Cost of Services Study Report to strengthen fiscal planning and service delivery discussions in Bougainville
Preparations are underway for the launch of the “From Here to There: The Cost of Government Administration and Services in Bougainville” report following high-level discussions with the National Economic and Fiscal Commission (NEFC) and ABG officials early this month.
The study represents the most comprehensive Cost of Service assessment undertaken for Bougainville and will inform ongoing fiscal planning, service delivery discussions, and the progressive transfer of functions and powers.
The engagement brought together officials from the ABG Department of Treasury and Finance, the Department of the President and Bougainville Executive Council (BEC) – Strategic Planning and Policy Division – and the NEFC Policy Team. Discussions reviewed the report’s findings and outlined implementation priorities following its official release.
ABG Deputy Secretary for Strategic Planning and Policy, Dr Steven Kolova, said the report provides an important foundation for Bougainville’s forward planning.
“Understanding the true cost of government services is fundamental to informed planning. This report will support our budgeting processes, strengthen engagement with the National Government, and guide discussions with development partners as Bougainville advances its future priorities,” Dr Kolova said.
The Cost of Service survey originated from a Joint Supervisory Meeting held in Arawa in 2021, where leaders highlighted the importance of progressing toward a consolidated “one-line budget” arrangement for Bougainville. The NEFC was subsequently mandated to undertake a detailed costing study to support fiscal transparency and the progressive transfer of functions and powers.
The multi-year exercise involved budget analysis, field visits across Bougainville, consultations with national agencies, geographic information system (GIS) mapping, surveys, and the development of a tailored costing model reflecting Bougainville’s unique context.
Finalized in November 2024, the study adopts a whole-of-government approach to analyzing the cost of administering Bougainville. It assesses service delivery across key sectors including governance and central administration, law and justice, infrastructure, economic development, and social sectors such as health and education.
The report highlights that the true cost of administering Bougainville extends beyond the ABG’s annual budget, noting that many service delivery costs remain embedded within national agency allocations. As Bougainville continues to assume greater responsibilities, these costs will require clearer identification and structured transfer arrangements.
International comparisons with small island states in the Pacific are also included in the Report, providing useful benchmarks for governance costs in similar geographic and demographic settings.
NEFC Policy Director Eric Kumasan said the report offers a clearer understanding of Bougainville’s fiscal landscape.
“This study provides an important evidence base to support ongoing discussions on service delivery and fiscal planning. It gives Bougainville a clearer picture of where it stands financially and what is required moving forward,” Mr Kumasan said.
The report’s recommendations encourage continued functional analysis, sector-specific costing exercises, and peer learning with comparable Pacific jurisdictions to support Bougainville’s long-term planning.
Participants also acknowledged the legacy of the late Mr Patrick Kennedy Painap, former Chairman and Chief Executive Officer of the NEFC, who championed the “From Here to There” study from its inception.
ABG Secretary for Finance and Treasury, Joshua Tauko, conveyed the ABG’s condolences and appreciation for Mr Painap’s contribution.
“The Autonomous Bougainville Government acknowledges with great respect the core role played by the late Mr Patrick Kennedy Painap in progressing this important body of work. His commitment to evidence-based fiscal planning and his dedication to Bougainville will not be forgotten,” Secretary Tauko said.
The “From Here to There” report arrives at an important time as Bougainville continues its institutional development and preparations for future governance arrangements. The collaboration between the ABG and NEFC reflects a shared commitment to evidence-based planning, partnership, and responsible fiscal management.
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