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COVID-19 Response Package Design Framework

Summary of Publication

The Pacific COVID-19 Response Package (the Response Package) will provide AUD250 million over 2020-21 and 2021-22 to assist Pacific countries and Timor-Leste in weathering the economic impacts of COVID-19 and to better position the region for recovery. The Response Package will cover Timor-Leste, Papua New Guinea, Solomon Islands, Fiji, Vanuatu, Samoa, Tonga, Kiribati, Nauru and Tuvalu.

COVID-19 has significantly impacted on Pacific economies. Pacific Governments and communities require financial assistance to weather this shock and position themselves for the adjustments that will be required over this uncertain period.

The Response Package will primarily provide general and targeted budget support, managed through partner government systems. In other cases programs that can meet the objectives of supplementing budget financing and incentivising economic policy dialogue will be used. This includes funding programs that support vulnerable people.

The Response Package is not designed by itself to fill countries’ requirements, but instead to provide much needed financing, policy guidance and confidence.  As appropriate, it will leverage other sources of finance where possible. A degree of funding flexibility will be maintained to provide the ability to respond to shocks — including natural disaster shocks or an outbreak of COVID-19 in a country.

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