G/SCM/N/401/VUT  
10 October  2023 
(23-6794) Page: 1/18 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF   
THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON   
SUBSIDIES AND COUNTERVAILING MEASURES  
VANUATU  
The following communication, dated and received on 6 October  2023, is being circulated at the 
request of the delegation of Vanuatu.  
 
_______________  
 
 
The following notification constitutes Vanuatu's new and full subsidy notification for the 2021-2023. 
 
This notification is submitted for the purposes of transparency and does not prejudge the nature or 
legal status of the programmes herein under G ATT 1994  and Articles 1 and 2 of the Agreement on 
Subsidies and Countervailing Measures (ASCM).  
  G/SCM/N/401/VUT  
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  Table of Contents  
1  VANUATU GOVERNMENT SUBSIDY 70/30 AND 60/40 PRODUCTIVE SECTOR  
SUBSIDY PROGRAMME  ................................ ................................ ................................ ..... 3 
2  MINISTRY OF TRADE & COMMERCE DEVELOPMENT SUBSIDIES  ................................ ... 6 
2.1  The Department of Industry Subsidies  ................................ ................................ ...........  6 
2.1.1  Industry Development Fund  ................................ ................................ ......................  6 
2.1.2  Industry Support Fund................................ ................................ ..............................  7 
2.1.3  Industry Concessions  ................................ ................................ ...............................  8 
2.1.4  Commodity Support Scheme  ................................ ................................ .....................  9 
2.1.5  MSME Support Fund  ................................ ................................ ................................  10 
2.2  The Department of Tourism Subsid ies ................................ ................................ ..........  11 
2.2.1  Tourism Business Support Program  ................................ ................................ ...........  11 
2.2.2  Tourism Business Recovery Program  ................................ ................................ .........  12 
2.2.3  Agritourism Program  ................................ ................................ ...............................  13 
2.3  The Department of Cooperatives (Office of the Registrar of Cooperatives and Business 
Development Services) Subsidies  ................................ ................................ .......................  15 
2.3.1  Cooperative Development Fund  ................................ ................................ ................  15 
3  MINISTRY OF INFRASTRUCTURE AND PUBLIC UTILITY  ................................ .............  16 
 
  G/SCM/N/401/VUT  
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  1  VANUATU GOVERNMENT SUBSIDY 70/30 AND 60/40 PRODUCTIVE SECTOR SUBSIDY 
PROGRAMME  
1. Title of the subsidy programme  
Vanuatu Government Subsidy 70/30 and 60/40 productive sector Subsidy Prog ramme.  
2. Period covered by the notification  
The Council of Ministers (COM) decision agreed upon a one - year program effective from 1st of 
February - 31st December 2 021. 
3. Policy  objective and/or purpose of the subsidy  
The Vanuatu Government is providing 197,576,803VT in funding the one -year program for 2021 . 
The funding is being provided to Ministry of Agriculture, Livestock, Forestry, Fisheries and Biosecurity 
(MALFFB) to enhance and increase productive sector production for food security, live lihood, and 
value addition.  
The primary objectives of the two subsidy initiatives are to:  
i) Proactively engage local farmers, foresters and fishers to increase productive sector 
production;  
ii) Promote the concept of community resilience among local farmers, for esters and 
fishers ; and, 
iii) Enable accessibility and ownership of affordable farming and fishing tools and 
equipment.  
4. Background  and authority for the subsidy  
In search o f simple, dynamic, and innovative incentives to boost productive sector production as 
well as drive small holder agriculture and livestock farmers, foresters and fishers to move away from 
subsistence farming to semi -commercial and commercial farming practises amid the challenges of 
sustained food security resulting from the COVID -19 and endles s natural disasters, the Ministry of 
Agriculture, Livestock, Forestry, Fisheries and Biosecurity (MALFFB) developed two subsidy 
initiatives known as : "70/30 " Initiative, and "60/40 " Initiative . The 70:30 initiative applies to farming 
and fishing tools and equipment whose costs per unit is over VT60,000 per item . The Vanuatu 
Government through the MALFFB Departments will cover 70 % of the cost of the item . The farmers 
and fishers will pay for 30 % of the cost of the item . The 60:40 initiative applies to farmin g and 
fishing tools and equipment whose costs per unit is less than and equal to VT60,000 per item . The 
Vanuatu Government through the MALFFB Departments will cover 60 % of the cost of the item . The 
farmers and fishers will pay for 40 % of the cost of the it em. 
 
