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

Infrastructure is critical to the Pacific 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.

The AIFFP is committed to ensuring infrastructure investments are high quality, meet the highest international social and environmental safeguard standards and achieve sustainable development outcomes for Pacific island countries. The AIFFP is focused on strengthening the regional labour market and creating economic opportunities for local workers and firms through its projects. All AIFFP projects are designed in line with DFAT’s requirements on gender equality, disability and social inclusion to mitigate risks to vulnerable groups, and ensure benefits are shared.  The AIFFP seeks to integrate climate considerations across the feasibility, design and construction of its investments to increase resilience of its investments.

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.

To learn more about the AIFFP including current investments, our principles, policies and more, visit the AIFFP website.

Selected AIFFP investments

Information on all AIFFP investments can be found on their website.

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.

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.

Off-Grid Renewable Energy Projects

Through the AIFFP, Australia is investing in small-scale off-grid renewable energy projects to assist our Pacific and Timor-Leste partners mitigate, adapt, and build resilience in the face of a changing climate. As part of the Australian Government’s Pacific Climate Infrastructure Financing Partnership (PCIFP) initiative, the AIFFP has announced 20 projects that will deliver off-grid renewable energy solutions across rural and remote areas.

The projects range from piloting a sustainable solar energy model for Fiji’s remote school communities, enhancing critical health infrastructure through clean, affordable, and reliable energy in Timor-Leste, and harnessing the circular economy to tackle solar e-waste in Vanuatu.

The AIFFP expects to announce further projects in 2024-25, including a further $75 million in a new mechanism to finance small-scale off grid renewable energy infrastructure and initiatives across the Pacific.

Fiji Roads Authority

In partnership with the Fiji Government, the AIFFP is investing AUD72 million to maintain Fiji’s roads and build 9 bridges. The investment supports Fiji’s economic recovery from the COVID-19 pandemic, while simultaneously enhancing its resilience to climate change. More than 1.5 million square metres of road surface has been renewed or resealed, and 8 critical bridges with a 100-year design life and the ability to withstand a one in a 100-year rainfall event have been completed. One bridge remains to be completed and the project is scheduled to be completed in mid-2026.