The World Bank has terminated a US$34.36m forest protection programme in Papua New Guinea (PNG).

The bank and the PNG government jointly announced the end of the Forestry and Conservation Project following the government’s inability to meet loan agreements. The programme was launched in 2001 but was suspended in 2003.

Problems with three logging operations owned by a Malaysian company in the Western and Gulf provinces are thought to be partly responsible for the decision.

The government’s issuing of new permits despite the company’s failure to meet sustainable harvest requirements and social/infrastructure commitments is also rumoured to have upset the bank.