Bougainville may seek arbitration if the Papua New Guinea Government does not pay what it says are outstanding grants of $US143 million dollars.
President John Momis, who was sworn in for a second term at the beginning of the week, says the money is guaranteed under the Bougainville Peace Agreement which formally ended the ten year long civil war.
President of the autonomous Bougainville government, John Momis. Photo: RNZI
He says the Restoration and Development Grants are constitutionally guaranteed and are vital for the region's economic development.
PNG has in recent years contributed other funds to Bougainville, but Mr Momis says these are tied.
He says the Restoration and Development Grants are an obligation Port Moresby should meet.
"So we will raise it again and if our request falls on deaf ears we will have no choice but to go for arbitration, because that is the next step that is recommended in the Bougainville Peace Agreement."
If arbitration is sought it will be in the National Court.