The Fijian Government has entered a landmark agreement with the Asian Development Bank (ADB) to launch the $385 million Healthy Oceans and Water Supply Improvement Project. The initiative, primarily funded by a $304 million concessional loan from ADB alongside a $23 million grant, aims to revolutionize Fiji’s water infrastructure while securing environmental resilience. This ambitious project will significantly enhance water and wastewater systems, with notable upgrades including doubling the capacity of the Kinoya Wastewater Treatment Plant and implementing measures to reduce water losses in the Greater Suva Area.
Under the agreement, favored financial terms have been established, allowing a generous 40-year repayment period, a 10-year grace period, and an interest rate set at 1%. In conjunction with ADB’s support, the Fijian Government is contributing $59 million to the comprehensive upgrade aimed at addressing long-standing infrastructural challenges in the water sector.
Professor Biman C. Prasad, Acting Prime Minister and Minister for Finance, emphasized that this project represents a critical investment in water security and environmental sustainability for Fiji. The aging infrastructure currently poses risks to both the environment and the nation’s economic development, with high levels of water leakage and over-capacity wastewater systems identified as key challenges. The project is strategically aligned with various government fiscal policies and incorporates a robust framework to ensure debt sustainability.
The project holds expansive goals, including establishing a regional training program to bolster the skills of water and wastewater operators across the Pacific. This initiative is expected to lead to improved public health outcomes and bolstered marine ecosystems’ resilience, crucial in the context of increasing climate change impacts.
The Healthy Oceans and Water Supply Improvement Project is part of an overarching strategy shared by similar initiatives, such as the previous Kinoya wastewater treatment enhancements and regional training hubs funded by ADB grants. All these efforts underline Fiji’s commitment to sustainable growth, highlighting the nation as a regional leader in addressing water system deficiencies through innovative solutions.
Construction is anticipated to begin in early 2026, with widespread positive impacts expected for both the urban environment and regional communities. Through cohesive partnerships with international organizations and well-planned upgrades, this project aims to lay a foundation for Fiji’s enduring environmental stewardship and sustainable development. It reflects a promising future where advanced infrastructure fortifies the country against climate-related exigencies while promoting economic vitality and public health.