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Policy framework

Policy framework

Infrastructure is critical to the Pacific’s sustainable economic growth.

It enables the movement of people and goods, and provides access to local and global markets, as well as health, education, water, energy and communications services.

Without adequate infrastructure, countries are unable to fulfil their economic potential and benefits of growth are not spread to poorer and more remote areas.

The stability and economic progress of Pacific island countries and Timor-Leste is fundamental to Australia.

The 2017 Foreign Policy White Paper notes the ‘massive and wide-ranging’ infrastructure needs of our region. Australia has an interest in this infrastructure being developed responsibly in line with agreed international principles, consistent with robust social and environmental safeguards and maximising development impact.

Contributing to Australia’s New International Development Policy

Australia has released a new international development policy, setting the long-term direction for Australia's development program.

Profound challenges continue to reshape our world, testing our collective resolve. The new policy is centred on listening, respect and genuine partnership. It will guide how Australia's development program supports a peaceful, stable, and prosperous future for Australia and our region – ensuring it is fit for these complex times.

The AIFFP forms an important part of Australia’s New International Development Policy by funding climate-resilient infrastructure projects that support sustainable economic growth and local employment.



The AIFFP’s overarching objective is to advance Australia’s national interests by contributing to a stable, secure and prosperous Pacific. The AIFFP has three high level outcomes, which together contribute to this objective.

  • Pacific countries and Timor-Leste have increased access to capital to support quality, resilient and inclusive economic infrastructure
  • Australia delivers infrastructure financing that meets the development needs of Pacific countries and Timor-Leste
  • Australia is the partner of choice for financing infrastructure in the Pacific and Timor-Leste

For information on monitoring and evaluation against these objectives, see further information here.

Loans and grants

Discover our policies on grants and loan financing.