An audit report into the Ministry of Works and the Outer Islands Ministry has forced the Cook Islands government to merge the two.
The report highlighted a lack of networking among the ministries as well as an absence of time lines on projects on the main island Rarotonga and the outer islands.
The Cook Islands Prime Minister, Jim Marurai, says the reports were the key to the government's decision.
"Two by audits were damning one by ADB and one by the chief of the Aid division that's why the idea came about."
Mr Marurai says priority projects for the main island Rarotonga and the outer islands will include, work on airports, the harbour, roads and water.
He says the work will be funded from the main budget but his government will also be seeking a loan to complete projects.
