The Pacific Aviation Safety Office, or PASO, in Port Vila, is set to expand its operations over the next few months with the first instalment of funds from the Asian Development Bank.
The ADB is providing one and a half million US dollars for the office.
The loan will be used to fund the operations of the PASO office, including the hiring of technical personnel.
An associated technical assistance grant will finance regulatory and legislative harmonisation and the recertification of airlines.
The secretary general of the Pacific Islands Forum, Greg Urwin, says PASO is an example of the co-operation that the region could replicate in other sectors.
PASO will be responsible for overseeing regional aviation safety and security for its member countries, with core responsibilities including flying operations, airworthiness, security, airports, and personnel licensing for these disciplines.