Australia plays a key role in promoting economic stability and growth of the Indo-Pacific region, particularly through aid to Pacific island countries. Its official development assistance (ODA), managed through the Department of Foreign Affairs and Trade, is guided by aspirations for a peaceful, stable, and prosperous Indo-Pacific. Australia’s ODA Development Budget Summary for 2024–2025 outlines a commitment to support sustainable development and build resilience in the Indo-Pacific region with a focus on climate change, locally led development, and gender equality as core areas of action. Australia also aims to partner with countries in the Pacific, Southeast Asia, and globally to advance the United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals.
In May 2024, Australia committed A$2.9 million (approximately $1.9 million) to the Nonsovereign Revolving Trust Fund, a multi-donor trust fund established in 2023 and administered by ADB. The contribution supports the ADB Frontier Seed (Mekong) technical assistance initiative, which aims to identify and finance small and medium-sized enterprises with the potential to transform and create local industries. The goal is to contribute to sustainable and inclusive growth in Cambodia and the Lao People’s Democratic Republic.
Australia is a founding member of ADB and has committed a total of $3.2 billion to special funds since 1966. Of this commitment, $2.9 billion is for the Asian Development Fund (ADF). The ADF provides grants to ADB’s low-income, developing member countries to help reduce poverty and improve quality of life.
Australia’s Official Development Assistance Budget Summary 2024–2025
12 July 2024
ADB joined the governments of Australia and Tonga in a commissioning ceremony for Wharf 1, the latest milestone of the Nuku’alofa Port Upgrade Project.
12 November 2024
ADB joined with partners to show their commitment to climate change financing at a kick-off event at COP29 for the Innovative Finance Facility for Climate in Asia and the Pacific.
14 October 2024
ADB and the governments of Tonga and Australia commissioned the Niuafo’ou hybrid minigrid as part of the cofinanced Tonga Renewable Energy Project.
23 January 2024
ADB welcomes a new framework for public–private partnerships in Papua New Guinea (PNG) aimed at unlocking private investment and know-how, and allowing PNG to expand and improve infrastructure service delivery.
25 November 2024
ADB approved a $7.9 million policy-based grant to help the Government of Samoa enhance fiscal management and improve the business environment in the country through Subprogram 2 of the Samoa Strengthening Macroeconomic Resilience Program.
5 November 2024
ADB joined project partners in Solomon Islands for a ceremony to mark the beginning of construction of the Tina River main dam structure.
1 August 2024
ADB and the Government of Fiji signed a $70 million loan agreement to support Fiji in building resilience against disasters and to help spur sustainable growth in the country.
22 May 2024
ADB and the governments of Australia and Indonesia jointly announced their support to create a water-sensitive city in Nusantara—Indonesia’s new capital—on the sidelines of the 10th World Water Forum.
27 February 2024
ADB and the Government of Tonga participated in a handover ceremony of Mooring Dolphin No. 3 as part of the ADB-supported Nuku’alofa Port Upgrade Project.
Reforming Solomon Islands’ tax system will make it fairer and more efficient, helping the country fund poverty reduction projects, boost economic growth, and improve people’s lives.
Eco-friendly e-buses and the first national e-vehicle charging network are helping Viet Nam reduce greenhouse gas emissions, fight climate change, and move people.
ADB supported the establishment of a municipal government in Nuku’alofa and provided high-priority urban infrastructure identified in the Nuku’alofa Urban Infrastructure Development Plan.
ADB supports Nepal’s School Sector Development Plan, which aims to ensure all children have access to quality education through strategic reforms that enhance equity, quality, efficiency, governance, and resilience in the education system.
ADB helped build and rehabilitate basic infrastructure and services needed to return a sense of normalcy to an estimated 1.1 million conflict-affected people in Sri Lanka.
The World Bank Group provided a $5.5 million grant to the Strengthening Macroeconomic Resilience Program for Tonga, which, along with a $12.2 million grant from ADB, aims to strengthen Tonga’s macroeconomic resilience.
An ADB technical assistance project supported Tonga’s Ministry of Finance and Ministry of Lands and Natural Resources, as executing and implementing agencies, in planning, designing, and prioritizing investments to improve urban infrastructure and resilience to floods and climate change in Nuku’alofa.
