Prime Minister Anthony Albanese and Vanuatu counterpart Jotham Napat in Port Vila on September 9, 2025.
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Albanese landed in Port Vila today to engage in discussions about the Nakamal Agreement with local leader Jothan Napat. Both leaders communicated to the press that the agreement remains unsigned.

That comes amid reports China is proving to be a sticking point in negotiations.
Prime Minister Anthony Albanese and Vanuatu counterpart Jotham Napat in Port Vila on September 9, 2025.
Prime Minister Anthony Albanese and Vanuatu counterpart Jotham Napat in Port Vila on September 9, 2025. (Michael Read/AFR)

The proposed deal involves an investment of $500 million from Canberra into Vanuatu, aimed at enhancing economic stability, security, and climate readiness, while strengthening Australia’s position as Vanuatu’s preferred security ally.

However, despite this potential partnership, China has been increasingly influential in Vanuatu, as it stands as the largest foreign creditor, having supported various infrastructure projects, including a new presidential office last year.

When queried if limiting Chinese influence was delaying the agreement, Napat admitted today that some within his coalition were concerned about Vanuatu limiting its access to crucial infrastructure funding from sources other than Australia.

“Some of my ministers and my MPs, they feel it requires more discussions, particularly on some of the specific wordings in the agreement,” he said.

Richard Marles, Penny Wong and other ministers from Australia and Vanuatu after initialling the Nakamal Agreement.
The Nakamal Agreement was initialled by several senior ministers from Australia and Vanuatu on the side of a volcano last month. (Penny Wong/X)

The Nakamal Agreement was preliminarily approved by key ministers from both countries – including Deputy Prime Minister Richard Marles and Foreign Minister Penny Wong – last month. A signing ceremony appeared to be a mere formality, especially after Napat heralded the agreement as mutually beneficial.

Despite the setback, Albanese said he was confident of the agreement still being signed off.

“We have reached consensus on the principles outlined in the Nakamal Agreement, and it’s simply about completing the necessary procedures,” he stated.

“I respect the processes that Prime Minister Napat needs to go through. 

“Both sides will go through our processes but we’re very confident that the agreement can be reached, and I’m reassured by the discussion that I have had with the prime minister.”

Solomon Islands Prime Minister Manasseh Sogavare, left, shakes hands with his Chinese counterpart Li Qiang after they witnessed signing on agreement for both countries at the Great Hall of the People in Beijing, July 10, 2023.
Beijing has been playing an increasing role in the Pacific, with a security deal signed with the Solomon Islands in 2022 fuelling fears of a Chinese military foothold in one of Australia’s closest neighbours. (AP)

Albanese and Napat will now fly to the Solomon Islands for the Pacific Islands Forum, where China’s influence will continue to loom.

The Solomons, under previous prime minister Manasseh Sogavare, inked a security pact with Beijing in 2022 in a major diplomatic blow to Australian influence in the Pacific.

Current Prime Minister Jeremiah Manele decided to bar Taiwan, as well as China, the United States and other partner nations, from this year’s forum, limiting it to the 18 members including Australia and New Zealand.

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