The Standing Committee on Economic Affairs has raised concerns over Energy Fiji Limited’s (EFL) rising debt levels and incomplete infrastructure projects, warning that inadequate financial reporting makes it difficult to assess the company’s investment performance.
In its review of EFL’s 2025 Annual Report, tabled in Parliament last week, the committee highlighted significant capital expenditure underspending and increasing financial risks.
The report revealed that EFL’s total borrowings increased from $225.06 million in 2024 to $286.54 million in 2025 — a rise of $61.48 million in just one year.
“Rising debt levels continue to increase financial risk,” the committee stated.
While acknowledging that the borrowings supported major infrastructure and renewable energy investments, the committee expressed concern over the absence of a long-term debt management framework.
It said the annual report failed to outline debt-servicing arrangements, projected impacts on future electricity tariffs or measures to minimise financial risks associated with increasing borrowings.
The committee also raised concerns about the growing value of unfinished infrastructure projects.
EFL invested approximately $162 million in capital expenditure during 2025, but capital works in progress increased from $359 million in 2024 to $496.4 million in 2025.
The committee said this indicated that a significant number of projects remained incomplete and continued to roll over.
“The absence of clear reporting on project delivery, implementation timelines and expenditure variances limits Parliament’s ability to assess whether approved investments are translating into completed infrastructure and improved services for consumers,” the report stated.
It also noted that EFL’s annual report did not compare approved and actual capital expenditure or explain the reasons for project delays and historical underspending previously identified by the committee.
The committee said greater transparency was needed to assess EFL’s financial performance, infrastructure delivery and the potential implications of its increasing debt burden for electricity consumers.
