/Australia

Australia plays a significant role in the economic stability and growth of the Indo-Pacific region and provides substantial aid to the Pacific island countries. The Department of Foreign Affairs and Trade channels funds for the development work in infrastructure; trade facilitation and international competitiveness; agriculture, fisheries, and water; governance (policies, institutions, and functioning economies); education; health; building resilience (humanitarian assistance, disaster risk reduction, and social protection); climate change; and gender equality and empowering women and girls. The Australian Infrastructure Financing Facility for the Pacific enables quality infrastructure across the Pacific and Timor-Leste by partnering with governments and the private sector to provide financing for transformational energy, water, transport, telecommunications, and other infrastructure.

Sovereign cofinancing. In 2022, Australia provided $167.4 million in sovereign project-specific cofinancing. It includes support for (i) technical and vocational education and training in Papua New Guinea through a $10.7 million grant; (ii) the Sustainable Infrastructure Assistance Program Phase II in Indonesia through a $2.8 million additional technical assistance (TA) for the Innovative Infrastructure Financing, Infrastructure Planning, and Program Management Support Subproject and a $1 million additional TA for the Supporting Sustainable and Universal Electricity Access Phase 2 Subproject; and (iii) restoring fiscal sustainability and inclusive climate-resilient economic growth in Fiji through a $60.1 million grant. This latter grant is also the highest grant cofinancing for the year. Australia’s grant cofinancing for investment projects and TA increased sixfold from $17.9 million in 2021 to $109.6 million in 2022, driven by their dedication to helping the Pacific’s COVID-19 recovery.

Nonsovereign cofinancing. The Trade and Supply Chain Finance Program (TSCFP) supported over 1,610 transactions valued at $1.9 billion with banks domiciled in Australia from inception to December 2022. During the same period, the TSCFP supported over 1,040 Australian exports and/or imports valued at $1.3 billion. In 2022 alone, the TSCFP supported 37 transactions valued at $40.5 million with banks domiciled in Australia and supported 160 Australian exports and/or imports valued at $246 million. Exports and/or imports were mainly to/from Viet Nam, Bangladesh, and Pakistan. Underlying goods involved mostly food and agriculture-related goods, raw and non-energy commodities, as well as oil, gas, and energy-related commodities.

Australia has also been extremely supportive of ADB’s TSCFP and provided $6.3 million (A$8.5 million) to fund TSCFP expansion to the Pacific as well as other initiatives.

Special funds. Australia contributes to ADB special funds where contributions from financing partners are administered with the same level of care as ADB’s own resources. Since becoming a member in 1966, Australia has committed a total of $3.1 billion to special funds, of which $2.9 billion went to the Asian Development Fund (ADF). The ADF provides grants to ADB’s low-income developing member countries to promote poverty reduction and improvements in the quality of life.

Knowledge. Australia and ADB also work together through knowledge activities. Australia funded a course through the Australian Water Partnership, which aims to build the capacity of ADB project teams and developing member country counterpart staff in the knowledge and use of digital technologies to improve water management and inclusive participation in decision-making.