Australian partnership fuels Fiji’s infrastructure growth

Sep 9, 2024 | 2024, Blog, News

Fiji’s infrastructure pipeline is poised for significant growth, driven by a series of major projects and investments with substantial support from the Australian government. Presentations by Austrade the Australian Infrastructure Financing Facility for the Pacific (AIFFP) at the 28th Fiji-Australia/Australia-Fiji Business Forum in Suva in August outlined targeted project packages, deigned to transform Fiji’s infrastructure landscape across several key sectors, including energy, transport, telecommunications, and climate resilience.

Tim Houghton, Austrade Trade & Investment Commissioner Fiji

Tim Houghton, Austrade Trade & Investment Commissioner Fiji

The ‘Infrastructure Deep Dive’ led by Tim Houghton, Australian Trade Commissioner for the Pacific and Timor-Leste, showcased the scope of Fiji’s infrastructure development. With a total package value of US$750 million (FJ$1.7 billion), the initiative involves 104 distinct projects, focusing on capital works, consulting services, and equipment procurement. Notably, these projects are spread across major agencies like the Fiji Roads Authority, Energy Fiji Limited, Water Authority of Fiji, and Fiji Airports. The largest investments include US$255 million in road infrastructure managed by the Fiji Roads Authority, and US$187 million allocated to water projects under the Water Authority of Fiji.

In addition to roads and water, there are plans for expanding Fiji’s energy sector, with projects such as the Kinoya Wastewater Treatment Plant and new hydropower facilities under the Energy Fiji Limited. These high-value projects are designed to improve resilience and sustainability in Fiji’s infrastructure. Open tenders are the most commonly used procurement method, with 93 packages worth US$565 million expected to follow this approach. Funding comes from a mix of sources, including the Fiji government, international financial institutions like the World Bank and the Asian Development Bank (ADB), and bilateral partners like the Chinese and Japanese governments.

AIFFP
The Australian Infrastructure Financing Facility for the Pacific (AIFFP) plays a key role in the Pacific’s infrastructure development, including that of Fiji. Offering AUD 4 billion in loan and grant financing for projects across the Pacific and Timor-Leste. Of this, AUD 1.8 billion has already been approved for 21 projects in 10 countries, including significant investments in Fiji. Jonathan Kenna, First Assistant Secretary, AIFFP, focused on transformational projects that align with Fiji’s priorities, such as aviation upgrades, renewable energy transitions, and climate change adaptation.

One of AIFFP’s major contributions to Fiji is the commitment of over FJD 232 million (AUD 150 million) in loan and grant financing. This includes investments in the aviation sector, such as airport upgrades, road and bridge rehabilitation, and maritime infrastructure improvements. In the energy sector, AIFFP is supporting a feasibility study for the Namosi hydropower scheme and off-grid renewable energy projects that aim to transition Fiji toward a cleaner energy future. Additionally, climate-proof infrastructure remains a priority, with AIFFP investing in flood mitigation work in Nadi and climate change resilience measures for existing projects.

Through these initiatives, Fiji’s infrastructure pipeline is not only receiving significant financial backing but also benefiting from Australia’s expertise in delivering sustainable and high-quality infrastructure. The partnership underscores a shared vision for resilient infrastructure that enhances connectivity, boosts economic growth, and prepares Fiji to meet future environmental challenges. This collaboration between Fiji and Australia is a testament to their commitment to building a stronger, more resilient Pacific region.

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