ASIATODAY.ID, MANILA — The Asian Development Bank has approved $22.5 million in financing for Tuvalu and Palau, reinforcing efforts to improve climate resilience, strengthen public institutions, and modernize critical infrastructure across two of the Pacific’s most vulnerable island nations.
The financing package, announced on Monday, includes a $10 million grant for Tuvalu and $12.5 million in concessional financing for Palau, underscoring ADB’s broader strategy to help Pacific economies adapt to climate change while promoting sustainable and inclusive growth.
For Tuvalu, ADB approved a $10 million grant through the Asian Development Fund to improve the operation and long-term maintenance of the country’s essential maritime transport system.
The funding will establish a dedicated expenditure facility for preventive maintenance and the renewal of class certification for the Manu Sina passenger and cargo vessel, which provides the only regular sea link between the capital, Funafuti, and the country’s remote outer islands.
With the outer islands located between 118 and 457 kilometers from Funafuti, maritime transport is the backbone of Tuvalu’s domestic connectivity. The investment is expected to ensure the safe and reliable movement of passengers, food, medical supplies, and commercial goods while improving access to healthcare, education, markets, and other essential public services.
ADB Pacific Subregional Office Regional Director Azusa Sato said the investment demonstrates the importance of the Asian Development Fund in helping vulnerable Pacific nations strengthen long-term resilience.
“This investment in critical maritime transport services demonstrates how the Asian Development Fund helps Pacific countries achieve sustainable and inclusive development,” Sato said. “The fund remains one of the Pacific’s most important sources of development financing, enabling countries to invest in a more resilient future.”
ADB also approved $12.5 million in concessional financing for Palau under the second phase of the Strengthening Fiscal Resilience for Sustainable Development Program, aimed at reinforcing public financial management and strengthening the country’s capacity to withstand future economic and environmental shocks.
The program will support reforms in fiscal governance, tax administration, debt management, domestic resource mobilization, development planning, and trade facilitation. It will also help integrate climate resilience into government budgeting, land-use planning, and public investment while supporting implementation of the Palau Sustainable Tourism Strategy 2025–2028.
ADB North Pacific Advisor Aziz Haydarov said the program reflects Palau’s continued commitment to strengthening fiscal sustainability while preparing for growing climate risks.
“Palau has demonstrated continued strong leadership in advancing reforms that support fiscal sustainability, resilience to natural hazards, and long-term economic growth,” Haydarov said. “This program will further strengthen the institutions and systems that underpin sustainable development while improving the country’s preparedness for future economic and environmental challenges.”
The latest approvals highlight ADB’s expanding support for Pacific island economies facing rising climate risks, geographic isolation, and external economic pressures. By combining investments in resilient infrastructure with stronger public institutions, the bank aims to help Pacific nations protect essential services, improve connectivity, and create more sustainable foundations for long-term growth.
Founded in 1966, ADB is owned by 69 members, including 50 from Asia and the Pacific, and remains one of the region’s leading multilateral development banks supporting sustainable, inclusive, and climate-resilient development. (AT Network)
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