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Development assistance in the Pacific

Pacific Regional – Australian Infrastructure Financing Facility for the Pacific

The Australian Infrastructure Financing Facility for the Pacific (AIFFP) is enabling quality, climate resilient infrastructure in the Pacific and Timor-Leste.

Image of ship just off Palau shoreline.

Pre-Lay Shore End of the Palau Submarine Cable. Credit: Jesse Alpert/Balau Submarine Cable Corporation.

Infrastructure is critical to the region’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.

The AIFFP responds to the Pacific and Timor-Leste infrastructure priorities by partnering with governments and the private sector to deliver infrastructure with lasting benefits for communities and the economy. This includes the design and financing of high-impact, energy, water, transport, telecommunications, and other key infrastructure projects.

Each investment focuses on robust social and environmental safeguards to maximise development outcomes. For example, integrating climate change and disaster risk data into the design to increase infrastructure resilience, prioritising environmental protection, mainstreaming equality approaches for gender, disability and social inclusion, local job creation and upskilling workers.

The construction and delivery of these investments is enabled through loans and grants. Financing is tailored to support each country’s debt sustainability needs. The provision of grants enables flexible financing for sovereign borrowers and allows the AIFFP to operate in countries where loans are not suitable due to debt concerns.

Key AIFFP investments

Palau Solar Investment

The AIFFP has provided financing to Solar Pacific Pristine Power to support the construction of Palau’s first utility-scale solar and battery energy storage facility. Located on Palau’s largest island, Babeldaob, the project will comprise a 15.28-megawatt peak capacity solar photovoltaic facility, and a 12.9-megawatt battery energy storage system. When complete, it will be among the largest hybrid facilities of its kind in the Pacific. It will generate over 20 per cent of Palau’s energy needs, replacing diesel with renewable energy.  Find out more here.

PNG Ports

In partnership with PNG Ports Corporation, Australia is financing through the AIFFP, an investment to repair and upgrade key ports around the country through the PNG Ports infrastructure program. The investment will transform Lae Port to be the key deep-water port servicing the Highlands and surrounding areas, as well as accommodating container ships to become a key Pacific’s transhipment hub. The wharf upgrades will benefit remote local communities, increasing their access to transport, essential services such as healthcare, as well as goods and trade. The ports are designed to withstand future climate change related shocks and stresses and will as a result have a design like of at least 50 years. Find out more here.

Nauru Airport Refurbishment

Australia has partnered with the Government of Nauru’s Department of Transport to finance the upgrade of Nauru’s international airport. The investment will re-surface the runway, extending the service life of the runaway by another 25 to 30 years, and upgrade critical air traffic control equipment. The overall investment will ensure airport infrastructure continues to meet international standards and facilitate international air transport operations. The package will also enable climate-resilient upgrades to sections of the Nauru ring road. Find out more here.

East Micronesia Cable

Australia, through the AIFFP is partnering with Japan and the United States to provide financing and implementation support for the East Micronesia Cable. The cable once complete will provide faster, high quality and more reliable internet to approximately 100,000 people across Federated States of Micronesia, Kiribati and Nauru. Find out more here.

To learn more about the AIFFP including current investments, our principles, policies and more, visit Australian Infrastructure Financing Facility for the Pacific

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