Fiji Airways COVID-19 Liquidity Support Facility will fund Fiji Airways' fixed costs during operational shutdown caused by COVID-19 and working capital requirements for a 2021 ramp up and restoration of its flight services.
|Project Name||Fiji Airways COVID-19 Liquidity Support Facility|
|Borrower/Company||Air Pacific Limited
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Partnerships
Private sector development
|Sector / Subsector||
Transport / Air transport
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Pascual, Francis Mark A.|
|Description||Fiji Airways COVID-19 Liquidity Support Facility will fund Fiji Airways' fixed costs during operational shutdown caused by COVID-19 and working capital requirements for a 2021 ramp up and restoration of its flight services.|
|Objectives and Scope||The project supports Fiji Airways' effort to sustain its business through the COVID-19 crisis and return to profitable operations.|
|Linkage to Country/Regional Strategy||
The project is consistent with ADB's Strategy 2030 because it fosters regional cooperation and integration. By supporting Fiji Airways, a core transport pillar in the South Pacific, ADB will help preserve connectivity and access to air transport for Fiji and Pacific small island developing states. The project also promotes private sector-led growth in Fiji and, through the gender measures captured in the agreed gender action plan, gender equality.
ADB's Fiji Country Partnership Strategy, 2019-2023, highlights the importance of promoting private sector investment and growth, including by promoting domestic and regional connectivity through transport infrastructure.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Loan proceeds will be used by Fiji Airways as general corporate finance to restore operations and will not be used for purposes or activities that would generate additional or new impacts. Fiji Airways manages relevant environmental, health and safety impacts and risks associated with operations through a system of plans and procedures compliant with national laws and regulations, and applicable international standards for airlines. Fiji Airways will update aspects of its plans and procedures to comply with ADB Safeguard Policy Statement (2009).|
|Involuntary Resettlement||There is no evidence of past involuntary displacement impacts or unresolved grievances associated with Fiji Airways owned buildings on leased land. The company was able to demonstrate its compliance with applicable national laws and regulations. Loan proceeds will not be used to purchase or lease land for new business activities.|
|Indigenous Peoples||Loan proceeds will be used by Fiji Airways as general corporate finance to restore operations and will not be used for purposes that would directly or indirectly target distinct and vulnerable Indigenous Peoples or ethnic minority groups. Fiji Airways will continue to operate in accordance with national laws and regulations that protect the right of customary landowners.|
|Stakeholder Communication, Participation, and Consultation||A public transport service provider, Fiji Airways ensures adequate participation of civil society organizations, customer and other non-government stakeholders through its corporate public relations functions and various communication channels. Fiji Airways demonstrated its active engagement with local trade unions and maintains a complaints handling and customer feedback system with a focus on optimizing customer service.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||26 Jun 2020|
|Credit Committee Meeting||24 Nov 2020|
|Approval||27 Jan 2021|
|Last PDS Update||27 May 2021|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|Fiji Airways COVID-19 Liquidity Support Facility: Gender Action Plan||Gender Action Plans||Dec 2020|
|Fiji Airways COVID-19 Liquidity Support Facility: Report and Recommendation of the President||Reports and Recommendations of the President||Dec 2020|
|Fiji Airways COVID-19 Liquidity Support Facility: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Jun 2020|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
ADB Signs $65 Million Loan to Sustain Fiji Airways’ Services in the PacificThe Asian Development Bank has signed a $65 million COVID-19 Liquidity Support Facility for Fiji’s Air Pacific Limited, which operates as Fiji Airways and (through its wholly-owned subsidiary) Fiji Link, to help fund the company...