Tuvalu has signed an historic agreement with the United States which provides access to a range of investment support.
The deal was sealed in Suva between Tuvalu High Commissioner to Fiji Temate Melitiana and his US counterpart Joseph Cella.
Melitiana said the agreement was also made possible by the US International Development Finance Corporation (DFC).
The Tuvalu government building in Funafuti. Photo: RNZ / Jamie Tahana
He said the corporation can help mobilise private investment to support the development of Tuvalu's resources and advance its economic goals.
"This funding and assistance will certainly help Tuvalu in terms of its immediate priorities particularly at this time with what we are facing in my country and this assistance will go a long way," he said.
Under the agreement, the DFC, America's development bank, could make available all its investment tools including debt and equity financing, insurance and technical support to advance efficient and effective development in Tuvalu.
The agreement also outlined regulatory, tax and legal details that typically covered agreements between multilateral development banks and foreign governments.
Joseph Cella said the Tuvalu-US Investment Incentive Agreement would build an economic bridge between the two nations.
"In Tuvalu, there is significant infrastructure activity with the help of the multilateral development banks and donor community in climate change resilience, port upgrades, ICT connectivity, renewable energy, and healthcare.
"Trade between Tuvalu and the United States is currently less than $US1 million a year, which means there is room for growth and plenty of opportunities."
Cella said the DFC invests across sectors including energy, healthcare, critical infrastructure, and technology.
"It also provides financing for small businesses and women entrepreneurs to create jobs in emerging markets."
He said DFC investments adhered to high standards and respected the environment, human rights and worker rights.
"DFC makes America a stronger and more competitive leader on the global development stage with greater ability to partner with allies on transformative projects.
"Further, DFC provides the developing world with financially sound alternatives to unsustainable and irresponsible state-directed initiatives."
DFC can be instrumental in helping countries achieve their development objectives through debt and equity investments, investment guaranties, investment insurance, reinsurance and coinsurance, feasibility studies for potential projects, and other assistance.
Joseph Cella is also US ambassador to Kiribati, Nauru, Tonga and Tuvalu.