This week, Tuvalu and Australia officially commenced discussions on Te Ao, an eight-year partnership designed to strengthen Tuvalu’s economic governance and fiscal resilience.
The Te Ao Inception Planning Meeting, held on Tuesday, 9 September in Funafuti and joined by 18 participants in-person and online, marked the beginning of a new chapter in the Tuvalu-Australia relationship under the Falepili Union Treaty, through which both countries work closely to support Tuvalu’s development priorities.
Te Ao will help the Government of Tuvalu strengthen fiscal and economic resilience, supporting more sustainable resource use and inclusive services for its people.
Te Ao builds on Australia’s longstanding support for Tuvalu’s budget and institutional capacity, offering a streamlined, multi-year program of direct funding and technical assistance to advance shared priorities.
A Partnership Rooted in Respect and Shared Responsibility
The meeting opened with welcoming remarks from the Australian High Commission’s Second Secretary, Henry Adamson, who acknowledged the presence of Permanent Secretary Nuausala and officials from Tuvalu’s Ministry of Finance and Economic Development (MFED).
“Today marks an important milestone as we begin our journey together under Te Ao”, Mr Adamson said. “Your presence here demonstrates your commitment, partnership and shared responsibility, that will drive the program forward to realise its expected outcomes.”
Tuvalu’s Vision: National Priorities at the Forefront
Permanent Secretary Nuausala outlined the Government of Tuvalu’s expectations for Te Ao, emphasising the importance of aligning the program with Tuvalu’s national development strategy, Te Kete, and the country’s Public Financial Management (PFM) Reform Roadmap.
“Tuvalu acknowledges Australia’s great support to Tuvalu to ensure long term financial sustainability and resilience. Cabinet’s approval of Te Ao demonstrates the strong partnership between the two countries. And it’s through strengthened collaboration and partnership; we will be able to achieve the intended results for Te Ao”, Permanent Secretary Nuausala said.
MFED’s presentation of the PFM Roadmap sparked thoughtful discussion, with participants exploring how Te Ao can best support Tuvalu’s reform priorities and long-term economic goals.
Developed with technical assistance from Australia, the five-year PFM Roadmap represents a critical step towards more accountable and inclusive governance. These reforms respond directly to recommendations from the Assessment of National Systems and will shape Australia’s continued support to Tuvalu through the Te Ao Program, including budget support.
Australia’s Commitment: Long-Term Support, Tangible Impact
Australia’s investment in Te Ao includes:
- Up to $52 million in budget support, including a sustainability contribution and performance-linked disbursements aligned with Tuvalu’s reform agenda.
- Up to $42 million in technical assistance, delivered through the Australia-Pacific Partnerships Platform, with a strong focus on enhancing Tuvalu’s PFM systems and addressing critical capacity gaps.
A Program with Purpose
Te Ao is designed to be deeply integrated with Tuvalu’s national priorities, with the aim of improving public financial management, enhancing service delivery, and building economic resilience in the face of climate change.
The program will also contribute to Australia’s broader regional development goals, as outlined in its International Development Policy and the Tuvalu-Australia Development Partnership Plan.
Looking Ahead: From Planning to Action
As the meeting concluded, both governments reaffirmed their commitment to working together to ensure Te Ao delivers meaningful, lasting outcomes for the people of Tuvalu.
“As we move from planning to implementation, let us remain focused, flexible, and unified in our efforts”, Mr Adamson said. “Te Ao is a shared responsibility, and its success will depend on our sustained commitment and coordination.”
With the foundation now laid, the Te Ao partnership is set to become a defining pillar in the relationship between Tuvalu and Australia; anchored in mutual trust, transparency, and a shared commitment to Pacific resilience and cooperation.
