ADB in the Pacific

ADB works with the Pacific's 14 developing member countries to help build resilience against economic shocks, deliver sustainable services, and promote inclusive and sustainable growth.

ADB's Work in the Pacific

Following 2 years of recession due to the COVID-19 pandemic and extreme weather events, economic growth in the Pacific rebounded in 2022, albeit unevenly.

The region is now benefitting from reopening—with tourists returning and infrastructure projects resuming. Its growth, however, is forecast to decline in 2023 and 2024, dragged by its two biggest economies, Papua New Guinea and Fiji.

In 2022, 12 of the region’s 14 developing member countries (DMCs) experienced their first cases of COVID-19 community transmission. In Tonga, COVID-19 outbreaks were preceded by the January 2022 volcanic eruption and subsequent tsunami, which caused widespread devastation and losses.

The severe socioeconomic impacts of recent natural hazards and global shocks on Pacific DMCs emphasize the importance of ADB’s ongoing work to build the region’s resilience.

In 2022, ADB committed $994.4 million for its Pacific DMCs, including $452.5 million to help DMCs recover from the economic impacts of the COVID-19 pandemic. A series of policy-based loans will enhance public financial management, expand private sector investment, and strengthen financial inclusion. Other new investments are reinvigorating tourism, boosting agriculture, and enhancing business and trade.

ADB also continued fostering climate resilience in the Pacific, supporting environmental policy reform, clean energy, and nature-based coastal protection.

The bank’s long-term commitment to the region was demonstrated through the formal opening of its Pacific Country Office in Nauru in 2022.

ADB is providing at least $14 billion over 2022-2025 to ease the food crisis in Asia and the Pacific. Currently nearly 1.1 billion people in Asia and the Pacific lack sufficient food due to poverty and food prices, which soared to record highs in 2022.

Addressing Poverty

ADB’s Pacific investments in 2022 reflected the bank’s aim to build both immediate and longer-term resilience that generates inclusive growth and reduces poverty and inequality.

The bank released $54 million in grant financing through the Pacific Disaster Resilience Program to help DMCs overcome multiple crises. This included $40 million for the Federated States of Micronesia, Kiribati, the Marshall Islands, Samoa, Solomon Islands, and Vanuatu to respond to community outbreaks of COVID-19, and $4 million for Tuvalu to cope with extreme drought.

The grants also included $10 million to support Tonga’s early relief and recovery from the devastating volcanic eruption and tsunami. ADB also provided a $1 million emergency grant to help Tonga overcome a large-scale outbreak of COVID-19.

In the Cook Islands, ADB worked with civil society organizations to help 32 small island communities manage the spread of COVID-19. The organizations distributed hygiene and medical equipment and helped roll out the CookSafe national contact tracing system.

ADB targets education as a key driver of inclusive growth in the Pacific. To this end, in PNG the bank committed $50 million to help about 12,000 disadvantaged young people move into agriculture and construction jobs.

Encouraging self-employment and cottage industry as another pathway out of poverty, ADB provided technical assistance to enhance inclusive lending by government-owned banks. In Fiji, Samoa, Solomon Islands, Tonga, and Vanuatu, this is helping increase the number and volume of loans—along with other assistance—to micro, small, and medium-sized enterprises.

By the Numbers: 2022 Operations

$994.4 million

Committed

$785.2 million

Disbursed

$369.5 million

Cofinanced


Source: ADB Annual Report 2022

Gender Equality

Gender Equality in the Pacific

During 2022, ADB expanded its efforts toward greater economic security and social well-being for Pacific women.

Following its 2021 support for poor and vulnerable groups in Palau, ADB provided a $3.5 million grant to finance a similar project in Vanuatu. The project, targeting households headed by women, will establish local gardening schemes, offer nutrition advice, and provide seed grants for home-based food businesses. It will also finance gender-based violence prevention and awareness efforts.

In Palau, ADB committed a $30 million policy-based loan that will help women start and grow businesses. The loan will ensure ongoing reforms remove barriers to women formalizing businesses—including by simplifying registration processes—which will enhance access to commercial finance. The program will also create a new electronic companies registry with expanded sex-disaggregated data.

Climate Change

Climate Change in the Pacific

The Pacific is home to some of the world’s most climate-vulnerable countries. In 2022, ADB provided financing and knowledge support to counter the effects of climate change.