The COM Decision for 2021 has approved a list of tools and equipment requested under the subsidy 
program by the Ministry of Agriculture, Livestock, Forestry, Fisheries, and Biosecurity . The COM 
Decision agreed upon a 1 -year program effective from 1st February - 31st December 2 021. The 
program is aligned with the National Sustainable Development Plan (NSDP), the Ministry of 
Agriculture, Livestock, Forestry, Fisheries, and Biosecurity Cooperate Plan (MALFFB Cooperate Plan), 
Vanuatu Agriculture Sector Policy, Vanuatu National Livestock Policy and the National Fisheries 
Sector Policy to address safe, quality, and increased production for food security and livelihood."  
5. Form of the subsidy  
The 70:30 and 60:40 Program is a grant for farmers and fishe rs aimed at assisting in increasing 
domestic production.  
6. To whom and how the subsidy is provided  
The programme covers all interested active and licensed farmers, foresters and fishermen 
throughout the country.  G/SCM/N/401/VUT  
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  The interested farmers and fishers that applie d for this 70:30/60:40 Subsidy Program, to which they 
are being thoroughly assessed by departmental subsidy committees based on their respective 
departments ' set of approved criteria . The successful applicants who met the departmental criteria 
and requirem ents and were considered as approved . The unapproved applicants will be considered 
later once they provide detailed information that is required and requested by the subsidy 
committee . 
The program 70:30 initiative applies to items 60,000VT above and 60:40 initiative applies to items 
below 60,000VT.  
7. Total amount of the subsidy per sector  
7.1 The Total Subsidy Expenditure of 2021 Agriculture Subsidy program.  
• The total Agriculture Subsidy Expenditure of 2021 was 9,621,193 VT  
Activity Description  Qty 2021 
Vatu 
 Subsidy Expenditure - DARD   9,621,193  
 Sprayer Pressure   65,433  
 Stainless Steel Mesh Wire   75,000  
 Pesticide   45,560  
 Drill   455,200  
 Tractor   8,980,000  
7.2 The Total Subsidy Expenditure of 2021 Livestock Subsidy program.  
• The total Livestock Subsidy Expenditure of 2021 was 81,653,910 VT.  
Activity Description  Qty 2021 
Vatu 
 Subsidy Expenditure - Livestock   81,653,910  
 Supply & Delivery bags of meat meal  1600 1,760,000  
 Supply & Delivery Chicken Feed Bags 
Starter  800 2,200,000  
 Chicken Layer Cages  50 5,828,250  
 Out Bounds 1L Pesticide  1 45,560  
 Supply and Delivery Chicken feed Layer  2400 6,600,000  
 Supply & Delivery of Copra meal Bag  1600 2,560,000  
 Waratah Barbed Wire  1600 21,704,000  
 Chicken Mesh Wire  500 5,950,000  
 Pig Wire 50mtr  650 6,144,000  
 Bag Chicken Feed  350 1,750,000  
 Pig Barbe Wire  500 7,180,950  
 Chicken Wire  600 3,672,000  
 Aluminum livestock water through 1000L  30 5,595,900  
 128 Egg solar Incubator x 10/ 264 egg Solar 
Incubator x 8 / 528 egg electronic incubator 
x2  20 3,526,000  G/SCM/N/401/VUT  
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  Activity Description  Qty 2021 
Vatu 
 Stable Nails  1100 484,000  
 Chicken Layer Cages  50 5,828,250  
 Supply & Delivery Broiler starter  300 825,000  
7.3 The Total Subsidy Expenditure of 2021 Forestry Subsidy program.  
• The total Forestry Subsidy Expenditure of 2021 was 18,332,350 VT.  
Activity Description  Qty 2021 
Vatu 
 Subsidy Expenditure - Forestry   18,332,350  
 Lucas portable Sawmill  
Model 8 - 30H-P  5 18,332,350  
7.4 The Total Subsidy Expenditure of 2021 Fisheries Subsidy program.  
The total Fisheries Subsidy Expenditure of 2021 was 87,969,350VT.  
Activity Description  Qty 2021 
Vatu 
 Subsidy Expenditure - Fisheries   87,969,350  
 7MTr Tuff Boat Fishing  18 34,794,270  
 10 Fishing aggregate devices with 
Accessories with deep bottom combo set  10 5,303,200  
 Mercury engine boat 30MLH  20 6,580,000  
 Boat equipment & facilities   9,285,000  
 Tuff Boat 7mtr with cabin front  6 7,140,000  
 Fiberglass Boat 7m x 6 & 30HP Engine x 6  6 6,003,000  
 Alvei reef queen x 50 /deep bottom combo 
x50 / tuna trolling x 50  150 8,740,000  
 Aluminum Fishing Boat with Cabin  6 9,281,880  
 Fishing line & rope   447,000  
 200L Eski Fishermen  10 395,000  
8. Duration of the subsidy  
The programme phased out from 1st February to 31st December 2 021 period.  
9. Statistical  data permitting an assessment of the trade effects of a subsidy  
Not available . 
  G/SCM/N/401/VUT  
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  2  MINISTRY OF TRADE & COMMERCE DEVELOPMENT SUBSIDIES  
The Ministry of Trade and Commerce (MTC) is responsible to establish policy directives for 
Investments and the creation of Job opportunities in Vanuatu . There are three departments and four 
statutory bodies and two units that are established under the MTC as illustrated below:  
a) Department of Industry  
b) Office of the Registrar of Cooperatives and Business Development Services  
2.1  The Department of Industry Subsidies  
The Department of Industry  (DOI)  is the government agency under the Ministry of Trade and 
Commerce with delegated policy responsibility to lead and facilitate the developments in the 
manufacturing industry sector . In 2011, the Council of Ministers (COM) endorsed "National Industry 
Policy 2011 -2016". The policy in 2017, revised to the "National Industrial Development Strategy 
2018-2022" and endorsed by COM in 2018 . The primary institutional role of the DOI is to create 
policy  and regulations based on current industry priorities and opportunities that represents a 
reliable path to social and economic prosperity goals as directed by the National Sustainable 
Development Plan 2030 (NSDP) . In the MTC Corporate Plan 2020 -2026, this responsibility is 
designated under Program 6 - SHAPING THE FUTURE FOR VALUE ADDITION INDUSTRY AND 
MANUFACTURING THROUGH THE NATIONAL INDUSTRY STRATEGY.  
There are five different  subsidies provided annually under the Department of Industry.  
2.1.1   Industry Development Fund  
1. Title of the subsidy programme  
The Department of Industry Subsidies : Industry Development Fund  (IDF) . 
2. Period covered by the notification  
2021 to 2023. 
3. Policy objective and/or purpose of the subsidy  
Policy objective : Council of Ministers (COM) decision  following the Industry Act . 
The purpose of the fund is to foster economic growth and co -operation within the Vanuatu's 
productive sector in general and to contribute to enhance the economic development potential for 
the active actors of the industrial sectors of Vanuatu.  
4. Background and authority for the subsidy  
A portion of the EDF11 funding was provided to the Vanuatu government to boost the productive 
sector. The EDF11 funds allocated to the ministry of trade was for a) IDF, b) CDF and c) Agri -tourism.  
 
