Support for the public policies of the territory of New Caledonia between 2010 and 2016

The own investments of the territory of New Caledonia have more than doubled since 2010. In 2015, their share accounted for over a third of the investments made by local authorities. AFD supports the territory of New Caledonia, as it regularly finances it and now carries over half of the debt. With a further downturn in the economic situation, as with the depressed nickel sector, the territory has now become a key ordering party.

AFD is the territory’s main donor and is supporting this transformation in the context of a long-term relationship, which comprises: Financing: EUR 178m of loans were allocated between 2010 and 2016. They financed some EUR 400m of investments in the fields of road infrastructure, secondary education, civil security and air transport; Support-advice and training on financial topics such as multi-annual investment plans (MIPs), the consolidation of the accounts, and the forward-looking management of operating expenditure and cash flow. The latter has become an important issue in terms of maintaining the territory’s financial situation.

The financing for investment budgets aims to: Promote economic recovery via its investment projects; Promote a rebalancing of the territory by supporting the implementation of structural projects; Support transfers of competences involving social cohesion and territorial issues: 27% of expenditure in 2016 was used to renovate high schools and 10% concerned equipment and developments in municipalities for civil security; Upgrade transport infrastructure in order to strengthen territorial continuity: 13% of expenditure in 2016 concerned the renovation, development and extension of the airports of Magenta, Koné, Tontouta and Lifou.