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.