This financial support will provide additional fiscal space to the Government of the Kingdom Tonga to pursue its national COVID-19 and TC Harold’s response and recovery plans and to further enhance the energy sector. Indeed, COVID-19 containment measures have affected Tonga’s growth prospects, have a severe socio-economic impact and put significant pressure on public finances. TC Harold caused widespread damage to coastal areas and communities. The Tongan authorities have adopted a budget with a larger deficit to accommodate crisis-related spending, such as addressing imminent healthcare needs, protecting people in vulnerable situations and supporting the private sector.

H.E Sujiro Seam, Ambassador of the European Union for the Pacific and Ambassador designate to the Kingdom of Tonga, highlighted: “The European Union is providing a significant package of support to Tonga not only to assist with the economic and social challenges arising from the COVID-19 pandemic, but also to promote an inclusive and sustainable green recovery. This direct injection of funds into the national budget is one more example of our commitment to support Tonga and its people. It keeps the promise to build back better after TC Harold and to keep the focus on the European Green Deal as the top priority for the European Union in the Pacific.”

Tevita Lavemaau, the Hon. Minister of Finance of Tonga commented: “The Government of the Kingdom of Tonga is most grateful for the financial commitment from the European Union through the disbursement of EUR 2.15 million that includes assistance towards Tonga’s preparedness effort and response to the impacts of the COVID-19 and its recovery from TC Harold. This final disbursement means that the full amount of budget support foreseen under the 11^th European Development Fund for Tonga has been granted in full. The Government of the Kingdom of Tonga looks forward to the conclusion of the Post-Cotonou Agreement as continuation of our partnership with the European Union as a very important development partner for Tonga.”

This final disbursement of the budget support programme has become possible after Tonga demonstrated further important progress in the implementation of the Tonga Energy Roadmap and pre-agreed actions related to public finance management.

Background:

The Government of Tonga has received the EUR 2.15 million as part of the Financing Agreement, entitled Energy Sector Reform Contract, between the Kingdom of Tonga and the European Union under the 11^th European Development Fund. This agreement came into force in 2016 and to date the European Union has provided support to a total value of EUR 11.89 million (approx. TOP 32.13 million). The objective of this agreement is to contribute to a low carbon-development path thanks to the increased access to renewable energy and energy efficiency as spelt out in the Tonga Energy Road Map. This agreement has been adjusted to contribute to the response and recovery plans related to the TC Winston, the COVID-19 pandemic and the TC Harold

ENDS.

Contact: Nazeem Kasim, EU Press Officer. Tel: +679 331-3633. Email: Mohammed-Nazeem.KASIM@eeas.europa.eu

Contact: Eleni Levin-Tevi, Programme Coordinator. Tel: +676 740 0767 (Office)/ +676 841 2093 (Mobile). Email: etevi@finance.gov.to