Incentive Fund Phase 4

The Incentive Fund brings together high performing organisations and an effective funding mechanism to deliver better services and create economic opportunities for the people of Papua New Guinea.

The Incentive Fund has been providing grants to a wide range of organisations in Papua New Guinea since 2000. Funded by the Australian Government and managed by Tetra Tech International Development, the grants are awarded on a competitive basis. We have managed the Incentive Fund through each of its four phases.

The Australian Government aims to ensure that funded projects are in line with its development priorities in PNG and so project criteria for the grants ensure 50 per cent will be allocated to infrastructure, 80 per cent to support empowerment of women and girls, and 20 per cent will support private sector development.

In Phase 4 of the program, IF4 will identify and create incentives for high-performing organisations to expand both the reach and quality of their contribution to service delivery, economic development – or both – in Papua New Guinea. It will support suitable projects valued from PGK1m to 10m. These can be in any development sector, such as health and education, economic development, law and justice, governance and public administration, transport, and agriculture and rural development.

A wide range of PNG organisations are eligible to apply for funding, including:

  • Provincial and local-level governments and their trading organisations
  • Statutory government authorities (such as research organisations, universities, schools and hospitals)
  • Community and faith-based organisations
  • Private sector organisations.

The Incentive Fund has become a widely recognised and valued component of Australia’s aid program in PNG and is an important element of the Papua New Guinea Australia Partnership. It has been mutually reviewed and strengthened, demonstrating a mature bilateral relationship between the governments of Australian and PNG.

During the previous three phases, 60 projects valued around PGK378 million were funded in 17 of the nation’s 22 provinces. Examples of previous projects include the redevelopment of education facilities ranging from primary schools to universities, health facilities from clinic to hospital level, markets and bridges, and research facilities. This has enabled improved services and quality of life for many thousands of people in PNG.

Read more here.


Australian Department of Foreign Affairs and Trade (DFAT)


Papua New Guinea


2015 – 2023

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