Asian Development Bank Signs Landmark Financing Deal for Prima’s Tamtam Cable Project

The Asian Development Bank (ADB) has officially signed a landmark financing agreement with Vanuatu-based telecommunications company Prima Limited to support the design, construction, and installation of the Tamtam Submarine Cable Project. This project marks a major leap forward for Vanuatu, aimed at improving telecommunications services and strengthening natural hazard early warning systems through cutting-edge technology.

ADB Financing Package and Coverage

The financing package for the 411-kilometer Tamtam cable is the first transaction under the ADB’s new Wayfinder (Pacific) Program, which utilizes blended concessional finance to accelerate private sector development and attract investors in the Pacific. The package includes:

• ADB Loan: A $4.5 million loan provided from the ADB’s ordinary capital resources.

• Reimbursable Grant: A grant of up to $1.9 million from the private sector window of the Asian Development Fund.

• Technical Assistance: Additional support provided as part of the overall financing package.

The ADB is specifically financing the cable and electronic subsystems end-to-end, covering the segment from the Lifou Cable Landing Station (CLS) to the Port Vila CLS. This funding does not cover terrestrial infrastructure, near-shore marine conduits, or terrestrial ducting, which remain the responsibility of local landing parties, according to the Environmental & Social Management Plan (ESMP) that meet ADB‘s Safeguard Policy Statement as well as in-country laws and requirements. 

Strategic Connectivity and Infrastructure

The 411-kilometer Tamtam cable system will connect Lifou, New Caledonia, to Port Vila, Vanuatu. By establishing this link, the project provides vital redundancy to the existing Interchange Cable Network 1 (ICN1), ensuring no disruption in telecommunications services if the existing cable experiences an outage. Scheduled to enter service in December 2027, the project is also expected to generate local employment and build technical capacity within the ni-Vanuatu community. 

A World-First in SMART Technology

The Tamtam cable system will be the first in the Pacific to use Science Monitoring and Reliable Telecommunications (SMART) technology. The system will include four specialized Climate Change Nodes (CC Nodes) equipped with sensors to provide real-time monitoring of:

• Seismic activities and tsunami detection.

• Ocean temperatures and sea levels.

• Climate-relevant measurements.

These data will be freely accessible to the scientific community and civil protection authorities in both New Caledonia and Vanuatu, significantly enhancing regional disaster preparedness.

Environmental and Social Safeguards

The project has undergone rigorous examination to meet ADB’s Safeguard Policy Statement. Key highlights include:

• Categorization: The project is classified as Category B for Environment, meaning potential adverse impacts are localized, site-specific, and can be mitigated through implementation of an Environmental and Social Management Plan (ESMP).

• Habitat Protection: The cable route is designed to avoid sensitive ecological features such as coral formations, seamounts, and hydrothermal vents.

• Community Engagement: Consultations held in 2025 confirmed that the chosen landing sites in Pango (Vanuatu) and Wé (New Caledonia) do not significantly interfere with local fishing or tourism activities.

The marine cable installation is currently slated for early 2027. While Prima Ltd serves as the borrower and manages the subsea deployment via partners Alcatel Submarine Networks (ASN) and OMS Group, local landing parties — Office des Postes et Télécommunications (OPT-NC) and Verdicore — will manage the land-side infrastructure in New Caledonia and Vanuatu respectively.