Through the Department of Foreign Affairs and Trade, Australia funds development initiatives in the Pacific, focusing on infrastructure, trade facilitation, and international competitiveness.
ADB helped the Samoan government build new hydropower plants while rehabilitating those that have been degraded by cyclones.
ADB helped Tonga improve urban planning and management and the delivery of sustainable urban services in the capital, Nuku’alofa.
By holistically pursuing rural development, the Water Resources Management Sector Development Program has not only helped reduce poverty in rural Cambodia; it has also made water agencies and farmer communities resilient to climate change and natural disasters.
ADB is heavily invested in the Pacific by promoting energy efficiency and renewable energy resources, expanding access to energy, and promoting energy sector reform, capacity building, and effective governance.
ADB and Australia collaborated on several knowledge products including the following:
ADB and the Government of Fiji, in partnership with Australia and the World Bank, hosted this Pacific Infrastructure Business Opportunities Seminar for international, regional, and local contractors and consultants who are interested in contributing to the infrastructure development activities in the Pacific.
This working paper presents three case studies of national financing vehicles from Australia, Indonesia, and Thailand, identifying success factors and lessons learned.
Detailing how Australia’s Therapeutics Goods Administration conducted horizon scanning for new vaccines during the pandemic to assist ADB, this report is designed to help countries in Asia and the Pacific prepare for future outbreaks.
Active trust funds are those a) with ongoing projects; or b) with no active projects but have remaining funds.
Australia contributes to ADB’s development initiatives through two key avenues: Cofinancing and Special Funds.
Originally established in 2009, the framework for 2021–2025 prioritizes working together to help developing member countries reduce poverty, rebuild better, and achieve inclusive and sustainable economic growth, stability, and resilience; facilitate trade investment; and build public awareness and promote transparency of the outcomes of the ADB–Department of Foreign Affairs and Trade partnership. There is also greater focus than before on support for fragile and conflict-affected countries and small island developing states.
Sovereign Cofinancing. In 2024, Australia committed $80.2 million in project-specific cofinancing, comprising $77.3 million in grants and $2.9 million in technical assistance. Of this, $38.5 million was to support Fiji in accelerating reforms to improve the business and finance environment, bolster resilience through improved resource mobilization, and increase the efficiency of public investment to support critical climate adaptation and mitigation priorities. This program also supports Fiji’s efforts to mainstream gender equality including the expansion of gender-responsive budgeting across all line ministries and enhancing community preparedness for disasters.
Australia also provided $13.5 million grant to improve climate resilience, water and food security, and livelihoods in rural communities in Timor-Leste, $6.6 million grant to Solomon Islands to strengthen reforms aimed at improving the country’s fiscal position, meeting its international climate change commitments, and efforts in mitigation and lowering emissions. Furthermore, a $5.7 million grant was committed to Tonga to help the government implement reforms to mitigate fragilities intensified by the COVID-19 pandemic, and the 2022 volcanic eruption at Hunga Tonga–Hunga Ha’apai and subsequent tsunami waves.
Nonsovereign Cofinancing. The Trade and Supply Chain Finance Program (TSCFP) supported over 1,690 transactions valued at $2 billion with banks domiciled in Australia from 2009 to 2024. During the same period, the TSCFP supported over 1,380 Australian exports and/or imports valued at $1.4 billion. In 2024 alone, the TSCFP supported 32 transactions valued at $31.1 million with banks domiciled in Australia and supported 56 Australian exports and/or imports valued at $78.0 million. Exports and/or imports were mainly to/from Viet Nam, Bangladesh, and Sri Lanka. Underlying goods involved mostly food and agriculture-related goods, raw and non-energy commodities, as well as textiles and apparel.
The TSCFP works with Export Finance Australia, the Australian government’s export credit agency to facilitate Australian exports to Asian developing member countries.
Australia’s Department of Foreign Affairs and Trade (DFAT) is a key partner and donor of the TSCFP. DFAT provided $6.3 million (or A$8.5 million) to the TSCFP since 2015 to support TSCFP expansion in the Pacific among other initiatives. In 2024, DFAT provided an additional $2 million (or A$3 million) to further support TSCFP’s initiatives.
