World Bank to shift PNG, E. Timor office to Sydney

World Bank to shift PNG, E. Timor office to Sydney

SYDNEY (Reuters): The World Bank said on Friday it will relocate its office covering operations in East Timor, Papua New Guinea and the Pacific islands from Washington to Sydney within six months.

"It will be a base for World Bank operations in East Timor, Papua New Guinea and the Pacific islands," Graham Barrett, the bank's Australia and New Zealand representative, told Reuters.

The World Bank has just completed a multi-agency assessment mission in East Timor and has estimated between $260 million and $300 million will be needed for medium-term reconstruction of the ruined territory.

The Washington-based bank is also close to signing an economic reform and assistance package worth up to $300 million for Papua New Guinea, traditionally one of the region's most politically unstable countries.

Klaus Rohland, the World Bank's director for Papua New Guinea and the Pacific, said encouraging signs of economic rigor have begun to emerge in PNG under Sir Mekere Morauta's new government.

Rohland expects to move his office and staff of between six and 10 people to Sydney in about six months.

"Sydney seemed to be the obvious hub, it gets you into every country at least the same day in the Pacific and it's politically neutral enough, which is an important consideration," Rohland said.

Rohland said he had also received approval from World Bank President James Wolfensohn to establish a bank representative in the East Timor capital of Dili, much of which was destroyed during violent rampages by pro-Indonesia militias in September.

"He agreed with my proposal to open up an office in Dili, essentially as soon as possible," Rohland said.

The World Bank assessment mission identified a number of key areas that need immediate action in order to build a sustainable East Timorese economy, including getting transportation moving and setting up tax, payments and customs structures.