29 Aug 2011

Tonga gets budget support from several donors

4:30 pm on 29 August 2011

The Tonga prime minister has told Parliament that the country's aid donors have now committed to providing about 24 million US dollars in budget support.

This year the governmenty budget to spend nearly 100 million US dollars but it was short of about a fifth of that.

Lord Tu'ivakano says the European Union has pledged 7 million US dollars, the Asian Development Bank five million and the World Bank 9 million.

New Zealand had earlier directed that two million dollars of its aid allocation to Tonga to go into the budget.

At the same time, the World Bank has also pledged about 14 million US dollars towards the fibre cable project from Fiji to Tonga.

All these grants will be finalised in a signing agreement ceremony during the Pacific Island Forum meeting in Auckland next month.