GOVERNMENT has signed a major $385million ($US171m) financing deal with the Asian Development Bank (ADB) to implement the ‘Healthy Oceans and Water Supply Improvement Project’ in its bid to address challenges in Fiji’s water and wastewater sector.
The project will double the treatment capacity of the Kinoya Wastewater Treatment Plant, support financing of a performance-based contract for non-revenue water reduction, and improve regional capacity and training in the water and wastewater sector.
Of the full $385m ($US171m) project cost, the ADB is providing a concessional loan of $304m ($US135m) with a term of 40 years, inclusive of a 10-year grace period and 1 per cent interest rate; it is also providing a 100 per cent grant of $23m ($US10m) to finance regional training and capacity development; while the Government will contribute $59m ($US26m) in taxes and import duties, etc.
Acting Prime Minister and Minister for Finance Prof Biman Prasad said the country’s water and wastewater sector faced some major challenges, including old-aged infrastructure resulting from years of under-investment and lack of proper asset maintenance.
“Fiji has a very high level of non-revenue water (leakage), which is estimated at 48 per cent. This means that almost half of the treated water doesn’t reach our taps as it gets leaked out,” Mr Prasad said at the signing.
“Secondly, the wastewater infrastructure has been operating beyond capacity posing major threat to our environment and our oceans. In fact, we have major capacity challenges with the current sewerage infrastructure, which is not able to support any major economic development in the country.”
He said there were also human resource challenges in the water and wastewater sector with an urgent need for long term capacity development in Fiji and the region.
“This project has been in preparation for the last two years and is now ready for implementation,” Mr Prasad said.
He said the project’s three major outputs included:
– Output 1 ($US29m – approx $F65.2m) – focusing on efficiency and reliability of water supply services, the project will provide financing for the ongoing performance-based NRW contract which was awarded in December 2024. The five-year contract aims to reduce NRW levels in the GSA down to an average level of 20 per cent;
– Output 2 ($US101.8m – approx. $F229m)
– the project will fi nance the upgrading of the Kinoya Wastewater Treatment Plant to a capacity of 180,000 equivalent population (EP), expected to meet demand until 2035 in the Kinoya catchment area;
– Output 3 ($US8m – approx. $F17.9m) – A regional water and wastewater operators training program will also be established.
The project will fi nance the development and roll out of a regionally accredited water and wastewater training program to meet WAF’s workforce skills needs and those of other water utilities in the region.
“I wish to also clarify this borrowing is within our fiscal targets and investment focus area. At the end of July 2025, Government’s total debt stood at around $10.8m, equivalent to 77.1 per cent of GDP. Debt is projected at $11.7b or 79.8 per cent of GDP by the end of July 2026,” Mr Prasad said.
He also acknowledged the Water Authority of Fiji (WAF) team for the efforts put towards getting the project ready and the commitment that would be required for its successful implementation.
Early this month, ADB Regional Director Pacific Subregional Office Aaron Batten said the project would support WAF to undertake major upgrades to the Kinoya wastewater treatment plant in Suva, invest in creating a resilient water supply system with reduced water losses, and would also significantly improve ocean health and water quality in and around Laucala Bay.
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Note: This article was first published under the headline: $385m financing deal in Page 14 of the print version of The Fiji Times dated Thursday, September 25, 2025
