Australia's new hardline asylum policy comes into effect That the promise of living and working in Australia, which is sold by people smugglers before they push people onto the high seas, is no longer a product available. Rights groups have criticised the state of facilities at Australia's camp on Manus Island in PNG, which will be significantly expanded, with the United Nations last week saying it was "troubled" by the decision to send asylum-seekers there. The UNHCR highlighted "significant shortcomings" in the legal framework for receiving and processing asylum-seekers. "These include a lack of national capacity and expertise in processing, and poor physical conditions within open-ended, mandatory and arbitrary detention settings," it said. Australia resumed sending asylum-seekers offshore to PNG's Manus Island and the Pacific state of Nauru in 2012 in a bid to deter record numbers of asylum-seekers arriving by boat. Hundreds have drowned making the perilous journey. But under the new arrangement they will not only be processed in PNG but permanently resettled there if found to be genuine refugees. The transfer comes as PNG Prime Minister Peter O'Neill outlined the costs of major projects Australia has agreed to fund as part of the deal. In an interview with The Australian newspaper, he said the total cost would be around Aus$787 million (US$705 million), with Australia contributing about Aus$489 million. This includes the rebuilding of a hospital and renovation of PNG's universities, which will be jointly funded, and the construction of a key highway between Lae and Madang and a new court building in the capital Port Moresby that Canberra will solely fund. Mr O'Neill said his country had agreed to help because Australia was "our best friend" and "we are a Christian nation." Asylum-seekers are a sensitive issue in Australia, and one featuring prominently in the lead-up to national elections due this year, which will pit the Kevin Rudd-led Labor government against the conservative opposition headed by Tony Abbott. Edited by Bonnie Malkin