U.S., New Zealand Fund $60M Cook Islands Port Upgrade

The United States and New Zealand will jointly fund a major upgrade of a World War Two-era port in the Cook Islands, strengthening Western infrastructure investment in the Pacific as China expands its regional influence.

Washington will provide $50 million for the project, while New Zealand will contribute NZ$17.5 million ($10 million), according to a joint statement issued Tuesday during the Pacific Islands Forum in Palau. Wellington will implement the project in coordination with the Cook Islands and the U.S.

The upgrade will focus on the port at Omoka village on Penrhyn, also known as Tongareva, the northernmost atoll of the Cook Islands. Improvements are expected to make ship landings safer, expand access to essential services and strengthen transportation and economic connections.

U.S. Deputy Secretary of State Christopher Landau said American personnel originally constructed Penrhyn's port and airstrip more than 80 years ago. The facilities supported the movement of personnel, supplies and aircraft across the Pacific during World War Two.

Landau said the investment would make the U.S. and its partners "safer, stronger, and more prosperous," while building on a critical-minerals framework Washington signed with the Cook Islands earlier this year.

Cook Islands Prime Minister Mark Brown said the port could strengthen economic resilience and support emerging industries, including potential seabed mineral development and expanded fisheries.

The investment comes as the U.S., New Zealand and Australia seek closer relationships with Pacific island nations amid China's growing diplomatic, economic and security presence.

The Cook Islands signed a comprehensive strategic partnership with China in February 2025 covering areas including infrastructure, maritime cooperation and seabed minerals. The agreement strained relations with New Zealand, which argued it had not been adequately consulted and subsequently paused NZ$18.2 million in development funding.

The Cook Islands is self-governing in free association with New Zealand, and Cook Islanders hold New Zealand citizenship.

Relations have since improved after both sides signed a defence and security declaration clarifying consultation arrangements. New Zealand Foreign Minister Winston Peters said bilateral ties were back on their "best footing ever."

Peters also dismissed suggestions that China could have funded an upgrade of Penrhyn's airfield, citing New Zealand's special relationship with the Cook Islands.