The Australian Infrastructure Financing Facility for the Pacific will provide a USD150 million grant and concessional loan package to Papua New Guinea to support the repair and upgrade of key energy assets. The commitment was confirmed during Prime Minister Marape’s visit to Canberra on 8 February 2024.

The financing will be used in the refurbishment of Ramu 1 hydropower plant, construction of the Gerehu transmission substation and the installation of smart meters in businesses and residences across PNG.

Under its Pacific Climate Infrastructure Financing Partnership, Australia is also contributing to a new solar entrepreneurs partnership, which is expected to deliver rural renewable energy for up to 4,000 households in the Milne Bay and West New Britain Provinces.

These improvements will increase access to reliable and sustainable electricity for communities in cities towns and remote villages, allowing for improved economic opportunities and access to health and education services.

The Australian Infrastructure Financing Facility for the Pacific (AIFFP) has disbursed initial tranche of grant funds as part of its support to upgrade two critical boat harbours in the Nui and Niutao outer islands, Tuvalu.

Funding of USD7 million was released for the Enhancing boat harbours across Tuvalu project last month, with the AIFFP’s support totalling AUD21.4 million.

Through the project, the AIFFP is working with the Asian Development Bank (ADB) and Government of Tuvalu to improve and construct new harbour facilities on Nui and Niutao outer islands.

Maritime transport is vital to Tuvalu's economy, the new boat harbours will improve connectivity for passengers and cargo travelling between Tuvalu’s capital and the two outer islands.

The AIFFP’s support to the project was announced in August 2023 in a visit to Tuvalu by Minister for International Development and the Pacific the Hon Pat Conroy MP and marks the second AIFFP project to be jointly co-financed with the ADB.

The Australian Infrastructure Financing Facility for the Pacific (AIFFP) is pleased to announce the release of the inaugural AIFFP Annual Update, providing a comprehensive overview of the AIFFP’s activities, achievements, and impact to date. 

As of 30 June 2023, the AIFFP has announced AUD 1.2 billion in financing towards 13 projects across eight countries. Each project has been developed in close consultation with Pacific partners in line with each country’s national priorities in key sectors such as energy, transport and urban infrastructure, telecommunications, airports and maritime.  

The AIFFP is committed to responsible and sustainable lending practices and works closely with partners to develop flexible and tailored finance packages. Since 30 June 2023, the AIFFP has committed further financing for projects in the region, giving the AIFFP a total portfolio of 16 projects worth AUD 1.3 billion. 

The Annual Update highlights the AIFFP’s commitment to achieving development outcomes, with all projects designed to meet the highest international standards on social and environmental safeguards, optimisation of job creation and economic opportunities for local workers and firms.  

Australia, through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), is partnering with Fiji Ports Corporation Limited to provide AUD380,000 for a feasibility study to inform the redevelopment of the Lautoka foreshore, located within the Port boundary.

The grant agreement was signed on 22 November between Fiji Ports Corporation Limited CEO, Varija Piyasena and His Excellency Ewen McDonald, Australian High Commissioner to Fiji and Special Envoy for Pacific and Regional Affairs.

The feasibility study will forecast requirements to 2030, 2040 and 2050, and comprise an assessment of current conditions, operations and facilities.

With the growth in the volume of cargo and passengers arriving and departing within Fiji’s shores this will assist in managing future capacity constraints, providing support to Fiji’s economic growth and the jobs that come with it.

The foreshore’s feasibility study is the fourth project in Fiji funded under the AIFFP, and the first investment in maritime infrastructure. The AIFFP’s projects in Fiji include upgrades to Fiji’s international and outer island airports; improvements to roads and bridges; and efforts to reduce flood risk.

Australia and Fiji are longstanding partners and friends and Australia is proud to play a role in enabling Fiji’s vision for Lautoka Foreshore.

Vanuatu’s critical aviation sector will benefit from the signing today of an agreement between Australia and Vanuatu to design and scope a package of infrastructure works at Vanuatu’s international airports.

Under the memorandum of understanding (MOU), Australia, through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), will continue supporting Airports Vanuatu Limited to update the 2018 Airports Masterplan to identify and prepare potential investments.

Design and scoping works are expected to result in a proposal, through the AIFFP, estimated at AUD80 million. Investments will respond to Vanuatu’s needs and priorities in aviation and the economy more broadly.

This MOU adds to Australia’s ongoing support for Vanuatu’s aviation sector which is vital for economic resilience, market access and regional connectivity. 

Quality and sustainability are central tenets of AIFFP’s value proposition. Investment design will consider climate resilience and appropriate environmental, social and gender safeguards. AIFFP financing keeps debt sustainability at the forefront, any investment proposal will be highly concessional considering Vanuatu’s economic needs.