NZAID is committed to working with Tuvalu to align our programme of support with the country's national sustainable development plan.

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Tuvalu

2008/2009 Allocation | $2.55 million

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Snapshot

Tuvalu is a micro-state, a small constitutional monarchy made up of nine low-lying atolls and coral islands, with a total land area of 26 square kilometres. Tuvalu has an estimated population of about 11,000.

Tuvalu is vulnerable to both cyclones and the effects of rising sea levels. The atolls of Tuvalu generally have poor soils that support only coconuts, breadfruit, pandanus, slow maturing taro and a few other vegetables and tree crops. Most people are involved in subsistence agriculture and fishing, and some two thirds of the formal workforce are employed by the government.

Tuvalu gains income from the Tuvalu Trust Fund, fishing licences, commercialisation of the "dot tv" web domain address, remittances from Tuvaluan sailors employed on overseas ships, as well as from development assistance from a range of donors.

Tuvalu has strong community organisation, a tradition of reciprocity and a culture of sharing, and good access to subsistence resources.

In 2005, Tuvalu finalised its own national sustainable development strategy/plan (Te Kakeega II, 2005-2015) and this was officially presented to a round table of development partners in Fiji in May 2006 who endorsed the plan. NZAID is committed to working with Tuvalu to align its programme in support of the priority areas of this plan.

NZAID priorities

NZAID's priorities with Tuvalu are outlined in a five-year programme strategy 2002-2007 (the New Zealand - Tuvalu Development Cooperation Programme Framework). The goal of the strategy is to support the efforts of Tuvalu 's Government and people to achieve equitable and sustainable development . The strategy focuses on three key areas (which are also priority areas in Te Kakeega II): outer island development, financial management support, and human resource development. The programme strategy is being reviewed and updated in 2008/09 to cover the next 10 years.

NZAID on the ground

Outer Island development

NZAID funded the design of a five year, six million dollar Ship to Shore Transport project over 2006 - 2007 and signed a partnership arrangement in June 2008 with the Government of Tuvalu for implementing the project. The project, which will be a key infrastructure activity under the bilateral programme, is aimed at improving the safety and efficiency of shipping passengers and goods between ship and shore in the eight outer islands, taking into account social and environmental issues.

The Falekaupule Trust Fund (FTF) was established in 1999 to enable community development in the Outer Islands. NZAID has made a number of annual contributions to the FTF to help augment its capital base, most recently a $500,000 payment in June 2008. NZAID has also undertaken a training needs analysis for the Falekaupule in its management of the Fund and for the community in their knowledge of the Falekaupule Act and the FTF process. From 2008/09 NZAID is jointly funding with UNDP a three year Local Government Support for Outer Island Development project to help strengthen Tuvalu’s local government capability. UNDP will oversee project execution by Tuvalu’s Home Affairs and Rural Development Ministry.

Economic development

The Tuvalu Trust Fund (TTF) was established in 1987 with contributions from Australia, New Zealand, United Kingdom, Japan and South Korea and Tuvalu itself. These contributions are invested overseas and the returns are used to meet Tuvalu's budgetary requirements. NZAID funds one of the directors on the TTF Board of Directors and a member of the TTF Advisory Committee.

In addition, NZAID has made a number of annual capital contributions to the TTF, most recently a $1 million grant in 2007, on the occasion of the 20th anniversary of the Fund’s establishment, to help increase the Fund’s maintained value to a targeted A$100 million.

NZAID, AusAID and the Asian Development Bank have also helped the Tuvaluan authorities develop an agreed set of performance benchmarks to assist with the government’s fiscal and budget management; eg to help achieve sustainable budgets and other public policy priorities in line with Te Kakeega II goals. To incentivise Tuvalu to meet the benchmarks NZAID agreed in 2006 to make annual contributions to the national budget of up to 10 percent of the annual aid allocation, subject to the Tuvaluans making positive progress towards meeting the benchmarks. We also agreed to base line the increases into the aid programme up to 2009.

Human resource development

NZAID worked with Tuvalu and the Asian Development Bank to finalise an overarching Strategic Education and Training Sector Plan for Tuvalu. In addition, NZAID has supported Tuvalu's National Education Implementation Plan, based on the strategic plan, and has funded an early childhood education (ECE) feasibility and design study. New Zealand is supporting further ECE initiatives flowing from this study and from subsequent ECE policy approved by the Government.

NZAID funds scholarships for tertiary study in New Zealand and in the Pacific region. NZAID also funds short-term training attachments and technical and vocational training courses for Tuvaluans in New Zealand, and in Fiji in the case of some marine training courses.

Health

NZAID's Medical Treatment Scheme continues to provide specialist treatment in Fiji or New Zealand for selected Tuvaluan patients with life threatening but treatable conditions.

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