Government, UNDP Sign VT2.9 Billion Road Deal

Government, UNDP Sign VT2.9 Billion Road Deal
July 22, 2026

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Government, UNDP Sign VT2.9 Billion Road Deal

The Government of Vanuatu and the United Nations Development Programme (UNDP) have signed a Memorandum of Understanding (MoU) for the USD25 million (approximately VT2.9 billion) Malekula Climate Resilient Road Infrastructure Project, marking a major step toward improving transport infrastructure on the island.

The project aims to build climate-resilient roads that will provide safer and more reliable access to schools, health centres, markets and other essential services while supporting agriculture, tourism and economic development.

UNDP Deputy Resident Representative said the initiative marks a new chapter in the partnership between Vanuatu and the organisation.

“This is the first project of its kind for us in Vanuatu. We don’t have all the solutions, but we will work together to find the best solutions that fit the Vanuatu context.”

He said the MoU is only the beginning, with both parties hoping to sign the financing agreement soon so implementation can commence, while funding is expected to become available next year.

UNDP also said it sees the initiative as more than just a road project.

“We look at it not just as an infrastructure programme but as a whole-of-island development initiative. We will also engage other partners and donors to help mobilise additional financing because the needs in Malekula go far beyond the current funding arrangement.”

The project is expected to strengthen Malekula’s road network against the impacts of climate change while creating opportunities for improved transport, business, agriculture and tourism.

The signing of the MoU reflects the continued partnership between the Government of Vanuatu and UNDP to support climate-resilient infrastructure and sustainable development for the people of Malekula.

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