A non-commercial resource flow from the government

(or other public sector institutions) of one country which
benefits the economic and social development of the
population of a developing country, or identifiable group of
Civil society Voluntary organisations and institutions that form the basis
of a functioning society, as opposed to the structures of a
state and commercial institutions.
Community development The long-term process in which people living in poverty

are empowered by working with civic leaders, activists,
professionals and aid providers to identify their needs
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and develop skills to improve the quality of their lives and

their communities.
31 2
G lossary
Corporate governance The process by which agencies are directed and controlled.
It encompasses authority, accountability, stewardship,
leadership, direction and control.
Development A long-term plan to improve the situation of people living

in developing countries, which may include projects around
poverty reduction, governance, healthcare and education.
It differs from disaster relief or humanitarian aid, which
responds to a specific crisis.
Development Assistance A committee of the member countries of the Organisation

Committee for Economic Co-operation and Development through which
those countries coordinate and report on their national aid
programs, and participate in international discussion and
agreement on the principles and practices of aid policy
and delivery
Effectiveness The extent to which a development intervention’s outcomes

are achieved through relevant outputs and, where applicable,
administered expenditure.
Efficiency A measure of how economically resources and inputs are

converted to results.
Evaluation The systematic and objective assessment of an ongoing

or completed project, program or policy, its design,
implementation and results.
Fragile states Countries with weak governance, failing public institutions,

instability or conflict. Also known as Low Income Countries
Glossa ry an d i nd e xes
Under Stress.
Gross domestic product The monetary value of all goods and services produced
within a nation.
Harmonisation Activities are harmonised when different donors adopt

the same actions to enure greater effectiveness
and transparency.
Heavily Indebted Launched in 1996 by the International Monetary Fund and

Poor Country World Bank to ensure no poor country faces a debt burden it
cannot manage.
Joint financing An agreement between a number of donors and a recipient

arrangement government specifying how donors may jointly finance a set
of activities.
Memorandum of A document outlining the terms and details of a non-

S ECT IO N 6
understanding binding agreement between parties including each parties

requirements and responsibilities.
313
Microcredit Small, collateral-free loans to the very poor for self-

employment.
Microfinance Financial services for poor people such as credit, savings

and insurance.
Millennium Development Eight goals drawn from the United Nations Millennium
Goals Declaration of September 2000 to fight against poverty,
illiteracy, hunger, lack of education, gender inequality,
child and maternal mortality, disease and environmental
degradation by the target date of 2015.
Multilateral aid When a number of countries contribute aid for the benefit
of other countries. International organisations that pool,
coordinate and disburse this aid include the World Bank,
Asian Development Bank, United Nations Development
Programme, United Nations Children’s Fund, and the
World Food Programme.
Multilateral agencies International institutions with governmental membership

that conduct all or most of their activities in favour of
development and aid recipient countries. They include
multilateral development banks, United Nations agencies
and regional groupings.
Official development Grants, loans, goods and services given by the government
assistance of a country (any level) to assist the progress of
Organisation for International organisation of 30 countries that supports the

Economic Cooperation principles of democracy and free market economies.

and Development (OECD)
Paris Declaration on An international agreement to increase efforts to harmonise,

Aid Effectiveness align and manage aid with a set of monitorable actions
and indicators.
Performance information Quantitative or qualitative evidence about performance.
Program A time bound intervention involving multiple activities that

may cut across sectors, themes and geographic areas.
Program-based approach Uses the principle of coordinated support for a locally

owned program of development, such as a national poverty
reduction strategy, a sector program, a thematic program or
a program of a specific organisation.
Risk management The culture, frameworks and structures that are directed
S ECTI O N 6
towards the effective management of potential opportunities

and adverse effects.
31 4
G lossary
Sector wide approach A program-based approach operating at the level of an

entire sector.
Sustainable development Improves total quality of life without compromising the

ability of future generations to meet their own needs. Done
in a way that balances the environmental, economic and
social factors.
Transaction costs The direct and indirect costs incurred by aid providers and
recipients, which are associated with the management of aid
and the aid partnership generally.
United Nations Global association of governments facilitating cooperation

in international law, security, economic development and
social equity.
S ECT IO N 6
315
Abbreviations
AANZFTA Australia–ASEAN–New Zealand Free Trade Agreement
ACFID Australian Council for International Development
ACIAR Australian Centre for International Agricultural Research
ADCP II Australia Development Cooperation Program, Phase II
ADF Asian Development Fund
AIPRD Australia–Indonesia Partnership for Reconstruction and Development
APEC Asia-Pacific Economic Cooperation
APS Australian Public Service
APSED World Health Organization’s Asia Pacific Strategy for
Emerging Diseases
ASEAN Association of Southeast Asian Nations
ASEAN+3 10 ASEAN member states and China, Japan and the Republic
of Korea
AYAD Australian Youth Ambassadors for Development
BEAM Basic Education Assistance for Mindanao
BRAC Bangladesh Rehabilitation Assistance Committee
BRIDGE program Building Resources in Democracy, Governance & Elections program
CAADP Comprehensive Africa Agriculture Development Program
CARICOM Caribbean Community
G lossa ry a nd i n d e xes
CSIRO Commonwealth Scientific and Industrial Research Organisation

Development OECD Development Assistance Committee
Assistance
Committee
GAVI Global Alliance for Vaccines and Immunisation
HIPC Heavily Indebted Poor Countries Initiative
HIV/AIDS Human Immunodeficiency Virus/ Acquired immune
deficiency syndrome
IAEA International Atomic Energy Agency
IDA International Development Association
IFC International Finance Corporation
ILO International Labour Organization
LTTE Liberation Tigers of Tamil Eelam
S ECT IO N 6
MDGs Millennium Development Goals
31 6
Abbreviatio ns
MOPAN Multilateral Organisation Performance Assessment Network

NGO non-government organisation
NZAID New Zealand International Aid and Development Agency
ODA Official development assistance
OECD Organisation for Economic Co-operation and Development
OHCHR Office of the United Nations High Commissioner for Human Rights
OHS occupational health and safety
RAMSI Regional Assistance Mission Solomon Islands
SAARC South Asian Association for Regional Cooperation
SADI Smallholder Agribusiness Development Initiative
SARS Severe acute respiratory syndrome
SPRINT Sexual and Reproductive Health Programme in Crisis and Post-Crisis
Situations for East, Southeast Asia and the Pacific
UNAIDS Joint United Nations Programme on HIV/AIDS
UNCERF United Nations Central Emergency Response Fund
UNCRPD United Nations Convention on the Rights of Persons with Disabilities
UNDOC United Nations Office on Drugs and Crime
UNDP BCPR United Nations Development Program Bureau for Crisis Prevention
and Recovery
UNEP United Nations Environment Programme
UNESCO United Nations Educational, Scientific and Cultural Organization
Glossa ry a nd in de xes
UNFPA United Nations Population Fund
UNHCR Office of the United Nations High Commissioner for Refugees
UNICEF United Nations Children’s Fund
UNIFEM United Nations Development Fund for Women
UNOCHA United Nations Office for the Coordination of Humanitarian Affairs
UNPF United Nations Peacebuilding Fund
UNRWA United Nations and Relief and Works Agency for Palestine Refugees
in the Near East
USAID United States Agency for International Development
WFP World Food Programme
WHO World Health Organization
S ECT IO N 6
317
List of requirements
This list is prepared from the checklist of annual report requirements contained in
attachment F to the Requirements for annual reports approved by the Joint Committee of
Public Accounts and Audit under subsections 62(2) and 70(2) of the Public Service Act
1999 on 23 June 2010.
Description Page Requirement

Letter of transmittal iii Volume 1 Mandatory
Table of contents iv Mandatory
Index 322 Mandatory
Glossary 312 Mandatory
Contact officer(s) ii Mandatory
Internet home page address and internet address for report ii Mandatory
Review by departmental secretary 2 Mandatory
Summary of significant issues and developments 2–8 Suggested
Overview of department’s performance and financial results 2–8 Suggested
Outlook for following year 8 Suggested
Significant issues and developments—portfolio 2–8 Portfolio
departments
– suggested
Agency overview
Overview description of department 9–13 Mandatory
Role and functions 9 Mandatory

Organisational structure 12 Mandatory
Outcome and program structure 13 Mandatory
Where outcome and program structures differ from PBS/ PAES Nil to report Mandatory
or other portfolio statements accompanying any other additional
appropriation bills (other portfolio statements), details of variation
and reasons for change
Portfolio structure 9–13 Portfolio
departments
– mandatory
Report on performance
Review of performance during the year in relation to programs and 16–175 Mandatory
contribution to outcomes
Actual performance in relation to deliverables and KPIs set out in 16–175 Mandatory
PB Statements/ PAES or other portfolio statements
S ECTI O N 6
31 8

Performance of purchaser/ provider arrangements 16–34 If applicable,
118–122 suggested
123–135
136–141
142–159
197–201
Where performance targets differ from the PBS/ PAES, details Nil to report Mandatory
of both former and new targets, and reasons for the change
Narrative discussion and analysis of performance 16–175 Mandatory
Trend information 2–8, 16–28 Mandatory
Significant changes in nature of principal functions/ services Nil to report Suggested
Factors, events or trends influencing departmental performance 16–175 Suggested
Contribution of risk management in achieving objectives 7, 183-184 Suggested
Social justice and equity impacts 18–28 Suggested
Performance against service charter customer service standards, Nil to report If applicable,
complaints data, and the department’s response to complaints mandatory
Agency resource statement and summary resource tables 33, 35, 64, 95, Mandatory
by outcomes 118, 123, 136.
160, 171, 281
Discussion and analysis of the department’s financial 174–175 Mandatory
performance
Discussion of any significant changes from the prior year or 2–8, 16–32 Suggested
from budget.
Developments since the end of the financial year that have Nil to report If applicable,
affected or may significantly affect the department’s operations or mandatory
financial results in future
Statement of the main corporate governance practices in place 178–180 Mandatory
Names of the senior executive and their responsibilities 178–180 Suggested
Senior management committees and their roles 180 Suggested
Corporate and operational planning and associated performance 16–175, Suggested
reporting and review 181–184
Approach adopted to identifying areas of significant financial or 180–185 Suggested
operational risk and arrangements in place to manage risks
Agency heads are required to certify that their agency complies 185 Mandatory
with the Commonwealth Fraud Control Guidelines
Policy and practices on the establishment and maintenance of 186 Suggested
appropriate ethical standards
How nature and amount of remuneration for SES officers 188 Suggested
is determined
S ECT IO N 6
319

