The governments of Papua New Guinea and Bougainville have settled on US$173.5-million (621 million-kina) as the total amount of money the former owes the latter.
It's one of the resolutions of a fruitful meeting between PNG's prime minister James Marape and Ishmael Toroama, the president of the autonomous region of Bougainville.
PNG Prime Minister James Marape (centre) arrives in Arawa for talks with Bougainville's President Ishmael Toroama (second from right) 5 February, 2021 Photo: PNG PM Media
At the Joint Supervisory Body (JSB) meeting in Arawa, the two sides set out a basic framework for consultations over the outcome of Bougainville's independence referendum.
Details were scarce regarding the measures in place for the consultations themselves, but President Toroama described the JSB meeting as one of the first significant steps forward since the historic 2019 referendum.
In the non-binding referendum, 97.7 percent of Bougainvilleans voted for independence from PNG, a result which would have to be ratified by PNG's pariament in order to come into effect.
The JSB, which has been monitoting the progress of the Bougainville Peace Agreement, is to devote its future focus to the joint inter-government consultations and ratification of the referendum.
The joint body will handle any disputes arising frm the consultations, meeting at least three times a year to discuss it.
PNG's government has said it is not prepared to rush the process of negotiating Bougainville's potential independence, which could take at least several years.
But the Marape government, which came to power shortly before the referendum, has been praised by Bougainville's leadership for its work towards meeting PNG's commitments under the Peace Agreement.
The national government in turn has acknowledged the full extent of outstanding financial commitments.
"The outstanding of K621 million (US$173.5-million) in Restoration Development Grants has been outstanding for the last 18, 19 or so years," Marape said.
"This JSB affirmed, without any shadow of doubt, that the K-621 million - confirmed by an independent United Nations' assessment - is the actual amount owed by the PNG Government to Bougainville in as far as the 2001 Peace Agreement is concerned."
Bougainvilleans queue to vote in their independence referendum, Buka, November 2019. Photo: RNZ / Johnny Blades
Marape has announced the immediate release of US$41-million (K146. 7 million) to the Autonomous Bougainville Government as the first installment of its 2021 allocation.
Other issues discussed at the JSB meeting included transferral of shares in Bougainville Copper Limited to Bougainville, fisheries, taxation, funding for small and medium enterprises, and foreign mission offices in Bougainville.
According to Marape, a planned Bougainville Economic and Investment Summit should take place in the first half of this year.
With new commitment on the funds owed, as well as various resolutions on promoting economic development, President Toroama hailed the new level of understanding.
"Today, we reached an understanding, a joint agreement, and I'm very pleased at the quality leadership that you (PM Marape) have," Toroama said.
"This is one of the steps forward we have taken, and that is another big challenge that is coming ahead.
"With trust and confidence that we have built in the last twenty-four years, it's progressing quite well," he told a media conference following the meeting.
"I'm confident that whatever happens as an outcome of the consultations will reflect the joint efforts that we have taken together."
PNG's prime minister James Marape (right) shakes hands with Ishmael Toroama, the president of the autonomous region of Bougainville, 5 February 2021. Photo: PNG PM Media
Meanwhile, Marape said money should not be seen as an issue in view of the wider perspective of Bougainville.
"There is a need to bridge the emotional divide, the spiritual divide, the social divide," he said.
"This needs to take place in a region that flourishes with enabling infrastructure to support Bougainville to go into the future.
According to Marape, the Autonomous Bougainville Government also sought a sovereign guarantee for a loan, which he said the Bougainville and PNG treasuries were working on.