The World Bank has approved a $12 million grant to support Tonga’s efforts in building long-term resilience against climate shocks and economic challenges.
The funding, provided under the Tonga Second Fiscal, Disaster, and Climate Resilience Development Policy Operation, will help the kingdom strengthen public finances, enhance disaster preparedness, and improve energy efficiency.
Tonga faces some of the highest disaster risks globally, with events like the Hunga Tonga-Hunga Ha’apai eruption and frequent cyclones causing significant disruptions.
The new program aims to address these challenges through key reforms, including reducing inefficient tax exemptions to improve revenue systems and implementing nationwide mobile alert systems to ensure timely warnings for remote communities.
Energy efficiency standards will also be introduced to reduce reliance on costly imported diesel, easing household expenses and boosting economic stability.
Hon Dr ‘Aisake Eke, Prime Minister of Tonga said: “This support from the World Bank will help Tonga to manage shocks more effectively and build a stronger foundation for sustainable growth,” said Hon. Dr. ‘Aisake Eke, Prime Minister of Tonga and Minister for Finance.
“The reforms within the package will improve revenue mobilisation, energy efficiency, and disaster preparedness, so that our communities are better protected, and our economy is more resilient.”
Stefano Mocci, World Bank Country Manager for the South Pacific, praised Tonga’s leadership in prioritising resilience, noting that the reforms would deliver tangible benefits, particularly for vulnerable communities.
The grant, financed by the World Bank’s International Development Association (IDA), underscores the global commitment to supporting nations most in need.
As Tonga continues to navigate the dual challenges of climate change and economic pressures, this initiative marks a critical step toward a more resilient and sustainable future.
