In the wake of the earthquake that struck Port Vila on December 17, 2024, the Government of Vanuatu has raised the possibility of relocating the capital city. During a VBTC Stret Tok program, Deputy Prime Minister and Minister of Finance and Economic Management, Hon. Johnny Koanapo, revealed that the government is considering the option of relocating Port Vila town.

Minister Koanapo stated that the government has allocated a budget of 200 million Vatu for the current fiscal year, with the funds earmarked for compensation related to urban land development. He explained that the budget could also be used to cover the costs of relocating the capital if necessary.

“There is an ongoing discussion about whether we should continue developing the current Port Vila, which is undergoing renovations, or explore the option of relocating. I have introduced a proposal on township development under the Ministry of Internal Affairs, and the council has approved it,” said Minister Koanapo. “The 200 million Vatu allocated will be used for compensation related to urban land development. If the decision is made to relocate Port Vila, this budget will allow us to acquire land, subdivide it, and establish the necessary utilities for the new town.”

Minister Koanapo emphasized that the funds will be used strategically, with half of the allocated amount going towards land compensation to facilitate the development of a potential new location for the capital.