ADB's Work in Tuvalu

Tuvalu is a small island developing state comprising nine atolls in the South Pacific. It is geographically isolated with low elevation and highly vulnerable to climatic and economic shocks. With a small private sector and limited resources, public investment has been a main driver of growth.

Investments in maritime transport infrastructure, including through the launch of a new passenger and cargo ship, ‘MV Manu Sina’, in April 2025, have helped to ease these constraints. Enhanced connectivity between the outer islands, the capital Funafuti, and neighboring countries like Fiji and Kiribati boosts people’s access to economic opportunities, healthcare facilities, markets, and educational institutions.

Sovereign operations. As of 31 December 2024, the Asian Development Bank (ADB) has committed 49 public sector loans, grants, and technical assistance totaling 174ドル million to Tuvalu. ADB’s current sovereign portfolio in Tuvalu includes 12 grants worth 116ドル.76 million.

Cumulative disbursements. Cumulative sovereign loan and grant disbursements to Tuvalu amount to 113ドル million. These were financed by concessional ordinary capital resources, and the Asian Development Fund (ADF), and other special funds.

In 2024, ADB committed a 7ドル.34 million grant from ADF with cofinancing of 4ドル.3 million from the Government of New Zealand and 4ドル.6 million from the Global Environment Facility (GEF) to improve drinking water and sanitation services, build resilience, and enhance public awareness of climate-resilient water, sanitation, and hygiene systems.

To improve the safety and efficiency of maritime transportation, ADB has committed 48ドル.7 million in grant financing since 2016 for the construction of three boat harbors on three of Tuvalu’s outer islands. In 2022, ADB committed 30ドル million to further support the country’s regional connectivity by replacing the aging passenger and cargo ship, Manufolau, with a safe and energy-efficient vessel, replacing the worn-out fenders at the Funafuti International Port, and providing training for the Marine Department.

ADB committed 2ドル.5 million in 2018 and 1ドル.5 million in additional financing in 2021 for a new vaccine coverage project to provide support in securing and introducing rotavirus, pneumococcal, and human papillomavirus vaccines through pooled procurement by UNICEF.

In 2020, ADB committed 4ドル million to help the Government of Tuvalu prepare for a major water and sanitation project in Funafuti to increase access to safe water, improve sanitation, and accordingly reduce the incidence of waterborne diseases in the capital.

In late 2019, ADB committed 6ドル million to increase access to renewable energy in Tuvalu, marking ADB’s first initiative in the country’s energy sector. The support has been helping to modernize and automate the power systems in Funafuti and the outer islands. The bank committed another 7ドル.8 million grant in 2023 to further help Tuvalu expand access to modern energy, including electric mobility and climate adaptation capacity. The project includes installing the first marine floating photovoltaic system in the Pacific on the Funafuti Te Namo lagoon. It also involves electric vehicles, and charging stations that have been made possible by energy from the floating solar. In 2024, ADB committed another 9ドル million grant from ADF, supplemented by a 1ドル.84 million grant from GEF, to replace end-of-life batteries and upgrade damaged electricity networks in Tuvalu’s outer islands and Funafuti. The project will also promote sustainable energy use and upgrade the distribution grid for climate resilience.

Operational challenges. Tuvalu faces operational and implementation challenges like other Pacific island countries, with a small labor market affecting both the public and private sectors. Accordingly, ADB initiatives in Tuvalu seek to deliver technical assistance to ensure effective implementation, sustainable results, and effective public financial management. Given the limited pool of local expertise, ADB and development partners continue to fill capacity gaps using international sources. Remoteness and unreliable air and sea services to and within Tuvalu also impact ADB operations. Continuous engagement and on-the-ground presence are essential to project and program implementation. Continued close coordination with other development partners is also vital, including for mobilizing cofinancing.

Knowledge Work

Beyond financing development projects, ADB serves as a knowledge broker—helping members address regional issues, including climate change and ocean health. ADB’s key publications such as the Asian Development Outlook and Pacific Economic Monitor offer macroeconomic forecasts and analyze key economic and topical issues, guiding national policy development and decision-making.

ADB works closely with Tuvalu in identifying and responding to both country and regional knowledge needs. ADB makes technical assistance available to Tuvalu to support upstream work, including sector and scoping studies, as well as climate and disaster risk assessments, plans, and strategies. ADB provides a venue for experts, practitioners, academics, and high-level officials to share their experiences and expertise to address national challenges.

ADB Projects in Tuvalu Project data sheets for loans, grants, TAs

Financing Partnerships

Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in Tuvalu:

• Sovereign cofinancing: 45ドル.63 million for 7 investment projects and 755,850ドル for 3 technical assistance projects since 2008

In 2024, Tuvalu received 8ドル.89 million in grant cofinancing from the Government of New Zealand and the GEF for the Funafuti Water Supply and Sanitation Project; and 1ドル.84 million in grant cofinancing from the GEF for the Increasing Access to Renewable Energy Project (Additional Financing).

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Future Directions

ADB’s Pacific Approach, 2021–2025, serves as the country partnership strategy for Tuvalu. It focuses on building resilience against economic shocks, delivering sustainable services, and promoting inclusive and sustainable growth. This approach aligns with ADB’s Strategy 2030, addressing core challenges and fragile situations in the country with a strong emphasis on mitigating the impacts of climate change.

ADB’s assistance program in Tuvalu leverages benefits across sectors by following an integrated approach to advance the country’s climate change adaptation goals, improve residents’ well-being, and ensure sustainable public finances. This approach includes upstream policy reforms to secure sustainable financing for climate adaptation and social services, as well as downstream project investments in coastal adaptation, land use planning, renewable energy, and water infrastructure.

Last updated: 5 May 2025

Spotlight on the South Pacific