In a joint statement, the Papua New Guinea Government and the World Bank have announced the termination of the Forestry and Conservation Project.
Despite the termination, both parties say they are still committed to remaining engaged in constructive ways to deliver lasting development benefits to PNG in a number of areas, including forestry.
After more than 20 months, during which the Government and the World Bank have attempted to reach an agreed path forward for the project, the government requested the cancellation of the bank's financing for the project.
The project was introduced in 2001 and was supported by a World Bank loan of more than 17-million US dollars.
It had been suspended since September 2003.