A governance structure was established for the IDF.  
 
Industry Permits were issued to Industries/Manufacturers . For the purpose for this grant fund, 
applicat ions from Industry Permits Holders were submitted  to the IDF governance board and 
payments are  to be release d upon approval.  
5. Form of the subsidy  
This subsidy is provided in a form of government grant . G/SCM/N/401/VUT  
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  6. To whom and how the subsidy is provided  
Industry Permits were issued to Industries/Manufacturers for their existing operations throughout 
Vanuatu . For the purpose of this grant fund, applications from Industry Permit Holders were made 
to the IDF governance board and payments are releases upon ap proval.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Annual fiscal budget for 2023, ie,01st of January to 31st of December, is VUV 200 ,000,000 . 
8. Duration of the subsidy and/or any time limits attached to it, including date of 
inception/commencement  
01st of January to 31st of December 2 023 
• This programme commenced in the year 2021 and is ongoing to be finalized in the year 2024  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Not Available.  
2.1.2   Industry Support Fund  
1. Title of the subsidy programme  
The Department of Industry Subsidies : Industry Support Fund.  
2. Period covered by the notification  
Jan 2023 to Dec 2023.  
3. Policy objective and/or  purpose of the subsidy  
Policy objective : Council of Ministers (COM) decision following the Industry Act.  
 
The purpose of this funding is to provide assistance to Industry Permit Holders with mini -mobile 
machineries such as domestic coconut oil making machines, turmeric crushing machines, etc, where 
cost of these machines are quite expensive in overseas markets . So, the fund has helped most 
industry operators with cost of acquiring new machines  from overseas . 
4. Background and authority for the subs idy 
The initial subsidy was applied for by the department as a New Policy Proposal (NPP) to the 
government budgetary committee sometime in 2020 . Now funding has been toped -up annual with 
the department 's annual budget.  
 
