The Government of Australia will provide funds totaling T$1,606,234.00, for nineteen (19) projects in Tongatapu, seventeen (17) in Ha'apai and four (4) in Vava'u as outlined in the Attachment.

The funding will be made available through Australia's Grant Assistance for Communities' better known the Australia-Tonga Community Development Scheme (TCDS) program. Australia also funds a total of T$461,835.00 under the Vulnerability and Adaptation Initiative (VAI) which is to support community level adaptation activities that achieve tangible and practical outcomes in response to potential or actual impacts of climate change.

Work Contracts formalizing Australia's assistance will be signed between the representatives of the respective communities and Secretary for Finance and National Planning, at 10.00 a.m. on 5th September 2008 at the Ministry of Finance and Planning in Nuku'alofa, the Kingdom of Tonga.

Australian assistance to these projects indicates its commitment to contribute to the improvement of the living standards and welfare of people in the Kingdom of Tonga and is in line with its Official Development Assistance (ODA) policy of promoting development at the grassroots level. The TCDS programme is specifically designed to address basic human needs.

It is hoped that this assistance will help to uplift the standard of living to the Development groups of the Kingdom of Tonga. Ministry of Finance, 02/09/08.