The Asian Development Bank (ADB) has launched a five-year strategy covering Palau and 11 other Pacific island countries, focusing on economic opportunities, essential services, and infrastructure better able to withstand climate-related disasters.
Announced October 21, the Pacific Approach 2026–2030, will guide the bank’s work with the countries through regional priorities translated into country-specific programs.
ADB said the strategy responds to challenges facing small, dispersed island economies, including exposure to climate-related disasters, high service delivery costs, and limited institutional capacity.
“Pacific countries face development challenges that cannot be addressed through a one-size-fits-all approach,” said Emma Veve, ADB director general for the Pacific.
“ADB will continue to adapt business practices and delivery arrangements to the operating context of smaller, dispersed Pacific economies and concentrate resources where we can provide sustained value.”
The strategy sets out three priorities: expanding economic opportunities, supporting communities and delivering sustainable infrastructure.
Economic measures will focus on improving public resource management, strengthening trade and financial links, and creating conditions for private investment and jobs.
Community support will include better access to health care, education and other essential services, alongside social protection and skills development.
The bank said these efforts would help vulnerable households withstand and recover from economic and other shocks.
Infrastructure investment will support clean energy, transport, water supply, solid waste management, and urban roads. ADB said projects would emphasize local participation, climate resilience, sound governance, and value for money over the life of each asset.
The bank also plans to strengthen project preparation, build local institutional capacity and ensure that operations and maintenance costs are adequately provided for.
Longer-term programs will combine financing with policy reform, institutional support, and workforce development.
ADB said its active portfolio in the 12 countries reached $1.9 billion across 80 projects at the end of 2025, compared with $454 million across 35 projects a decade earlier.
Alongside Palau, the strategy covers the Cook Islands, Kiribati, the Marshall Islands, the Federated States of Micronesia, Naoero, Niue, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.