Australia and Vanuatu have agreed to a 10-year deal, aimed at strengthening security and economic ties, worth three hundred and twenty-eight million dollars.
Leaders from both countries said on Wednesday that the so-called Nakamal agreement will transform Australia’s relationship with its Pacific neighbour.
The deal, to be officially signed in September, comes as Australia tries to grow its influence in the region, to counter China’s increased spending and power.
While the Australian government did not provide further details of the deal, it was reported that it will provide funds to build two large data centres in the capital, Port Vila, and Vanuatu’s largest island, Santo.
Millions will also be poured into helping the low-lying island to deal with the impacts of climate change, as well as building up its security.
This week’s Vanuatu deal comes after Australia signed similar pacts with several of its other Pacific neighbours in recent months.
