Australia, through the Australian Infrastructure Financing Facility for the Pacific, has signed a FJD106 million (AUD68 million) investment in Airports Fiji Pte Ltd (AFL). The Australian investment, alongside ANZ Fiji, will help fund capital works at Nadi International and other outer islands’ airports, refinance existing debt, and address several infrastructure priorities of Fiji Airports Limited.

The financing utilises AIFFP’s guarantee mechanism to facilitate a Fijian Dollar denominated loan by co-lending with ANZ.

The return of international tourists is vital to Fiji’s economic recovery. Support provided by AIFFP and ANZ Fiji will ensure that once international travel reconvenes, Fiji and neighbouring islands will be ready to welcome travellers.  

AFL is a Fijian state-owned enterprise, highly prized by the Fijian Government, and the primary provider of commercial airport services in Fiji. The financing provided by the AIFFP and ANZ will facilitate economic growth and prosperity by boosting local tourism infrastructure, increasing local jobs in Fiji and provide an aviation hub for the Pacific at the Nadi International Airport. 

For more information, contact aiffp@dfat.gov.au or visit:

• Supporting tourism recovery in Fiji | Australian Minister for Foreign Affairs Minister for Women (archived link)

• ANZ partners with Australian Government to support critical infrastructure in Fiji

• Airports Fiji  

As a key initiative under the Trilateral Partnership for Infrastructure investment in the Indo-Pacific, Australia, the US, and Japan have invested approximately AUD40 million in the project, along with Palau. Australia’s contribution, including management of US funding, is being delivered by the Australian Infrastructure Financing Facility for the Pacific.

The project will ensure more reliable and secure digital connectivity which will translate into improved government services, access to information to improve education and health services, and entrepreneurial opportunities that contribute to prosperity, particularly important during the COVID-19 pandemic.

Papua New Guinea’s maritime infrastructure will benefit from the signing today of an agreement between Australia and Papua New Guinea to design and scope the upgrade and refurbishment of key ports across the country. 

Under the agreement, Australia, through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), will support PNG Ports Corporation to prepare investments under Papua New Guinea’s 30-Year Ports Infrastructure Master Plan.  

This design and scoping work is expected to result in potential investments, through the AIFFP, estimated at AUD400 million. Australia’s support will assist PNG Ports Corporation to increase the capacity of Papua New Guinea’s commercial ports to accommodate larger ships, which will improve trade and connectivity in the region.

The  AIFFP signed financing agreements with Solomon Islands Electricity Authority and Solomon Islands for more affordable and reliable energy for Honiara. This USD22.7 million dollar package will finance the development and construction of a 22km  transmission system to deliver renewable energy generated by the Tina River Hydropower Project to Honiara.

This critical piece of infrastructure will result in more affordable and reliable electricity for Solomon Islands.  The investment also creates jobs during construction and over the long-term as the benefits of cheaper electricity are realised  by households, businesses and government services.

The renewable energy produced will also displace up to as much as 18 million litres of imported diesel and 49,500 tonnes of CO₂ emissions per year. It will enable Solomon Islands to meet 100 per cent of the country’s international commitment for emissions reduction under the Paris Agreement.

PRESS RELEASE

Supporting reliable electricity for Solomon Islands

• Joint media release with:

• Former Senator the Hon Zed Seselja, Minister for International Development and the Pacific

16 June 2021

Improved access to reliable electricity for Solomon Islands is one step closer with an historic agreement signed today with the Australian Government under the Australian Infrastructure Financing Facility for the Pacific (AIFFP).

Australia is funding construction of a 22km transmission system to deliver renewable energy generated by the Tina River Hydropower Project to Honiara. This is part of our almost $60 million investment in this important energy project. 

This critical piece of infrastructure will help provide reliable electricity for more people in Solomon Islands, alleviating pressure on household incomes and providing opportunities for improved government and community services. 

The renewable energy produced will also enable Solomon Islands to meet 100 per cent of their international commitment for emissions reduction under the Paris Agreement.

Minister for Foreign Affairs and Minister for Women, Senator the Hon Marise Payne said that the deal was a vital part of the region's economic recovery post COVID-19.

“Australia's support will not only create local jobs in the construction phase, but also create longer term opportunities for the people of Solomon Islands,” Minister Payne said.

“Solomon Islands is more than a partner, they are our family, our wantok. Together, we can invest in the future of households, businesses and government services in Honiara via reliable renewable energy.”

Minister for International Development and the Pacific, Senator the Hon Zed Seselja said that the project would be instrumental in supporting the economy of Solomon Islands.

“The Tina River Hydropower Project is a bold, transformational infrastructure project. Australia is proud to support the Solomon Islands in realising its vision for economic development,” Minister Seselja said.

