Australia to give VT1.9B for infrastructure projects

The governments of Vanuatu and Australia have officially signed a significant agreement, under which Australia will provide 1.9 billion Vatu in funding to infrastructure projects in Vanuatu over the next five years.

Australian High Commissioner to Vanuatu, Mr. Max Vile, and Vanuatu's Minister of Infrastructure and Public Utilities, Mr. Xavier Harry, recently signed the agreement. This funding will be used for critical infrastructure improvement projects throughout Vanuatu, including post-earthquake reconstruction projects, such as the Vila Port Wharf Road landslide cleanup, which is expected to begin in June.

According to the Australian High Commission in Vila, the project is part of a broader effort to maintain and improve Vanuatu's transport network, aligning with the Vanuatu government's "100-Day Plan" aimed at ensuring safer and more reliable infrastructure for communities and promoting economic activity for businesses. Australian funding will also support road improvement projects in Vanuatu's provinces, in line with the priorities of the Public Works Department (PWD). The upgrades will strengthen connectivity, improve access to services, and enhance the country's resilience to climate and disaster risks.

High Commissioner Vile stated that high-quality, sustainable, and disaster-resilient infrastructure construction is more important than ever. "Our partnership with Vanuatu focuses on delivering high-quality infrastructure that is appropriate for Vanuatu's climate and geography," he said. "We are also proud that our funding will promote broader economic growth. By employing local Vanuatu contractors, Australia's funding and investment returns will remain in Vanuatu. Creating high-quality infrastructure, long-term sustainability, and local employment opportunities are the best embodiments of our cooperation."

This new agreement highlights the continued growth of the infrastructure partnership between Vanuatu and Australia. The support will continue to assist the Public Works Department in managing Vanuatu's public road network. The Australian High Commission stated that the funding will also be used to strengthen the capacity of the Ministry of Infrastructure and Public Utilities in civil aviation, ports, maritime affairs, and public buildings, ensuring that infrastructure investments are well-planned and sustainable. The Australian Government's support aligns with Vanuatu's development priorities and incorporates key cross-cutting issues such as climate change adaptation, disaster risk reduction, environmental protection, localization, gender equality, disability and social inclusion, and asset management.