The government has terminated its agreement with a New Zealand business to privatize and renovate Vava’u’s Lupepau’u International Airport, Prime Minister Aisake Eke announced yesterday during a press conference.
The contract, signed in December 2024 under former Prime Minister Siaosi Sovaleni, marked Tonga’s first attempt at airport privatization. But, the current administration has decided to cancel the deal following a recommendation from the Ministry of Public Enterprises.
Prime Minister Eke cited incomplete and uncertain aspects which included the New Zealand business and its owners, land, and Tonga Airports Limited as reasons for the decision. He did not provide specific details about the company’s identity or the project’s scope.
The management of Vava’u airport is now back to Tonga Airport Limited, one of the government’s public enterprises.
In December, Acting Prime Minister Samiu Vaipulu confirmed that a New Zealand firm had received approval to undertake the reconstruction and modernization of Lupepau’u International Airport but declined to disclose the company’s name or project specifics.
The government’s decision highlights the importance of thorough due diligence and transparency in public-private partnerships, especially in key infrastructure projects.
