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Vanuatu Delays A$500 Million Pact With Australia, Pushing Back Expected Signing

Prime Minister Jotham Napat says ministers want wording changes that could affect access to other countries’ infrastructure funding.

Overview

  • Anthony Albanese said the Nakamal Agreement would not be signed during his Port Vila stop and described discussions as progressing.
  • Jotham Napat confirmed concerns in his coalition over clauses related to “critical infrastructure” and third‑country financing, reflecting sovereignty sensitivities.
  • The proposed 10‑year pact would direct about A$500 million to climate resilience, policing and economic projects and seeks to cement Australia as Vanuatu’s primary security partner.
  • Senior ministers from both nations initialed the agreement last month in a ceremony on Mount Yasur, following a 2022 security deal that stalled in Vanuatu’s political process.
  • Both leaders will proceed to the Pacific Islands Forum in Honiara as negotiations continue, with analysts noting China’s extensive loans and diplomatic reporting of pressure on Vanuatu ministers.