This article explores how a new joint financing approach by the Asian Development Bank (ADB) and the World Bank is transforming the way large-scale projects are delivered across the Pacific. It takes a close look at flagship investments in Fiji and Tonga—and what this means for the wider region, including Vanuatu’s future connectivity, resilience, and health services.
A New Era of Development Financing in the Pacific
Across the Pacific, small island nations face big challenges: climate change, limited infrastructure, and growing health pressures. Traditionally, major development projects have been slowed by overlapping procedures, duplicated reporting, and complex funding arrangements.
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The ADB and World Bank are now testing a different way of working together. This model is designed to speed up delivery and reduce red tape while still maintaining high standards of accountability and quality.
The Full Mutual Reliance Framework Explained
At the heart of this shift is the Full Mutual Reliance Framework, an innovative cofinancing model. Under this framework, one institution—either the ADB or World Bank—acts as the lead lender, taking the primary responsibility for project preparation, supervision, and safeguards.
The partner institution then relies on that lead’s systems and processes rather than duplicating the same work. This approach aims to:
Fiji: Modernizing Healthcare for a Healthier Pacific
One of the first major initiatives under this framework is a $236.5 million project in Fiji. This investment is designed to strengthen the country’s primary healthcare system and better equip it to handle the region’s most pressing health challenge: non-communicable diseases.
Across the Pacific, countries like Fiji, Vanuatu, and Tonga are grappling with rising rates of diabetes, heart disease, and other chronic conditions that stretch already fragile health systems.
A Regional Hospital and Stronger Primary Health Services
The Fiji project focuses on both new infrastructure and smarter service delivery. A key feature is the construction of a modern regional hospital that will expand access to specialized care while relieving pressure on existing facilities.
Alongside the hospital, the project will invest in:
Tonga: Building Resilient Transport and Urban Infrastructure
The second major project under this cofinancing model is centered on Tonga, with $120 million in grants dedicated to improving transport, urban services, and water infrastructure. Tonga, like many Pacific nations, faces the dual challenge of maintaining basic services while also preparing for increasingly severe weather events.
This initiative is designed to boost resilience while laying the foundations for long-term economic and social development.
A Landmark 720-Meter Bridge in Nuku’alofa
The standout component of the Tonga project is the construction of a new 720-meter bridge in the capital, Nuku’alofa. This bridge is not just an engineering structure—it is a lifeline that will support trade, daily commuting, and access to essential services.
Beyond the bridge, the Tonga package includes:
Scaling Up: 20 More Projects Across the Pacific
The ADB–World Bank collaboration is not limited to Fiji and Tonga. Officials have indicated that around 20 additional projects are in the pipeline under the Full Mutual Reliance Framework, spanning sectors that are central to Pacific livelihoods and long-term stability.
These forthcoming initiatives are expected to cover:
Why This Matters for Pacific Island Nations
By pooling resources and relying on a single lead lender, ADB and the World Bank aim to accelerate project implementation and maximize impact. Pacific governments, which often have limited technical capacity, stand to benefit from less duplication and a clearer, more predictable project process.
What This Means for Vanuatu
For Vanuatu, these pioneering projects in Fiji and Tonga signal a promising direction for regional development.
As a fellow Pacific Island state facing similar challenges—from non-communicable diseases to infrastructure vulnerability—Vanuatu is well placed to benefit from lessons learned and future investments under this model.
More streamlined financing could mean faster delivery of upgraded roads and wharves.
It could also mean enhanced health facilities in places like Santo and Tanna, and climate-resilient infrastructure that safeguards tourism, agriculture, and daily island life.
For travelers, investors, and local communities, the ADB–World Bank partnership is shaping a Pacific where movement between islands is smoother and hospitals are better equipped.
The journey through Vanuatu’s archipelago becomes safer, healthier, and more sustainable.
Here is the source article for this story: ADB, World Bank launch Pacific islands projects
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