Money from the Asian Development Bank and Australia is to go to strengthening fiscal stability in Nauru.
The ADB is giving a grant of US$2 million dollars and Australia US$1.8 million.
The Bank says it is aiming to support critical reforms for more efficient and sustainable public service delivery.
The program will help improve public financial management and boost the performance of the state-owned power company.
It also establishes the Nauru Intergenerational Trust Fund to help finance public service delivery for future generations, including in health and education.
