ADB, Prima Ltd sign landmark cable deal

February 18, 2026 10:05 pm | Posted in Business News | Share now TwitterFacebook

By Nicholas Mwai.

The Asian Development Bank (ADB) and Prima Limited have signed a landmark financing package to support the design, construction and installation of the 411-kilometre Tamtam submarine cable linking Port Vila to Lifou in New Caledonia — marking the bank’s first private sector investment in Vanuatu and a major step toward stronger connectivity and disaster resilience.

The package includes a $4.5 million loan from ADB’s ordinary capital resources and a reimbursable grant of up to $1.9 million from the private sector window of the Asian Development Fund, alongside technical assistance under the bank’s Wayfinder programme aimed at unlocking private investment in the Pacific.

ADB President Masato Kanda described the project as a milestone. “The Tamtam project in Vanuatu is a milestone as it is ADB’s first transaction under our new Wayfinder Program,” he said. “It will ensure reliable internet connectivity while also improving disaster resilience, both of which are essential for ni-Vanuatu businesses and communities to prosper.”

The new cable will complement Vanuatu’s existing connection to Fiji, providing a backup route to ensure communications remain operational if one link fails — a critical safeguard in a country exposed to earthquakes and other natural hazards.

Prime Minister (PM) Jotham Napat said the agreement signals growing confidence in Vanuatu’s private sector and infrastructure ambitions.

“This moment represents not only a corporate success, but a national achievement that reflects resilience and strong confidence in the future of Vanuatu’s digital transformation,” he said.

He said the second international cable will strengthen reliability for businesses, government services and communities while helping bridge the digital divide by extending connectivity to outer islands.

ADB officials noted that the project will place Vanuatu among a small group of Pacific countries with redundancy in international connectivity, reducing the risk of isolation during emergencies.

The Tamtam cable will be the first in the Pacific to deploy Science Monitoring and Reliable Telecommunications (SMART) technology, enabling real-time monitoring of ocean temperatures, sea levels and seismic activity.

This data will support early warning systems for natural hazards and be made available to scientific communities and civil protection authorities in both Vanuatu and New Caledonia.

ADB said the project will also create local employment opportunities and support initiatives to build skills among female students in science, technology, engineering and mathematics.

Prima Ltd, a locally incorporated company established in 2015 and involved in maintaining Vanuatu’s first submarine cable, will lead implementation of the project.

Chief Executive Officer (CEO) Simon Fletcher said the system will establish a high-capacity international digital backbone while bringing improved connectivity closer to communities across the islands.

“We will link areas including Port Vila, Luganville and parts of Malekula, and we are also looking at smaller islands where there is demand for international connectivity,” he said.

Fletcher said connectivity to remote communities will be supported through high-capacity radio backhaul, distributing bandwidth from fibre landing points to outer islands.

“The total project cost is around 53 million US dollars, roughly about 6 billion vatu,” he said, adding that major national institutions — including the Vanuatu National Provident Fund — will hold significant shares, meaning the investment ultimately benefits citizens.

“This investment is about providing social dividends today through better connectivity while also delivering financial returns in the future,” he said.

Construction is underway, with the cable expected to enter service in December 2027.

Leaders say the project will improve internet reliability, support digital businesses, enhance education and health services, boost tourism and e-commerce, and strengthen government service delivery.

“As we mark this milestone today, we are not simply signing a loan agreement — we are laying another foundation stone for Vanuatu’s digital future,” PM Napat said.

ADB said the agreement demonstrates how blended finance can help de-risk projects, attract investors and accelerate private sector development across the Pacific — positioning Vanuatu for greater participation in the global digital economy.