The Australian Infrastructure Financing Facility for the Pacific (AIFFP) has released its latest AIFFP Update, covering the period July 2024 to December 2025.
During the 18-month reporting period, the AIFFP continued to invest in high-quality, sustainable infrastructure, helping build a more connected and economically vibrant region.
As of 31 December 2025, the AIFFP had committed AUD2 billion in project financing, with 58 projects signed and announced across 11 countries.
The reporting period also marked significant progress in strengthening digital connectivity, laying the foundation for a historic milestone achieved in mid-2026, when every Pacific Islands Forum member became connected to an undersea telecommunications cable for the first time. In late 2025, Tuvalu’s first international undersea cable, the Tuvalu Vaka Cable, was connected, and the East Micronesia Cable System successfully landed in Naoero; Tarawa in Kiribati; and the state of Kosrae in the Federated States of Micronesia. These first cable connections will help deliver faster, more affordable, and more reliable internet for communities, governments and businesses.
The reporting period also saw a second international cable announced for Solomon Islands and significant progress on a second cable for Tonga, strengthening the security, reliability and resilience of digital connectivity across the region.
In line with Pacific priorities, supporting the transition to clean energy and building climate resilience remained a key priority for the AIFFP. Between July 2024 and December 2025, the AIFFP announced 11 off-grid renewable energy projects, helping more than 124,000 people and 76 schools, health centres and communities access clean energy.
The 18-month period also saw the completion of two maritime infrastructure projects, delivering upgrades to Tonga’s main port and safer, more resilient boat harbours in Tuvalu. These projects are supporting trade, improving the safety and reliability of maritime transport, and creating economic opportunities for generations to come.
In January 2026, following the reporting period, the Minister for Foreign Affairs, Senator the Hon Penny Wong, announced an additional allocation of AUD550 million in funding for the AIFFP. This increased the AIFFP’s total financing capacity to AUD4.55 billion, comprising up to AUD3 billion in loans and up to AUD1.55 billion in Official Development Assistance (ODA) grants. Australia is committed to using its financing capacity to back the region’s priorities and strengthen local capabilities.