Australia and Solomon Islands will continue to work together on opportunities, such as the Tina River Hydropower Project, that advance the prosperity, security and stability of the region.

Australia, through the AIFFP, signed a series of agreements with Palau and the Belau Submarine Cable Corporation (BSCC) to provide financing for the construction of an undersea fibre optic cable which will connect to a US-Singapore trunk cable. The signing ceremony was held on Wednesday, 13 January 2021 in Palau and attended by President Thomas Remengesau Jr., President Elect Surangel Whipps Jr., Australia’s Ambassador to Palau, Richelle Turner and the Chairman of BSCC,  Keobel Sakuma.  

The cable will reinforce the communications infrastructure of Palau, contributing to increasing its communication capacity and raising the stability of its international communications. With the improvement of the communications infrastructure, the investment environment of Palau will also improve, contributing to promoting investment from overseas and developing the economy of Palau. This economic boost, including local jobs in the cable’s construction, comes at a much-needed time during the COVID pandemic recovery.

The AIFFP’s support for this project builds on Australia’s support for the 4,700km of the Coral Sea Cable System cable connecting Sydney, Port Moresby and Honiara, as well as the AIFFP’s support to Timor Leste for its first undersea cable.

Foreign Ministers of Japan, the U.S., and Australia announced in Vietnam in October 2020 that this Palau cable project will be the first under the Trilateral Infrastructure Partnership  Investment in the Indo Pacific (TIP) . 

Australia opened its first diplomatic mission to Palau in 2019. This project further demonstrates our strong relationship with Palau.

REMARKS BY AUSTRALIAN AMBASSADOR TO PALAU, RICHELLE TURNER

COVID-19 has underscored the importance of reliable, affordable, resilient internet connectivity. We saw family and friends catching up on WhatsApp and Facetime, schools and universities delivering classes online, medical specialists meeting weekly via Zoom, international and bilateral virtual meetings via Webex and other platforms.

In addition, with the arrival of the first submarine cable in 2017 – PC1, telecommunication connectivity in Palau has experienced rapid growth in access to and use of digital infrastructure. As of January 2020, there were over 17,000 internet and social media users – or 94% of the population using the internet.

With this increase in internet traffic, the requirement for sustainable and affordable back up capacity is vital. In 2019, Palau identified the ECHO cable network as a viable trunk option to develop a second cable, with a view to creating the required resilience. At that stage, Palau approached both the Australian Infrastructure Financing Facility for the Pacific (AIFFP) and the Japan Bank for International Cooperation (JBIC) to partner in the development of a second cable for Palau.

In response to challenging economic circumstances as a result of COVID19, Palau and Australia demonstrated flexibility in maintaining momentum on the project by reserving a connection to the ECHO cable network. This was secured in early 2020 with the commitment of financing from Australia to cover the marine survey and a branching unit. This financing provided time to secure additional partners to tailor a financial package that responded to the economic challenges of COVID19 while still realising the connection to the ECHO cable.

With Palau, and under our Trilateral Infrastructure Partnership with Japan and the United States, a package of support has been secured which responds to the economic pressures of COVID19 while addressing Government of Palau’s priority for national resilience.

This partnership demonstrates our collective will and capacity to pool resources and provide high-quality, sustainable critical infrastructure that serves the genuine needs of the people of Palau. PC2, or Palau Cable 2, will ensure reliable, secure, digital connectivity that in turn will support private sector growth, government services, new investment and improve Palau’s resilience to COVID-19 impacts.

Australia will continue to work closely with Palau and the Pacific to ensure unity and identify opportunities for the long-term sustainable economic recovery from COVID-19.

Your Excellencies, partners, friends and colleagues. Today is a celebration and a demonstration of the strength of our partnership, cooperation and shared interests and values. Infrastructure projects such as this lie at the heart of our collective vision for a secure, stable, open and prosperous Indo-Pacific.

Australia is very pleased to support Palau’s vision to strengthen its connectivity to the global internet and looks forward to working with Palau, Japan and the US to ensure the expected project benefits are realised.

 Mesulang, Thank you

The Australia Infrastructure Financing Facility for the Pacific (AIFFP) took part in NAIDOC Week 2020 celebrations, the annual National Aboriginal and Islander celebration.  Held from 8-15 November under the theme ‘Always Was, Always Will Be’, the Week offered an invaluable opportunity to come together to celebrate the rich history, diverse cultures and achievements of Aboriginal and Torres Strait Islander peoples as the oldest continuing cultures on the planet.

The theme, Always Was, Always Will Be acknowledges Australia’s story began at the dawn of time.

