Nauru's electricity supply is to be boosted with aid from the Asian Development and the European union.
An ADB energy specialist Michael Trainor says the Nauru Electricity Supply Security and Sustainability Project will deliver more dependable electricity with fewer outages at lower cost.
The project will fund a new efficient diesel generator for the Nauru Utilities Corporation and the repair of its power station's roof.
The ADB says Nauru's economy will benefit from improved service reliability and efficiency of operations at the utility.
More than four million US dollars is being provided as grants with the Nauru goverment also making a contribution.