The department established a committ ee to oversee the disbursement of this fund.  
5. Form of the subsidy  
This Subsidy is provided in a form of government grant . 
6. To whom and how the subsidy is provided  
All interested Industry Permit Holders throughout Vanuatu can apply for the fund . Once approves  
by the committee, payments will be made and release by the Ministry for Finance and Economic 
Management.  G/SCM/N/401/VUT  
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Annual Budget of VUV 39 ,000,000  
8. Duration of the subsidy and/or any time limits attached to it, including date of 
inception/commencement  
01st of January to 31st of December 2 023 
This programme commenced in the year 2020 and is ongoing to be finalized in the year 2024  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Not available  
2.1.3   Industry Concessions  
1. Title of the subsidy programme  
The Department of Industry Subsidies : Industry Concessions.  
2. Period covered by the not ification  
01st of January to 31st of December 2 023 
3. Policy objective and/or purpose of the subsidy  
Policy objective : Council of Ministers (COM) decision following the Industry Act.  
In accordance to the Industry Act, Industry Permit Holders are eligible to apply for tax exemption 
on imports (Duty Exemption) for any importation of high value of cost relating to machineries, or 
material bought from overseas.  
4. Background and authority for the subsidy  
Under the Customs Act and the Industry Act, the In dustry Permit Holders apply for Duty exemption 
for the importation of any industry related capital costs . The Director of Customs is mandated to 
waive any industry related cost on imported items, with the consent from the Director responsible 
for industry sector.  
5. Form of the subsidy  
This subsidy is provided in a form of tax concession . 
6. To whom and how the subsidy is provided  
Any industry permit holder throughout Vanuatu is eligible for tax concession , particularly on imported 
items towards the industry sector.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Budget tax concession budget for 2023 is targeted at VUV 150 ,000,000.  G/SCM/N/401/VUT  
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  8. Duration of the subsidy and/or any time limits attached to it, including date of 
inception/commencement  
01st of January to 31st of December 2 023. 
This programme commenced in the year 2023 and is ongoing to be finalized in the year 2023 . This 
is an annual program.  
9. Statistical data permitting an a ssessment of the trade effects of the subsidy  
Not available.  
 
2.1.4   Commodity Support Scheme  
1. Title of the subsidy programme  
The Department of Industry Subsidies : Commodity Support Scheme.  
2. Period covered by the notification  
Com agreed for the equivalent amount to be available for the consecutive years after 2020, until 
another decision to be made to stop the subsidy . 
3. Policy objective and/or purpose of the subsidy  
Policy objective : Council of Ministers (COM) decision following the Industry Act.  
The purpose  of the subsidy support scheme is to support Industry Permit Holders with the purchases 
commodities . COM agreed for a budget of VUV 150 ,000,000 towards purchases of commodities and 
a specific one for another VUV 150 ,000,000 towards the production of Copra throughout Vanuatu in 
the year 2 . 
4. Background and authority for the subsidy  
Most of the farmers living rural areas depended heavily on the copra and earnings from sale of other 
agricultural  commodities . When Vanuatu boarders were closed and later opened in 2020 due to 
global pandemic (Covid -19) and furthermore due to the Tropical Cyclone Harold, the farmers were 
faced with hardship to find markets and sell their products.  
 
So with the help of the EDF11, Vanuatu government came up with this subsidy to support Industry 
Permit Holders to purchase root crops from farmers throughout Van uatu and find ways to pr ocess 
and pr eserve for domestic sales and/or exports.  
 
The other portion of the subsidy fund was allocated to the Industry Permit holders as subsidy for the 
purchases of copra in rural areas.  
5. Form of the subsidy  
This subsidy is prov ided in a form of government grant . 
6. To whom and how the subsidy is provided  
Subsidy is provided to Industry Permit Holders, upon approval of the commodity.  
A committee consisting members of the Ministry of Trade and Commerce, and Ministry of Finance . 
Industry Permit Holders apply to the committee for the subsidy fund, and when approved, the 
Ministry of Finance issues the payments.  G/SCM/N/401/VUT  
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Annual Budget for this year 2023 : VUV 150 ,000,000  
8. Duration of the subsidy and/or any time limits attached to it, including date of 
inception/commencement  
This programme commenced in the year 2020 and is ongoing to be finalized in the year 2024 . 
9. Statistical d ata permitting an assessment of the trade effects of the subsidy  
Not available  
2.1.5   MSME Support Fund  
1. Title of the subsidy programme  
The Department of Industry Subsidies : MSME Support Fund.  
2. Period covered by the notification  
01st of January 2 023 to 31st of December 2 023. 
3. Policy objective and/or purpose of the subsidy  
Policy objective : Council of Ministers (COM) decision following the Industry Act.  
 
