The Asian Development Bank (ADB) and the World Bank have launched two significant projects aimed at boosting infrastructure and healthcare in the Pacific islands, utilizing a novel cofinancing model designed to enhance efficiency and prompt action. This collaborative effort utilizes the Full Mutual Reliance Framework, recently approved to allow one institution to serve as the principal financier, thus minimizing redundancy and channeling resources toward implementation.
The first initiative involves a substantial investment of $236.5 million to modernize Fiji’s primary healthcare system. This project aims to establish a regional hospital that will specifically address the rising incidence of non-communicable diseases (NCDs) in the nation, where diabetes has become the leading cause of death. Currently, an alarming statistic reveals that an amputation occurs every 8.5 hours in Fiji. Finance Minister Esrom Immanuel has expressed optimism about this project, stating it will enhance the quality of healthcare, facilitate early detection of diseases, and improve overall health outcomes for the population.
The second project focuses on upgrading the transport, urban, and water infrastructure in Tonga. ADB and the World Bank will jointly provide $120 million in grants for this developmental effort, marking the largest project ever funded by development partners in the country. This initiative will lead to crucial improvements in transport and drainage systems around the capital city of Nuku’alofa. A key feature of this upgrade is a 720-meter (0.45-mile) bridge across a lagoon, which is expected to alleviate congestion and offer secure evacuation routes during emergencies such as tsunamis.
World Bank President Ajay Banga, alongside ADB President Masato Kanda, highlighted the challenges countries with limited capacity face when dealing with multiple lenders, often leading to inefficiency and delays. Banga emphasized the goal of the cofinancing framework is to directly address these challenges, reduce duplicative efforts, and allow institutions to redirect time, funding, and expertise towards effective project execution.
Furthermore, Banga noted that around 20 additional cofinanced projects are currently in development, spanning sectors such as infrastructure, energy, agribusiness, healthcare, and social protection. He described the framework as a groundbreaking model for how multilateral development banks can collaborate as a more cohesive system, with ongoing discussions with other financial institutions, including the European Bank for Reconstruction and Development and the African Development Bank, to implement similar cooperative strategies.
These initiatives not only promise to enhance healthcare and infrastructure resilience in Fiji and Tonga but also serve as a model for international collaboration in the pursuit of sustainable development in vulnerable regions.
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