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Country Report Tonga Product Image

Country Report Tonga

  • ID: 2138734
  • April 2015
  • Region: Tonga
  • 17 Pages
  • The Economist Intelligence Unit

The key policy challenge for the current Tongan government is to manage the kingdom's large external debt, ideally without taking on greater external obligations. However, the hosting of the 2019 Pacific Games in Tonga will require significant spending in a way that is likely to exert additional pressure on national finances. Donors may provide some of the funds required, but the kingdom's external indebtedness is likely to rise further.

Tonga has already fallen behind on the schedule for constructing adequate facilities for the Pacific Games. Little has been done so far, with only four years remaining to raise the funds and begin construction. In February the Pacific Games Council visited Tonga to discuss the kingdom's Master Plan for the games, which envisages most of the Games venues being in the capital, Nuku'alofa, and within walking distance of the capital's schools. This would facilitate transport for the nearly 7,000 athletes who will be accommodated in local schools, and would also ensure that facilities are constructed close to schools and could, therefore, be used by future generations of schoolchildren.

The Pacific Games Council has approved the country's general plan, but has urged swift action on implementation of construction, which cannot begin until the financial resources required for the project are in place. The government has stated that the budget for the Games will be T$250m (around US$126m), of which T$200m has been earmarked for the construction of facilities, and the assumption is that the majority of the funds for construction will come from Tonga's external donors, including Australia, New Zealand and China.

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Country Report Tonga

The challenge of the 2019 Pacific Games
The search for funding for the Games
Chinese loans will not be converted into a gift

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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