External scrutiny
Significant developments in external scrutiny 187 Mandatory
Judicial decisions and decisions of administrative tribunals 187 Mandatory
Reports by the Auditor-General, a Parliamentary Committee or the 187 Mandatory
Commonwealth Ombudsman
Assessment of effectiveness in managing and developing human 188–196 Mandatory
resources to achieve departmental objectives
Workforce planning, staff turnover and retention 188–196, Suggested
287–295
Impact and features of enterprise or collective agreements, 188–190, 293 Suggested
determinations, common law contracts and AWAs
Training and development undertaken and its impact 190–191, 295 Suggested
Occupational health and safety performance 192–193 Suggested
Productivity gains 188–190 Suggested
Statistics on staffing 287–295 Mandatory
Enterprise or collective agreements, determinations, common law 188–190, 293 Mandatory
contracts and AWAs
Performance pay 188 Mandatory
Assets management
Assessment of effectiveness of assets management 200 If applicable,
mandatory
Purchasing
Assessment of purchasing against core policies and principles 197–199 Mandatory
Consultants
The annual report must include a summary statement detailing 197–199, Mandatory
the number of new consultancy services contracts let during the 300–301
year; the total actual expenditure on all new consultancy contracts
let during the year (inclusive of GST); the number of ongoing
consultancy contracts that were active in the reporting year; and
the total actual expenditure in the reporting year on the ongoing
consultancy contracts (inclusive of GST). The annual report must
include a statement noting that information on contracts and
consultancies is available through the AusTender website
Competitive tendering and contracting
Absence of provisions in CTC contracts allowing access by the 197–199, Mandatory
Auditor-General 300–301
Exempt contracts
Contracts exempt from the AusTender 198 Mandatory
Commonwealth Disability Strategy
Report on performance in implementing the Commonwealth 195–196 Mandatory
S ECTI O N 6
Disability Strategy
320

Financial statements
Financial statements 203–277 Mandatory
Other information
Occupational health and safety (section 74 of the Occupational 192–193 Mandatory
Health and Safety (Commonwealth Employment) Act 1991)
Freedom of Information (subsection 8(1) of the Freedom of 296–298 Mandatory
Information Act 1982)
Advertising and Market Research (Section 311A of the 302 Mandatory
Commonwealth Electoral Act 1918) and statement on
advertising campaigns
Ecologically sustainable development and environmental 303–308 Mandatory
performance (Section 516A of the Environment Protection and
Biodiversity Conservation Act 1999)
Other
Grant programs Nil to report Mandatory
Correction of material errors in previous annual report 309 If applicable,
mandatory
List of Requirements 318 Mandatory
S ECT IO N 6
32 1
Index
A African Water Facility, 99
The Age, 162
AADCP II, 88
agency overview, 9–13
AANZFTA, 89
agricultural research, 98, 113, 116, 147,
ABC television, 161
173
Aboriginal and Torres Strait Islander staff,
agricultural trade, 28
195, 294
agriculture, 131
accountability, see governance; management
and accountability Afghanistan, 113, 115
Aceh, 172 Africa, 98; Zimbabwe, 100
ACFID, 138, 139 Cambodia, 82
ACIAR, 98, 113, 116, 147, 191 East Timor, 79
ActionAid, 154, 163 foot and mouth disease, 91
ADB, see Asian Development Bank India, 107
Adelaide, 163, 167, 195 Indonesia, 70, 91, 172, 173
ADF, 128, 286 Iraq, 108–9
see also Australian Defence Force Pakistan, 116
administered programs, 13, 35–159, 174, see also food and nutrition; forestry;
281–2 rural development
staff, 287, 288 aid budget, see official development
assistance
administrative tribunal decisions, 187
Aid Week, 161
adult learning, Nauru, 52
AIDS, see HIV/AIDS
advertising and market research, 302
AidWorks system, 305
Afghanistan, 4, 112–15, 162
AIPRD, see Australia-Indonesia Partnership
education, 23–4, 112, 113, 115
for Reconstruction and Development
Multilateral Organisation Performance
airports, PNG, 41
Assessment Network survey, 130
Ambae, 50
official development assistance (ODA),
108, 112, 285 ANAO, see Australian National Audit Office
Afghanistan Basic Package of Health ANCP, 137–8, 139
Services program, 113 animal health, 91

Afghanistan Education Quality Improvement annual performance reports, 29
Program, 113 Annual Report 2008–09, material errors in,
Afghanistan Health Development Service, 309
114 Annual Review of Development
Afghanistan Ministry of Agriculture, Irrigation Effectiveness, 7, 160
and Livestock, 115 anthrax, 132
Afghanistan National Solidarity Program, 115 Anti-Personnel Mine Ban Convention, 154
Africa, 32, 96–100, 127, 147, 285 anti-retroviral treatment for HIV, 26
Annual Report 2008–09 material error, Antigua, 130
309 APEC, 88, 89, 90
BRIDGE training, 145 APS Commission, 169, 195
Commonwealth observer groups to APS Values and Code of Conduct, 186
elections, 130 Arabic language education programs,
Education for All Fast Track Initiative, 21 Philippines, 77
Hamlin Fistula Hospital, 163 Archer, Robyn, 161
HIV/AIDS, 96, 137 Argentina, 117
peacebuilding, 152 Art Nation, 161
people with disability, 148 ASEAN, 88–9, 92
school feeding programs, 19 disaster response capabilities, 65
S ECT IO N 6
volunteer programs, 96, 141 laboratory network, 90–1

Africa Enterprise Challenge Fund, 100 ASEAN Australia Development Cooperation
African Development Bank, 99 Program, Phase II, 88
322
Index
ASEAN-Australian Development Cooperation Australia-Indonesia Partnership for

Program, 28 Reconstruction and Development
ASEAN Public Sector Linkages Program, 89 (Outcome 2), 31, 171–3
ASEAN+3 Emerging Infectious Diseases finance, 13, 171, 174, 175, 281, 284
program, 91 Australia Network, 161
Asia, see Central Asia; East Asia; South Asia Australia-Pacific Technical College, 38, 53,
Asia economic support program, 88–90 56
Asia Foundation, 144 Australia-Solomon Islands Partnership for
Asia-Pacific Economic Cooperation, 88, 89, Development, 49
90 Australia-Timor Leste Country Strategy
Asia-Pacific Forum of National Human Rights 2009–2014, 79
Institutions, 155 Australia-Vanuatu Partnership for
Asia-Pacific Strategy for Emerging Diseases, Development, 48, 50
90 Australian Broadcasting Corporation, 161
Asia Regional Trafficking in Persons Project, Australian Centre for International
92 Agricultural Research, 98, 113, 116,
Asia Transboundary Program, 90–2 147, 191
Asian Development Bank (ADB), 128, 130, Australian Civilian Corps, 152–3
155, 168 Australian Council for International
Greater Mekong sub-region, 86 Development, 138, 139
South Asia, 105, 107 Australian Customs and Border Protection
Asian Development Fund, 128, 286 Service, 169
assets, 200–1 Australian Defence Force, 4, 39, 120, 151
Association of Southeast Asian Nations, see HMAS Tobruk, 52, 120
ASEAN training for staff deployed under, 190
Attorney-General’s Department, 59, 169 Australian Development Research Awards,
Audit Committee, 183–4 149, 158
audits, 7, 174, 184, 187 Australian Development Scholarships,
142–3, 148
PNG backlogs, 41
East Timor, 79
see also reviews and evaluations
Mongolia, 87
Auki Correctional Centre, 59
Pakistan, 116, 148
Aurion, 193
Papua New Guinea, 38, 43
AusAID Disability Action Plan 2007–2010,
195 Vietnam, 82
AusAID Enterprise Agreement 2009–2011, Australian Electoral Commission, 73, 144
186, 189–90, 293 Australian Federal Police, 4, 50, 59, 151,
AusAID–NGO Cooperation Program, 137–8, 152
139 Australian Government Solicitor, 152
AusAID 2010—Director General’s blueprint, Australian Institute of Criminology, 185
11 Australian Leadership Awards Scholarship
AusAID-United Nations Population Fund East Timor, 79
agreement, 24, 132 India, 107
AusTender, 196, 198 Latin America, 117
Austrade, 191 Mongolia, 87
Australia–Africa Food Security Initiative, 98 Papua New Guinea, 38
Australia-Africa Partnerships Facility, 96 Australian National Audit Office, 169, 184,
Australia–ASEAN–New Zealand Free Trade 199
Area, 89 audits, 7, 185, 187; financial
Australia Awards, 85, 142, 143 statements, 174
Australia Day Achievement Awards, 196, Australian National University, 87
295 Australian Office of Financial Management,
Australia Indonesia Basic Education 169
Program, 22, 72, 172 Australian Partnerships Scholarships
S ECT IO N 6
Australia-Indonesia Facility for Disaster program, 173

Reduction, 74, 120 Australian Public Service Commission, 169,
Australia-Indonesia Partnership Country 195
Strategy for 2008–2013, 67
323
Australian Public Service Values and Code of Brazil, 117, 122, 156
Conduct, 186 BRIDGE, 144–5
Australian Red Cross, 52, 118, 139 BRIDGE (Indonesia), 72
Australian Volunteers International, 139 bridges, see roads
Australian workplace agreements (AWAs), briefs, 166
189–90, 293 Brisbane, 164, 195
Australian Youth Ambassadors for Britain, see United Kingdom
Development (AYAD), 139, 140, 286 broadcasting, 120, 161, 163, 167
Africa, 96 Papua New Guinea, 43
Mongolia, 87 Tonga, 52
No ordinary journey documentary, 161 budgeting programs, see economic
Australia–Vanuatu Partnership for governance and growth
Development, 50 Building on the 2010 blueprint report, 181
avian influenza, 90, 91 Building Resources in Democracy,
Avian Influenza Risk Reduction Program, 91 Governance and Elections program,
aviation, 89 144–5
Papua New Guinea, 41 Buka Wharf, 41
awards (educational), see scholarships bullying, 186
awards (recognition), 145, 163 Burkina Faso, 127, 148
staff, 196, 295 Burma, 84, 91
awareness and support for development official development assistance (ODA),
assistance, 161–5 66, 84, 284
Burundi, 152
B business unit planning, 181
Babylon, 109
Baghdad, 109 C
Bali, 172 Cairns Compact on Strengthening
Bandung, 146 Development Coordination in the
Bangladesh, 21, 102–3, 129 Pacific, 46–7, 128
official development assistance (ODA), Call to Action on Climate Change, 46
19, 102, 285 Cambodia, 28, 82, 149
Bangladesh Second Primary Education food and nutrition, 19, 82
Development Program, 103 health, 25, 82, 91
Bank of Indonesia, 70 landmine clearance, 154

