Port Vila Urban Development Project (additional financing) (ADB-42391-033)

  • Vanuatu
Where the impacts of the investment may be experienced.
Specific Location
Port Vila
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 8, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Government of Vanuatu
The holder of the loan, grant, or other investment.
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 2.87 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 39.10 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jun 26, 2020

Disclosed by Bank Dec 9, 2016

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Project Description

Port Vila, with approximately 44,000 residents, is the largest population center, main commercial center, and seat of government in Vanuatu. It has already expanded beyond its originally defined urban boundaries due to rapid economic development, rural-urban migration, and proliferating informal settlements. The estimated population of the resulting “Greater Port Vila” area in 2009 was 58,000 residents. By 2025, this figure may reach 109,000. This does not take into account the growing number of tourists that visit Port Vila and/or transit through the city to different tourism destinations in the country. It is estimated that at a given time about 3,000-4,000 tourists are in the city and beyond. The tourism sector is the lifeline of the national economy. Hence, urban development and the quality of urban services in Port Vila have significant implications for the tourism-led economic growth and overall development of Vanuatu. Despite noticeable improvement in telecommunication and water supply, significant inadequacies continue to exist, particularly in drainage, roads, sanitation, and hygiene services.
The poor conditions of these services are adversely affecting public health, economic activities, and the overall quality of life of Port Vila residents and visitors.

The proposed project is designed to implement the investment plan to improve drainage and associated road network as part of the drainage and sanitation master plan for 2011-2025.
For improving sanitation it will construct a sludge treatment plant that will eventually be the site for a fully piped sanitation system for greater Port Vila. An integrated approach will be used for hygiene and health education and awareness activities to ensure active involvement of the youth and women in the periurban, informal, and rural settlements. Explicit methodology will be developed for public-private partnerships, and community and civil society participation as wellas labor-based approaches in the construction and operation and maintenance (O&M) of roads, drainage, and sanitation and hygiene facilities. Mitigation of adverse environmental impacts and appropriate investment in climate proofing will also be included in the project.

The project impact will be urban development of Port Vila is sustainable. The expected outcome is the Government reduces flooding in Port Vila, operates a safer and less congested road network, and improves health and hygiene of Port Vila residents.

Output 1: Improved road and drainage network in Port Vila.
Output 2: Improved sanitation system in greater Port Vila.
Output 3: Central area and settlement communities use improved hygiene

Investment Description
  • Asian Development Bank (ADB)

Government of Australia US$ 31 million

Contact Information

Ministry of Finance & Economic Management
P.M.B. 058
Port Vila

Ministry of Infrastructure and Public Utilities


The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main