Fiscal Review Committee chairman and lawyer Richard Naidu has called for urgent reforms to Fiji’s water sector, warning that the country cannot afford to ignore an infrastructure challenge estimated to cost $8.7 billion.
Commenting on social media following reports on the scale of investment needed for water and sewerage infrastructure, Naidu described the figure as “huge”, noting that it is equivalent to twice the Government’s annual budget and about two-thirds of Fiji’s gross domestic product.
“The Government has quantified its foreseeable infrastructure cost for water and sewerage at $8.7 billion,” Naidu said.
“That’s what the story below says. That number is twice the Government’s entire annual budget and about two-thirds of Fiji’s entire GDP. In a single word – huge.”
Naidu said the pathway to funding the investment was already known and had been highlighted by development partners such as the Asian Development Bank.
According to him, one of the first steps must be making the Water Authority of Fiji financially independent and self-sustaining.
“The first things that must happen are that WAF must become independent and financially self-sustaining and we all have to pay a more realistic price for our water, even if we have to spread out the price increases over time.”
He noted that around 33,000 low-income households currently receive free water while paying customers are charged just 15 cents per 1,000 litres.
“I will say that again – FIFTEEN CENTS for that much water,” Naidu wrote.
He estimated WAF’s annual revenue from water and sewerage charges may now be around $45 million and argued that even modest increases in tariffs could significantly boost the Authority’s income.
Naidu also highlighted major inefficiencies within the water network, saying almost half of all treated water never reaches consumers.
“Of all the treated water WAF produces, 47 percent – almost half – leaks out of the system before it reaches our taps.”
He said the country’s sewerage infrastructure was also under severe strain, with all 10 sewerage treatment plants overloaded and 75 percent of Suva residents not connected to a sewerage system.
“That’s a major human health issue,” he said.
Naidu warned that inadequate water and sewerage infrastructure was already constraining economic development, housing projects and investment.
“And if we don’t build water pipes and sewerage systems, how will our economy grow? How will we build factories, hotels, office buildings? How will we build houses for people to live in?”
He said Fiji’s growing debt burden meant the country could not simply borrow billions of dollars without first strengthening the financial sustainability of the sector.
While acknowledging that large infrastructure projects take years to complete, Naidu questioned the lack of progress on reforms outlined in the Fiji Water Sector Strategy.
“There is a big Fiji Water Sector Strategy launched with some fanfare a few years ago. It lays out the big changes we have to begin on. And are we making the changes? No.”
He warned that delays would only increase future costs and called on Fijians to support necessary reforms, including more realistic water pricing.
“So are we prepared to demand these changes – including paying realistic prices for our water – so that this work can begin? Or will we all just sit around, as usual, and wait for someone else to deal with the problem?” he asked.