Barbuda, 130 mobile banking project, 156
basic education, see education official development assistance (ODA),
Basic Education Assistance for Mindanao 66, 82, 284
program, 77 Canberra, 195
Belize, 117 capacity building, see economic governance
Benin, 127 and growth; education
Bhutan, 102, 107, 283, 285 carbon, 27, 70, 304
bird flu, 90, 91 CARE Australia, 23–4, 91, 163
births, see child health; maternal and Caribbean, 117, 130, 148
reproductive health Commonwealth Heads of Government
Black Malaria Project, 26 Meeting, 5
Blueprint for a better world interactive Haiti, 122
exhibition, 164 Caribbean Disaster Emergency Agency, 122
Boland, Pat, 141 CARICOM, 5
bomb clearance, Laos, 83, 161 Caritas Australia, 138, 164
border control, see quarantine and border Carnegie Mellon awards program
control Pakistan, 116
Bougainville, 41, 42, 152 Cartagena Summit on a Mine-Free World, 5
S ECTI O N 6
BRAC, 102, 103 cash flows, 174–5

Challenging the Frontiers of Poverty cash reserves, 174
Reduction Program, 19, 103 cassava, East Timor, 79
324
Index
cataract surgery, 116 classrooms, see school infrastructure

cattle industry, Indonesia, 173 Clean Technology Fund, 27, 134, 286
censuses, 43, 50 climate change, 27, 126, 133–4, 169,
Central America, see Latin America 304–5
Central Asia and Middle East, 32, 108–16, Copenhagen Accord, 5, 27
119, 283, 285 Indonesia, 69
see also Afghanistan; Iraq; Pakistan Pacific adaptation initiatives, 46, 62–3,
Central Punjab, 116 126, 161
Centre for Humanitarian Dialogue, 151–2 South Asia, 101
certificate of fraud control compliance, 185 see also disaster management
Chad, 96 Climate Investment Funds, 133–4
Challenging the Frontiers of Poverty Clean Technology Fund, 27, 134, 286
Reduction Program, 19, 103 coastal protection activities, 61, 63, 304
change agenda, 181, 188 cocoa industry, Indonesia, 70
chemicals, toxic, 62 codes of conduct, 186
Chief Finance Officer, 184 Colombia, 117
child health, 16, 25, 127, 132, 133, 139 Comcare, 193
Afghanistan, 113, 114 Committee for Development Cooperation,
Africa, 96 138, 183
Bangladesh, 102, 103 common law agreements, 188, 190
East Timor, 79 Commonwealth Disability Strategy, 195–6
Indonesia, 126, 127 Commonwealth Grants Guideline, 199
Laos, 83 Commonwealth Heads of Government
Nauru, 53 Meeting, 5
Nepal, 106 Commonwealth Ombudsman, 187
Palestinian refugees, 112 Commonwealth organisations, 5, 130, 286
Papua New Guinea, 25, 39 Commonwealth Procurement Guidelines,
Sri Lanka, 104 198, 199
see also maternal and reproductive Commonwealth Scientific and Industrial
health Research Organisation, 98, 168
child soldiers, 152 communicable diseases, see infectious
diseases
ChildFund Australia, 138
communication infrastructure, 39, 51
children, 96
communication programs, 286
with disability, 150; see also disability,
education of children with see also publications; websites
trafficking and sexual exploitation, 92 Community Call to Action, 138
see also education; young people community programs, 136, 138–9, 286
Chile, 116, 117 Comprehensive Africa Agriculture
Development Program, 98
China, 66, 86–7, 91, 284
computers, 306, 307
Chittagong Hill Tracts, 103
see also websites
CHOGM, 5
condoms, 40, 71, 91
cholera, 39, 100
conferences and other forums, 5, 6, 162,
Chulalongkorn University, 85
163, 168
civil society, 130, 145, 162–4
career fairs, 195
Africa, 99
Consultative Forum on Aid, 29
Indonesia, 73
energy security, 107
Pacific, 60
International Seminar Support Scheme,
Pakistan, 116 159, 286
South Asia, 107 Leadership Development, 143
see also democratic governance; non- Meeting the Millennium Development
government organisations Goals, 138
Civil Society Water Sanitation and Hygiene One Just World, 167
S ECT IO N 6
Fund, 99
Pacific Disability Forum, 148
Civilian Corps, 152–3
classification of staff, 287–8, 293–4
325
States Parties on the Convention on the curriculum and curriculum development,

Rights on Persons with Disabilities, 164–5
150 AusAID internal subject matter, 190
United Nations Department of Public Fiji health care workers, 56
Non-Government Organisation Philippines, 77
Conference, 139 Vanuatu, 50
Congo, 96, 97, 100, 127 customs, see quarantine and border control
consultants, 197, 300–1 cyclones
Annual Report 2008–09 material error, Burma, 84
309
Fiji, 51, 56, 57
consultative arrangements, 182–3, 297
Laos, 120
non-government organisations, 138
Philippines, 75, 76, 120
Consultative Forum on Aid, 29
Consultative Group on International
Agriculture Research, 147 D
Consultative Group to Assist the Poor, 156 data and statistical collection, 43, 50
contaminated transformers, 62 debt management, see economic
continuous improvement, 198 governance and growth
contract services, see purchasing debt relief, 129, 286
Convention on the Rights on Persons with deforestation, see forestry
Disabilities, 150 Delivering Better Education initiative, 21
Cook Islands, 54, 62, 284 Delivering Better Health initiative, 25
Pacific Disability Ministers’ Meeting, 148 demining, see mines and unexploded
cooling system, AusAID building, 306 ordnance
Copenhagen Accord on climate change, 5, democratic governance, 130, 144–5
27 Afghanistan, 115
Coral Triangle Initiative, 304 Burma, 84
corporate environment policy, 306 East Timor, 78
corporate governance, 178–86 Indonesia, 73
corporate planning, 181–2 Nepal, 106
Corporate Reform Committee, 181 Pakistan, 116
corruption Tonga, 52
East Timor, 79 see also civil society
Indonesia, 70 Democratic Republic of Congo, 96, 97, 100,

Papua New Guinea, 42 127
Philippines, 75 Denmark, 145
Costa del Sol, 146 Department of Climate Change and Energy
costs, see finance Efficiency, 62, 168
counselling Department of Defence, 152, 169
about HIV, 40, 137 see also Australian Defence Force
staff, 192 Department of Education, Employment and
women experiencing violence, 59, 60 Workplace Commission, 143
country and regional programs, 32, 35–122, Department of Environment, Water, Heritage
282–5 and the Arts, 62
court decisions, 187 Department of Finance and Deregulation,
court systems, see law and justice 169, 182
Covalima Youth Centre, 80 Department of Foreign Affairs and Trade, 4,
11, 152, 166, 169, 190
Crisis Prevention, Stabilisation and Recovery
Group, 151 Department of Immigration and Citizenship,
169
crop diversity, 62, 79, 109
Department of Infrastructure, Transport,
cross cultural training, 195
Regional Development and Local
cross regional programs, 142–59, 285 Government, 89, 169
CSIRO, 98, 168
S ECTI O N 6
Department of the Prime Minister and

culturally and linguistically diverse Cabinet, 152, 169, 182
backgrounds, staff from, 294 Department of the Treasury, 89, 169, 182
Deputy Directors General, 178–80, 184
326
Index
Development Assistance Committee, 18,

131, 198
E
early childhood development programs,
Australia’s contribution to policy work,
Burma, 127
131, 200
Earth Hour, 306
development banks, 99, 117, 127–9, 131,
156 earthquakes and tsunami
see also Asian Development Bank; World Bhutan, 107
Bank Group Chile, 116
development (global) education, 164–5, 286 China, 87
Development Effectiveness Steering Haiti, 122
Committee, 7, 182–3 Indonesia, 3, 74–5, 120
Development for all, 148, 196 Samoa, 50, 57, 58, 61, 120
development research, see research Tonga, 52, 57, 120
development scholarships, see scholarships East Asia, 32, 64–93, 282, 284
diarrhoea, 132, 139 Millennium Development Goals
direct mail organisations, 302 performance, 19
Director General, 11, 178, 180, 183 see also Cambodia; East Timor;
certificate of fraud control compliance, Indonesia; Laos; Philippines; Vietnam
185 East Nusa Tenggara, 71
international meetings, 168 East Timor (Timor-Leste), 78–80, 119, 151
review by, 2–8 Coral Triangle Initiative, 293
disability, education of children with, 21 disability strategy, 149
Indonesia, 72 Independent future documentary, 163
Iraq, 109 Montreal Protocol ratification, 135
Nepal, 106 official development assistance (ODA),
Samoa, 54, 149 66, 78, 284
disability, people with, 148–50, 299 Stop violence report, 24
staff, 195–6, 294 television documentary, 161
Disability Discrimination Commissioner, 150 water supply and sanitation, 78, 79, 137
Disability: fair development accessible to all, World Bank Justice for the Poor program,
148–9 144
Disability Rights Fund, 148 East Timor Ministry of Social Solidarity, 149
disaster management, 118–20, 161 Eastern Indonesia, 70, 73, 172
road improvement project, 171–2
ASEAN countries, 65
Bangladesh, 102, 103 Eco2 Cities initiative, 146
Burma, 84 ecologically sustainable development, see
environmental sustainability
Indonesia, 74–5
economic governance and growth, 19
Pacific, 57–8
Asia economic support program, 88–90
see also emergency, humanitarian and
refugee programs China, 65, 87
discussion series, 163 East Timor, 78, 79
diseases, see health Indonesia, 66, 68–70, 73
displaced persons, see refugees and Kiribati, 3
displaced persons Laos, 83
displays and exhibitions, 162, 163 Nauru, 52–3
diversity in workplace, 195–6, 294 Palestinian Territories, 111, 112
documentaries, 161, 162, 163 Papua New Guinea, 41–2
documents, 298 Philippines, 75, 76
see also publications Solomon Islands, 47, 49
Doha round, 28 South-East Asian integration, 28
domestic violence, see violence against Surviving the global recession report on
women Pacific region, 45–6
dos Santos, Raimundo, 161 Thailand, 85
S ECT IO N 6
drug and drug users, 71, 91, 107 Vanuatu, 50