The purpose of this subsidy fund is to support small and medium entrepreneurs with Industry permit 
Holders, to purchases packaging material and labels for value added products produced domestically.  
4. Background and authority for the subsidy  
Due to hardship in acquiring packaging material and labels from overseas, the government 
intervened to provide subsidy to Indus try Permit Holders . This subsidy started as an New Project 
proposal (NPP) and rolled over with the equivalent amount since 2020.  
 
Committee comprises of department of industry staffs receives applications from amongst MSME 
operators with Industry Permits, and upon approval by the Director of Industry, payments are made 
to suppliers and packaging materials and labels are acquired and distributed by the department to 
selected industry Permit Holders.  
5. Form of the subsidy  
This subsidy is provided in a form of government grant . 
6. To whom and how the subsidy is provided  
Subsidy is provided to all MSME with Industry Permits . All applications are made through to the 
department of Industry . The department of Industry meets the cost of the packaging materials and 
labelling as requested and distributed to the MSME operators.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
2023 budget:  VUV 20 ,000,000  G/SCM/N/401/VUT  
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  8. Duration of the subsidy and/or  any time limits attached to it, including date of 
inception/commencement  
01st of January 2 023 to 31st of December 2 023. 
This programme commenced in the year 2023 and is ongoing to be finalized in the year 2023.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Not available  
 
2.2  The Department of Tourism Subsidies  
The Department of Tourism is responsible for the establishment of the legal framework (Tourism 
Council Act) and policy directions (Vanuatu Sustainable Tourism  Policy) of the Tourism sector in 
Vanuatu . The main objective of the tourism sector is to issue Tourism permits to tourism business 
operators, assist where necessary to establishment of tourism products and the marketing of tourism 
products.  
The Tourism Su bsidies cover three programs : 
2.2.1   Tourism Business Support Program  
1. Title of the subsidy programme  
The Department of Tourism  Subsidies : Tourism Business Support Program  (TBSP) . 
2. Period covered by the notification  
01st of January 2 021 to 31st of December 2 022 (Two-year period) . 
3. Policy objective and/or purpose of the subsidy  
Policy objective : Council of Ministers (COM) decision and Tourism Council Act . 
The purpose of this subsidy fund is to support Tourism Permit holders with cost relating to:  
a) Operational cost  
b) Face-up-lift of tourism operators  
4. Background and authority for the subsidy  
The tourism sector plays a vital role in the Vanuatu economy . During Post COVID, and when boarders 
are re -opening in 2021, the Vanuatu government and with the assis tance from New Zealand 's 
Ministry of Foreign Affairs and Trade (MFAT), secured an amount of VUV 48 ,888,000  as support to 
Tourism Permit Holders in preparation towards the boarder re -opening.  
 
The subsidy has a committee that looks after the program . All Tourism Permit Holders throughout 
Vanuatu applied to the committee and were assessed in accordance to established selection criteria . 
Once approved, the Ministry of Finance allocates funds to successful applicants.  
 
The subsidy was allocated in three Tiers.  
 
Tier 1 - VUV 250 ,000 (if all selection criteria were met)  
 
Tier 2 - VUV 110 ,000 (If part of selection criteria were met)  
 
Tier 3 - VUV 50 ,000 (If none of selection criteria was met)  G/SCM/N/401/VUT  
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  5. Form of the subsidy  
This subsidy is provided in a form of governme nt grant . 
6. To whom and how the subsidy is provided  
The subsidy has a committee that looks after the program . All Tourism Permit Holders throughout 
Vanuatu applied to the committee and were assessed in accordance to established selection criteria . 
Once appro ved, the Ministry of Finance allocates funds to successful applicants.  
The subsidy was allocated in three Tiers.  
 