Because strong policy environments can direct climate investments, ADB provided a $150 million loan to support key policy actions in Fiji, including promulgation of Fiji’s Climate Change Act. Reforms facilitated will help integrate climate and disaster risk considerations into national budgeting and public procurement. The program also includes $10 million for mitigation and $22 million for adaptation.

In the Federated States of Micronesia, ADB provided a $5 million grant to help reduce dependence on imported fossil fuels and transition to cleaner energy. The grant is funding preparatory work for renewable energy infrastructure, including the feasibility of small-scale hydropower and renewables-powered water supply.

Similarly, pre-feasibility studies for expanding renewable energy generation and strengthening disaster resilience were initiated in Niue.

To guide the growth of renewable energy across the Pacific, ADB published case studies on hybrid and battery energy storage systems the Cook Islands and Tonga.

In Kiribati, the Marshall Islands, and Tuvalu, ADB collaborated with civil society organizations to engage young people on climate issues and support local solutions. This included training for 329 youth and small grants for 11 youth climate projects, such as a solar-powered water distillation facility in Kiribati.

Livable Cities

Across the Pacific, and particularly in the region’s small island developing states, improving basic utility services is critical to make urban areas more livable.

In PNG, where only 13% of households have direct access to electricity, ADB committed $208.6 million in loans to expand and enhance power services. The project will enable the national power utility to serve 56,000 new customers and advance reforms in the power sector.

In Tonga, ADB provided a $7.2 million grant under the Pacific Renewable Energy Investment Facility to transform the power grid in the capital Nuku’alofa. The project will upgrade the aged and inefficient network, which—coupled with the South Pacific’s largest battery system—will expand access to renewable energy.

ADB provided a $3 million grant to help the Government of Solomon Islands explore new approaches to waste management in the capital Honiara. The project will design and test waste collection methods in informal settlements—home to around 40% of the city’s population—and prepare a subsequent investment project.

Rural Development and Food Security

Improved transport and market connectivity between and within Pacific DMCs remained a focus of ADB throughout 2022.

ADB provided a $30 million grant to improve Tuvalu's domestic shipping services by helping replace one of two aging passenger and cargo ships. As the ships offer the only transport between many outer islands and the capital Funafuti, and provide services to Fiji and Kiribati, the project will open up economic opportunities for local people.

In PNG, ADB committed a $162.9 million loan to help upgrade the civil aviation network. The project will improve infrastructure at five airports and extend aviation services to rural areas by providing all-weather airstrips.

Strengthening Governance

ADB worked to strengthen public revenue management, implement economic and fiscal reforms, and underpin delivery of public services in the Pacific in 2022.

Recognizing the value of knowledge on institutions, ADB provided technical assistance to create a power utilities reform network among Pacific DMCs. The network will help smaller countries such as Nauru, Niue, and Tuvalu understand changes needed to improve state-owned utilities, including enhanced performance reporting and disclosure.

Meanwhile, in Palau, ADB committed a $5 million policy-based loan to enhance electricity, water, and wastewater services. The loan will help address inefficient regulation and tariffs, improve corporate governance and financial management, and stimulate private sector participation.

In Solomon Islands, ADB committed $10 million in loans and grants—along with $33 million in cofinancing—to support a resilient recovery from the COVID-19 pandemic. The financing will provide critical budget support and assist with tax reforms to bolster domestic resource mobilization and strengthen public financial management.

In Fiji, an online platform launched in 2022 will make leasing and registering customary-owned land—a key source of income for indigenous Fijians—easier and more secure. The ADB-supported registry’s improved functionality will also increase opportunities for women to participate in customary land management.

Regional Cooperation

ADB supports its Pacific DMCs to improve connectivity between remote islands, strengthen regional capacity building, and generate and share knowledge.

ADB administered a $3 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific in 2022 to help Fiji safely reopen to tourists and businesspeople. The grant funded health and safety measures—including a dedicated testing facility—at Nadi International Airport to prevent COVID-19 transmission.

In Samoa in 2022, ADB provided a $7.5 million grant and mobilized $30.9 million in cofinancing to support foreign investment, finance sector, and labor reforms. The reforms will establish transparent and rules-based investment policies, support cross-border remittances through fiduciary measures, and enhance labor standards to better protect migrant workers.

ADB also supported the International Monetary Fund’s Pacific Financial Technical Assistance Centre in 2022 to strengthen the capacities of all 14 Pacific DMCs to conduct sound macroeconomic analysis. This will improve the design and implementation of public financial management, revenue, and financial sector policies, including by expanding knowledge sharing between Pacific DMCs.

