Vanuatu, ADB discuss new disaster financing tool
July 3, 2025 11:12 pm | Posted in Business News | Share now TwitterFacebook
By Hilaire Bule.
The Asian Development Bank (ADB) reaffirmed its long-term partnership with Vanuatu and pledged expanded support for disaster recovery during a high-level meeting yesterday afternoon in Luganville between ADB Vice-President Scott Morris and Deputy Prime Minister (DPM) and Finance Minister Johnny Koanapo.
Senior government officials also attended the meeting, which explored increased support for climate resilience and sustainable development.
During his visit, Mr. Morris toured ADB-supported project sites and discussed new ways to align ADB’s assistance with the country’s development priorities.
“ADB is pleased to be a long-term partner of Vanuatu. We are committed to implementing sustainable and climate-resilient projects aligned with the country’s national priorities,” Mr. Morris said. “ADB continues to support the Government of Vanuatu in the earthquake recovery phase and is exploring further opportunities for collaboration.”
A press statement from ADB confirmed that following the 7.3 magnitude earthquake that struck Port Vila in December 2024, the bank provided US$5.5 million in assistance. This included US$5 million through the Pacific Disaster Resilience Programme and a US$500,000 Earthquake Emergency Response grant to support recovery efforts.
“For 44 years, ADB has been a trusted, reliable partner of Vanuatu. ADB’s recognition of Vanuatu’s vulnerability to disasters and its focus on building resilience is highly appreciated,” DPM Koanapo said.
ADB continues to support Vanuatu through investments in disaster-resilient infrastructure and services, disaster preparedness, improvements in public financial management during emergencies, and the development of national disaster risk financing strategies.
The partnership between ADB and the Government of Vanuatu continues to grow and diversify. In addition to infrastructure work in transport, energy, and water supply, ADB is expanding its involvement in health, skills development, finance, and economic reform. The two parties are also in discussions on a potential contingent disaster financing tool that would allow for rapid disbursement of funds to support immediate responses and resilience-building after future disasters.
As of December 2024, ADB had committed 106 public sector loans, grants, and technical assistance projects to Vanuatu, totalling US$304 million. Its current sovereign portfolio in Vanuatu includes four loans and 11 grants worth a combined US$155.33 million, financed through concessional ordinary capital resources, the Asian Development Fund, and other special funding instruments.
ADB is currently financing the construction of evacuation centres, including one in Korman, Port Vila, as well as on other islands.
It is also funding upgrades to the water supply system in Luganville and the construction of a domestic wharf for local vessels in Port Vila.