Tier 1 - VUV 250 ,000 (if all selection criteria were met)  
 
Tier 2 - VUV 110 ,000 (If part of selection criteria were met)  
 
Tier 3 - VUV 50 ,000 (If none of selection criteria was met)  
 
The department of Tourism recorded a total number of 2,77 tourism business that exists in Vanuatu . 
The total number of 348 tor8ism operators were beneficiaries allocated under Tier 1, 2 and 3 were 
as follows;  
 
Tier 1 - 110 tourism operators  
 
Tier 2 - 67 tourism operators  
 
Tier3 - 171 tourism operators  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Total of VUV 44 ,888,000 was approved for a two -year period.  
8. Duration of the subsidy and/or any time limits attached to it, including date of 
inception/commencement  
01st of January 2 021 to 31st of December 2 022. 
This programme commenced in the year 202 1 and was finalized in the year 202 2. 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Not Available.  
2.2.2   Tourism Business Recovery Program  
1. Title of the subsidy programme  
The Department of Tourism  Subsidies : Tourism Business Recovery Program  (TBRP) . 
2. Period covered by the notification  
01st of January 2 023 to 31st of December 2 023 ( One-year period).  
3. Policy objective and/or purpose of the subsidy  
Policy objective : Council of Ministers (COM) decision and Tourism Council Act.  
 
This is a follow -up support of the Tourism Businesses Support Program as mentioned in A above . 
However, this subsidy support is tailored to the recovery efforts of the devastation caused by two G/SCM/N/401/VUT  
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  category 5 tropical cyclones (TC Judy & TC Kevin) in 202 3. This subsidy is to support tourism  Permit 
Holders in the areas of:  
a) Reconstruction/renovation of damaged bungalows  
b) Tourism operations  
c) Face-up-lift of tourism operators  
4. Background and authority for the subsidy  
After the boarder re -opening due to the COVID -19, global pandemic, Vanuatu was aga in hit by two 
cat 5 Tropical Cyclones in 202 3. The Vanuatu government quickly developed a stimulus package 
(Subsidy) as a recovery effort to get the tourism operators back on operation  and secured an amount 
of VUV 35 ,000,000 . With this subsidy, all Tourism  Permit Holders apply to a committee consisting 
members of the Tourism Department and payments are made upon approval.  
 
With this subsidy, all approved applicant s are allocated with an amount of VUV 150 ,000 each . The 
ministry of Finance allocates the subsidy to successful applicants.  
5. Form of the subsidy  
This subsidy is provided in a form of government grant . 
6. To whom and how the subsidy is provided  
Subsidy is provided to all Tourism Permit Holders in Vanuatu that were affected by the two cat 5 
cyclones.  
 
All applications submitted to the committee and detailing the damages caused by the two cyclones . 
When considered, payments of VUV 150 ,000 are made to each successful applicant . Total approved 
tourism operators is still pending.  
7. Subsidy per unit, or in c ases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
2023 budget:  VUV 35 ,00,000 
8. Duration of the subsidy and/or any time limits attached to it, including date of 
inception/commencement  
01st of January 2 023 to 31st of December 2 023. 
This programme commenced in the year 2023 and is ending at the end of 2023 . 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Not available  
2.2.3   Agritourism Program  
1. Title of the subsidy programme  
The Department of Tourism  Subsidies : Agritourism Program.  
2. Period covered by the notification  
01st of January 2 021 to 31st of December 2 023 (A period of three years).  G/SCM/N/401/VUT  
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  3. Policy objective and/or purpose of the subsidy  
Policy objective : Council of Ministers (COM) decision  & Agritourism Plan of Action . 
 
The purpose of this subsidy fund is to support Agritourism activities that are operated by tourism 
businesses that have Tourism Permits issued by the Department of Tourism . Areas of support 
covered under this subsidy includes:  
• Increase production and supply primary products  
• Strengthen and built the agritourism supply chain  
• Increase awareness of benefits and demand for local produce  
• Purchases  of machines related to agritourism concept  
• Other co sts related to agritourism  
4. Background and authority for the subsidy  
Whilst the tourism sector was recovering from COVID -19, the Vanuatu government also recognise 
that agritourism has the potential to generate benefits for both sectors, that is the Agricult ure and 
Tourism . The benefits include the demand for local agricultural products, which results in the 
promotion of healthy food and at the same time provide avenues for investments to create 
employment opportunities and income from value added tourism pro ducts . This has led to the 
establishment of the Agritourism Plan of Action.  
 
With the help from EDF11, the V anuatu government secured a three -year subsidy fund of 
VUV 150,000,000  (divided equally over three -year period from 2021 to 2023).  
 
