Fiji : Urban Water Supply and Wastewater Management Investment Program, Tranche 1

Project Name

Urban Water Supply and Wastewater Management Investment Program, Tranche 1

Project Number

49001-003

Country / Economy

• Fiji

Project Status

Active

Project Type / Modality of Assistance

• Grant
• Loan

Source of Funding / Amount

Loan: Urban Water Supply and Wastewater Management Investment Program, Tranche 1

Source	Amount
European Investment Bank	US$ 26.60 million

Grant 0531-FIJ: Urban Water Supply and Wastewater Management Investment Program, Tranche 1

Source	Amount
Green Climate Fund	US$ 31.04 million

Loan 3512-FIJ: Urban Water Supply and Wastewater Management Investment Program, Tranche 1

Source	Amount
Ordinary capital resources	US$ 42.11 million

Strategic Agendas

• Environmentally sustainable growth
• Inclusive economic growth

Drivers of Change

• Gender Equity and Mainstreaming
• Governance and capacity development
• Knowledge solutions
• Partnerships

Sector / Subsector

• Water and other urban infrastructure and services / Urban water supply

Gender

Effective gender mainstreaming

Description

The impact of the proposed investment program will ensure future growth in the greater Suva area (GSA) is sustainable and will improve public health. The outcome will be improved access to sustainable water supply and sewerage services in the GSA. The investment program has three outputs:

Output 1: Supply and access to safe water in the GSA improved. The investment will expand water supply by 40,000 m3 per day by constructing a new supply intake on the Rewa river with associated water treatment plant, pumping station, reservoir, and transmission main to connect to the existing system. Reliable and sustainable long term operations and maintenance practices will be enhanced through a DBO contracting arrangement. A catchment management plan will be developed to safeguard the water source and ensure long term sustainability. NRW reduction will be achieved by improving leak detection and repairs; replacing meters; and establishing district metering areas and pressure management systems. WAF will supply 200 liters per capital per day to 315,947 persons by 2023, ensuring continuous supply to 98% of the GSA population. The climate change component of Output 1 will include adaptation measures for building the new Rewa river scheme specifically moving the facility from 29 km to 49 km from the river mouth to avoid future climate change impacts embodied in projected rising sea levels and potential migration of the salt water wedge up the river.

Output 2: Wastewater treatment and management capacity in the GSA increased. The wastewater network will be rehabilitated and expanded by: (i) upgrading 31 existing wastewater pumping stations; (ii) upgrading about 18 km of wastewater trunk mains to increase carrying capacity; (iii) relining 13 km of wastewater trunk mains; and (iv) extending the wastewater network to service an additional 15% of households (approximately 4,500 existing lots in backlog areas) currently using onsite septic tanks. Additionally, the WWT capacity at Kinoya will be expanded by 164% to cover approximately 277,000 person equivalent to treat wastewater from current and future households. By improving the network and expanding the WWT capacity, WAF will ensure that 60% of households in GSA will have access to a reticulated sewage collection system by 2023. The remaining households with individual septic units will be catered by a fecal sludge management system.

Output 3: WAF management and sustainable service delivery capacity improved. Program management and capacity development support will be provided to: (i) support WAF in the implementation of water demand management, NRW reduction and the national liquid trade waste management programs; (ii) support the Department of Environment (DOE) developing the environmental regulatory framework for treated municipal wastewater discharge, sludge treatment and disposal practices and standards, and associated monitoring and enforcement; (iii) complete the corporatization of WAF; (iv) formulate water safety plans to protect the quantity and quality of water at all source intakes; (v) improve financial management; (vi) promote gender equity; and (vii) study alternatives to reduce the long term energy consumption of the existing urban WWT system.

Project Rationale and Linkage to Country/Regional Strategy

Fiji has a population of approximately 868,000, of which 53% is urban. By 2030, it is estimated that two in three Fijians will be living in the country s urban centres. While poverty rates in Fiji are highest in rural areas, the rapid growth of peri-urban squatter settlements implies that the majority of poor people in Fiji now live in and around urban areas. Fiji s urban sector accounts for 60% of the country s gross domestic product, with the share of the GSA estimated at 40%. The GSA, which consists of Suva City the national capital as well as the towns of Lami, Nasinu, and Nausori and their surrounding peri-urban areas, accounts for 57% of Fiji s urban population. By 2023, the population of the GSA is expected to grow by 12.8%.

Despite the economic importance of the country s cities and towns, investment in urban water supply and sewerage services has not kept pace with the demands of rapid urban growth. In the GSA, WAF s treated water production capacity is insufficient to meet customer demands and there is strong dependence on a single river source that is increasingly vulnerable to drought. To assimilate the forecast population growth, a significant increase in water supply production capacity is required in combination with measures to curb relatively high customer demands and reduce system leakages. Diversification of raw water sources and catchment protection are strategies to improve water security and mitigate the impacts of future climate change. Currently, 36% of urban households are connected to the sewerage system. The Kinoya wastewater treatment plant (WWTP) is under capacity and under-performs in terms of environmental compliance. In the unsewered areas, 60% of households in the GSA currently use on site sanitation systems (e.g. septic tanks). Due to prevailing shallow soil depths, high rainfall and lack of routine maintenance, overflows from septic tanks are a common occurrence which contributes to pollution to receiving waters and public health risks. The current extent of sewerage services coverage and limited wastewater treatment capacity are major constraints to further growth and urban development. The investments to be financed by the program are aligned to the National Development Plan 2016-2033 (medium-term water supply and sanitation sector development plan 2016-2021), WAF GSA Water and Wastewater Master Plan 2013-2033 and the WAF 2016 corporate plan (draft).

