Australia’s support includes an AUD91.9 million financing package for the Laitim Hauslain project to improve national power infrastructure. This investment will connect 30,000 to 40,000 households, schools and clinics in Morobe and East New Britain provinces to electricity, many for the first time.

Australia’s financing forms part of the PNG Electrification Partnership, which supports a key Papua New Guinean Government priority to achieve 70 per cent electrification by 2030. Improved access to electricity will improve economic and development outcomes in Papua New Guinean, support economic development in local communities, and improve the delivery of vital services for the people of Papua New Guinea.

Australia has also invested AUD76.3 million to support the national road network, connecting communities and supporting improved access to markets. The investment will support the Papua New Guinean Department of Works and Highways to undertake long-term rehabilitation and maintenance of approximately 359 kms of roads along the Wau Highway in Morobe Province and the Sepik Highway in East Sepik and West Sepik (Sandaun) provinces.

Funding will contribute to designs for the proposed Trans-National Highway. This will assist the Papua New Guinean Government progress their priority Connect PNG Strategy, a plan to increase strategic connections across Papua New Guinea’s four regions over the next 20 years.

Both investments will provide employment for Papua New Guinean people and use local materials where possible, to help stimulate Papua New Guinea’s economy and recovery from COVID-19.

Laitim Hauslain Project

Wau and Sepik Highways 

For more information, contact aiffp@dfat.gov.au

*Updated AUD figure based on exchange rate: 1.0AUD/0.70USD

The upgrade, to be delivered by AIFFP in partnership with the Nauru Department of Transport, includes resurfacing of the runway and upgrade of some critical air traffic control equipment. The funding will also enable climate-resilient upgrades to sections of the Nauru ring road.

As a small and remote island-state, Nauru is heavily dependent on the airport to connect Nauruans with their families overseas and deliver fresh food, medicine and other critical supplies.

The airport upgrade is a major infrastructure priority for Nauru, and its people, and will ensure the airport continues to operate safely and meet international standards.

Joint statement: Australia-Nauru cooperation on critical transport infrastructure | Australian Minister for Foreign Affairs Minister for Women (archived link)

Nauru airport refurbishment 

Australia, through the Australian Infrastructure Financing Facility for the Pacific, is providing a USD22 million financing package to Solar Pacific Pristine Power for a landmark solar and battery energy storage facility in Palau.  

The financing was announced by the Minster for Foreign Affairs and Minister for Women, Marise Payne during her visit to the Republic of Palau in December 2021. The agreements were signed on Monday 31 January 2022.

The project will deliver high-quality, renewable and sustainable energy infrastructure for Palau. It is anticipated to provide approximately 20 per cent of the country’s energy needs reducing dependency on imported diesel for power generation.

Palau Solar Plant Investment | The Australian Infrastructure Financing Facility for the Pacific (AIFFP)

For more information contact aiffp@dfat.gov.au

Australia has helped achieve a major milestone for the region, with all Pacific Islands Forum (PIF) members now connected to undersea telecommunications cables for the first time.

Working alongside Pacific governments and development partners, Australia has helped deliver more than 10,300 kilometres of new undersea cables, ensuring every PIF member is connected to the global telecommunications cable network.

The Australian Infrastructure Financing Facility for the Pacific (AIFFP) has played a significant role in this milestone, supporting cable connections for Naoero, Solomon Islands, Timor-Leste, Tuvalu, Tarawa in Kiribati, Kosrae in the Federated States of Micronesia (FSM), Tonga, Palau and Papua New Guinea. These include: 

• Tuvalu’s first international undersea cable, the Vaka Cable, which became operational in October 2025, providing more than 10,000 people with access to faster, more reliable internet.
• The East Micronesia Cable, operational since mid-2026, provides international cable connectivity to Naoero, Tarawa in Kiribati and the state of Kosrae in FSM for the first time.
• Tonga’s second international cable, the Tu’i Vava’u Cable, operational since May 2026, strengthens network resilience and provides Tongan communities with more reliable, higher‑capacity telecommunication connectivity, reducing the risk of disruptions during cable outages and disasters.

The AIFFP’s telecommunications investments are being delivered in partnership with Japan, New Zealand, and the United States, as well as Taiwan. They will help connect Pacific governments, businesses, communities and peoples to global networks and digital markets, opening new opportunities for trade, investment, innovation and economic participation.

Improved connectivity will enable better access to services, information and worldwide markets, while connecting families and communities to each other, and across the region.

Australia has committed more than $500 million since 2018 to support undersea cable connectivity across the Pacific and Timor-Leste. A more connected Pacific advances our shared interests by strengthening regional resilience, supporting economic development and deepening connections between our countries and peoples.

