Vanuatu has been granted 38 million US dollars by the European Union for rural development projects over the next six years.
Vanuatu's ambassador to the EU, Roy Mickey Joy, says the aid assistance is an increase of 200 percent from the last such arrangement with the body.
It will be used to fund agricultural development projects as well as upgrading and standardising tourism infrastructure facilities, including bungalows, in all six provinces.
The ambassador says the extra aid is also seen as compensation from the EU after it relocated its diplomatic offices from Port Vila to Honiara.