The United Nations Development Programme and the Australian Agency for International Development have agreed to jointly fund an aid management and co-ordination project in Tuvalu.
The aim is to enhance effective and efficient assistance to Tuvalu to ensure that it is fully in line with the country's development priorities.
The cost-sharing arrangement will help to reduce transaction costs for development assistance and will further cement the two partners' mutual commitment to the delivery of effective aid.
Through the co-funded aid management and coordination project, the UNDP and AusAID will assist the Government of Tuvalu in reviewing existing aid management, strengthening its current approaches, and developing new mechanisms where gaps exist.
The UNDP's resident representative in Fiji, Knut Ostby, says a key area of need in Tuvalu is to reduce the number of people living under the poverty line, which affects as many as a quarter of all households.