Fiji 's National Development Plan 2016-2033 is aligned to the Sustainable Development Goals, and has prioritized the improvement of water and sanitation services in Fiji 's as a core pillar for inclusive economic development and growth. The government s strategy is to ensure the provision of safe drinking water and basic sanitation to every household in Fiji. In addition the National Development Plan acknowledges increased population growth, water consumption and climate change impacts as an impediment to efforts to achieving sustainable development.

Impact

Government's objective to improve access to a safe piped water supply system and an environmentally friendly sewerage system.

Project Outcome

Description of Outcome

Improved access to sustainable water supply and sewerage services

Progress Toward Outcome

As of June 2024, the overall progress (inclusive of design, procurement, and construction) was approximately 99.7% for the DBO contract, whilst the overall progress was at approximately 99.8% for the GM contract. Major construction and installation works were completed by Oct2023. Trial operations completed in December 2023 but further verification works on automation is ongoing. Water quality standard is being met and water is currently being supplied into the WAF system.

DBO - Commissioning certificate was signed on 20th June 2024 and effective from 1st April 2024.Currently the contractor is addressing defects listed in the snag list that was issued with the commissioning certificate which will be rectified during the 1 year DLP.

GM - Taking over certificate was effective from 20th November, 2023 and DLP period is 2 years. Minor works ongoing to reinstate road shoulder and day works, including rectification of valve chambers and footpath reinstatement. Final AS-built drawings are under review by ER.

Implementation Progress

Description of Project Outputs

Improved access to reliable and safe water supply in the GSA

Wastewater treatment and management capacity in the GSA increased

WAF management and sustainable service delivery capacity improved

Status of Implementation Progress (Outputs, Activities, and Issues)

As of June 2024, the overall progress (inclusive of design, procurement, and construction) was approximately 99.7% for the DBO contract, whilst the overall progress was at approximately 99.8% for the GM contract. Major construction and installation works were completed by Oct2023. Trial operations completed in December 2023 but further verification works on automation is ongoing. Water quality standard is being met and water is currently being supplied into the WAF system.

Geographical Location

Safeguard Categories

Environment

B

Involuntary Resettlement

B

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

Tranche 1 - Rewa River Water Supply Scheme IEE was approved subject to conditions by the Ministry of Environment on 13 June 2017 and amended on 2 August 2017. The outline CEMP was prepared by WAF in July 2017. The EA/IA are complying with the legal covenants and no actions are required to maintain compliance. The contractors CEMP have been reviewed and cleared by ADB.

Involuntary Resettlement

The Resettlement Plan (RP) has been devised into volumes. ADB has revised, cleared and disclosed on ADB's website. The EA/IA are complying with the legal covenants, all the Lands under the project have been legally acquired by the IA.

Indigenous Peoples

Not applicable. The IP category is C.

Stakeholder Communication, Participation, and Consultation

During Project Design

The preparation of the project due diligence under went public consultations and focused community group discussions. A public awareness campaign and community participation plan has been prepared.

During Project Implementation

The PMU have conducted ongoing consultations with the communities and relevant government agencies during project implementation. These are reported in the monitoring reports.

Business Opportunities

Consulting Services

All consultants will be recruited according to ADB's Guidelines on the Use of Consultants

(2013, as amended from time to time). The terms of reference for consulting services are

detailed in Appendix 1 of the Procurement Plan. Consulting firms will be engaged using the quality and cost based selection (QCBS) method with a standard quality: cost ratio of 80:20: Detailed Engineering

Design Consultants with 149 person-months, Construction Supervision Consultants with 780

person-months.

Procurement

The Investment Program will follow ADB's Procurement Guidelines (2015, as amended

time to time) and tranche 1 loan includes: (i) four international competitive bids (ICBs) for water

supply intake works in Rewa; (iii) one ICB procurement of water supply equipment; and (iii)

recruitment of consulting services for the IPMU consultants Part B (Detailed Engineering

Consultants, Construction Supervision Consultants, and Institutional effectiveness). An 18

month procurement plan indicating threshold and review procedures, goods, works, and

consulting service contract packages and national competitive bidding guidelines is in Section

C. Universal procurement will apply pursuant to an ADB Board blanket waiver of member

country procurement eligibility restrictions where ordinary capital resources and a cofinancier's

resources are used to jointly finance individual procurement package.

Contact

Responsible ADB Officer

Blaik, Stephen

Responsible ADB Department

Sectors Group

Responsible ADB Division

Water and Urban Development Sector Office (SG-WUD)

Executing Agencies

Ministry of Economy

Timetable

Concept Clearance

-

Fact Finding

-

MRM

-

Approval

15 Nov 2016

Last Review Mission

-

Last PDS Update

24 Jul 2024

Funding

Grant 0531-FIJ

Loan 3512-FIJ

Loan 6004-FIJ