Media release: All Pacific Islands Forum members now connected by undersea cables | Australian Minister for Foreign Affairs

The East Micronesia Cable will bring faster, more reliable and more affordable internet to more than 100,000 people across Naoero, Tarawa in Kiribati and Kosrae in the Federated States of Micronesia. Delivered through a six-nation partnership, the project will improve access to online education, healthcare, and government services; support business growth and help connect people and communities to the global economy. 

Australian Prime Minister Anthony Albanese and Palau President Surangel Whipps Jr. visited Palau’s first large-scale solar power plant during the Pacific Islands Forum Leaders Meeting to mark the delivery of additional battery storage — a key milestone in Palau’s transition to renewable energy.

Joined by Australian Minister for Pacific Islands Affairs Pat Conroy and Minister for Climate Change and Energy Chris Bowen, the visit celebrated the installation of a new 19 MWh battery that will expand storage capacity and increase renewable energy generation to more than 25 per cent of Palau’s electricity needs.

Through the Australian Infrastructure Financing Facility for the Pacific, Australia has invested AUD 47.8 million (in loans and grants) in the solar power plant and expanded battery storage capacity. Together, these investments are helping reduce reliance on imported diesel, strengthen energy reliability and security, and support Palau's transition towards its goal of achieving 100 per cent renewable energy by 2035.

The solar power plant already supplies approximately 20 per cent of Palau’s electricity needs and has generated 34.67 GWh of renewable energy to date — equivalent to more than 8.6 million litres of diesel generation.

Prime Minister Albanese said the project demonstrates how renewable energy investments can deliver cleaner, more reliable power, reduce reliance on imported diesel and help shield Palau from the impacts of high fuel costs. 

Located in Ngatpang on Babeldaob, the 15.28 MW solar plant was completed in December 2023 and included a 12.9 MWh battery energy storage system. The additional 19 MWh battery expands the facility’s storage capacity and enables more renewable energy to be integrated into the grid.  

Prime Minister Albanese and President Whipps were also joined by Pacific leaders for a tour of the facility, highlighting the role high-quality infrastructure can play in strengthening energy security and accelerating the clean energy transition across the Pacific.

The project is being delivered in partnership with Solar Pacific Pristine Power, demonstrating how Australian financing can leverage private sector investment to deliver critical energy infrastructure in the Pacific.

Australia is proud to partner with Palau to advance its renewable energy transition through high-quality infrastructure investment that supports energy security, climate resilience and sustainable economic development. 

Related content: Media release: Pacific collaboration on climate and renewable energy powers ahead

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.

Read the AIFFP Update.

Australian Minister for Pacific Island Affairs the Hon Pat Conroy MP marked the milestone at the Pacific Islands Forum Leaders Meeting in Palau, recognising its significance and highlighting the partnership between the Federated States of Micronesia (FSM), Kiribati, Naoero, Australia, Japan, and the United States that made it possible.  

The 2,250-kilometre East Micronesia Cable will bring faster, more reliable and more affordable internet to more than 100,000 people across Micronesia, supporting essential services, enabling business opportunities and connecting people and nations to the global economy in an increasingly digital world. 

The cable also greatly reduces the risk of telecommunications outages, helping people and businesses stay connected to the everyday services they rely on. 

The Australian Government contributed approximately AUD65 million to the AUD135 million project through the Australian Infrastructure Financing Facility for the Pacific, alongside funding from Japan and United States. 

This is a historic milestone, with the Republic of Naoero, Tarawa in Kiribati and the state of Kosrae in FSM now connected to an international undersea telecommunications cable for the first time. Watch our video (linked below) to learn more about the East Micronesia Cable. 

Working alongside Pacific governments and development partners, Australia has helped deliver 10,300 kilometres of new underseas cables, ensuring every Pacific Islands Forum member is connected to the global cable network. 

The AIFFP is supporting undersea telecommunications cables and ancillary infrastructure in FSM, Kiribati, Naoero, Solomon Islands, Timor-Leste, Tuvalu, Tonga, Palau and Papua New Guinea.

Related resources:

Media releases:

• Landmark six-nation partnership delivers East Micronesia Cable
• All Pacific Islands Forum members now connected by undersea cables

Families in the remote Vanuatu community of Petervat in north Malekula now have clean, reliable running water, flowing from a new solar-powered system delivered through Australia's REnew Pacific program.

The project uses renewable energy to provide a reliable and climate-resilient water supply, improving access to an essential service for the community.

The system was officially handed over last week by the Hon. Paul Paolo MP for Malekula and, on behalf of the Australian High Commission, REnew Pacific Portfolio Manager Lindah Keremoi-Elton, alongside local leaders and community members.

Minister for Climate Change, Adaptation, Geohazards, Meteorology and Energy, the Hon. Ralph Regenvanu said the project demonstrated the importance of renewable energy solutions in improving essential services for rural communities.

