ADB approved a $20 million financing package for Vanuatu to enhance fiscal sustainability and disaster response capabilities.

Information on the Target

The Asian Development Bank (ADB) has approved a financing package of $20 million to enhance fiscal sustainability and disaster response capabilities in Vanuatu. This package includes a $10 million policy-based grant aimed at reforming domestic resource mobilization, public expenditure management, and state-owned enterprise (SOE) operations, alongside a $10 million multi-year contingent disaster financing option under the Enduring Fiscal Position Program.

The financing is set to strengthen the existing frameworks for disaster response and health emergencies while enhancing fiscal resilience in the face of unexpected events. Regional Director Jyotsana Varma remarked on the Vanuatu Government's commitment to essential reforms that enable the nation to offer better services to its people.

Industry Overview in Vanuatu

Vanuatu faces significant fiscal and developmental challenges typical of small island developing states (SIDS). The nation is highly vulnerable to natural disasters such as cyclones and earthquakes,