Moves to boost Vanuatu’s domestic shipping


Water transport in Vanuatu is set to see upgrades with the Asian Development Bank (ADB) and governments of New Zealand and Vanuatu signing loan and grant funding agreements earlier this month to improve domestic port facilities and expand shipping services to remote islands.<!--more-->

<a href=""><img class="aligncenter size-full wp-image-3892" title="Vanuatu-Flag" src="" alt="" width="250" height="200" /></a>Improved shipping and port facilities will support national development and promote new economic opportunities for isolated rural communities. It will also develop services on routes that have so far been commercially unviable.

The project, which will finance the building of a new interisland terminal in the capital, Port Vila, and construct new jetties on the islands of Malekula, Ambae, Tanna and Pentecost, will also rehabilitate several jetties in remote areas.. The project is expected to take 5 years to complete.

The new interisland terminal in Port Vila will provide sufficient berths to handle the growing volume of vessels, as well as separate transit facilities for men, women and the disabled. New jetties will be built at Port Sandwich (Malekula); Lolowai (Ambae); Waisisi (Tanna), and Loltong (Pentecost). Existing jetties at Litzlitz (Malekula); Lenakel (Tanna) and Simonsen (Espiritu Santo) will be repaired or rehabilitated.

ADB’s loan of $10.82 million equivalent from its concessional Asian Development Fund has a 32-year term, with the Government of New Zealand providing a co-financing grant of $12.6 million equivalent directly to the Government of Vanuatu. The Government of Vanuatu will contribute $3.4 million, for a total project cost of around $26.8 million.

The technical assistance will include a $500,000 grant from ADB’s Technical Assistance Special Fund, a $1 million grant from the Government of New Zealand, to be administered by ADB, and about $500,000 from the Government of Vanuatu.


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