France has approved a second phase of its investment-driven recovery plan for New Caledonia, committing an additional €84.7 million (CFP10.1 billion) to fund 50 infrastructure and development projects aimed at rebuilding the territory’s economy, creating jobs and improving essential services.
The funding forms part of the first operational stage of the Economic and Social Reconstruction Pact for New Caledonia, unveiled in March by the High Commissioner of the Republic and the inter-ministerial mission for New Caledonia.
The latest allocation follows Phase 1, which financed 54 projects with grants totalling just over €57 million (CFP6.8 billion).
Together, the two phases have committed nearly CFP17 billion (US$162.1 million) in French government funding since the beginning of 2026.
The second phase follows a call for proposals issued to local authorities in April, with 50 projects selected after assessment by the High Commissioner.
The projects focus on four key investment priorities.
The largest share of funding will improve access to remote communities through 22 projects worth about CFP4 billion. Seventeen of these projects involve transport infrastructure, including road rehabilitation, bridge construction and upgrades to access roads serving isolated areas.
The recovery programme also allocates around CFP3.3 billion (US$31.5 million) to 18 projects aimed at improving access to essential services, particularly drinking water supplies, water distribution and sanitation networks, and other community infrastructure.
Two projects valued at approximately CFP200 million (US$1,908,351) will strengthen New Caledonia’s resilience to climate change and natural disasters.
Another eight projects, worth around CFP2.5 billion (US$23.8 million), will support economic diversification, with particular emphasis on developing the tourism sector and creating new economic opportunities.
French authorities said the recovery programme is designed not only to improve infrastructure but also to accelerate economic activity by supporting local businesses, particularly those in the construction and public works sectors, while generating employment across the territory.
The French Government has informed local authorities of the funding allocations and has urged project owners to begin work as soon as possible, and no later than the end of 2026, to ensure the recovery plan delivers its intended outcomes.
Government-appointed representatives will continue to assist project developers to help projects commence without delay.
The broader recovery programme includes €200 million (CFP24 billion) in French state subsidies over five years to support major infrastructure investments across New Caledonia.
