THE Government has unveiled plans for more than $5billion worth of major infrastructure projects as it shifts its focus towards capital investment to boost economic growth and modernise the country’s critical infrastructure.
Delivering the 2026-2027 National Budget yesterday, Minister for Finance Esrom Immanuel said the Government had already begun work on more than $2b worth of projects in health, roads, water, wastewater and flood alleviation.
“We are focused on increasing our spending on capital expenditure,” Mr Immanuel said.
“We have commenced with four major capital projects in the health sector, road infrastructure, water and wastewater and flood alleviation with a total value of over $2b to be implemented in the next four to five years.”
He said financing arrangements worth $1.5b had already been secured through development partners, while negotiations for the remaining $500million flood alleviation package were in the advanced stages.
He said the Government was also preparing another wave of major investments in renewable energy, port redevelopment and airport expansion.
“The total value of these projects will be over $5b, and these projects will be funded through our State-owned entities with government support and guarantee where required,” he said.
He stressed that capital investment was essential to strengthening Fiji’s productive capacity and sustaining long-term economic growth.
“Capital spending is critical to improve our infrastructure, build our assets and national productive capacity and raise our economic growth.”
However, Mr Immanuel cautioned that delivering such an ambitious investment program required more than simply allocating money.
“It requires proper planning and preparation. It requires getting the right capacity, people and contractors to get the projects implemented.
“It is about ensuring that the private sector is ready to take on the increased number of capital projects.”
Mr Immanuel said support from multilateral lenders, including the World Bank, Asian Development Bank, Asian Infrastructure Investment Bank, Japan International Cooperation Agency and the Australian Infrastructure Financing Facility for the Pacific, would be crucial in carrying out the due diligence, feasibility studies and planning needed before project financing is approved.
To kick-start the program, Government has allocated $876m for capital expenditure in the 2026-2027 Budget, including $110m for priority projects already underway.
“Capital spending will significantly increase as we progress from design and tender stage to actual implementation of the above projects
“With this, we target to double our capital spending in the short to medium term, bringing the OPEX to CAPEX mix to 70:30.”
