AUSTRALIA & VANUATU AGREE $325 MILLION SECURITY PACT – Deal to strengthen economic & security ties amid China competition
Australia and Vanuatu on Wednesday agreed on a A$500 million ($326.50 million) deal to strengthen economic and security ties between the two countries, amid increasing competition from China, the Pacific island nation’s largest external creditor.
Vanuatu Prime Minister Jotham Napat said the deal, known as the Nakamal Agreement, will see Australia invest the funds into Vanuatu over the next decade and was a “win win” for both countries.
Australia Deputy Prime Minister Richard Marles said the agreement showed the two nations had a “shared destiny”.
“It acknowledges that as neighbours, we have a shared security environment and a commitment to each other,” Marles said
The deal will be formally signed by Napat and Australia’s Prime Minister Anthony Albanese in the coming weeks, he added.
The deal also covers funding for climate resilience following a December earthquake that hit the capital, Port Vila, killing at least 14 people and injuring hundreds.
In recent years, Vanuatu has moved closer to China, the country’s largest external creditor, after a decade of infrastructure loans for construction, including a new president’s office last year.
