Fiji has signed a US$75 million loan for a 20-year term from the European Investment Bank.
It will finance part of the massive water upgrading works the Fiji Government will undertake to modernise water supply and sewerage plants to meet the growing demand in greater Suva area, reports Fiji Sun.
This is the largest European Investment Bank support for water investment in a small island state and the largest loan in the Pacific, which signals the confidence the Bank has in Fiji’s financial standing.
The Fiji Water and Wastewater Project is funded through a loan from the Asian Development Bank (ADB) – US$153.2m, EIB – US$75m, a grant by Green Climate Fund – US$31m and Government funding – US$150.1m. The project will be implemented in two tranches. The total cost of the project is US$405m (FJ$844m).
The project will strengthen resilience of water distribution and wastewater treatment following Cyclone Winston – the world’s second strongest storm ever recorded, that hit Fiji in February 2016.
It follows extensive due diligence by the Asian Development Bank and represents the first EIB co-financing with the Green Climate Fund.
“This project aims to improve access to sustainable water supply and sewerage services to Fijians in the greater Suva area, taking into account the increasing population and the need for more resilient infrastructure. Access to financing such projects, which take into account adaptation and the effects of climate change, is a key objective for Fiji’s Presidency of COP23,” Sayed-Khaiyum said.