AIFFP engages with Indigenous Australia to identify ways to promote economic empowerment and cultural understanding.  NAIDOC Week also marks the anniversary of the partnership between the AIFFP and First People Recruitment Services, a fully indigenous owned firm that provided $10.3 million in recruitment services to the AIFFP, delivered over four years. AIFFP recently partnered with another indigenous owned firm, Promo Gear, for design and distribution of the Facility’s merchandise.

AIFFP is working closely with the Wantok Foundation to ensure that original music from Indigenous artists from across the Pacific are featured in the audio-visual materials produced to showcase its projects, including Charles Maimarosia from Solomon Islands and George Telek Mamua MBE from Papua New Guinea. 

Following an open tender process, the Department of Foreign Affairs and Trade has entered into contract to establish a Capital Infrastructure Service Panel.  The Panel will service the Australian Infrastructure Financing Facility for the Pacific, other areas of the Department of Foreign Affairs and Trade, the New Zealand Ministry of Foreign Affairs and Trade as well as sovereign recipients of Commonwealth funding and other Commonwealth agencies.

There are two elements to the panel, one is a client-side project management element, including services such as surveys and studies, design, construction delivery and maintenance and the other is a head contractor element for construction, including all services required for the physical delivery of capital infrastructure.

The panel will complement the AIFFP’s existing resources and ensure services ‘on tap’ to support the Facility.

Companies on the panel demonstrated capability in at least one of the following sectors: water, energy, telecommunications, transport and buildings and developments. Selection criteria emphasised the AIFFP’s values – quality, gender equality and social inclusion, use and upskilling of local labour and private sector, being responsive to the needs of partner governments, climate and disaster resilience and applying appropriate safeguards.

The successful companies are:

HEAD CONTRACTOR

• Alexander and Lloyd Australia Pty Ltd
• Bardavcol Pty Ltd
• Bellwether Contractors Pty Ltd
• Canstruct Pty Ltd
• Clough Projects Australia Pty Ltd
• Downer EDI Engineering Power Pty Ltd
• Hall Contracting Pty Ltd
• J Hutchinson Pty Ltd trading as Hutchinson Builders
• Infratec Limited
• James Construction International Pty Ltd (JCI)
• LOTTE Engineering & Construction Co., Ltd
• Manteena Security (Aust) Pty Ltd
• Maritime Constructions
• McConnell Dowell Constructions (Offshore) Ltd
• Hornibrook
• P2 Infrastructure
• Pacific Marine Group Pty Ltd
• Pacific Services Group Holdings Pty Ltd (PSG Holdings)
• Reeves International Pty Ltd
• Shamrock Civil Engineering Pty Ltd
• The Fletcher Construction Company Limited
• Vocus Pty Ltd
• Worley Services Pty Ltd
• Fulton Hogan Industries Pty Ltd
• HTS Construction Pty Ltd

The Palau spur cable will be the first project under the Trilateral Partnership for Infrastructure Investment in the Indo-Pacific between Australia, Japan and the United States. It demonstrates a shared commitment to delivering sustainable, transparent, high-quality infrastructure projects in the region. The spur cable will connect Palau to a new cable which will span the Indo-Pacific region from Singapore to the west coast of the United States.

Australia will contribute approximately US$10 million to the Palau cable project. This includes US$1.4 million for a marine survey and branching unit, and a loan of approximately US$9 million from the Australian Infrastructure Financing Facility for the Pacific (AIFFP) to help finance the construction of the cable. Japan, the United States and Palau are also making significant contributions.

This new project builds on Australia’s support to the Coral Sea Cable System, which consists of 4,700km of cable connecting Port Moresby, Honiara and Sydney. Australia is also supporting the scoping of Timor-Leste’s first undersea fibre optic cable, through the provision of financing for the Front End Engineering Design for this important telecommunications project, at the request of the Government of Timor-Leste.

Secure and reliable internet connectivity in the region will open up opportunities to boost tourism, business and investment, and to provide better government services, including health and education.

Australia partnering with Japan and the United States to finance Palau undersea cable

28 October 2020

Australia is partnering with Japan and the United States to finance an undersea fibre optic cable to the Republic of Palau. This project, valued at approximately US$30 million, will ensure reliable, secure digital connectivity in Palau.

The Palau spur cable will be the first project under the Trilateral Partnership for Infrastructure Investment in the Indo-Pacific between Australia, Japan and the United States. It demonstrates a shared commitment to delivering sustainable, transparent, high-quality infrastructure projects in the region. The spur cable will connect Palau to a new cable which will span the Indo-Pacific region from Singapore to the west coast of the United States.

Minister for Foreign Affairs and Minister for Women, Senator the Hon Marise Payne, said this project highlights Australia’s close friendship with Palau.

