aid flows

Aid flows in recent years have averaged around $12 million, excluding aid from the People’s Republic of China.

On average, around two thirds of this aid comes from New Zealand and Austra-lia. The other major donor is the European Union. Total aid in 2005-06 is estimated at around $24.1 million. This reflects a number of large additional payments:

• New Zealand is providing additional funds of $3.0 million to support a cyclone recovery programme.
• Australia is funding a ‘one off’ life extension programme for the Cook Islands Police Patrol Boat Te Kukupa to extend its useful life another 15 years at a cost of $3.5 million.
• The People’s Republic of China is also expected to provide $4.0 million, primarily for a new police station.

The New Zealand and Australian donor funds were harmonised with effect from 1 September 2004. This co-funded programme is managed by NZAID and is expected to provide aid of $12.4 million in 2005-06. In addition to the cyclone recovery fund, the main sectors to benefit are edu-cation ($2.9 million), outer islands development ($2.0 million) and human resource development ($1.9 million).

Aid is generally received in the form of technical assistance, training, equipment and infrastructure.

Complete report: MFEM, Half Year Economic and Fiscal Update