2026.10.09
On September 30, the Asian Development Bank (ADB) has signed an investment agreement with Naoero Air Corporation (NAC) to support the acquisition of an aircraft by Naoero Airlines. The total amount of the financing package is USD 15 million, of which USD 5 million will be provided through JICA-funded LEAP 2.
LEAP2 is an ADB-managed fund with a commitment of up to 1.5 billion US dollars from JICA. It focuses on providing financing for high-quality private-sector infrastructure projects in ADB’s developing member countries in Asia and the Pacific. Projects supported by LEAP2 include initiatives to reduce carbon emissions, improve energy efficiency, and enhance access to affordable healthcare, education, and telecommunication services.
The financing will support NAC's replacement of an aging aircraft operated by Naoero Airlines. Naoero Airlines is the only airline serving the Republic of Naoero (Naoero) and provides critical passenger and freight links between the country and destinations including Australia, Fiji, and the Federated States of Micronesia. In addition to passenger transportation, the airline plays a vital role in transporting food and medical supplies as well as providing medical evacuation services. With a population of approximately 13,000, Naoero is highly dependent on imports, and air transportation serves as a critical lifeline supporting economic activities. Naoero and other Pacific Island countries are important partners for Japan. Strengthening regional connectivity and logistics functions contributes to the achievement of a Free and Open Indo-Pacific (FOIP).
The project is expected to enhance fuel efficiency, reduce maintenance costs, improve service reliability, and strengthen operational sustainability through the replacement of the aging aircraft. In addition, by helping ensure the stable transport of food, medical supplies, and other essential goods, as well as maintaining and strengthening medical evacuation services, the project will contribute to improving the resilience of people's livelihoods. These efforts are expected to strengthen NAC's long-term operational sustainability, stabilize air services, and enhance connectivity and economic and social resilience in Naoero and the wider Pacific region.
- Contribution to SDGs
Goal 9 (Industry, innovation and infrastructure)
Goal 11 (Sustainable cities and communities)
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