New Zealand will give Tonga nearly 80 million US dollars in aid over the next ten years.
The NZAID/Tonga country strategy is being launched in Nuku'alofa today.
New Zealand's Prime Minister, Helen Clark, says it is a major milestone in the relationship between the two countries and demonstrates New Zealand's commitment to a healthy and prosperous Pacific.
Miss Clark says the development will focus on governance and civil society, broad-based growth and sustainable livelihoods and education.
The strategy's aim is to reduce hardship in Tonga through activities which promote good governance, equitable access to quality education, and increased economic opportunities.
Tonga is currently New Zealand's fifth largest bilateral aid recipient with an annual programme of nearly 8 million US dollars.