The department established an agritourism working committee to oversee the implementation of 
the agritourism subsidy . All tourism operators with a Tourism permit are eligible to apply for this 
subsidy . 
5. Form of the subsidy  
This subsidy is provided in a form of government grant . 
6. To whom and how the subsidy is provided  
To date, twenty -seven  (27) successful agritourism o perators to start with . Funds allocated each year 
to these agritourism operators varied, pending on the amount requested by the operators . Again, 
all agritourism operators has to have a Tourism Permit.  
 
All agritourism operators apply to the working committee, listing their required plans and along with 
their requested amounts . Once approved, funds will be transferred direct to their bank accounts.  
 
The working committee has a mechanism in -placed to coordinate follow -ups to ensure all required 
plans are implanted in accordance to their initial requests.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
2023 budget:  VUV 50 ,000,000  
 
Total of subsidy id VUV, divided equally over a three -year period.  
8. Duration of the subsidy and/or any time limits attached to it, including date of 
inception/commencement  
01st of January 2 021 to 31st of December 2 023. 
This programme commenced in the year 202 1 and is ongoing to be finalized in the year 2023.  G/SCM/N/401/VUT  
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  9. Statistical data permitting an assessment of the trade effects of the subsidy  
Not available.  
2.3  The Department of Cooperatives (Office of the Registr ar of Cooperatives and Business 
Development Services) Subsidies  
The Registrar of Cooperatives & Business Development Services (ORCBDS) is a holder of the Office 
of the Registrar of Cooperatives appointed by the Public Service Commission (PSC) under the 
Cooperative Act 1986, Cap 152 (COSO Act).  
As a department responsible for the administration of the COSO Act, the Registrar has powers to 
intervene that are similar to those exercised by the Vanuatu  statutory bodies  
ORCBDS, an office of staff, known as the Office of the Registrar of Cooperatives & Business 
Development Services, has been set up to help the Registrar administer the COSO Act and to support 
and regulate Cooperatives Societies for people throughout Vanuatu . ORCBDS a lso provides an 
avenue for new Cooperatives, delivering a tailored service that responds to the special needs of 
Community groups and small businesses, and striving for national and international best practice in 
cooperative governance.  
ORCBDS was previous ly known as the Department of Coop eratives  and later change d to the Office 
of the Registrar of Cooperatives and Business Development Services in Novembe r of 2012.  
2.3.1   Cooperative Development Fund  
1. Title of the subsidy programme  
The Department of Cooperatives Su bsidy: Cooperative Development Fund.  
2. Period covered by the notification  
01st of January 2 021 to 31st of December 2 023 (A period of three years).  
3. Policy objective and/or purpose of the subsidy  
Policy objective : Council of Ministers (COM) decision & Cooperatives Act . 
 
The purpose of the Fund is to foster economic growth to active cooperatives throughout Vanuatu 
and enhance economic development to the cooperative sector.  
 
The objective of the Funds, consistent with the provisions of Section 53E of the Cooperative Act 
CAP 152, are:  
 
a) To extend Loans or Grants to registered cooperatives at fair and reasonable rates of interest 
and fees to cover the cost of operation;  
b) to receiv e savings and deposits from cooperatives and deposit the same in any bank or 
invest the Funds or monies by lending to the cooperatives;  
c) to create capacity in financial and business management, including technical support 
services and training opportunities  for cooperative societies in order to enhance the success 
of their business and their credit worthiness;  
d) to encourage sustainability and accountability in its services and conduct of its activities in 
the interest of the Fund;  
4. Background and authority for the subsidy  
With the help from EDF11, the Vanuatu government secured a three -year subsidy fund of 
VUV 200,000,000 ( to be allocated over three -year period from 2021 to 2023).  G/SCM/N/401/VUT  
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  The department established a  working committee as its governance est ablished under  its CDF 
constitution to oversee the allocation of the CDF . All cooperatives throughout Vanuatu are eligible 
to apply for this subsidy . 
5. Form of the subsidy  
This subsidy is provided in a form of government grant . 
6. To whom and how the subsidy is  provided  
The CDF committee made the following selection based on the criteria as listed , and to ensure each 
cooperative in Vanuatu is allocated only once : 
In 2021, VUV 100 ,000,000 was shared amongst 25 cooperatives . Each cooperative was all ocated an 
amount of VUV 3 ,600,000 . Subsidy allocated for Assets , restocking and renovations.  
 
