A new Establishment Agreement signed between the Government of Tonga and the World Bank Group on August 24 is committed to forging a stronger partnership.

The agreement was signed by the Minister of Finance, Hon. Tevita Lavemaau, with World Bank Regional Vice President for East Asia and the Pacific, Victoria Kwakwa and IFC Vice President for Asia and the Pacific, Alfonso Garcia Mora.

Hon. Lavemaau said this was an important milestone for Tonga’s partnership with the World Bank Group.

"We look forward to expanding this engagement into other areas aligned with Tonga’s sustainable development priorities."

At the same time, VP Kwakwa said the World Bank’s support to Tonga had increased significantly since it first joined the World Bank in 1985, delivering approximately US$274 million in support across 29 projects, with nine active projects today.

“This agreement enables us to deepen our partnership and support to Tonga, for a robust recovery from the impacts of COVID-19 and boost longer term resilience to climate-related and public health emergencies.”

Mora said the signing of this agreement came at a critical time when the country was facing significant impacts from the COVID-19 pandemic, and they looked forward to deepening their engagement with Tonga and expanding on what had already been an strong partnership.

“The private sector has a critical role to play in reigniting economic growth around the globe, and IFC sees significant opportunities in Tonga, including through public-private partnerships or using our expertise to improve the investment climate and provide private sector solutions to support growth and jobs.”

Rapid engagement with Pacific 

In partnership with 12 countries across the Pacific, the World Bank supports 86 projects totaling US$2.06 billion in commitments in sectors like agriculture, health, education and employment, climate resilience and adaptation, energy, fisheries, rural development, economic policy, macroeconomic management, aviation and transport, telecommunications, and tourism.

The IFC helps boost financial resilience, including through innovation in areas such as remittances which provide a vital income stream for Tongan families, support small businesses, and drive economic activity in Tonga.

This year marks 36-years since Tonga first became a member of the World Bank Group.