Zimbabwe, 100
327
Economic Infrastructure Initiative, 146 Indonesia, 68, 74–5, 120

see also infrastructure Latin America, 116, 117
Economic Institute for ASEAN and East Asia, Mongolia, 87–8
158 Pakistan, 115, 116
education, 16, 21–3, 32 Palestinian Territories, 112
Afghanistan, 23–4, 112, 113 Papua New Guinea, 36
Africa, 96 Philippines, 76, 120
Bangladesh, 21, 102, 103, 129 Samoa, 50, 57, 58, 61, 120
Bhutan, 107 Sri Lanka, 104, 105
Burma, 84, 126–7 Tonga, 52, 57, 120
global/development, 164–5, 286 see also disaster management; World
Indonesia, see Indonesia and education Food Programme
Iraq, 108, 109 emerging infectious diseases and pandemic
Laos, 83 preparedness, 90–1
Nauru, 52 employees, see staff
Nepal, 106 employment and employment generation
1GOAL Education for All Campaign, 163 Afghanistan, 113
Pakistan, 116 East Timor, 79
Palestinian refugees, 111 labour exploitation, 92
Papua New Guinea, 21, 23, 36, 37–8, Laos, 83
44 Nauru, 52
Philippines, 75, 76, 77, 158 Palestinian Territories, 112
Samoa, 50–1, 55; children with Solomon Islands, 19
disability, 54, 149 Vanuatu, 50
school feeding programs, 19, 113, 125 see also poverty reduction and
Solomon Islands, 55 income generation; private sector
Sri Lanka, 104 development
Thailand, 85 energy and energy security, 27
Tonga, 52 fuel prices, 18
Tuvalu, 126 Greater Mekong sub-region, 85, 86
Vanuatu, 47, 50, 55 India, 107
Vietnam, 81, 82 Iraq, 108
Zimbabwe, 100 Pacific region, 46, 61; Nauru, 53
see also gender equality; higher Vietnam, 81

education; scholarships; school see also climate change
infrastructure; teacher education and The Energy and Resources Institute (TERI),
training; training 107
Education for All Fast Track Initiative, 21 energy consumption, AusAID, 308
effectiveness, 7, 16–34, 160 engineers, 120
Multilateral Organisation Performance English language training, Kiribati, 53
Assessment Network surveys, 130 Enterprise Agreement 2009–2011, 186,
peer reviews of aid programs, 131 189–90, 293
Egypt, 134 Environmental management guide for
El Salvador, 119 Australia’s aid program, 305
eLearning platform, 190, 191 environmental performance, AusAID, 303–8
elections and election processes, see environmental sustainability, 26–7, 32,
democratic governance 133–5, 286
electricity, see energy and energy security Greater Mekong sub-region, 86
elementary education, see education Indonesia, 68, 69
emergency, humanitarian and refugee Millennium Development Goal, 17
programs, 32, 118–22, 286 Pacific, 62–3, 134
Afghanistan, 113 see also agriculture; climate change;
Africa, 96, 100 forestry; water supply and sanitation
S ECT IO N 6
Burma, 84 ergonomic workstation assessments, 192

China, 87 ethics and values, 186
Fiji, 51, 56, 57 Ethiopia, 96, 100, 127, 163
328
Index
ethnic minorities flu, see influenza

Nepal, 106 Focus, 165
Philippines, 77 food and nutrition, 19, 32, 118, 121, 125,
Vietnam, 81–2 131, 146–7
European Union, 47, 130 Afghanistan, 113
evaluations, see reviews and evaluations Africa, 96, 98, 147
Executive Branch, 181 Bangladesh, 102
Executive Committee, 178–80 Bhutan, 107
exempt contracts, 198 Burma, 84
exhibitions and displays, 162, 164 Cambodia, 19, 82
external scrutiny, 187 Haiti, 122
eyes and vision, 116 Laos, 65
staff testing, 192 Millennium Development Goal, 16, 19
Mongolia, 87–8
F Pacific fisheries, 62
Pakistan, 116
Fair Trade Labelling Australia, 163
Palestinian Territories, 112
Family Court of Australia, 73
Sri Lanka, 104
family violence, see violence against women
Tuvalu, 126
farming, see agriculture
see also agriculture
‘Fast Start’ obligations, 5
food-for-work programs, 113
Federal Court of Australia, 73
food prices, 19, 126
Federally Administered Tribal Area, Pakistan,
116 foot and mouth disease, 91
Federated States of Micronesia, 54, 148, foreign language training, 191
284 forestry, 27, 304
feed, 113 Indonesia, 27, 69, 70
females, see women and girls Forum Fisheries Agency, 62
Fiji, 51, 56, 57, 148 forums, see conferences
mangrove replanting, 63 fragile states, 151–2
official development assistance (ODA), Framework for Law and Justice Engagement
45, 51, 284 with the Pacific, 59, 155
women, 60, 152 France, 47
Fiji Ministry of Health, 56 fraud control, 184–5, 186
Fiji Public Works Department, 56 see also corruption
Fiji School of Medicine, 56 free trade agreement with ASEAN, 89
Fiji School of Nursing, 56 freedom of information, 197–8
Fiji Violence Bill, 60 fuel prices, 18
Fiji Women’s Crisis Centre, 60 see also energy and energy security
finance, 13, 174–5, 204–77, 281 full-time staff, 288
staff remuneration, 188–90, 293–4 Funafuti, 46
see also official development functions and role, 9, 296–7
assistance; purchasing
Financial Inclusion Experts Group, 156
Financial Management and Accountability Act
G
g7 + Forum of Fragile States, 151
1997, 183, 199
G8, 131, 147
financial management programs, see
economic governance and growth G20, 131, 156, 169
financial services for the poor, 155–7 Garnaut, Professor Ross, 36
see also microfinance and micro- GAVI Alliance, 132, 133
entrepreneurs Gaza, 111–12
Financial services for the poor report, 155 Geelong, 167
financial statements, 174, 204–77 GemCAP, 121
S ECT IO N 6
fisheries, 62 gender equality, 16, 23–4, 121

fistula, 96, 163 Afghanistan, 23–4, 113, 115
flexible work arrangements, 190 Australia-Pacific Technical College, 56
floods, Fiji, 51 Bangladesh, 103
329
East Timor, 79 grants policy, 199

Greater Mekong sub-region, 86 Greater Mekong sub-region, 27, 85–6, 92,
Indonesia, 22, 72 120
Laos, 83 green energy, see renewable energy
Nepal, 106 greenhouse gas emissions, 27
Pakistan, 21, 116 AusAID, 308
Palestinian refugees, 111 Indonesia, 69, 70
Papua New Guinea, 37, 43 grey water, 306
Philippines, 75 Guatemala, 116
see also women and girls
gender of staff, 287–92
Germany, 6, 131, 144
H
H1N1 (swine flu) pandemic, 132
Ghana, 96, 130
hairdressing, 56
girls, see women and girls
Haiti, 122
girls’ toilets, 37
Hamlin Fistula Hospital, 163
Global Agricultural and Food Security
health, 17, 25–6, 32, 131–3, 139
Program, 131
Afghanistan, 112, 113, 114
global/development education, 164–5, 286
Africa, 96, 163; Zimbabwe, 100
Global Environment Facility, 134, 286
Burma, 84, 91
Global Facility for Disaster Reduction and
Recovery, 120 Cambodia, 25, 82, 91
Global Food Crisis Response Program, 147 China, 87
Global Fund to Fight AIDS, Tuberculosis and Fiji, 51, 56
Malaria, 57, 132, 133 Indonesia, 68, 69, 71, 73, 126
global programs, 19, 24, 28, 32, 118–70, Iraq, 108, 109
286 Kiribati, 53
global recession impacts and response, 20, Laos, 91, 132
44, 65, 130, 131 Nauru, 53, 56
Bangladesh, 102 Nepal, 106
Cambodia, 82 Pacific regional programs, 25–6, 56–7
Indonesia, 66, 69, 70, 127 Pakistan, 115–16
Kiribati, 53 Palestinian refugees, 111
Pakistan, 115 Papua New Guinea, 25, 26, 36, 37,
Solomon Islands, 49 39–40, 133

Vanuatu, 50 Philippines, 25, 26, 76
see also economic governance and Samoa, 50, 51
growth Solomon Islands, 56–7
Gold Quill Awards, 163 Tonga, 52
Golden Target Awards, 163 Tuvalu, 126
Good Weekend magazine, 162 Vanuatu, 50, 57
governance, 32, 142, 144–5 Vietnam, 81, 91
Afghanistan, 113 see also child health; emergency,
AusAID, 178–86 humanitarian and refugee programs;
China, 87 food and nutrition; infectious
East Timor, 79, 144 diseases; malaria prevention and
control; maternal and reproductive
Indonesia, 68, 70, 73, 144, 145, 169
health; water supply and sanitation
Nauru, 52–3
health and safety, occupational, 192–3
Papua New Guinea, 36, 41–3, 169
health education and training, 25, 26, 94
Philippines, 75
Afghanistan, 113, 114
Solomon Islands, 49, 144, 145
Bangladesh, 103
see also civil society; economic
China, 87
governance and growth; law and
justice East Timor, 79
S ECTI O N 6
Government Partnerships Fund, 68 Fiji, 51, 56

graduate recruitment, 194–5 Indonesia, 71
grains, Afghanistan, 113 Iraq, 109
330
Index
Laos, 132
Pakistan, 115–16
I
IDA, 128, 286
Papua New Guinea, 39
Illha de Moçambique, 99
health infrastructure
illicit drugs and drug users, 71, 91, 107
Fiji, 51
immunisation and vaccination, 25, 127,
Indonesia, 71, 74 132, 133
Laos, 127 Afghanistan, 114
Papua New Guinea, 39, 40 East Timor, 79
Vietnam, 81 Fiji, 51
Heavily Indebted Poor Countries Initiative, Nauru, 53
129, 286
high frequency radio network, PNG, 39
staff, 192
high school education, see secondary
Vanuatu, 50
education
incidents reported to Comcare, 193
higher education
income generation, see poverty reduction
Fiji School of Medicine, 56
Independent future documentary, 163
Indonesia, 72, 73
India, 102, 107, 283, 285
Papua New Guinea, 36, 37, 38; medical,
39 India National AIDS Control Organisation,
107
University of the South Pacific, 56, 304
Indigenous staff, 195, 294
see also scholarships
Indofire satellite fire monitoring system, 70
Highlands region, PNG, 39
Indonesia, 66–75, 142, 145, 169, 171–3
tribal fights, 42
aviation security, 89
HIV/AIDS, 17, 26, 91, 132, 133
Coral Triangle Initiative, 304
Africa, 96, 137
emergency and humanitarian assistance,
Burma, 84, 91
68; Padang earthquake, 3, 74–5,
China, 87, 91 120
Greater Mekong sub-region, 86 foot and mouth disease, 91
Indonesia, 71 forestry, 27, 69, 70
NGO projects, 137 human trafficking, 92
Papua New Guinea, 26, 37, 40, 133 malaria, 126
South Asia, 107 microfinance services, 156
Vietnam, 81, 91
Multilateral Organisation Performance
HMAS Tobruk, 52, 120 Assessment Network survey, 130
household income and expenditure survey, official development assistance (ODA),
PNG, 43 66, 68, 69, 70, 282, 284
housing for teachers, PNG, 37 roads, 70, 146, 171–2
human resources, see staff World Bank projects and programs, 130,
human rights, 148, 155 144, 172
China, 87 see also Australia-Indonesia Partnership
Iraq, 108 for Reconstruction and Development
Latin America, 117 Indonesia and East Asia, 32
Pakistan, 116 Indonesia and education, 68, 69, 71–3, 74
Solomon Islands, 59 Australia Indonesia Basic Education
see also disability, people with; women Program, 22, 72, 172
and girls scholarships, 173; people with disability,
Human Rights Small Grants Scheme, 117, 148
148, 155 Indonesia Infrastructure Initiative, 146
human swine flu, 132 Indonesia–Australia Forest Carbon
human trafficking, 86, 92 Partnership, 27
humanitarian relief, see emergency, Indonesian Financial Sector Stability Forum,
humanitarian and refugee programs 70
S ECT IO N 6
hunger, see food and nutrition Indonesian Ministry of Finance, 70

hydrochlorofluorocarbons, 135 Indonesian Ministry of Religious Affairs, 72
hydropower code of practice, Greater Indonesian Ministry of Trade, 172
Mekong sub-region, 86
331
Indonesian National Disaster Management Interdepartmental Development

