Vanuatu made significant strides in securing vital discussions at the Pacific Agenda Investment, Security, and Shared Prosperity Summit in Hawaii this week. Deputy Prime Minister and Minister of Finance Johnny Koanapo highlighted two priority projects that were formally presented during the summit, particularly in the energy and airport infrastructure sectors.
In his meeting with U.S. Deputy Secretary of State Christopher Landau, Koanapo emphasized the pressing need for reform in Vanuatu’s energy sector. He noted that electricity costs in Efate exceed 600 vatu per kilowatt hour, creating a barrier for business and investment. To support economic growth, he stressed the importance of reducing energy costs and the potential for U.S. funding agencies to assist in developing geothermal energy resources, specifically mentioning ongoing exploration on Tanna by XES Fuels in conjunction with the Ministry of Lands.
The second significant project discussed was related to airport infrastructure, particularly the development of Bauerfield International Airport. Koanapo indicated that the Vanuatu government plans to enhance terminal facilities and execute broader improvements at Bauerfield and Pekoa airports, which aim to bolster accessibility and facilitate travel throughout the nation.
During the summit, DPM Koanapo expressed gratitude to the U.S. for the opportunity to engage in discussions that aim to strengthen bilateral relations. He recalled the historical involvement of the U.S. in Vanuatu during World War II and noted a resurgence in cooperation through entities like the Millennium Challenge Corporation (MCC) after a period of decline.
The discussions at the summit marked a pivotal shift toward commercial diplomacy, opening avenues for Vanuatu to engage directly with the world’s largest economy on economic opportunities. Koanapo described the talks with U.S. officials as constructive, covering various sectors, including infrastructure, banking and finance, telecommunications, and energy security. He pointed out that the U.S. is keen on authorizing funding agencies to collaborate more closely with Vanuatu on critical infrastructure projects.
Highlighting comments from U.S. President Donald Trump, Koanapo noted an eagerness to finalize significant deals. He reported that constructive talks on legal and technical matters are underway, suggesting that U.S. development finance institutions may soon support energy security and other strategic initiatives in Vanuatu.
Deputy Secretary of State Landau also acknowledged the summit’s success in fostering a new engagement format that emphasizes direct interaction between Pacific Island leaders and the U.S. private sector. This approach is seen as a way for leaders to articulate their investment and development needs without solely depending on government-to-government dialogues. While Landau did not confirm any finalized deals, he shared optimism about the constructive conversations that occurred, which identified promising opportunities for collaboration.
Overall, the summit has established a hopeful vision for future cooperation, signaling a potential pathway toward greater economic resilience and development for Vanuatu. Both nations are looking forward to building on this engagement model to secure long-term prosperity and security in the region.
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