Experts

Leah Gutierrez
Leah Gutierrez

Director General

Contact

Pacific Department (PARD)

6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines

Tel +63 2 6324444
Fax +63 2 6362444

Pacific Subregional Office (SPSO)

5th Floor, Ra Marama Building, 91 Gordon Street, Suva, Fiji

Office Hours: 8:00 a.m. to 5:00 p.m. (Monday to Friday)

Tel +679 3318101
Fax +679 3318074

Pacific Subregional Office (SPSO)

5th Floor, Ra Marama Building, 91 Gordon Street, Suva, Fiji

Office Hours: 8:00 a.m. to 5:00 p.m. (Monday to Friday)

  Tel +679 3318101
Fax +679 3318074
E-mail

Pacific Subregional Office (SPSO)

5th Floor, Ra Marama Building, 91 Gordon Street, Suva, Fiji

Office Hours: 8:00 a.m. to 5:00 p.m. (Monday to Friday)

Tel +679 3318101
Fax +679 3318074
E-mail

Pacific Department (PARD)

6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines

Office Hours: 9:00 a.m. to 6:00 p.m. (Monday to Friday)

Tel +632 86325346
Fax +632 6362444
E-mail

Pacific Department (PARD)

6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines

Office Hours: 9:00 a.m. to 6:00 p.m. (Monday to Friday)

Tel +632 86325346
Fax +632 6362444
E-mail

Pacific Liaison and Coordination Office (PLCO)

Level 20, 45 Clarence Street, Sydney, NSW Australia 2000

Office Hours: 8:30 a.m. to 5:00 p.m. (Monday to Friday)

Tel +61 2 8270 9444
Fax +61 2 8270 9445
E-mail

Pacific Subregional Office (SPSO)

5th Floor, Ra Marama Building, 91 Gordon Street, Suva, Fiji

Office Hours: 8:00 a.m. to 5:00 p.m. (Monday to Friday)

Tel +679 3318101
Fax +679 3318074
E-mail

Pacific Department (PARD)

6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines

Office Hours: 9:00 a.m. to 6:00 p.m. (Monday to Friday)

Tel +632 86325346
Fax +632 6362444
E-mail

Papua New Guinea Resident Mission (PNRM)

Level 2 – Burns Philp Haus, Corner of Musgrave Street & Champion Parade, PO Box 1992
Port Moresby, National Capital District, Papua New Guinea

Office Hours: 8:00 a.m. to 5:00 p.m. (Monday to Friday)

Tel +675 3221700
Fax +675 3210407
E-mail

Pacific Subregional Office (SPSO)

5th Floor, Ra Marama Building, 91 Gordon Street, Suva, Fiji

Office Hours: 8:00 a.m. to 5:00 p.m. (Monday to Friday)

Tel +679 3318101
Fax +679 3318074
E-mail

Pacific Liaison and Coordination Office (PLCO)

Level 20, 45 Clarence Street, Sydney, NSW Australia 2000

Office Hours: 8:30 a.m. to 5:00 p.m. (Monday to Friday)

Tel +61 2 8270 9444
Fax +61 2 8270 9445
E-mail

Solomon Islands Pacific Country Office

Level 1, Heritage Park Commercial Building, Mendana Avenue, Honiara, Solomon Islands

Pacific Subregional Office (SPSO)

5th Floor, Ra Marama Building, 91 Gordon Street, Suva, Fiji

Office Hours: 8:00 a.m. to 5:00 p.m. (Monday to Friday)

Tel +679 3318101
Fax +679 3318074
E-mail

Pacific Subregional Office (SPSO)

5th Floor, Ra Marama Building, 91 Gordon Street, Suva, Fiji

Office Hours: 8:00 a.m. to 5:00 p.m. (Monday to Friday)

Tel +679 3318101
Fax +679 3318074
E-mail

Tuvalu Pacific Country Office

Partnership House, Vaiaku, Funafuti, Tuvalu

Pacific Liaison and Coordination Office (PLCO)

Level 20, 45 Clarence Street, Sydney, NSW Australia 2000

Office Hours: 8:30 a.m. to 5:00 p.m. (Monday to Friday)

Tel +61 2 8270 9444
Fax +61 2 8270 9445
E-mail

ADB Extended Mission - Vanuatu

P.O. Box 246 Level 5, RBV BLD Rue Emil Mercet, Port Vila, Vanuatu

Tel +678 20300
Fax +678 20320
E-mail