Agency, 74 Effectiveness Steering Committee,
Indonesian National Election Commission, 168
73 interim protection orders, PNG, 43
Indonesian National Program for Community internal audit, 183–5
Empowerment, 69 PNG processes, 41
Indonesian National Team for Accelerating internally displaced persons, see refugees
Poverty Reduction, 69 and displaced persons
Indonesian Public Expenditure Support International Association of Business
Facility, 70 Communicators Gold Quill Awards,
Indonesian Supreme Court, 73 163
infant mortality, see child health International Climate Change Adaptation
infectious diseases, 90–1, 158 Initiative, 27, 169
Fiji, 56 International Committee of the Red Cross,
Papua New Guinea, 39 113, 121
see also HIV/AIDS; immunisation and International Development Association, 128,
vaccination 286
influenza, 192 International Development Research Centre,
pandemic preparedness, 90, 91, 132 158
Information and Communication Technology International Dialogue on Peacebuilding and
Steering Committee, 180 Statebuilding, 151
information, education and communication International Federation of the Red Cross
programs, 161–5, 286 and Red Crescent Societies, 122
information requests through website, 165 International Finance Facility for
Immunisation, 132
information stalls, 163
International Financial Corporation, 127, 156
information technology, 193, 306, 307
International Forest Carbon Initiative, 304
see also websites
International Foundation of Electoral
infrastructure, 32, 146
Systems, 144–5
Fiji, 51
International IDEA, 144
Indonesia, 68, 69, 70, 89; after Padang
International Labour Organization, 92, 124
earthquake, 74–5, 118
International Network on Conflict and
Laos, 127
Fragility, 131
Mekong sub-region, 85–6
international organisations, see multilateral
Pacific Region Infrastructure Facility,
organisations
60–1
International Planned Parenthood Federation,
Papua New Guinea, 36, 39 93
Philippines, 89 International Seminar Support Scheme, 159,
Samoa, 58 286
Solomon Islands, 49, 59, 60 international visits by Parliamentary
Sri Lanka, 104, 105 Secretary, 166
Thailand, 89 International Water and Sanitation Initiative,
Vanuatu, 27, 50 304
Vietnam, 81–2, 89 International Women’s Day, 162
see also roads; school infrastructure; International Women’s Development Agency,
water supply and sanitation 162, 167
Infrastructure for Growth Initiative, 146 internet, see websites
injecting drug users, 71, 91, 107 Iran, Afghan refugees returning from, 113
Innovations Fund, 139 Iraq, 108–10, 148, 156
inoculations, see immunisation and official development assistance (ODA),
vaccination 108, 285
Institute for Social Development Studies, Iraq Customs and Border Control Project,
149 110
Intensifying the response: halting the spread Islamic schools and education
S ECTI O N 6
of HIV, 132 Indonesia, 72

Inter-American Development Bank, 117, 156 Philippines, 77
Thailand, 85
332
Index
J Latin America (South and Central America),

116–17, 119, 283, 285
Jakarta post, 148, 193
microfinance projects, 117, 156
Jamaica, 148
school feeding programs, 19
Jambi, 146
see also Caribbean
Japan, 91
law and justice, 59, 92
joint parliamentary committees, 187
China, 87
Joint United Nations Program on HIV/AIDS,
East Timor, 78
132, 133
Indonesia, 73, 92; prison HIV services,
Jordan, 108, 111, 154
71
judicial scrutiny, 187
Papua New Guinea, 37, 42, 43
judicial systems, see law and justice
Solomon Islands, 49, 59
junior secondary education, Indonesia, 22,
Vanuatu, 50
72
see also legislation; violence against
Justice for the Poor program, 144
women
LEAD, 144
K leadership development, 143, 144
Kabul, 4 see also democratic governance;
Kalimantan, 69 scholarships
Kandahar, 4 Leadership Papua Guinea, 144
Kapuas River, 69 learning and development, see education;
Karbala, 109 staff learning and development
Kenya, 96, 97, 100, 127 Learning Assistance Program for Islamic
Schools, 72
HIV/AIDS, 137
learning materials, see textbooks and
Khyber Pakhtunkhwa, 116
learning materials
Kiribati, 3, 53, 61, 62, 161
Lebanon, 111, 154
legal systems, see law and justice
45, 53, 284
legislation, 152, 183, 199
violence against women, 60
Cambodia, 149
Kiribati–Australia Partnership for
Development, 48, 53 Fiji, 60
Knowledge Hubs for Health, 133 Mongolia, 88
Komisi Penanggulangan AIDS, 71 Solomon Islands, 59
Korea, 91 Lesotho, 96
Kyrgyzstan, 119 lighting, 306
linguistically and culturally diverse
backgrounds, staff from, 294
L literacy, see education
La Trobe University, 138 livestock, 173
labour, see employment and employment feed, 113
generation local government, Indonesia, 70
Lalawa, 80 Local Government Managers Australia
land mines, see mines and unexploded Business Expo, 163
ordnance location of staff, 287, 288–92
land tenure and administration, Vanuatu, 50 see also overseas posts
language training, 191 Love Patrol, 161
Laos, 65, 83, 91, 120 Lowy Institute, 6
bombs and unexploded ordnance, 83,
161
field epidemiology training program, 132 M
official development assistance (ODA), machinery of government, see governance
66, 83, 284 madrasah, see Islamic schools and
Poverty Reduction Fund support, 127 education
S ECT IO N 6
roads, 28, 83 maize, 79, 113

L’Aquila Food Security Initiative, 131, 147 Make Poverty History Australia, 163
Malaita, 59
333
malaria prevention and control, 17, 25–6, microfinance and micro-entrepreneurs,

57, 76, 84 156–7
mosquito nets, 57, 126, 133 Iraq, 109, 156
Malawi, 96, 97, 99, 130, 141 Laos, 83
Malaysia, 65, 89, 91, 113, 304 Latin America, 117, 156
Maldives, 107, 130 Nauru, 126
official development assistance (ODA), Nepal, 106
102, 283, 285 Micronesia, 54, 148, 284
male staff, 287–92 Middle East and Central Asia, 32, 108–16,
Malekula, 50 119, 283, 285
management and accountability, 178–201 see also Afghanistan; Iraq; Pakistan
see also effectiveness midwives, 71, 114
mangrove replanting, 63 Cambodia, 25
market research organisations, 302 East Timor, 79
Marshall Islands, 54 Pakistan, 115
maternal and reproductive health, 16, 24, migrant workers, 92
26, 132 milk production, Pakistan, 116
Afghanistan, 114 Millennium Development Goals (MDGs), 2–3,
Africa, 96 16–29, 138–9
Bangladesh, 103 Africa, 96
Cambodia, 25, 82 Blueprint for a better world interactive
East Timor, 78, 79 exhibition, 164
Indonesia, 71 Burma, 84
Nepal, 106 Cambodia, 82
Pacific region, 44, 56 East Timor, 78
Pakistan, 115 Laos, 83
Palestinian Territories, 112 Nepal, 106
Papua New Guinea, 39 Pacific region, 18–19, 44, 45–7;
Philippines, 75 Vanuatu, 50
SPRINT initiative, 93–4 Philippines, 75
see also child health Sri Lanka, 104
MDRI, 129, 286 STAND UP, 163
measles vaccination, see immunisation and Vietnam, 81
vaccination see also education; health; poverty

Medan, 146 reduction
media, 161–2 “Millennium Development Goals tracking”
media advertising, 302 reports, 18
medical services, see health Mindanao, 26, 76, 77
meeting briefs, 166 Mine Action Strategy, 5, 153, 154
Meeting the Millennium Development Goals Mine Ban Convention, 154
conference, 138 mines and unexploded ordnance, 5, 153–4
Meeting the needs of children and young Afghanistan, 113
people through the UNCRPD event, Iraq, 109
150 Laos, 83, 161
Mekong River Commission, 27, 86 Sri Lanka, 104
Mekong sub-region, 27, 85–6, 92, 120 Minimum Initial Services Packages (MISP),
Melbourne, 163, 167, 195 93
memoranda of understanding mining fellowships, Africa, 97
China, 87 mining royalties, Mongolia, 88
Iraq, 108 Minister, 7, 11, 166, 280
United States, 130, 168 Burma announcement, 84
men staff, 287–92 forums attended, 168
Mine Action Strategy announcement, 5
S ECT IO N 6
meteorology, see climate change

methyle bromide, 135 see also Parliamentary Secretary
methyle chloroform, 135 ministerial submissions, 166
Mexico, 117, 134 Mocimboa da Praia, 99
334
Index
Momase region, PNG, 39 Nias, 172

