EUROPEAN Commission Director-General for International Cooperation and Development, Stefano Manservisi and Secretary General of the Pacific Island Forum (PIFS), Dame Meg Taylor, has signed the European Union (EU) “Investment Facility for the Pacific” to support and promote sustainable development in the Pacific.
The agreement, signed in Suva is worth €20 million (FJD$44 million) and is aimed at supporting Pacific regional investment projects through the Investment Facility for the Pacific, a mechanism that supports inclusive and sustainable growth in the Pacific by combining EU grants with other public and private sector resources such as loans and equity in order to leverage additional financing and achieve investments in infrastructure as well as support to private sector.
Director-General Manservisi reaffirmed the role of the European Union as a reliable partner of the Pacific and highlighted the importance of the Investment Facility for the Pacific.
“By contributing EU funds in form of investment grants, technical assistance, guarantees or risk sharing capital, the Facility will help to unlock investment capital that would otherwise not be available,” said Manservisi who met with senior officials of the Government of Fiji last week.
“This is particularly relevant for private capital, given that a stronger engagement of the private sector will be needed for sustainable development, including for climate action.” added Manservisi.
Dame Meg Taylor said: “The signing of the Financing Agreement for the Investment Facility for the Pacific recognises the strategic partnership between the Forum Secretariat and EU and the importance of supporting investments to sustainable development for regional economic integration and sustainable management of natural resources.”
The Investment Facility is funded through the 11th European Development Fund.
Sustainable investments supported by the Facility will help to diversify economies, link them to regional and global value chains, promote regional integration and trade, enhance local economic value and meet social needs.
The support for regional investment projects will focus on regional economic integration, by strengthening regional trade and private sector involvement and on sustainable management of natural resources with special focus on management of oceanic and coastal resources and management of waste.
Overall, the Facility will be an important tool for achieving sustainable and inclusive economic growth.
The program supports the needs of Pacific Region as identified in the Pacific Regional Indicative Program 2014-2020, which is consistent with the Framework for Pacific Regionalism.