A bulk of the $US200million ($F444m) concessional financing Fiji received from the Asian Development Bank last month will go towards capital development projects.
Finance Minister Esrom Immanuel confirmed this to this newspaper, saying only part of the funding would be used to help cushion the effects of the fuel crisis.
“It’s because of this crisis that we are facing a bit of an issue with funding,” Mr Immanuel said.
“And we’re thankful for ADB for providing additional finances. But a bulk of those finances from ADB are targeted towards capital projects.”
Mr Immanuel said additional support was also expected to assist with other pressures facing Government.
“Apart from capital, there is some fuel assistance. This fuel crisis has really probably increased the cost of doing business.
“And the fuel price increased, and it’s passed on to consumers, passed on to the businesses.”
He said Government had tried to mitigate some of the impacts, but some costs would still be passed through the economy.
Mr Immanuel said Fiji’s fuel prices should also be viewed against international market conditions.
“A good indicator would be, you look at Australian and New Zealand market, their price.
“We are not paying that same price that is already there in the international market.”
He said Government had not yet calculated the percentage breakdown of the financing, but the bulk would go towards capital development while some would support fuel crisis mitigation measures.