Monash University, 149 Nicaragua, 117
Mongolia, 65, 87–8, 284 Niger, 96, 127
Montreal Protocol Multilateral Fund, 134–5, Niuatoputapu, 52
286 Niue and Tokelau, 284
mosquito nets, 57, 126, 133 No ordinary journey, 161
Mozambique, 96, 97, 99 non-communicable diseases, 57
MTV Exit, 92 malaria, 17, 25–6, 57
Multilateral Debt Relief Initiative, 129, 286 Tonga, 52
Multilateral Organisation Performance non-English language training, 191
Assessment Network, 130 non-English speaking backgrounds, staff
multilateral organisations, 123–35, 286 from, 294
South Asian Association for Regional non-government organisations (NGOs),
Cooperation, 101 136–8, 139, 286
see also Asian Development Bank; Afghanistan, 23–4
United Nations; World Bank; World Africa, 99; Zimbabwe, 100
Health Organization Avian Influenza Risk Reduction Program,
multilateral trade negotiations, 28 91
multisector programs, 32, 36, 68 Bangladesh Rural Advancement
Murray Darling Basin Authority, 87 Committee (BRAC), 102, 103;
Muslims, see Islamic schools and education Challenging the Frontiers of Poverty
MV Princess Ashika, 52, 58 Reduction Program, 19, 103
Burma, 84
Colombia, 117
N Indonesia, 73
NAIDOC Week activities, 195 Laos, 83
Najaf, 109 Palestinian Territories, 112
Namaliu, Sir Robbie, 36 Papua New Guinea, 40
Namibia, 96 Samoa, 58
Narang public health centre, 71 Tonga, 52
National Bank of Vanuatu, 157 non-ongoing staff, 288
natural disasters, see disaster management; non-salary benefits, 190
emergency, humanitarian and
Nossal Institute for Global Health, 149
refugee programs
nursing shortage, Vanuatu, 50
natural resource management, see
environmental sustainability Nusa Tenggara, 71
Nauru, 52–3, 56, 62 Nusa Tenggara Barat, 173
enterprise resource centre, 126 nutrition, see food and nutrition
45, 52, 284
Nauru Secondary School, 52
O
obstetrics, see maternal and reproductive
Nauru–Australia Partnership for health
Development, 52 occupational health and safety, 192–3
needles and syringes, 91 Oceanic Development Network, 158
neonatal health, see child health OECD, see Development Assistance
Nepal, 105–6 Committee
child soldiers, 152 office accommodation, 200–1, 306–8
official development assistance (ODA), Office of Development Effectiveness, 18,
102, 105, 285 39, 160
Netherlands, 145 Office of the Middle East Quartet
Network Ten, 161, 163 Representative, 112
New Britain Palm Oil, 56 Office of Transport Security, 89
New Zealand, 45, 144, 158 official development assistance (ODA), 28,
S ECT IO N 6
ASEAN Free Trade Area, 89 31–2, 174–5, 282–6

‘Fairtrade Fiesta,’ 163 Africa, 21, 32, 96–100, 285; Annual
Tonga, 52 Report 2008–09 material error, 309
Vanuatu, 47
335
East Asia, 75, 78, 88–91, 93, 282, Stop violence report, 24
284; Indonesia, 66, 68, 69, 70; United Nations Development Programme
percentages of total, 32, 66 projects, 126
Latin America (South and Central see also Fiji; Papua New Guinea; Samoa;
America), 116–17, 283, 285 Solomon Islands; Vanuatu
Middle East and Central Asia, 32, 108, Pacific Disability Forum, 148
111, 112, 115, 283, 285 Pacific Disability Ministers’ Meeting, 148
Pacific, 45, 49–54, 55–60, 62, 282, Pacific Enhanced Humanitarian Response
284 Initiative, 57
Papua New Guinea, 36, 284 Pacific Fund to End Violence Against Women,
South Asia, 19, 32, 100, 102, 104–5, 24
107, 283, 285 Pacific Islands Climate Prediction Project, 62
official development assistance (ODA), by Pacific Islands Forum, 45–7
sector, 23–8, 32 Pacific Islands Forum Secretariat, 148
Indonesia, 68 Pacific Malaria Initiative, 57
Papua New Guinea, 36 Pacific Partnerships for Development, 48,
OHS, 192–3 54
Ombudsman, 187 Kiribati, 53
One Just World, 167 Nauru, 52
“One UN” reform initiative, 124 Papua New Guinea, 37
1GOAL Education for All Campaign, 163 Samoa, 48, 50
ongoing staff, 288 Solomon Islands, 49
ophthalmologists, 116 Tonga, 51
organisation and structure, 9–13, 178–86 Vanuatu, 50
Organisation for Economic Cooperation and Pacific Region Infrastructure Facility, 60–1,
Development, see Development 146
Assistance Committee Pacific Regional Agricultural Market Access
Oruzgan (Uruzgan) Province, 4, 112, 113–14 program, 28
outcomes, 11–175, 160–75, 281 Pacific Regional Millennium Development
overseas-based staff, 289–90 Goals tracking reports, 18
overseas posts, 287, 288–92 Pacific Regional Rights Resources Team,
health and safety, 192–3 155
Jakarta, 148, 193 Pacific Regional Strategy on Disability 2010–
Kabul, 4 2015, 148
learning and development, 190, 191 Pacific Regional Women’s Community Media
overseas visits by Director General, 168 Network, 152
overseas visits by Parliamentary Secretary, Padang earthquake, 3, 74–5, 120
166, 168 Pakistan, 115–16, 145
Oxfam, 138, 144, 163 Afghan refugees returning from, 113
ozone-depleting substances, 134–5 gender equality, 21, 116
108, 115, 285
P scholarship, 116, 148
Pacific, 32, 44–63, 282, 284 Palau, 54
childhood immunisation, 25 Palembang, 146
environment and climate change, 62–3, Palestinian Authority, 111, 112
134 Palestinian Territories, 111–12
human rights, 155 pandemics and emerging infectious
International Financial Corporation diseases, 90–1, 132
projects, 127–8 panel discussion series, 163
joint activities with China, 86 paper and printing, 307
Millennium Development Goals Papua, 71
performance, 18–19, 44
Papua New Guinea, 35–43, 124, 144, 152,
S ECTI O N 6
people with disability, 51, 148 169

poverty and vulnerability study, 147 Coral Triangle Initiative, 304
research capacity and communications, education, 21, 23, 36, 37–8, 44
158
336
Index
health, 25, 36, 39–40; HIV/AIDS, 26, pay and remuneration, 188–90, 293–4
37, 40, 133 peace building, 77, 112, 151–4
official development assistance (ODA), peanuts, 79, 172
36, 284 people trafficking, 86, 92
people with disability, 148, 149 People’s Republic of China, see China
World Bank Justice for the Poor program, performance-linked aid, 3
144 performance management, 188, 189
Papua New Guinea and Pacific, 32, 35–63, aid program, 29–30, 160, 169–70
282
see also Millennium Development Goals
Papua New Guinea Auditor-General, 41
performance pay, 188
Papua New Guinea-Australia Development
performance report, 15–175
Cooperation Treaty Review, 36, 37
Performance Review and Audit Section,
Papua New Guinea–Australia Partnership for
184–5
Development, 37, 48
period offers, 197
Papua New Guinea Department of Finance,
41 Persistent Organic Pollutants in Pacific
Island Countries, 62
Papua New Guinea Department of Health,
39, 40, 43 Perth, 195
Papua New Guinea Department of Treasury, Peru, 156
41 Philippines, 75–7, 92, 120, 158
Papua New Guinea Education Institute, 37 aviation security, 89
Papua New Guinea Institute of Public Coral Triangle Initiative, 304
Administration, 42 foot and mouth disease, 91
Papua New Guinea National AIDS Council health, 25, 26, 76
Secretariat, 40 official development assistance (ODA),
Papua New Guinea National Broadcasting 66, 75, 284
Corporation, 43 Philippines Department of Education, 77
Parliament, tabling of Annual Review of photographic exhibitions, 163
Development Effectiveness, 160 Pilot Program on Climate Resilience, 134
parliamentary committees, 187 Plan International Australia, 138
parliamentary questions, 166 planning, 181–2
Parliamentary Secretary, 166, 280 workforce, 188
Australian Civilian Corps Bill, 152 police services, see law and justice
delegation led by, 150 policy advice, 166
Financial services for the poor launch, politics, see democratic governance
155 population censuses, 43, 50
forums attended, 29, 162, 167, 168 Port Moresby, 42
Parliamentary Secretary for Water, 86 Papua New Guinea Education Institute,
part-time staff, 288 37
participation arrangements, see consultative Port Vila, 50
arrangements portfolio membership, 11
partnerships for development agreements, ports, 41, 50
17, 28, 124, 130–1, 132–3, 138 Posting Committee, 180
Africa, 96, 99 poverty reduction and income generation,
ASEAN, 88 16, 19, 137
Asian Development Bank, 128 Africa, 96
Cairns Compact on Strengthening Bangladesh, 19, 103
Development Coordination in the Burma, 84
Pacific, 46–7, 128 Cambodia, 82
Indonesia, 27, 67, 72 East Timor, 79
non-government organisations, 137 Indonesia, 69, 70
Papua New Guinea, 37 Laos, 83, 127
Philippines, 76 Nepal, 106
Vietnam, 81
S ECT IO N 6
Pacific region, 44
World Food Programme, 19, 125 Pakistan, 116
see also Pacific Partnerships for Palestinian Territories, 112
Development
337
Philippines, 75 Punjab, 116

Sri Lanka, 104 purchasing, 196, 197–9, 300–2, 307
Vietnam, 81 Annual Report 2008–09 material error,
see also employment and employment 309
generation; microfinance and compliance audits, 184
micro-entrepreneurs; private sector
development
Poverty Reduction Fund, 127 Q
power generation, see energy and energy Qinghai earthquake, 87
security quality reports, 30
Praxis discussion series, 163 quarantine and border control
pre-schools, Burma, 127 India, 107
pregnancy, see maternal and reproductive Iraq, 108, 110
health Queensland Fire and Rescue, 3
primary education, see education questions on notice and in writing, 166
Princess Ashika, 52, 58
prison systems, see law and justice
Privacy Commissioner, 187
R
radio network, PNG, 39
private sector development
radio telephones, Fiji, 51
Africa, 96; Zimbabwe, 100
ramps, 72
East Timor, 78
RAMSI, 48, 49, 59, 169
Indonesia, 70
Rapid Response Team, 118, 120
Laos, 83
reasonable adjustment principles, 195–6
Palestinian Territories, 112
records of conversation, 166
Solomon Islands, 49
recruitment, see staff recruitment
see also employment and employment
generation; poverty reduction and recycling, 306, 307, 308
income generation Red Cross and Red Crescent, 57, 93, 118,
ProCAP, 121 139
procurement, see purchasing Afghanistan health services, 113
Program Committee, 180 Haiti, 122
program expenditure, see official Tonga, 52
development assistance RedR Australia, 118
Refugee Realities simulation event, 163
property management, 200–1

