Pacific aid increasingly driven by debt Australia dominates overseas aid to the Pacific islands but it is coming increasingly in the form of loans, while China – once the region’s largest lender – still holds around 40% of infrastructure contracts PACIFIC ISLAND AID RECIPIENTS Grants Loans $billions Palau $86m Micronesia $201m Papua New Guinea $1.4bn Marshall Islands $148m Regional initiatives $645m Kiribati $111m Solomon Islands $321m Tuvalu $113m Nauru $47m Fiji $443m Samoa $128m Vanuatu $215m Tonga $179m Niue $29m Cook Islands $71,000 Australia New Zealand 800km 500 miles PARTNERS Grants Loans Australia ADB* New Zealand World Bank U.S China Japan EU Others $1.5bn $445m $443m $429m $335m $460m $255m $121m $105m Loans $1.3bn Total $4.1bn Grants $2.8bn *Asian Development Bank Source: Lowy Institute © GRAPHIC NEWS