Vanuatu and ADB
In the Spotlight
The economies of the Cook Islands, Fiji, Palau, Samoa, and Vanuatu are the Pacific countries likely to feel the brunt of the COVID-19 pandemic, according to a new report by ADB released today.
A $15 million grant from an Asian Development Fund (ADF) 12 facility will reduce the burden of pneumonia and diarrhea in children and increase protection against the human papilloma virus in women.
ADB will invest over $1 billion worth of energy projects in the Pacific from 2019 to 2021 to increase renewable energy generation and improve access to affordable and sustainable electricity in the subregion.
Pacific Energy Update 2019 details how ADB is helping its Pacific developing member countries undertake a structural shift away from fossil fuel-based energy sources and towards renewables. Read more
The 2019 growth forecast for the Pacific subregion has been raised from 3.5% to 4.2%, driven mainly by higher liquefied natural gas production in Papua New Guinea and increased construction expenditure in Samoa and Solomon Islands, as well as lower-than-projected economic decline in Nauru.
However, project delays in Papua New Guinea, tepid growth in some economies, and slower recovery in others will likely moderate subregional growth to 2.6% in 2020. Read more in the latest Pacific Economic Monitor
Vanuatu has posted strong economic performance in recent years, driven primarily by tourism, construction, and aid inflows from development partners. However, key constraints to implementing assistance programs persist. These include the country’s remoteness, small market size, underdeveloped institutions, and limited absorptive capacity. The rural economy is primarily agrarian, with largely subsistence farming, aside from some copra, beef, cocoa, and kava produced for export.
The country operations business plan (COBP), 2017-2019 for Vanuatu is aligned with the government’s Priorities and Action Agenda, 2006-2015, infrastructure strategic investment plan, and national energy road map. ADB operations support energy, transport, water and other urban infrastructure and services, and public sector management.
Projects in Vanuatu
- Disaster Resilience Program (Phase 2)
- Pacific Private Sector Development Initiative, Phase IV
- Pacific Region Infrastructure Facility Coordination Office-Leveraging Infrastructure for Sustainable Development
- Preparing the Pacific Renewable Energy Investment Facility (Phase 2)
- Pacific Renewable Energy Program