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Pacific Subregional Office (SPSO)

The SPSO serves as the focal point of ADB for programming, processing, and administering assistance in the Cook Islands, Fiji, Kiribati, Niue, Samoa, Tonga, and Tuvalu.

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:
46,915 (0.353% of total membership, 0.542% of total regional membership)

Overall capital subscription:
$100.39 million

Paid-in capital subscription:
$5.02 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 2018, more than 870,000 people visited Fiji, a growth rate of 3.3% on the 2017 numbers. The country has also seen a shift in exports from agricultural commodities to manufactured goods.

ADB has been supporting Fiji since 1970 and has approved $524.4 million in loans, $35 million in grants, and $33.7 million in technical assistance.

Children enjoying the day at the beach in Fiji.

ADB and the Government of Fiji are working together based on the recently approved country partnership strategy, 2019–2023. 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.

Cumulative loan and grant disbursements to Fiji amount to $357.4 million. These were financed by regular ordinary capital resources, and other special funds.


ADB-Supported Projects and Programs

ADB engagement in Fiji focuses on achieving sustained, inclusive, private sector-led growth. These goals are 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 traveling times have helped disadvantaged groups participate in the cash economy, access employment opportunities, and take advantage of social services such as education and health.

ADB is building on its commitment to develop transport infrastructure in Fiji. With cofinancing from the World Bank, it has provided $100 million to upgrade and rehabilitate 100 kilometers of road, 30 bridges, and 6 jetties across the country.

Fijian ladies walking along the ADB funded Kings Road project in the outskirts of Suva on Thursday 20 March 2014.

The bank has also helped significantly improve water supply and sewerage services, with one ADB-supported project improving water supply to about 150,000 people living in the Greater Suva area. This work is being advanced by a further project, committed by ADB in 2017, for the same area. The 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—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 supporting private sector-led growth in Fiji. The program will support government reforms to strengthen fiscal management; establish policy, legal, and institutional frameworks for stateowned enterprises and public–private partnerships; and improve the business and investment climate.

ADB technical assistance to Fiji has also helped the government develop a ports master plan and a national development plan. Fiji also participates in regional technical assistance projects, covering areas such as climate change, public sector management, and trade facilitation.

A project that was unveiled in 2006 making Fiji’s ports safer and more efficient has contributed to the country’s economic growth and stability. ADB contributed to the project with a $16.8 million loan.

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 2018 amounted to $3.14 billion for 32 transactions in economic and social infrastructure, the finance sector, and agribusiness. ADB also actively mobilizes cofinancing from commercial and concessional sources. In 2018, ADB mobilized $3.17 billion of long-term cofinancing and $3.99 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 $12.7 billion as of 31 December 2018.

Cofinancing

Cofinancing operations enable ADB’s financing 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 official loans and grants, technical assistance, other concessional financing, and commercial 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 1993. Since then, cumulative direct value-added official cofinancing commitments for Fiji have amounted to $194.14 million for five investment projects and $0.75 million for three technical assistance projects.

In 2018, Fiji received $15 million in loan cofinancing from the World Bank for the Sustained Private Sector-Led Growth Reform Program—Subprogram 1.

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 must work to ensure the effectiveness of development aid to Fiji by maintaining multilateral consultations and negotiations.

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.

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.

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 social and economic indicators on Afghanistan as well as concise information on ADB's operations in the country and contact information.

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