ADB's Work in Niue

Niue is one of the world’s smallest countries, with a land area of 259 square kilometers and an estimated population of 1,862 people in 2019. Fiscal discipline, paired with large and predictable inflows of overseas development assistance, provide macroeconomic stability for the Government of Niue. However, travel restrictions associated with the coronavirus disease (COVID-19) pandemic are having profound impacts on the country’s tourism-dependent economy.

Niue faces significant barriers to sustainable socioeconomic development. Although access to basic services and per capita incomes are relatively high, the country faces persistent development challenges due to structural vulnerabilities stemming from a narrow economic base, elevated cost structures given remoteness, and disaster risks.

In March 2019, Niue became the 68th and most recent member of the Asian Development Bank (ADB). To date, ADB has committed 2 public sector grants and technical assistance totaling $2.8 million to Niue. Cumulative grant disbursements to Niue amount to $0.5 million. These were financed by other special funds. ADB’s ongoing sovereign portfolio in Niue includes 1 grant worth $0.5 million.

In 2019, ADB approved its first technical assistance initiative in Niue to help improve public financial management. As part of the support, ADB is lending its expertise to assess the government’s financial management systems, prepare a road map for strengthening those systems, and develop measures to improve accounting and financial reporting of public expenditure.

In 2020, ADB provided a $500,000 grant from the Asia Pacific Disaster Response Fund to help the Government of Niue finance its response to the COVID-19 pandemic.

ADB supported a pre-feasibility study to address operational and safety issues at the Alofi Wharf, Niue’s main port, and at the boat ramps in Avatele and Namukulu. The study provided the groundwork for the wharf and boat ramps improvements, which will enhance regional connectivity and the climate resilience of Niue’s maritime assets. ADB is expected to deliver additional support for a corresponding feasibility study once travel restrictions ease.

ADB has prepared a rapid needs assessment for water, sanitation, and hygiene under a regional technical assistance and is discussing its implementation with the Government of Niue.

Sunset view along the coast of Tamakautoga, Niue. Photo: Rommel Rabanal/ADB

Operational Challenges. Niue has experienced significant population decline due to outmigration, resulting in acute labor shortages, particularly in the tourism sector. The government is seeking to attract Niueans back to the island. At the same time, it is reviewing options to increase employer access to skilled labor in tourism and hospitality, such as seasonal worker programs.

Niue has a significant pipeline of infrastructure investments, including upgrades and repairs to its roads, airport runway, and wharf. The combined value of these investments is equivalent to more than 200% of its gross domestic product.

Knowledge Work

ADB brings added value beyond its role in project financing. It acts as a knowledge broker by helping its developing member countries engage in regional issues, including climate change and ocean health.

Financing Partnerships

Financing partnerships enable ADB’s partner governments or their agencies, multilateral institutions, and private organizations to participate in ADB projects. The additional funds may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

  ADB Projects in Niue Project data sheets for loans, grants, TAs