Fiji : Transport Infrastructure Investment Sector Project (formerly Bridge Replacement Project)

Transport / Road transport (non-urban) - Transport policies and institutional development - Water transport (non-urban)

Fiji is a South Pacific archipelagic nation of 110 inhabited islands with a land area of 18,300 square kilometers and a population of 860,000. Fiji is located 2,0003,000 kilometers (km) from major metropolitan markets, and service delivery costs within the country are high because the population is dispersed. About 90% of the population lives on the three main islands of Viti Levu, Vanua Levu, and Taveuni.

Fiji requires adequate transport infrastructure to improve access to economic opportunities and services for rural populations, and to improve trade. Fiji is a middle-income country with a per capita income of $4,618, and overall poverty in Fiji declined slightly between 2003 (39.8%) and 2009 (35.2%). However, a 2008 household income and expenditure survey estimated the poverty incidence to be 19% in urban areas and 43% in rural areas. More than half of Fiji's population live in rural communities, which are geographically isolated from provincial and national centers and served by rural transport infrastructure that is in poor condition. These factors limit rural economic opportunities and social services. The World Bank's 2014 Doing Business report ranked Fiji 111th out of 185 economies in the ease of trading across borders, which is a measure of the time and cost associated with the import or export of a standard shipment by sea transport. Local transportation and handling accounted for 30% of costs, and about 16% of time, associated with imports and exports.

The road network is characterized by spine or circumferential main roads and feeder roads, with few alternative routes. It is prone to disruption by heavy rainfall and flooding, which is often exacerbated by tropical cyclones. Rural maritime infrastructure has been neglected and is in poor condition. Climate change predictions show increased frequency and intensity of heavy rainfall, and sea level rise. Roads, bridges, and rural jetties need to be rehabilitated, with better environmental protection and to higher construction standards, to be resilient against extreme weather events and natural disasters. Disruption in transport connectivity constrains movement of people and goods, depresses productive rural activity, and impedes tourism growth. Further investment in the transport sector, focusing on vulnerable groupsincluding rural communities, women, elderly, and youthand considering climate resilience, will provide a foundation for inclusive growth by improving access to markets and services in rural areas.

Intermodal links are vital to link Fiji's dispersed communities, and enable people and goods to connect through road links to the main ports of Suva (the capital) and Lautoka, and to the landing ports for interisland domestic shipping and ferry services between Viti Levu, Vanua Levu, Ovalau, and Taveuni. Freight is transported between northwest and southeast Viti Levu either via ship (between ports in Lautoka and Suva), or by land along Queens Road. The international airport in Nadi is connected to the capital by the Queens Road and by domestic flights to and from Nausori airport. Roads to these airports are essential intermodal links.

The government has estimated that about F$1.3 billion ($702 million equivalent) in capital expenditures and F$450 million ($243 million equivalent) in maintenance expenditures are required for road and rural maritime infrastructure over 20142018. This is more than double the annual average maintenance expenditures and triple the capital works expenditures over 20042013. These budget increases will require contributions from concessional financing dedicated to the sector, in addition to government support from general revenue sources.

The Asian Development Bank (ADB) has previously advocated for the establishment of a roads authority; this was realized through the establishment of the Fiji Roads Authority (FRA) by the Fiji Roads Authority Decree 2012, and has contributed to more efficient service delivery. The FRA is responsible for maintaining and upgrading assets that currently consist of about 11,115 km of roads (including 1,483 km of sealed and 9,632 km of unsealed roads), 868 bridges, and 47 jetties. While FRA currently operates under a costly institutional setup that relies on foreign expertise, it has developed a strategy to increase local capacity; the project will support these efforts by engaging local experts, guided and mentored by FRA's international experts, for day-to-day project supervision. It will also build the capacity of government staff to plan, select, and oversee implementation of transport infrastructure projects.

ADB has provided transport-related support to Fiji since 1980, and investments have generally achieved key objectives, despite some delays and cost overruns. ADB continued implementing transport projects during a period of limited engagement that began in 2006, including the Port Development Project, and the Third Road Upgrading Sector Project. In 2009, ADB also approved additional financing for the Third Road Upgrading Sector Project, and an emergency loan to assist Fiji in response to devastating floods. Lessons from previous engagements in the country relevant to the transport sector include the need for sustained support over the long term to foster private participation in infrastructure service delivery, and the importance of extensive preparation and implementation support to address capacity constraints.

The government's vision for Fiji is set out in the Roadmap for Democracy and Sustainable Socio-Economic Development, 20102014, and is reiterated through the Green Growth Framework (GGF). The GGF sets out policy direction for 10 thematic areas, which include resilience to climate change and disasters, sustainable transportation, and inclusive social development. ADB engagement will be guided by its country partnership strategy, 20142018, and country operations business plan, 20152017 for Fiji, both of which support the government's national strategies, and identify transport as a key sector for engagement. The project will support the country partnership strategy in swiftly increasing ADB support in the transport sector following Fiji's 2014 elections, and help the country overcome its key development challenges. The project will finance repair, rehabilitation, and upgrading of transport infrastructure prioritized by an updated 20-Year National Transport Infrastructure Plan, based on the GGF, the Roadmap for Democracy and Sustainable Socio-Economic Development, and Public Sector Investment Program.

The project will be implemented as a sector project, by financing a time slice of subprojects (comprising 30 km of roads, 30 bridges, and four jetties) prioritized by the updated 20-Year National Transport Infrastructure Plan, and selected in accordance with agreed subproject eligibility criteria and selection procedures. The project will support strengthening of the institutional capacity of central and line agencies in prioritizing transport infrastructure investment, and reducing the backlog of maintenance of transport infrastructure. The project supports existing policy for the transport sector articulated through the National Transport Sector Plan (1993), which is being updated through ADB-supported TA (footnote 2).

The World Bank has expressed strong interest in cofinancing the project, and is expected to approve its cofinancing in early 2015; following that approval, the project scope will be enlarged to cover additional subprojects. The World Bank cofinancing is envisaged to be on a joint basis, with partial administration by ADB of the cofinancing. Common implementation frameworks covering safeguards, procurement, and financial management have been agreed in principle between ADB and the World Bank.

Improved access to markets, employment opportunities, and social services

Improved safety and resilience of land and maritime transport infrastructure

Rehabilitated and climate resilient land and maritime transport infrastructure

FRA Institutional Capacity Strengthened