Grant agreements worth an additional USD30 million, for the Nuku'alofa Port Project, were signed by Tonga's Minister for Finance, Hon Tiofilusi Tiueti and Asian Development Bank Director General for the Pacific, Leah Gutierrez, in a virtual meeting on 2 November.

The Nuku’alofa Port Project is already underway and is expected to be completed by 2026.

The ADB stated that the additional financing of USD30 million from the ADB and Australia will address cost overruns under the AUD126 million total project “affected by complex global cost escalations caused by supply chain disruptions associated with the COVID-19 pandemic and the increase in fuel prices caused in part by geopolitical events.”

Hon Tiofilusi said that more than 98% of Tonga’s imports arrived by sea and the Queen Salote Wharf handled 95% of container cargo.

Ms Gutierrez said,  “This project is increasing the safety and efficiency of Nuku’alofa Port operations. The upgraded port will be an economic lifeline to the people of Tonga and will better connect the country to other international ports.”

The additional financing (USD10 million) comes from ADB’s Asian Development Fund, which provides grants to ADB’s poorest and most vulnerable developing member countries.

The Government of Australia provided a grant of USD$20 million through the Australian Infrastructure Financing Facility for the Pacific and will be administered by ADB to help finance the project.

Australia’s High Commissioner to Tonga, HE Rachael Moore, who attended the virtual signing, said that Australia also recognized the importance of Queen Salote International Wharf as a critical national asset and a strong enabler of local jobs.

"We are pleased to provide financing from the Australian Infrastructure Facility for the Pacific, -we look forward to seeing Nuku’alofa Port develop into a world class international port,” she said.

More than 75 Tongans are employed on the Nuku’alofa Port Project. The project is rehabilitating port infrastructure, extending international cargo wharves, improving port operations and management, and ensuring climate resilience.