Vanuatu welcomes Chinese investment to help country make major infrastructure upgrades

Before Cyclone Pam struck Vanuatu in March, the forecast for the country's economy was slated to be around 5 percent for this year, an increase of around 3.3 percent on 2014. Inflation was expected to stay the same, at 1.5 percent, the level set by the Reserve Bank of Vanuatu. While most of 2015 will be spent on relief efforts, Minister for Finance Maki Simelum explained how the government will address post-relief, high-capital infrastructure projects.

"The government is embarking on an ambitious plan to improve infrastructure because we realize this is essential to moving forward to attract further investment. Some of the improvements include the Port Vila urban infrastructure project that will see proper drainage and sanitations and a new road design; projects that will greatly improve efficiency for local businesses.

"We are also looking at the Port Vila beautification project; this is a sea wall that will cover approximately 300 meters of shoreline in the heart of Port Vila. We are also working on the Lapetasi wharves, a $50 million project that we launched with Japanese help to improve our international shipping and ship-handling capabilities. This is especially important as we depend on maritime transport to a large extent within the economy and international cargo is increasing.

"Then there are the commercial wharves, that will be close to the main tourist area and will facilitate cruise ships. Vanuatu has been limited in the past with facilities because only one large ship could dock at any one time, so this will speed up and enhance shipping throughout the country. Another important facility is the interisland shipping project that is funded by JICA (Japan International Cooperation Agency) and the government of Vanuatu.

"We are very fortunate that the Chinese government has chosen to fund some of our infrastructure needs. The two that are now in the pipeline are firstly the construction of 45 kilometers of highway: 30 kilometers for Tanna and 15 kilometers on the island of Malakula. In Santo, the Chinese government have made funds available for the repair and upgrade of the wharf, allowing large cruise ships to dock.

"Other projects that the Chinese government has given grants to are the convention center in Port Vila (which is currently under construction) college buildings, schools and a stadium for the 2017 Pacific Mini Games.

"Vanuatu will also be upgrading the runway at the international airport in Port Vila and going ahead with plans to accept larger aircraft so as to access direct flights from China and other Asian countries.

"Also, in our mission to develop the banking sector and attract more investment in financing, Vanuatu would welcome new banks especially from China as this would enable investors to do more business here.

"We prefer investors that focus on tourism and welcome investment in projects like resorts, forestry and fisheries. Since independence China's and our relationship has grown into a close relationship and we want the Chinese to come and enjoy, either as tourists or investors. We want to grow the economy through revenue so Vanuatu can have an economy that relies on a diverse range of sectors which provide the revenue it needs."

Building a nation

In the meantime, Esmon Sae, minister of infrastructure and public utilities explained how his ministry will take the government's infrastructure plans forward.

The main goals of the Ministry focus on service delivery through appropriate regulation and infrastructure development strategies. Another important function of the Ministry is to implement donor funded transport infrastructure projects. The minister voiced his sincere appreciation to China as one of Vanuatu's main development partners.

"On behalf of the people and Government of the Republic of Vanuatu, I would like to express our sincere gratitude to the Government of China and the people of the Republic of China for the lasting good friendship relations both country have enjoyed for many years up to now.

"This relationship provides an opportunity for our small island state to benefit from numerous grants and loans from the Government of China.

"I hope you will allow me to quote examples of help that China has offered:

.Grants provided to build the Nation Convention Center; and

.Another Grant to build and upgrade Malapoa College, which will enable progress in education.

The following have had their loans approved and are in the pipeline:

Project: (CCECC) Design and Construction of Tanna & Malekula Road

Contractor: China Civil Engineering Construction Corporation

Estimate: $56.7 million, loan under assessment

Project: Design, Rehabilitation and Extension of Santo, Luganville Wharf

Contractor: Shanghai Construction Co Ltd

Estimate: $93.4 million, project being considered by Vanuatu government

Project: Design and Construction of South Santo Road Rehabilitation Project

Contractor: China Railway First Group Co Ltd

Estimate: $60.65 million

Project: Design and Construction of Road Rehabilitation Project in Malekula

Contractor: China Railway No5 Engineering Group Co

Estimate: $49.68 million

Blessed by nature

"Next, I wish to state that the Republic of Vanuatu is blessed with natural resources that may be of potential interest to tourists and investors the world over. We are proud to have been named twice as 'the happiest country in the world'.

"We have more than 80 beautiful islands with sandy beaches, active volcanoes, waterfalls, and more than 100 different languages and dialects. Our tropical islands stretch over 1,300 kilometers from north to south and this explains the important role of infrastructure development. We need wharfs to accommodate cruise ships, airports to accommodate bigger planes, and new roads to link people and businesses. We are a popular tourist destination in the Pacific, so there's opportunity for investment in building international standard hotels, resorts and other service infrastructure.

"We are exposed to threats of climate change so there's opportunity for construction of infrastructure that is resilient. Our tropical islands have fertile soil and resources that are unexploited. This presents an opportunity for investment in agriculture."

InFocus provided the story

The international airport at Port Vila is receiving an upgrade. Photos Provided to China Daily

(China Daily 06/01/2015 page8)