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Fiji and ADB

ADB's partnership strategy for Fiji focuses on encouraging private sector investment, improving service delivery and economic opportunities, and building resilience.

ADB's Work in Fiji

ADB Membership

Joined 1970

Shareholding and Voting Power

Number of shares held:
7,218 (0.068% of total shares)

Votes:
46,332 (0.348% of total membership, 0.535% of total regional membership)

Overall capital subscription:
$99.81 million

Paid-in capital subscription:
$4.99 million

Fiji has one of the most developed economies in the Pacific, with tourism as its main driver of economic activity and foreign direct investment. In 2019, more than 894,000 people visited Fiji, a growth rate of 2.8% on the 2018 numbers. The country has also seen a shift in exports from agricultural commodities to manufactured goods.

ADB has been supporting Fiji since 1970 and is currently working with the national government based on the country partnership strategy, 2019–2023, which was approved in April 2019. Over the strategy period, ADB has anticipated an allocation of $600 million in sovereign and nonsovereign resources to help Fiji overcome its key development challenges.

Boat ride in Fiji

Since 1970, ADB has committed loans totaling $589.4 million, grants of $35 million, and technical assistance worth $36.8 million for Fiji.

Cumulative loan and grant disbursements to Fiji from regular ordinary capital resources and other special funds amount to $371.3 million.


ADB-Supported Projects and Programs

ADB engagement in Fiji focuses on achieving sustained and inclusive economic growth led by the private sector. This goal is being advanced through investments in transport infrastructure, water supply and sanitation, and public sector management.

ADB has been investing in rehabilitating Fiji’s roads for 20 years and, since 2000, has helped reconstruct around 300 kilometers of roadway, including sections of the major Kings and Lodoni highways. Associated reductions in transport costs and travel times have helped disadvantaged groups participate in the cash economy, access employment opportunities, and take advantage of social services such as education and health.

In more recent years, ADB has further increased its commitment to develop transport infrastructure in Fiji. With cofinancing from the World Bank, it has provided $100 million to upgrade and rehabilitate roads and bridges across the country.

Fiji's road network is being repaired and upgraded to improve mobility, safety, and climate change resilience.

ADB has also helped significantly improve water supply and sewerage services, with one project improving water supply to about 150,000 people living in the Greater Suva area. This work is being advanced by a further project—utilizing a facility of $153 million from ADB, a loan of $71 million from the European Investment Bank, and a grant of $31 million from the Green Climate Fund—that will double sewerage treatment capacity and deliver over 20% more water in Greater Suva every day.

Following Tropical Cyclone Winston in 2016, a $2 million grant from the Asia Pacific Disaster Response Fund was provided to assist with immediate recovery. In August that year, ADB provided an emergency assistance loan of $50 million to help with the reconstruction efforts.

In June 2018, the bank committed $15 million for the first subprogram of a policy-based loan program to support private sector-led growth in Fiji. A second subprogram of $65 million was committed in December 2019. The program supports government reforms to strengthen fiscal management; establish policy, legal, and institutional frameworks for state-owned enterprises and public–private partnerships; and improve Fiji’s business and investment climate.

Fiji also participates in regional technical assistance projects, covering areas such as climate change, public sector management, and private sector development.

Wastewater treatment facilty in Suva, Fiji

Nonsovereign Operations

As a catalyst for private investments, ADB provides financial assistance to nonsovereign projects and financial intermediaries. Total commitments from ADB’s own funds (in equity and direct loans) in 2019 amounted to $3.00 billion for 38 transactions in economic and social infrastructure, the finance sector, and agribusiness. ADB also actively mobilizes cofinancing from commercial and concessional sources. In 2019, ADB mobilized $3.28 billion of long-term cofinancing and $3.69 billion of cofinancing in trade finance, microfinance, and supply chain finance programs. Total outstanding balances and commitments of nonsovereign transactions funded by ADB’s own resources stood at $13.78 billion as of 31 December 2019.

Financing Partnerships

Financing partnerships enable ADB’s development partners, governments or their agencies, multilateral financing institutions, and commercial organizations to participate in financing ADB projects. The additional funds are provided in the form of loans and grants, technical assistance, and other nonsovereign cofinancing such as B loans, risk transfer arrangements, parallel loans and equity, guarantee cofinancing, and cofinancing for transactions under ADB’s Trade Finance Program and Supply Chain Finance Program.

ADB began cofinancing operations in Fiji in 1992. Since then, sovereign cofinancing commitments for Fiji have amounted to $259.84 million for six investment projects and $3.15 million for five technical assistance projects.

In 2019, Fiji received $64 million in loan cofinancing from the World Bank, and $1.7 million in grant cofinancing from the Government of New Zealand, for the Sustained Private Sector-Led Growth Reform Program—Subprogram 2.

Projects Cofinanced, 1 January 2014–31 December 2018

Operational Challenges

Fiji faces operational and implementation challenges similar to other Pacific island countries, with limited capacity in the public sector and frequent staffing changes in key positions within both the public and private sectors. These constraints are reflected in the design of ADB projects, making appropriate technical assistance an important component of ADB support to Fiji.

ADB operations in Fiji are enhanced by the presence of the ADB Pacific Subregional Office in the country’s capital, Suva. There is strong coordination and harmonization with other development partners, and significant analytical work has been done to enhance Fiji’s development prospects.

Future Directions

ADB’s country partnership strategy, 2019–2023 for Fiji focuses on three strategic pillars for the country’s development. First, the bank will help promote private sector investment and growth by investing in infrastructure, providing policy-based loans, and offering technical assistance to improve the business and investment climate. Second, ADB will assist in broadening access to quality services and economic opportunities by making inclusive infrastructure investments, improving social services, and supporting efforts that increase the employment and income opportunities of Fiji’s poor and disadvantaged. Third, the bank will work to reduce economic volatility in Fiji by investing in climate- and disaster-resilient infrastructure assets and supporting government efforts to build macroeconomic buffers and fiscal resilience.

Aerial view of Suva, capital of Fiji

ADB will support these strategic objectives through policy analysis and advice, sovereign and nonsovereign financing facilities, and strategically targeted technical assistance.

This article was originally published in the ADB and Fiji: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

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