“Australia and Palau have a strong bilateral relationship,” Minister Payne said. “As part of Australia’s Pacific Step-Up, Australia recently opened its first Embassy in Palau. This presence bolsters Australia’s diplomatic network – already the largest in the region of any country.

“We are very pleased to work alongside Japan and the United States to support Palau’s vision to strengthen its global internet connectivity.”

Australia will contribute approximately US$10 million to the Palau cable project. This includes US$1.4 million for a marine survey and branching unit, and a loan of approximately US$9 million from the Australian Infrastructure Financing Facility for the Pacific (AIFFP) to help finance the construction of the cable. Japan, the United States and Palau are also making significant contributions.

This new project builds on Australia’s support to the Coral Sea Cable System, which consists of 4,700km of cable connecting Port Moresby, Honiara and Sydney. Australia is also supporting the scoping of Timor-Leste’s first undersea fibre optic cable, through the provision of financing for the Front End Engineering Design for this important telecommunications project, at the request of the Government of Timor-Leste.

Secure and reliable internet connectivity in the region will open up opportunities to boost tourism, business and investment, and to provide better government services, including health and education.

The Palau project highlights Australia’s strong commitment to the Pacific, as demonstrated by the Pacific Step-up, our A$1.44 billion of aid committed to the region in 2020-21, and the A$2 billion AIFFP. The AIFFP supports quality infrastructure in Pacific island countries and Timor-Leste.

As a Pacific country, and the region’s largest donor, Australia has a strong interest in supporting the region’s prosperity, stability, sovereignty and sustainability.

END OF MEDIA RELEASE

Former Minister for Foreign Affairs and Minister for Women, Senator the Hon Marise Payne, said this important infrastructure project has been identified as a priority by the Government of Fiji and Australia is proud to work in partnership with our Fijian vuvale.

Infrastructure will play an important role in our region’s economic recovery from the COVID-19 pandemic in creating jobs and opportunities within the private sector.

Australia will provide up to $5 million in financing to support essential catchment management and upstream flood mitigation work. The investment under the Australian Infrastructure Financing Facility for the Pacific (AIFFP) complements work by the Government of Japan and the Asian Development Bank (ADB).

Australia and Fiji have a strong partnership and a long history of cooperation, as well as shared interests and values. Australia is committed to deepening those ties by stepping up and working with our regional partners to create a stronger Blue Pacific.

PRESS RELEASE

AUSTRALIA SUPPORTING FIJI WITH FLOOD ALLEVIATION PROJECT

Australia is working in partnership with Fiji to mitigate the impact of floods on the major population centre of Nadi in a joint effort to save lives, reduce homelessness and protect the local economy.



The Nadi Flood Alleviation Project will reduce the effects of these regular natural disasters on the commercial centre of Nadi town and on the Nadi flood plain.



Minister for Foreign Affairs and Minister for Women, Senator the Hon Marise Payne, said this important infrastructure project has been identified as a priority by the Government of Fiji, and Australia is proud to work in partnership with our Fijian vuvale.



"There have been 26 major floods in the Nadi catchment since 1991, which have claimed lives, caused homelessness and wreaked damage on the economy," Minister Payne said. "Australia's investment will support Fiji's efforts to save lives and alleviate future losses to local households and businesses, as well as the broader Fijian economy." Infrastructure will play an important role in our region's economic recovery from the COVID-19 pandemic in creating jobs and opportunities within the private sector.



Australia will provide up to $5 million in financing to support essential catchment management and upstream flood mitigation work. The investment under the Australian Infrastructure Financing Facility for the Pacific (AIFFP) complements work by the Government of Japan and the Asian Development Bank (ADB).



Minister for International Development and the Pacific, the Hon Alex Hawke MP, said the Nadi Flood Alleviation Project would bring tangible economic and environmental benefits to Fiji.



"Nadi has particular economic significance as the gateway to Fiji, and home to Fiji's major international airport and several large resorts. Nadi was the port of entry for nearly 900,000 visitors in 2019 - a large proportion of which are Australian. Flooding in Nadi town is a significant issue," said Minister Hawke.



As the biggest contributor of development assistance in the Pacific, Australia will remain a steadfast partner in building climate and disaster resilience through COVID-19 economic recovery.



The AIFFP supports quality infrastructure in Pacific island countries and Timor-Leste. This broader $2 billion infrastructure initiative significantly boosts Australia's support for high priority projects in the region in areas such as telecommunications, energy, transport and water.



Australia and Fiji have a strong partnership and a long history of cooperation, as well as shared interests and values. Australia is committed to deepening those ties by stepping up and working with our regional partners to create a stronger Blue Pacific.

END OF MEDIA RELEASE