The man managing the installation of oxygen gas production plants at two of Vanuatu's main hospitals says it will save the country more than a quarter of a million US dollars a year.
With aid assistance from Australia, Vanuatu's Ministry of Health last week signed a million US dollar contract for an Australian company to install the plant.
The project manager, Scott Monteiro, says the oxygen plants will take some pressure off the government's budget.
"What they are aiming to do is get a cost saving through putting in place these oxygen plants, supporting them through their life of 20 years with robust cyclic and preventative maintenance programmes, so as far as this contract is concerned it is a huge milestone for Vanuatu in putting health services first and supporting the people of Vanuatu."
