Australia will not have veto power over Vanuatu’s decisions on third-party involvement in critical infrastructure, under the newly signed Nakamal Agreement.
The agreement clarifies that while Australia will be consulted on any proposed foreign involvement in key infrastructure projects, it will not be able to block or override those decisions.
Under the deal, Australia will still provide around $500 million in support to Vanuatu, however the funding will now be delivered over a longer and unspecified timeframe, rather than the previously proposed 10-year plan.
The provision is part of the broader Nakamal Agreement signed in Canberra on Monday by Prime Minister Anthony Albanese and Vanuatu Prime Minister Jotham Napat, which strengthens cooperation across security, infrastructure, climate, and economic development.
Under the deal, Vanuatu retains sovereignty over infrastructure decisions while agreeing to consult Australia on potential third-party engagements in ports, telecommunications, aviation, digital and energy systems.
In times of disaster, Vanuatu has also agreed to first seek assistance from the FRANZ partnership, which includes France, Australia and New Zealand, before requesting support from other countries.
For policing support, Vanuatu will prioritise requests through Pacific Islands Forum members, reinforcing Australia’s role as its primary policing partner.
The agreement also confirms that Vanuatu will not allow foreign military bases or militarised infrastructure on its territory, and will keep its critical infrastructure free from militarisation, foreign interference or unauthorised access.
On immigration and mobility arrangements, Vanuatu is expected to strengthen oversight of its citizenship-by-investment programme to ensure clearer separation from standard citizenship pathways, following concerns around so-called “golden passports.”
The agreement also comes amid broader regional competition, with China pursuing its own separate agreement with Vanuatu known as the Namele Agreement, the details of which have not yet been made public and are awaiting approval from Beijing.
The agreement also commits both countries to closer cooperation on policing, disaster response, climate resilience, renewable energy transition, and workforce development.
Australia remains Vanuatu’s primary policing and development partner and will continue to provide support in training, equipment, maritime security, cyber capability and infrastructure assistance.
The Nakamal Agreement will enter into force following domestic processes in both countries.