public health, see health refugees and displaced persons, 121
public information programs, 286 Afghanistan, 113
see also publications; websites Burma and Thai-Burma border, 84
Public Relations Institute of Australia, 163 Greater Mekong sub-region, 86
public sector governance, see governance Pakistan, 116
Public Sector Linkages Programs, 89, 90 Palestinian, 111, 112
publications, 298 Sri Lanka, 104
Annual Report 2008–09, material errors Regional Assistance Mission to Solomon
in, 309 Islands (RAMSI), 48, 49, 59, 169
Annual Review of Development regional programs, see country and regional
Effectiveness, 7, 160 programs
civilian peacekeeper field management Relief in sight photographic exhibition, 163
handbook, 152 remuneration of staff, 188–90, 293–4
Financial services for the poor, 155 renewable energy, 46, 61, 107
Focus, 165 AusAID green energy purchases, 307,
Millennium Development Goals 308
performance evaluation, 18 reproductive health, see maternal and
Stop violence report, 24 reproductive health
World Development Report on Conflict, Republic of Korea, 91
S ECTI O N 6
Security and Development, 151 Republic of Palau, 54

see also textbooks and learning Republic of the Marshall Islands, 54
materials
338
Index
research, 136, 158–9, 286 Samoa–Australia Partnership for

about disability, 149 Development, 50, 53
agricultural, 98, 113, 116, 147, 173 Samoa Inclusive Education Demonstration
economic, 89 Program, 149
World Bank Justice for the Poor program, Samoa Ministry of Education, Sports and
144 Culture, 149
resources, see finance; staff sanitation, see water supply and sanitation
Resources Committee, 180 Santiago, 117
reviews and evaluations, 7, 30, 183–5 Santos, Raimundo dos, 161
language requirements, 191 satellite fire monitoring system, 70
Papua New Guinea, 36, 37 satisfaction, 31, 33–4
volunteer program, 139–40 Indonesia program, 68
rice, 19, 79, 82 Ministerial and Parliamentary Secretary,
Ride to Work initiative, 307 166
risk management, 184 scholarships, 23, 142–3
roads Afghanistan, 113
Afghanistan, 113 Africa, 97, 148
ASEAN highway network, 28 Australia-Pacific Technical College, 38,
53, 56
East Timor, 79
Bangladesh, 103
Fiji, 61
East Timor, 161
Greater Mekong sub-region, 86
Greater Mekong sub-region, 86
Indonesia, 146, 171–2, 173
Indonesia, 148, 173
Laos, 28, 83, 127
Iraq, 108
Latin America, 117
Philippines, 76
Mongolia, 87
Solomon Islands, 49, 61
Nauru, 53
Vanuatu, 50
Pakistan, 116, 148
Vietnam, 81
role and functions, 9, 296–7
people with disability, 148–9
Royal Australian College of Surgeons, 57
South Asia, 107
rural development, 32
Thailand, 85
Afghanistan, 115
Vietnam, 82
Cambodia, 82
school feeding programs, 19, 113, 125
Indonesia, 68, 69, 70
school fees, 55
Iraq, 109
school infrastructure
Afghanistan, 113
Solomon Islands, 49
Bangladesh, 103
Vanuatu, 50
Fiji, 51
Zimbabwe, 100
Indonesia, 72, 74
see also agriculture; forestry; water
supply and sanitation Iraq, 109
Rwanda, 127 Laos, 127
Philippines, 76
S Vietnam, 81, 137
SAARC, 101 schooling, see education
Safe Work Australia Week program, 193 Sea-level and Climate Monitoring Project,
safety and welfare, 192–3 58, 62
salaries and remuneration, 188–90, 293–4 sea ports, 50
Samoa, 48, 50–1 seawalls, Samoa, 61
earthquake and tsunami, 50, 57, 58, secondary education, 16
61, 120 Indonesia, 22, 72
S ECT IO N 6
education, 50–1, 55; children with Nauru, 52

disability, 54, 149 Samoa, 149
45, 50, 58, 61, 284
339
Secretariat of the Pacific Community, 53, Somaliland, 148

57, 61, 62 South Africa, 96, 97, 100, 145
Solomon Islands Family Health and World Cup, 163
Safety Study, 159 South America, see Latin America
seminar support, 159, 286 South Asia, 32, 100–7, 283, 285
see also conferences South Asia Region Infrastructure Growth
Senate committees, 187 Initiative, 107
Senegal, 127 South Asian Association for Regional
senior executive service (SES) staff, 188, Cooperation, 101
288, 294 South Korea, 91
sex of staff, 287–92 South Pacific, see Pacific
Sexual and Reproductive Health Programme Southeast Asian Games, 132
in Crisis and Post-Crisis Situations SPRINT, 93–4
for East, Southeast Asia and the Sri Lanka, 102, 104–5, 285
Pacific (SPRINT) initiative, 93–4
staff, 188–96, 287–95
sexual violence, see violence against women
staff learning and development, 190, 295
sexually transmitted diseases, 26
cross cultural training, 195
disaster management, 120
see also HIV/AIDS; maternal and
environmental awareness, 305, 306
reproductive health
ethics and values, 186
Shandong University, 87
ministerial and parliamentary services,
shipping, see water transport
166
Sierra Leone, 152
occupational health and safety, 192
Sky News, 161
staff recruitment, 193–5
sloping-land farming, 70
indication courses, 186, 190, 192
Smallholder Agribusiness Development
STAND UP, 163
Initiative, 172, 173
statistics and data collection, 43, 50
social media, 161, 164
‘Stop Violence’ centres, PNG, 43
social security, China, 87
Stop violence report, 24
Solomon Islands, 48–9, 57, 148
Strategic Partnerships for Health Initiative,
Coral Triangle Initiative, 304
133
economic governance, 47, 49
Strongim Gavman Program, 169
governance, 49, 144, 145
study assistance, 191
health, 56–7
submissions, 166
Sudan, 96, 97, 100
45, 49, 55, 284
Sully, Sandra, 163
Regional Assistance Mission (RAMSI),
48, 49, 59, 169 Surviving the global recession report, 45–6
road construction, 19, 61 sustainability, see environmental
sustainability
school fees, 55
Suva, 56
telecommunications market, 60
Swaziland, 96, 130
women, 152, 159
sweet potato, East Timor, 79
Solomon Islands Evidence Act, 59
swine flu, 132
Solomon Islands Family Health and Safety
Study, 159 Sydney, 6, 163, 195
Solomon Islands Foreign Relations Syria, 111, 119
Committee, 49 syringes and needles, 91
Solomon Islands Government—Donor Core
Economic Working Group, 47
Solomon Islands Law Reform Commission,
T
Tajikistan, 119
159
Tanna, 50
Solomon Islands Ministry of Finance and
Treasury, 49 Tanzania, 96, 97, 127
tax revenue, see economic governance and
S ECT IO N 6
Solomon Islands Ministry of Health and

Medical Services, 57 growth
Somalia, 97, 100
34 0
Index
teacher education and training toilets, 76

Afghanistan, 24, 113 children with disability, 72
Bangladesh, 103 girls, 37
Burma, 84 Tonga, 51–2, 152
Indonesia, 72 energy road map, 61
Kiribati, 53 ferry sinking, 52, 58
Nepal, 104 official development assistance (ODA),
Papua New Guinea, 21, 37 45, 51, 58, 284
Philippines, 77 tsunami, 52, 57, 120
Samoa, 54 Tonga-Australia Partnership for Development,
Thailand, 85 51
Tonga, 52 Tonga Constitutional and Electoral
Vanuatu, 50 Commission, 52
teacher housing, PNG, 37 Tonga Health Promotion Foundation, 52
technical and vocational training, 23 Tonga Red Cross, 52
Australia-Pacific Technical College, 38, Torres Strait Islander and Aboriginal staff,
53, 56 195, 294
Iraqi customs and border control toxic chemicals, 62
officials, 110 Tracking Development and Governance in
Kiribati, 53 the Pacific Report, 18
Nauru, 52 trade, 28, 88, 89
Papua New Guinea, 37, 38, 43 through Greater Mekong subregion, 86
see also health education and training; Iraq, 108, 110
training Kiribati, 53
telecommunications, Solomon Islands, 60 Laos, 83
television, 161, 163, 167 trafficking, 86, 92
campaigns, 52, 120 training
tenders, see purchasing Afghanistani de-mining personnel, 113
TERI, 107 Afghanistani female election observers,
terrorism, 89 115
tertiary education, see higher education; Afghanistani officials, 113
scholarships; technical and Australian Civilian Corps induction
vocational training program, 152
textbooks and learning materials aviation security, 89
Burma, 84 disaster preparedness and management,
Laos, 83 119, 120
Nepal, 106 Indonesian disaster management
officials, 74
Indonesian farmers, 70
Samoa, 54
Indonesian road safety engineers, 146
Zimbabwe, 100
Nauruan entrepreneurs and small
Thailand, 65, 85, 134
business owners, 126
aviation security, 89
though Pakistan civil society
foot and mouth disease, 91 organisations, 116
human trafficking victims, 92 peace, conflict and development
official development assistance (ODA), courses, 151
66, 85, 284 people trafficking investigations and
road freight between Vietnam and, 86 prosecutions, 92
Thailand Burma Border Consortium, 84 Peruvian micro entrepreneurs, 117
theatre, 161 Solomon Islands police and corrections
think tanks, Indonesia, 73 staff, 59
Three Diseases Fund, 84 Sri Lanka de-mining personnel, 104
Tibetan health workers, 87 Tonga Red Cross, 52
S ECT IO N 6
tiling, 56 Vietnamese commune authorities, 81

Timor-Leste, see East Timor see also private sector development;
Togo, 148 staff learning and development;
technical and vocational training
341
transnational crime, 86, 92 Bangladesh, 102

