Vanuatu and Australia agree to $500 million security, economic pact

Vanuatu has finalised a strategic pact with Australia, known as the Nakamal Agreement, which is worth A$500 million (NZ$548.16m) over the next 10 years.

Vanuatu's government announced on Wednesday in Tanna that its Council of Ministers has approved the deal, with plans to officially sign the agreement next month.

The pact focuses on various important issues between the two countries, including building infrastructure, developing the economy, and addressing climate change, especially in the aftermath of a devastating earthquake that struck Vanuatu in December 2024.

Australia will contribute major funds, including $120m for data centres and $100m for security support.

This week, the Pacific Islands Forum Foreign Ministers' Meeting is taking place in Fiji, and Vanuatu's Foreign Minister, Marc Ati, is expected to join discussions in Suva.

Australia's leaders, Deputy Prime Minister and Defence Minister Richard Marles, Foreign Affairs Minister Penny Wong, and Minister for Pacific Island Affairs Pat Conroy, are all working to strengthen ties with important Pacific nations.

Australian Foreign Minister Penny Wong and Vanuatu Prime Minister Jotham Napat have a reason to smile as both nations initialled their commitment to the Nakamal Agreement. Photo/DFAT

The government says the tour reflects Australia’s ongoing commitment to regional partnership and security.

The ministers travelled to Vanuatu to build on their partnership. While there, they met with Prime Minister Jotham Napat, Deputy Prime Minister and Minister of Finance Johnny Koanapo, and other senior officials.

Wong, who will be in Fiji for the Foreign Ministers' summit, says the visit to Vanuatu included a trip to Tanna, the home island of Napat, to discuss the Nakamal Agreement further.

Watch celebrations at the finalisation of the Nakamal Agreement in Tanna, Vanuatu.

But details about travel and immigration arrangements from Australia were still not clear, with Prime Minister Napat insisting on the need for "visa-free" travel ahead of Wednesday's signing.

The new pact replaces a security deal that was never finalised back in 2022.

Australian officials have been careful due to Vanuatu's stance on remaining neutral and concerns about its "Citizenship By Investment" programme.

Both countries worked together to reach an agreement that benefits both of them.

The tour to Vanuatu follows a series of ministerial visits and exchanges in recent months, showing a growing partnership.

Vanuatu's Prime Minister Jotham Napat addresses media and those gathered following the initialising of the Nakamal Agreement in Tanna on Wednesday. Photo/Vanuatu govt

Meanwhile, Marles also visited Papua New Guinea, where he discussed strengthening defence ties and supporting the country's security needs.

During his visit, Marles met with PNG's Prime Minister James Marape, Deputy Prime Minister John Rosso, and Defence Minister Dr Billy Joseph.

The Foreign Ministers' Meeting will be held on Thursday.