Building Resilience in Vanuatu: An Interview with Nik Regenvanu on Affordable Housing and Land Development Post-Disaster

You’ve been team leader of the VARS project for nearly a year now. Could you share your reflections on the project so far, and tell me a little more about it?

Thanks Naia.  The acronym VARS stands for the Vanuatu Affordable and Resilient Settlements Project and focuses on both existing settlement upgrades within the town of Port Vila and a new greenfield low-income subdivision that the Vanuatu Government is developing in its capacity as a developer.  Our consultancy team of Kate Fairlie (from LEI), Jennie Day and I are providing policy, legal, marketing and advisory services to support the development of the greenfield subdivision project.

Although the project has its challenges and land ownership in Vanuatu can be complicated, I love the ambition of the project for Vanuatu!  Expanding urbanisation, insecure land tenure arrangements and lack of adequate housing are Pacific-wide problems and are particularly prevalent in Port Vila as the fastest growing urban centre in the Pacific.  Having a World Bank funded project implemented by Government represents a great opportunity to make a significant impact in addressing these issues.

Earthquake damage in Port Vila: After three months, downtown Port Vila remains closed as demolition of damaged buildings continues.

I understand that you just returned to Port Vila for the first time since the December 2024 earthquake. How does it feel to be a part of this project in the wake of this disaster, and how do you see this event impacting land tenure and housing in the region?

The December 17 earthquake was devastating for Port Vila and resulted in multiple deaths and widespread damage to multiple buildings – many of which will need to be demolished.  Returning to Port Vila in March was visually arresting and highlighted the importance of the work that the Project is undertaking in addressing a number of interrelated issues that include land tenure issues, lease extensions, capacity building with the municipal and provincial government, the need to update building codes, regulations and housing policies, and the current lack of enforcement of these instruments.

While the earthquake’s impact zone was the Port Vila CBD, there has been a knock-on effect on housing inventory in the market with many businesses, government and regulatory institutions moving into residential properties outside the CBD.  The impact on damaged buildings is further accentuated through insurance issues and expiring leases in the urban Port Vila area.  With this new backdrop, and in consideration of the issues that the VARS project is trying to tackle, it feels like our work on the project has taken on additional significance for housing and land tenure issues in Vanuatu.

In the aftermath of a disaster, there are numerous competing priorities for recovery efforts. How do you see land tenure and housing planning fitting into these immediate recovery priorities – should they be addressed right away or phased in as part of longer-term resilience building?

The immediate priority for recovery efforts is focused on the CBD and includes completing structural engineering assessments of all downtown buildings and undertaking required building demolition in the earthquake red zone.  Authorities and the government will also need to determine and agree (as a matter of urgency) how the Port Vila CBD rebuild will occur and be managed.  Land tenure issues, particularly around the expiring lease issue, will play a critical part in determining how the rebuild approach for Port Vila proceeds and there is also additional pressure on housing inventory in Port Vila resulting from the loss of office space.

Given the scale, location and impact of the earthquake on the CBD, there are certainly pressing issues to be addressed right now: road upgrading, ensuring the safety of buildings, etc. Land tenure and affordable housing are topics that play into longer-term resilience building – but some thinking and discussion is needed now because they may impact the pace and type of reconstruction. For example – remaining lease lengths may impact reinvestment decisions by leaseholders. Improved land use planning and enforcement – if put in place now – could drive the revitalisation and future sustainability of Greater Port Vila.

Nik Regenvanu and Kate Fairlie in the field in Vanuatu.

Given your background in banking and finance, what role do you believe the financial sector, including local banks and development organisations, can play in a situation like that of Vanuatu? I.e. in facilitating the development of affordable, resilient housing.

This is a bit of a tricky one for Vanuatu and other small island states in the Pacific.  Given the limited size of the market and the vulnerability to natural disasters, the operational and credit risks for Bank’s are significant – one event like the December 17 earthquake can result in significant loss and wipe out profits for a year or two.  Coupled with low returns, we have seen commercial Banks in the region continue to reduce their services or withdraw from certain countries altogether such as Westpac’s withdrawal from a number of Pacific countries in 2015-2016.

That being said, these local banks do play a crucial role in facilitating the development of affordable and resilient housing and this is where government or donor support is critical to support these processes and facilitate access to credit for vulnerable populations who need affordable and resilient housing but may not be able to achieve this under standard financial models.  The VARS project is an excellent example of trying to break paradigms and support these processes. Other tools such as credit guarantees, and bespoke lending products can also assist in facilitating this – so yes! Local banks and development organisations in conjunction and working together are key in addressing these issues.

As someone from and with family in Vanuatu and looking beyond the immediate recovery efforts, what is your long-term vision for sustainable land development and housing in Vanuatu? Is there a specific approach that you see as being most effective for the community, government, and private sector to work together to make this a reality?

Great question Naia. My long-term vision in this area for Vanuatu is the formal development of multiple low-income affordable house and land packages in the greater Port Vila area and beyond. These developments should be supported by robust service centres that eliminate the need to access services solely in Port Vila and tackle issues related to overcrowded urban areas.  If the VARS project can provide a template for how this can be done, then we will have gone a long way towards making the project a success.

The key to achieving this is political will to push through these initiatives and reforms.  Donor support for these initiatives is there and there is a general recognition that these initiatives align with the UN Sustainable Development Goals and will result in a more robust and resilient Vanuatu.  We currently have strong support from the Vanuatu Government for this project and if this can be harnessed and coordinated with donor support and private sector efficiencies, then great strides can be taken towards achieving this vision.

Nik’s leadership on the VARS project highlights the critical role of collaborative efforts between the government, private sector and communities in addressing housing and land tenure challenges in Vanuatu. Despite the setbacks of the earthquake, the project’s focus on long-term resilience and sustainable development remains vital. The VARS project holds the potential to serve as a model for similar initiatives across the Pacific region, ultimately contributing to a more secure and prosperous future for Vanuatu.

If you would like to read more about the VARS project, you can visit the project page here.

Header image: Nik with Community Focus Groups organizer Glenda Malas outside the Department of Urban Affairs and Planning.