Transparency International, 144 Burma, 84, 126–7
transport infrastructure Fiji, 56
India, 107 Indonesia, 126
Mekong sub-region, 85, 86 Meeting the needs of children and young
Papua New Guinea, 41 people through the UNCRPD event,
Vanuatu, 50 150
see also roads Nepal, 106
transport sector greenhouse gas emissions, Palestinian Territories, 112
27 Solomon Islands, 56–7
Treasury, 89, 169, 182 Vanuatu, 47
tree planting, 63 United Nations Convention on the Rights on
tribal fights, PNG, 42 Persons with Disabilities, 150
tribunal decisions, 187 United Nations Department of Political
tropical forests, Indonesia, 69 Affairs, 152
tropical storms, 116 United Nations Department of Public
Non-Government Organisation
see also cyclones
Conference, 139
Trust Fund for Avian Influenza, 90
United Nations Development Fund for
tsunami, see earthquakes and tsunami Women (UNIFEM), 124, 162
tuberculosis, 133 Ending Violence Against Women Pacific
Burma, 84 Facility, 60
Kiribati, 53 partnership framework, 24
see also immunisation and vaccination United Nations Development Programme,
tuna, 62 106, 124, 126, 145
Turkey, 134 Bureau for Crisis Prevention and
Tuvalu, 48, 126 Recovery, 152
Funafuti water supplies, 46 Cash for Work program, 122
official development assistance (ODA), United Nations Economic and Social Council,
282, 284 118
Twitter, 165 United Nations Educational, Scientific and
typhoid, 56 Cultural Organization Education for
typhoons, see cyclones All Fast Track Initiative, 21
United Nations Electoral Assistance Division,
145
U United Nations Environment Program, 134
Uganda, 96, 127 United Nations General Assembly, 148
UNESCO Education for All Fast Track United Nations Habitat, 105
Initiative, 21 United Nations High Commissioner for
unexploded mines, see mines and Refugees, 121
unexploded ordnance Afghanistan, 113
United Kingdom, 6, 131, 168 United Nations Information Centre for
Department for International Australia, New Zealand and the
Development, 100, 106 South Pacific, 139
United Nations, 18, 124–7, 131, 286 United Nations International Search and
Gender Standby Capacity, 121 Rescue Advisory Group, 119
peacebuilding activities, 151–2, 153 United Nations Least Developed Countries
primary education enrolment estimates, Fund, 134
21 United Nations Office for the Coordination of
Protection Standby Capacity, 121 Humanitarian Affairs, 122
United Nations Capital Development Fund, Donor Support Group, 121
156 United Nations Office of the High
United Nations Central Emergency Response Commissioner for Human Rights,
Fund, 121 155
S ECTI O N 6
United Nations Children’s Fund (UNICEF), United Nations Office on Drugs and Crime,
25, 125, 127 91
Africa, 96; Zimbabwe, 100
342
Index
United Nations Peacebuilding Commission, Vietnam, 81–2, 120, 124

152 aviation security, 89
United Nations Peacebuilding Fund, 152 disability-related stigma, 149
United Nations Population Fund, 93, 124, health, 81, 91
133 human rights, 155
agreement, 24, 132 human trafficking awareness campaign,
Gaza, 112 92
Solomon Islands, 56–7, 159 official development assistance (ODA),
United Nations Public Service Award, 145 66, 81, 284
United Nations Relief and Works Agency, roads, 28; to Thailand, 86
111, 112 water supply and sanitation, 81, 137,
United Nations Security Council, resolutions 145
on women, peace and security, village courts, PNG, 42
151–2 violence against aid workers, Pakistan, 115
United Nations Special Court for Sierra violence against women, 24, 59–60
Leone, 152 Cambodia, 82, 149
United Nations World Food Programme, see East Timor, 80
World Food Programme
Iraq, 109
United States, 168
United States Agency for International
Solomon Islands, 159
Development (USAID), 130
vision, see eyes and vision
United States Office of the Coordinator for
Reconstruction and Stabilization, vitamin A, 106
153 vocational training, see technical and
universities, see higher education vocational training
University of Canberra, 110 volunteer programs, 136, 137, 139–41, 286
University of Melbourne, 167 Africa, 96, 141
University of Papua New Guinea, 39 see also Australian Youth Ambassadors
for Development; non-government
University of the South Pacific, 56, 304
organisations
Uruzgan Province, 4, 112, 113–14
voting, see democratic governance
Uzbekistan, 119
Vulnerability and Adaptation Initiative, 63
V W
vaccination, see immunisation and
Wan Smolbag theatre company, 161
vaccination
waste management, AusAID, 306, 307, 308
values and ethics, 186
water management, AusAID, 306
Vanuatu, 49–50, 144, 145
water supply and sanitation, 17.63, 139,
banking services, 157
145–6, 304
education, 47, 50; school fees, 55
Africa, 96, 99, 100, 127
energy sector, 61
Bhutan, 107
health, 50, 57
China, 86–7
East Timor, 78, 79, 137
45, 49, 284
Greater Mekong sub-region, 27, 85–6
partnership for development agreement,
48, 50 India, 107
violence against women, 59 Indonesia, 70
Wan Smolbag theatre company, 161 Iraq, 109
Vanuatu Education Roadmap 2010–2012, Laos, 83, 127
47 Nauru, 53
Vanuatu Family Protection Act, 59 NGO projects, 137
Vanuatu Land Sector Framework, 50 Pakistan’s north-west, 116
Vanuatu Utilities Regulatory Agency, 61 Palestinian Territories, 112
vegetable yields, Cambodia, 82 Papua New Guinea, 39
S ECT IO N 6
veterinary health, 91 Philippines, 76

Victor Pineda Foundation, 150 Solomon Islands, 49
video conferencing, 307 Vietnam, 81, 137, 145
343
water transport, 41, 50, 86 economic growth estimates, 20

MV Princess Ashika sinking, 52 Global Food Crisis Response Program,
WaterAid, 139, 146 147
websites, 165, 196 Greater Mekong sub-region, 85
AusTender, 196, 198 Haiti Reconstruction Fund, 122
Blueprint for a better world exhibition, Indonesia, 130, 144, 172
164 Justice for the Poor program, 144
BRIDGE, 72 Mongolia, 88
global education visits, 165 Multilateral Debt Relief Initiative, 129,
One Just World, 167 286
Relief in sight exhibition, 163 Palestinian Territories, 112
YouTube, 161 Praxis discussion series, 163
West Africa, 98, 100 Solomon Islands, 56–7
West Bank, 111–12 South Asia, 105, 107
wharves, 41, 50 Vanuatu, 47
wheat, Afghanistan, 113 World Development Report on Conflict,
whole-of-government engagement, 9–10 Security and Development, 151
Australian Civilian Corps office, 152 World Food Programme (WFP), 118, 121,
Development Effectiveness Steering 124, 125, 286
Committee, 182–3 Äfrica, 96
Wollongong, 195 Cambodia, 19
women and girls, 16, 23–4, 127–8, 133, Haiti, 122
151–2, 162 Pakistan, 116
Afghanistan, 115 partnership agreement, 19, 125
Bangladesh, 103 World Health Organization, 132
Cambodia, 82, 149 Asia-Pacific Strategy for Emerging
East Timor, 163 Diseases, 90
Indonesia, 73, 144 Fiji, 56
injecting drug users, 91 malaria, 57, 76
Iraq, 156 Solomon Islands, 56–7
Kenya HIV/AIDS testing, 137 World Vision Australia, 138, 162, 167
Pakistan, 116
Papua New Guinea, 42, 43, 152; HIV Y
infections, 40
year ahead, 8
Peru, 156
Yellow River Conservancy Commission, 87
Philippines, 75, 76
Yemen, 119
see also gender equality; maternal and
young people
reproductive health; violence against
women East Timor, 79, 80
women staff, 287–92, 294 human trafficking awareness campaign,
92
Women’s Day magazine, 162
Pakistan, 116
workforce planning, 188
workplace agreements, 186, 188–90, 293
see also Australian Youth Ambassadors
workplace diversity, 195–6, 294
for Development; children; education
workplace health and safety, 192–3
YouTube, 161
workshops, see conferences and other
Yumi Lukautim Mosbi, 42
forums
workstation assessments, 192
World Animal Health Organization, 91 Z
World Bank Group, 127–8, 131, 151, 168 Zambia, 127
Africa, 99, 127 Zimbabwe, 96, 97, 100
avian influenza, 90
S ECTI O N 6
Bangladesh, 129
Climate Investment Funds, 133–4; Clean
Technology Fund, 27, 134, 286
Eco2 Cities initiative, 146
34 4

AusAID Report 2009

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AusAID Report 2009

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AUSTRA L I A N AG E N CY FO R

Ann ual Rep o rt

Australian Business Number (ABN): 629 215 588 38

Design and typesetting by ZOO Advertising

The way we work

Section 2—Report on performance 15

Section 3—Management and accountability 177

Section 4—Financial statements 203

Section 5—Appendices 279

Section 6—Glossary and indexes 311

Basic education assistance for Mindanao 77

Section 2 of the report provides an analysis of performance and effectiveness against

Section 3 reports on management and accountability processes, including corporate

Section 4 contains the audited financial statements for 2009–10.

Section 5 comprises appendices providing additional information as required

Section 6 contains a glossary, list of abbreviations, a compliance index and an index.

Below Then Australian Prime Minister

Director General’s review

Peter Baxter, Director General AusAID﻿

Director General’s review

Against this backdrop the Australian Government provided an estimated $3.818 billion in

The Australian Government is helping developing countries to reduce poverty and

Throughout the year Australia responded to more than 30 humanitarian emergencies

Key policy announcements and achievements

Cairns Compact on Strengthening Development Coordination in the Pacific at the forum.

In 2009–10, the Australian Government continued to increase the volume of aid

In December 2009, the Australian Government committed to increasing Australia’s civilian

The Copenhagen Accord on climate change agreed in December 2009 committed

At the Commonwealth Heads of Government Meeting in Trinidad and Tobago in

Partnerships and community engagement

Australia continued to strengthen its engagement with multilateral organisations by signing

AusAID supported several activities which promoted community dialogue and

The year ahead

Total official development assistance for 2010–11 is estimated to increase to

As Australia’s official development assistance increases, the government will increase

The Australian Government’s decision to increase the official development assistance

Australia’s aid program is focused on achieving sustained improvements in people’s lives

AusAID does this by:

AusAID and enhanced whole-of-government engagement

AusAID cooperates with a range of Australian Government departments and agencies

The AusAID executive at 30 June 2010. ﻿

Outcomes and outputs framework

The agency’s two outcomes are:

Outcome 2—Australia’s national interest advanced by implementing a partnership

AusAID’s administered items and outputs contribute to these outcomes.

Figure 1: Organisational Structure, 30 June 2010

Office of Development Effectiveness

Below Children take part in an activity

Effectiveness against outcomes

and international development organisations, and non-government organisations to

What are the Millennium Development Goals?

relative to 1990. Developed and developing countries have a shared responsibility

1. Eradicate extreme poverty and hunger

2. Achieve universal primary education

3. Promote gender equality and empower women

4. Reduce child mortality

5. Improve maternal health

6. Combat HIV and AIDS, malaria and other diseases

8. Develop a global partnership for development

Further information on the Millennium Development Goals can be found at

Promoting faster progress towards achieving the

Australia’s aid program continued to support developing country partners to lift

market access and the expansion of new telecommunications technology. Australia’s

Peter Baxter, Director General AusAID

The AusAID executive at 30 June 2010.

KAVRE district—women’s cooperative (ADRA)

Program 1.1 ODA—