Investment over aid: US unveils new projects for Pacific islands
- Admin
- 3 hours ago
- 3 min read
By James C. Pearce and Mar-Vic Cagurangan
American companies have set their sights on Pacific island countries for potential investments in multiple sectors, from financial services to infrastructure, including a new hospital in Palau and a new cable network connection between American Samoa and the Marshall Islands.
Deputy Secretary of State Christopher Landau met with Marshall Islands Foreign Minister Kalani Kaneko in Washington, D.C., on March 27, highlighting "the success of the Pacific Islands Investment Summit in February and reaffirming their shared commitment to strengthening the Compact of Free Association," Tommy Pigot, principal deputy spokesperson for the State Department, said in a statement today.
The department did not disclose details of the meeting.
In February, more than 80 American companies participated in the Pacific Agenda: Investment, Security and Shared Prosperity Summit, representing over $5.3 trillion in market value.
The U.S.-led summit, which closed its session on Feb. 24 at the East-West Center in Honolulu, hosted leaders, ministers and senior officials from 16 Pacific island countries and territories.
Landau, who co-hosted the summit, said the event was designed to “marry American dynamism with Pacific potential,” prioritizing “investment over aid” and “prosperity over dependence.”
Washington’s bid to attract more American investment to island states was aimed at countering China’s Belt and Road Initiative, a program that has helped expand Beijing’s influence in the region.
Enhancing the region’s economic independence strengthens the island nations’ “sovereign choices without coercion,” according to Adm. Samuel J. Paparo, commander of the U.S. Indo-Pacific Command.
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“It means your fishing fleets can operate freely in your exclusive economic zones, safe from intimidation and illegal exploitation, and it means that the sea lanes and the airways are open and free for all to use,” said Paparo, the summit’s co-host. “It means the digital highways that carry our data are as safe as the shipping lanes and the airways that carry our people.”
Participating companies included Google, APTelecom, Starlink, Matson Shipping, Architects Hawaii Limited, The Wonderful Company and Mare Liberum, among others.
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Among the summit’s highlights are as follows:
Palau hospital: President Surangel Whipps, Jr. and Hawaii Architects, Ltd. signed a $2.37 million contract to undertake a U.S. Trade and Development Agency- funded feasibility study to help mobilize financing for the relocation and development of the Belau National Hospital. The study will advance the construction of a new modern hospital with a capacity of up to 150 beds and support the deployment of U.S. equipment to provide advanced medical capabilities currently unavailable in Palau.
Trade missions: USTDA announced funding for two reverse trade missions to support public sector digital transformation in the region. Each visit to the United States will include a delegation of up to 16 senior officials from the Federated States of Micronesia, Fiji, Kiribati, Palau, Papua New Guinea, the Marshall Islands, Samoa, the Solomon Islands, Vanuatu, Tonga and Tuvalu. The visits will assist countries in evaluating technology options, identifying financing pathways and advancing priority digital transformation projects.
Transportation infrastructure: USTDA announced funding for project scoping to initiate infrastructure development processes and identify pathways to deploy trusted U.S. technology to strategic projects that would strengthen airport security in Kiribati, improve the reliability of Tonga’s fuel supply, upgrade the Marshall Islands Amata Kabua International Airport, redevelop Fiji’s Port of Levuka and improve mail delivery through commercial drones.
Cable connection: The Marshall Islands and American Samoa are set to join the Pacific Connect undersea cable network, with $132 million in U.S. government funding, in partnership with local governments, and support from a $3.4 million USTDA feasibility study.
Prosecutorial capacity: The Department of War will provide $3 million in funding to leverage a U.S. Department of Justice prosecutor based in Honolulu to work in partnership with the freely associated states to address transnational criminal cases.
