Economy Minister Aiyaz Sayed-Khaiyum signed a more than $200 million loan and grant agreement with Australia to support the restoration and upgrade of key roads and bridges in Fiji.
The funds will be sourced from the Australian Infrastructure Financing Facility for the Pacific (AIFFP). Mr Sayed-Khaiyum said the loan had a grant element which made it a concessional loan. “It’s got a 15-year payment period with a three-year grace period built into that,” he said yesterday.
“This is the first ever sovereign loan by the Australian government and this is a momentous occasion. “AIFFP has already financed Fiji Airports.
“It’s a limited liability company that directs sovereign loan that we’ve actually had now from the Australian government.
“This comes on the back of a number of lenders that we see now that are participating with the Fijian government in terms of financing, whether it’s projects, whether it’s in terms of other resilience that we are building within our economy.
“So our major external lenders of course, are ADB (Asian Development Bank), World Bank, AIB, JICA, now AIFFP, European Investment Bank (EIB) and of course the Exim Bank of China. “These entities we borrowed money from them, we currently borrowing money from them.”
Australian Chargé d’affaires John Williams said their financing package included a $24 million grant component through which the loan was concessional and would be fast disbursed, “meaning support can be provided now for Fiji’s economic recovery”.
“We’re confident this investment will support the Fijian government’s efforts to prioritise local jobs for Fijian workers, ensuring money flows back into Fijian communities that are vital at this time,” Mr Williams said.
“And as the first sovereign loan from Australia to Fiji, we’re very proud to build a close partnership between our two countries and provide support that will do the local jobs and economic growth for this country.”
