On 6 October, 2024, the vessel ran aground on a reef off the South Coast of Upolu, and then sank.
Foreign Minister Winston Peters said the payment – worth 10 million Samoan tālā – followed a request from the Samoan government, and was made in full and in good faith.
“We have always said we will do the right thing,” Peters said. “We recognise the impact the sinking has had on local communities and acknowledge the disruption it caused.”
Village elders told RNZ Pacific the once-rich fishing grounds have been destroyed, and they want the wreck removed.
Peters said the two governments continued to work together on decisions around the ship and its future, with the priorities being minimising any possible environmental impacts and supporting the response.
Results of an inquiry released in April found the ship’s crew was undertrained and the vessel was not up to the task.
All 75 passengers and crew survived. An investigation into whether there will be any disciplinary proceedings was in its closing stages.
Captain Rodger Ward, lead of the HMNZS Manawanui response, said much work had been carried out in the past 12 months to minimise the effects of the sinking and investigate the causes.

He said fallen shipping containers had been removed, and fuel, pollutants, weapons, ammunition and debris had been recovered.
“Further work is required. That work includes progressing an independent wreck assessment together with environmental studies. This information will be essential in supporting decisions about the future work required,” he said.
“The priority remains, as it has been throughout, to minimise any environmental impacts of the sinking, and to support the government of Samoa in its response.”
Reflecting on one year since the sinking, Ward said the Defence Force remained eternally grateful no lives were lost, and also recognised the impact the sinking has had on the people of Samoa.
Originally published on rnz.co.nz