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This report is written as a response to the proposed Australian Infrastructure Investment Fund for the Pacific (AIFFP), a $2 billion facility that intends to combine $500 million of aid grants with $1.5 million of loans. The intended administrative body for the program is Efic - Australia’s Export Credit Agency. The AIFFP was announced in November 2018 by the Morrison Government as a the financial arm of a renewed Australian commitment to the Pacific, otherwise known as the ‘Pacific step up.’ Legislation that would empower Efic to be the principal administering agency for the AIFFP is currently before the Australian parliament.

The report aims to examine the various motivations or justifications for the AIFFP, the institutional mechanisms that could be used to deliver it, and other questions pertinent to the program, such as the vulnerabilities of Pacific nations that should be taken into account, as well as the type of development model this program appears to be promoting. 

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