New Zealand is to help fund a major upgrade of the electricity network in the Tongan capital, Nuku'alofa.
The New Zealand government says this country's early commitment is expected to help Tonga attract other investors for the project.
Prime Minister Bill English, who is in Tonga, says the $US3.62 million dollar grant will help provide safe, reliable electricity to around 8,500 households and businesses in Nuku'alofa and make significant saving through reduced line losses.
He says it builds on New Zealand's previous energy investments in Tonga, which include the country's first large-scale solar farm in 2012, and other significant network upgrades.