In 2022, VUV 50 ,000,000 was shared amounts 28 other Cooperatives . Pending on their requests, 
each cooperative member was allocated an amount ranging from VUV 500 ,000 to VUV 2 ,000,000 . 
Subsidy allocated for Assets, restocking and renovations.  
 
In 2023, VUV 50 ,000,000 was again shared amongst 22 Cooperatives Pending on their requests, 
each cooperative member was allocated an amount ranging from VUV 500 ,000 to VUV 2 ,000,000 . 
Subsidy allocated for Assets, restocking and renovations.  
 
All Cooperative in Vanuatu apply to the working committee, listing their required plans and along 
with their requested amounts . Once approved, funds will be transferred direct to their bank  accounts.  
 
The working committee has a mechanism in -placed to coordinate follow -ups to ensure all required 
plans are implanted in accordance to their initial requests.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annua l amount 
budgeted for that subsidy  
2023 budget:  VUV 50 ,000,000  
Total of subsidy i s VUV 200 ,000,000 , allocated over a three -year period.  
8. Duration of the subsidy and/or any time limits attached to it, including date of 
inception/commencement  
01st of January 2 021 to 31st of December 2 023. 
This programme commenced in the year 2021 and is ongoing to be finalized in the year 2023.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Not available.  
 
3  MINISTRY OF INFRASTRUCTURE AND PUBLIC UTILITY  
1. Title of the subsidy programme  
Ministry of Infrastructure and Public Utility  Subsidies : Inter-Island Shipping Subsidy for 
Non-Economical Routes . 
2. Period covered by the notification  
Jan 2023 to Dec 2023. G/SCM/N/401/VUT  
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  3. Policy  objective and/or purpose of the subsidy  
A Council of Ministers (COM) was reached in support of the policy directions outlined above to seek 
funding as subsidy for non -economical shipping routes.  These subsidies scheme provided was 
introduced a s part of the stimulus packages to help ship owners operating within Vanuatu.  
The subsidy covers the provision of regular, reliable services to communities in remote areas where 
shipping routes are not economically viable according to ship owners  Backgroun d and authority for 
the subsidy . 
The Ministry of Infrastructure and Public Utility (MIPU) is responsible for the Maritime Affairs in 
Vanuatu . MIPU is also the governing institution for the implementation of the maritime Act and Ports 
Act of Vanuatu.  
Due to the scattering of the archipelago, some islands are faced with the hardship of having marine 
vessels servicing the islands consistently . For that matter, many shops are left with minimal stock 
or without needed stock, health supplies, and s o on for weeks or even months.  
The subsidy for non -economical shipping routes was stabled as a project under the Project 
management Unit under the department of Ports and Harbour, and MIPU.  
The Vanuatu National Sustainable Development Plan 2030, outlined t he following:  
a) ECO 2 .6 - Provide equitable and affordable access to effective transport in rural and 
urban areas ; 
b) ECO 3 .6 - Improve provision of government services in rural areas ; 
c) ECO 4 .2 - Strengthens linkages between urban and rural businesses and promote 
trade between islands . 
 
The subsidy was also supported with the Government Priority for 2023 : 
Priority Outcome 2 - Improved resilient infrastructure which clearly enlist the target outcom e of 
"Continued support in domestic shipping services to provide shipping subsidy ". 
4. Form of the subsidy  
Inter-Island Shipping Subsidy for Non -Economical Routes  is provided in a form of government grant . 
5. To whom and how the subsidy is provided  
The beneficiaries of this subsidy program are ship owners/ companies with license to provide 
shipping services throughout Vanuatu . Ship owners will apply for the funding to provide services to 
these remote areas . 
6. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for that subsidy  
Type of subsidies under MIPU  
Subsidy  Policy rationale  Description  Amount  in VATU  
Inter-Island Shipping 
Subsidy for Non -
Economical Routes  COM Decision  Recurrent:  40,000,000  G/SCM/N/401/VUT  
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  7. Duration of the subsidy and/or any time limits attached to it, including date of 
inception/commencement  
• Inter-Island Shipping Subsidy for Non -Economical Routes : This programme commenced in 
2021 and is expected to be finalized at the end of 2023 . 
 
NB - due to the minimal number of shipping vessels in Vanuatu, and the fact the islands are 
scattered  in the archipelago, the subsidy  has and will be for an annual basis.  
8. Statistical data permitting an assessment of the trade effects of the subsidy  
Not Available  
 
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