Hundreds of millions of dollars in deal between Australia - Vanuatu delayed

Châu Anh |

Prime Minister Vanuatu Jotham Napat said that more time is needed to discuss the 500 million AUD Nakamal Agreement, due to concerns about capital flexibility.

The Australian government is trying to salvage a major deal with Vanuatu after Prime Minister Anthony Albanese's signing plan was suddenly delayed.

Speaking to Mr. Napat on September 9, Mr. Albanese expressed his confidence that the agreement would be signed soon, emphasizing that the two sides respect each other's sovereignty and internal procedures.

Prime Minister Albanese arrived in Port Vila ahead of the Pacific Islands Forum with the expectation of signing an agreement allowing Australia to spend up to 500 million AUD (more than 330 million USD) over 10 years to support Vanuatu in responding to climate change, security services and economic development. The document aims to strengthen Australia's position as a leading security partner of Vanuatu, while at the same time countermeasuring China's growing influence in the region.

However, Prime Minister Napat said that some of his ministers and lawmakers have requested further discussions, especially on provisions related to critical infrastructure. When asked if there were concerns about Vanuatu finding construction funds from other countries, he replied: Yes.

Previously, in August, senior Australian ministers such as Australian Foreign Minister Penny Wong - Defense Minister Richard Marles and International Development Minister Pat Conroy - visited Vanuatu to congratulate after the negotiations ended. Albanese affirmed that the two sides had reached an agreement in principle but still needed to work further to agree on the language, and refused to give a specific time frame.

In 2022, a previous security deal between the two sides was never ratified by the State of Vanuatu due to concerns about lack of consultation and conflicts with the country's unying foreign policy. Prime Minister Albanese affirmed that Australia respects the progress and sovereignty of Vanuatu, and emphasized that Australia has strongly supported the island nation's independence.

Meanwhile, China has sponsored many projects in Vanuatu such as roads, ministries' headquarters, parliament buildings, stadiums, conference centers and seaports.

Australia, for its part, is spending 200 million AUD to train Pacific police in Brisbane and has signed more security deals with Papua New Guinea and the Solomon Islands.

On September 11, Prime Minister Albanese and Prime Minister Napat will fly to Honiara (Solomon Islands) to attend the Pacific Islands Forum.

The forum is expected to approve the establishment of a regional resilience fund and a statement affirming the Pacific Ocean as a Ocean of Peace.

Châu Anh
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