Australia is deepening its long‑term commitment to high‑quality, critical infrastructure across the Pacific and Timor‑Leste, with the announcement of an additional $550 million in official development assistance (ODA) grants for the Australian Infrastructure Financing Facility for the Pacific (AIFFP).
Announced by Australia’s Foreign Minister Penny Wong during a meeting of the Pacific Islands Forum Troika on 27 January 2026, the additional funding strengthens the AIFFP’s capacity to back Pacific‑led priorities and support high-quality, climate-resilient infrastructure that delivers lasting benefits for communities and economies across the region.
The new funding brings the AIFFP’s total facility financing to $4.55 billion, comprising a $3 billion loan cap and $1.55 billion in ODA grants.
The additional $550 million has not been pre-allocated and will be considered on a case-by-case basis, in close consultation with our Pacific partners.
Guided by Pacific priorities, the AIFFP focuses on transformational infrastructure. Since its establishment in 2019, it has committed approximately $1.1 billion in loans and $850 million in grants, supporting 58 projects across 11 countries in critical sectors such as clean energy, telecommunications and digital connectivity, ports and airports.
Backing Pacific-led climate solutions remains central to the AIFFP’s work, alongside continued support for digital infrastructure and strengthened digital capabilities to deliver the best outcomes for the region.
The additional investment is provided as ODA grant funding, enabling the AIFFP to support major economic infrastructure while helping partners manage debt sustainability.
By combining grants with loans, where appropriate, the AIFFP offers tailored financing solutions that support long‑term economic growth, deliver value for money and ensure infrastructure investments remain responsible and sustainable.
Consistent with the Pacific Quality Infrastructure Principles, the AIFFP partners for local benefit — creating jobs, supporting local businesses, building skills and ensuring strong environmental and social safeguards across all projects.
Through sustained investment in high‑quality infrastructure, Australia is working with Pacific partners to build a more connected and economically vibrant region, now and into the future.
Image above: In attendance the Hon Chris Bowen MP, Minister for Climate Change and Energy, Solomon Islands Prime Minister Manele, Tongan Prime Minister Lord Fakafanua, Palaun President Whipps and the Secretary General of the Pacific Islands Forum (PIF) Baron Waqa.