“Projects like this show renewable energy can deliver a tangible impact. The Petervat community now has locally owned infrastructure providing reliable access to clean water while reducing reliance on costly fuel-based systems,” said Minister Regenvanu.

“I’m looking forward to more renewable energy projects under the Nakamal Agreement and continuing to work together on priorities that matter for communities.”

Australia’s High Commissioner to Vanuatu, Max Willis, said the handover highlighted the practical benefits of Australia’s partnership with Vanuatu.

“We launched REnew Pacific in Petervat a year ago, so it is a proud moment that clean water is now flowing, powered by the sun,” Mr Willis said.

“This is what partnership looks like in action: climate resilient infrastructure that improves daily life for rural ni-Vanuatu families. But this is not where it ends. Under the Nakamal Agreement, Australia is committed to supporting Vanuatu with its energy transition objectives.”

“We look forward to expanding our work with local partners and communities to increase access to clean, reliable and affordable energy.”

Petervat is one of nine rural communities across Santo, Paama, Tanna and Malekula to receive a solar-powered water system under the two-year project, which will improve water security for over 5,100 people. The project is also equipping 24 health centres and schools with solar PV and battery storage and creating local jobs and training.

The system has been delivered by the Global Green Growth Institute in partnership with Vanuatu’s National Green Energy Fund.

For local residents, the new system will transform everyday life by reducing the time spent collecting water and improving household health and wellbeing.

“In the past, we relied on water from the river, but now we have access to water from a natural spring. The water is piped directly to our houses, and daily life is much easier. The change has made a significant difference to our community,” said Jamie Vaxal, Secretary of the Petervat Community Water Committee.

GGGI Vanuatu’s Renew Pacific Project Lead, Andres Toro, said: “This system now belongs to Petervat. The community has been trained to run and maintain it, ensuring reliable access to clean water for years to come.” 

It is one of two REnew Pacific projects in Vanuatu, building on the recently completed Respond Global (HELPR-1) project, which brought 24-hour solar power to 41 health facilities across all six provinces, benefiting more than 70,000 people.

REnew Pacific is the Australian Government’s AUD75 million commitment to expanding clean, reliable off-grid renewable energy in rural and remote Pacific and Timor-Leste communities. It is part of the Pacific Climate Infrastructure Financing Partnership (PCIFP), a $350 million initiative focused on climate infrastructure in the region, delivered by the Australian Government’s Australian Infrastructure Financing Facility for the Pacific (AIFFP).

For more information, visit www.renewpacific.com.au.

Schools across Fiji are switching on to 24/7 clean solar energy through our REnew Pacific project with It's Time Foundation and Fiji's Ministry of Education, supported by the Australian Government. 

Now more than halfway complete, the project is not slowing down and is already delivering: 

• Reliable, round-the-clock solar power to 26 remote and maritime schools
• New computer labs and Starlink internet, connecting students to digital learning for the first time
• Around $150,000+ in annual fuel savings, with money going straight back into classrooms
• Training for Fijian women in solar installation and electrical trades, building local skills to last a lifetime

What does this look like in real life? 

Nuku Secondary School, which serves 121 students in Nuku and surrounding villages, was one of the first schools to switch on power back in March.

Veremo Qalica, Principal at Nuku Secondary School, said that the financial savings from the switch to solar energy is creating opportunities to use that money to invest back into the school. “The cost of fuel, in the past decade, for the running of the school has been so enormous. From term one when we have full supply of electricity up until today, we have started to see that we have saved huge amounts of money. That money can be diverted to other areas of improvement for the school.”

Mereisi Taukena, a teacher at Nuku Secondary College, said that since the installation students no longer need to travel long distances to access internet and educational resources. “Things that they normally do, like they have to do all the way down to Navua to access internet. Now they don’t need to go, we have them here. They don’t need to go down for printing, we have our copier machine functioning very well.”

Nuku Secondary School student, Salome Seruwata, said that since the installation, they can now access laptops and internet whenever they need to. “Before the solar came, we usually borrowed our teachers' laptops to use for typing up our projects, but right now the laptops are there and there is internet connectivity.”

A new video, released this week, shares updates from staff and students about how reliable power and internet access have changed daily life at the school, from evening study to new digital learning opportunities.

Watch it here:

Every system is built to last, supported by the Solar Fund (Fiji) with a dedicated maintenance model to keep the lights on for years to come.

With the final schools to be connected later this year, Australia and its local partners are closing the energy and technology gap for rural students and teachers one solar panel at a time. 

Learn more. 

REnew Pacific is Australia’s $75 million investment in off-grid renewable energy for rural and remote communities across the Pacific and Timor-Leste. It’s part of the Pacific Climate Infrastructure Financing Partnership (#PCIFP), delivered through the Australian Infrastructure Financing Facility for the Pacific (#AIFFP).