Australia, New Zealand, Asian Development Bank and World Bank jointly launched a new Pacific Region Infrastructure Facility on Tuesday.

A news release issued at Alofi, the capital of Niue where the 9th Pacific Island Forum leaders' summit is underway, said the joint initiative will greatly assist Pacific Island countries to overcome the significant challenges they face in linking people to vital services and make progress toward the Millennium Development goals.

The facility will coordinate donor assistance to develop and maintain critical economic infrastructure in the Pacific Island Countries. The facility will provide up to 200 million U.S. dollars funding over four years.

Improvements to the quality, reliability and availability of infrastructure in both rural and urban areas are crucial for boosting economic growth, creating jobs and providing access to basic services such as health and education, the release said.

It also said the transport infrastructure is expected to be an early priority for assistance. The facility program will assist Pacific Island countries to improve roads, ports and transport systems, support reliable energy and communications infrastructure and improve their water, sanitation and waster management systems.