THE $US27million ($61.7m) secured by the Government for climate financing consists of half grant ($US13.5m) ($30.8m) and half highly concessional loan ($US13.5m) ($30.8m)with very low interest and long repayment terms.
This was clarified by permanent secretary for Environment and Climate Change Dr Sivendra Michael following allegations by former MP Niko Nawaikula that the funding from the Climate Investment Fund (CIF) was mostly loans disguised as “financing,” rather than genuine grants.
Mr Nawaikula had claimed that the arrangement could push Fiji deeper into debt for projects that do not generate income, calling it a “climate debt trap”.
Responding to these concerns, Dr Michael said the approved investment plan, which is publicly available online, clearly states that the total $US27m package comprise 50 per cent grant and 50 per cent highly concessional financing.
He said the loan component carried an interest rate of 0.75 per cent, a 40-year tenor and a 10-year grace period.
Dr Michael clarified that a figure mentioned by Mr Nawaikula fell under a separate financing window, the Dedicated Grant Mechanism (DGM), which provided direct access to Indigenous Peoples and local communities to implement locally-led, traditional knowledge–based solutions.
“It is not part of the $27m or the math you are trying to work out above,” Dr Michael said.
“The concessional component is programmed alongside other grant initiatives, including the World Bank’s PROGREEN and PROBLUE programs.”
He urged critics to “put politics aside” and recognise the work of Fiji’s negotiators who secured the financing, saying the process was conducted transparently and with national priorities in mind.
“The transparency you are asking for already exists, and the Coalition Government has nothing to hide when it comes to climate financing.
“Before you continue making assumptions that mislead the public, please do your research.”
