Australia Pledges USD1.6B for Nauru Migrant Deal

(MENAFN) Australia has committed to a US$1.6 billion payment over the next 30 years to relocate hundreds of migrants to the remote Pacific island of Nauru, according to government officials who disclosed financial details of a previously undisclosed agreement.

The pact, finalized last week between Canberra and Nauru, will see up to 354 individuals—who are not legally permitted to remain in Australia—resettled on the island in exchange for an upfront payment of Aus$408 million (US$267 million). The deal also includes ongoing annual payments of approximately Aus$70 million.

During a late-night parliamentary session on Wednesday, representatives from the Department of Home Affairs confirmed the long-term nature of the payments, which could continue for three decades, potentially costing Australian taxpayers Aus$2.5 billion (US$1.6 billion).

This marks the first time the financial scope of the arrangement has been publicly acknowledged.

"It's in both nations' interest to move through this as efficiently as we can," said Clare Sharp, head of immigration at the Department of Home Affairs.


"It's in Nauru's interest, because money doesn't flow until people arrive," she added.

Nauru, with a population of roughly 12,500 and a landmass of just 20 square kilometres, is one of the smallest sovereign states on Earth. The island faces acute environmental challenges due to climate change, and it struggles with widespread unemployment and serious public health concerns, according to a recent World Bank report.

Once flush with wealth from rich phosphate deposits—used globally in fertilizer—Nauru was, at one point, among the world's richest nations per capita. However, those reserves were exhausted decades ago. Today, researchers estimate that around 80 percent of the island's surface has been left uninhabitable due to extensive mining.

As part of the migration deal, funding will be divided between the Nauruan government and a joint trust co-managed with Australia. Officials said claw-back provisions are still under negotiation to allow Australia to recoup funds if parts of the agreement are not fulfilled.

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