Gov’t invests VT1.8B to develop Santo as economic hub
June 5, 2025 9:53 pm | Posted in Business News | Share now TwitterFacebook
By Ezra Toara.
The Government of Vanuatu has allocated VT1.8 billion for infrastructure development in the country’s northern region, with a major portion directed toward upgrading Pekoa International Airport in Luganville, Santo.
Prime Minister Jotham Napat confirmed the funding as part of a broader plan to position Santo as Vanuatu’s leading economic centre.
The PM announced that the first phase of the airport project will focus on expanding and upgrading the existing runway to support increased domestic air traffic.
“The government has already made a start, and we will now begin the first stages of upgrading Pekoa Airport,” he said. “What we want to see is the expansion of the runway and improvements that will allow it to better serve our local flights.”
He noted that securing the full funding required for the second phase remains a key priority, and efforts are underway to source additional financial support to keep the development on track.
“This year, we expect physical works to begin,” Napat said. “It won’t be long before the project is tabled for the tender process, where qualified companies can submit bids to undertake this important work.”
He explained that Santo was chosen for this major investment because of its capacity for expansion.
“Why Santo? We all know there is room for expansion,” he said. “The government is committed to making Santo our country’s economic hub because it holds a lot of promise for the future.”
With ample land, logistical advantages, and a growing business community, Luganville is increasingly seen as a strategic location for investment. The Pekoa Airport upgrade is expected to improve domestic connectivity and set the stage for future international operations.
This multi-billion vatu initiative forms part of the government’s national plan to decentralise development, ease the burden on Port Vila, and support economic growth in provincial centres.
