The Government of Vanuatu and the Asian Development Bank (ADB) are in advanced discussions on a contingent disaster financing tool that would allow the country to quickly access emergency funds when disasters strike — a move expected to significantly boost Vanuatu’s ability to respond to natural hazards.

The proposal was a key focus of discussions held in Port Vila this week between ADB Vice-President Scott Morris and Deputy Prime Minister Johnny Koanapo Rasou, alongside senior government officials. The talks reaffirmed the long-term partnership between ADB and Vanuatu and aimed to align future ADB support with the nation’s disaster recovery and development priorities.

“ADB continues to stand with Vanuatu in its recovery efforts. We are committed to supporting sustainable, climate-resilient development, and ensuring that governments have the financial tools to act quickly in times of crisis,” said Mr. Morris.

Following the 7.3 magnitude earthquake that hit Port Vila in December 2024, ADB provided over Vt660 million in emergency assistance — Vt600 million through the Pacific Disaster Resilience Program, and Vt60 million from an Earthquake Emergency Response Grant.

Deputy Prime Minister Rasou acknowledged ADB’s critical role in supporting Vanuatu’s resilience:

“For 44 years, ADB has been a trusted partner. Their continued support in infrastructure, financial management, and disaster response is vital for our future.”

ADB is also expanding its engagement beyond infrastructure, with ongoing support in health, education, economic reform, and skills development. As of December 2024, ADB had committed over Vt36 billion in loans, grants, and technical assistance to Vanuatu, with a current active portfolio worth Vt18.6 billion.