What is the Incentive Fund?

The Incentive Fund is a PNG-Australia Partnership initiative, providing high-performing organisations with grants to improve service delivery and/or provide economic opportunities for the people of PNG.

Now in its fourth phase, the Incentive Fund has become a widely recognised and valued component of Australia’s aid program in PNG. Informed by reviews, evaluations and lessons learnt from the previous phases, grants awarded under this phase will target three key outcomes mutually agreed between the Australian and PNG governments: 

  1. 80% will support the empowerment of women and girls
  2. 20% will support private sector investment
  3. 50% will be allocated to infrastructure activities

Eligible organisations can apply for grants of between K1 million and K10 million, which are awarded through a competitive process. Organisations must submit a project proposal to obtain a grant. Projects can be from any development sector, but Incentive Fund Phase 4 especially encourages proposals from organisations and projects that:

  • Involve agriculture and rural development
  • Partner with private sector or civil society organisations
  • Benefit provincial PNG
  • Feature innovative ideas
  • Represent development effectiveness and value-for-money.

Funding is to support activities in a range of sectors that include health, education, transport, law and justice, governance and public administration, private sector development, agriculture and rural development. Funding is not limited to these sectors and could include:

  • Private sector-driven projects demonstrating direct community benefits
  • Training and skills development (e.g., nursing, tertiary, technical & vocational skills)
  • Economic development activities (e.g., markets, regional agriculture, key infrastructure)
  • Gender equality and women’s empowerment (e.g. addressing family and sexual violence, promoting women’s leadership and economic empowerment)

Education projects are prioritised if they will support technical education, employment outcomes or girls’ education at a secondary level. Primary education or the general expansion of education facilities without a notable point of difference is less likely to receive support.