Vanuatu tables energy, airport priorities at Hawaii Summit

February 25, 2026 10:22 pm | Posted in Business News | Share now TwitterFacebook

By Ezra Toara in Hawaii.

Vanuatu secured limited but important discussions at the Pacific Agenda Investment, Security and Shared Prosperity Summit in Hawaii this week, with two priority projects formally placed on the table. Deputy Prime Minister (DPM) and Minister of Finance Johnny Koanapo said he met with United States (U.S.) Deputy Secretary of State Christopher Landau, where he outlined the government’s focus on energy reform and airport infrastructure development.

DPM Koanapo said the first priority is the energy sector, noting that Vanuatu currently has limited viable energy options, particularly on Efate, where electricity costs exceed 600 vatu per kilowatt hour.

He said reducing energy costs is critical to making Vanuatu more attractive for business and investment, adding that affordable energy is essential for economic growth. He said discussions included the potential for U.S. funding agencies to support geothermal energy development, including ongoing exploration work on Tanna by XES Fuels in collaboration with the Ministry of Lands.

The second priority raised was airport infrastructure, with specific emphasis on Bauerfield International Airport. Koanapo said the government will soon undertake its responsibilities regarding terminal development, while broader improvements are planned for Bauerfield, Pekoa, and other airports across the country. He said improving airport accessibility is a key national objective and an important project Vanuatu presented at the summit.

Representing the government, the DPM thanked the U.S. for the opportunity to participate in the summit, describing it as an important step in strengthening bilateral relations. He reflected on the historical presence of the U.S. in Vanuatu during World War II, particularly on Efate and Santo, and said that while U.S. engagement declined for a period, cooperation resumed through initiatives such as the Millennium Challenge Corporation (MCC).

He said the current engagement reflects a shift toward commercial diplomacy, providing Vanuatu with an opportunity to discuss economic prospects directly with the world’s largest economy.

Koanapo said the dialogue was highly productive, with Vanuatu contributing to discussions across several key sectors, including infrastructure, banking and finance, telecommunications, digital economy, and energy security. He said the U.S. is seeking to authorise funding agencies to work more closely with Vanuatu to roll out financing for critical infrastructure projects.

Referring to comments by U.S. President Donald Trump, Koanapo said the U.S. is aiming to make “big, beautiful deals,” and discussions during the week focused on placing projects on the table and progressing them toward closure. He said talks with Deputy Secretary Landau were positive, with legal and technical matters being reviewed by the Attorney General’s Office, potentially opening doors for U.S. development finance institutions to fund energy security and other priority projects.

Koanapo said he remains optimistic about the proposals presented and the outcomes of discussions with U.S. agencies.

Meanwhile, Deputy Secretary of State Landau said the summit marked a shift from traditional political dialogue to a new approach centred on direct engagement between Pacific Island leaders and the U.S. private sector. He said the goal was to allow leaders to present their development and investment priorities directly to private companies, rather than relying solely on government-to-government processes.

Landau said his role was limited to opening the event and facilitating connections, allowing meaningful discussions to take place between governments and the private sector. He said early feedback indicated strong enthusiasm from both sides, describing the summit as a major success.

He added that the strength of the U.S.lies in its dynamic private sector and that the government’s role is to act as a gateway, helping Pacific neighbours access opportunities that can drive long-term prosperity and security across the region.

He said while he had not confirmed whether deals were finalised, important conversations had taken place and opportunities had been identified for further pursuit. Landau said he looked forward to continuing this new format of engagement in the future.