WELLINGTON, Sept 1 (Reuters) - New Zealand and the U.S. will jointly fund a major upgrade of a World War Two port on a Cook Islands' atoll, the three governments said on Tuesday, in a fresh sign of Western efforts to reinforce ties in a Pacific region that is increasingly being influenced by China.
Washington intends to contribute $50 million and New Zealand NZ$17.5 million ($10 million) for the project, which Wellington will implement in coordination with the Cook Islands and the U.S., according to a joint statement released during the Pacific Islands Forum in Palau.
The upgrade at Omoka village on Penrhyn, also known as Tongareva, is intended to make ship landings safer, improve access to services and strengthen transport and economic links for the northern Cook Islands, according to the statement. Penrhyn's port and airstrip were originally constructed by American personnel over 80 years ago, according to U.S. Deputy Secretary of State Christopher Landau. The airfield was used to move personnel and supplies and support aircraft transiting the region during World War Two.
"Through transformational infrastructure initiatives such as this, we are making the United States and our partners safer, stronger, and more prosperous," Landau said in the statement. He added that the project built on a critical-minerals framework signed earlier this year with the Cook Islands.
The investment comes as the U.S., Australia and New Zealand seek to counter Beijing's expanding diplomatic, economic and security footprint in the Pacific, where small island states have become more important in a contest for strategic influence.
China has stepped up engagement through infrastructure, trade and security agreements across the region. The Cook Islands signed a comprehensive strategic partnership with China in February 2025, which included cooperation on infrastructure, maritime issues and seabed minerals. That agreement triggered a sharp dispute with New Zealand, with which the Cook Islands is in a free association. This means that Cook Islanders have New Zealand citizenship, but the two countries consult on foreign affairs matters. Wellington said it had not been adequately consulted on the agreement and later paused NZ$18.2 million in development funding.
Relations have since been repaired, with the Cook Islands and New Zealand signing a defence and security declaration that clarified how the two sides would consult on defence and security matters.
(Reporting by Lucy Craymer; Editing by Thomas Derpinghaus)
