The Fijian Government has signed a financing agreement with the Asian Development Bank (ADB) to deliver the Healthy Oceans and Water Supply Improvement Project, valued at $385 million).
The project aims to significantly improve Fiji’s water and wastewater infrastructure, including doubling the treatment capacity of the Kinoya Wastewater Treatment Plant, reducing non-revenue water (NRW) losses in the Greater Suva Area, and establishing a regional training program for water and wastewater operators.
ADB will finance the majority of the project through a concessional loan of $304 million.
The loan comes with highly favourable terms, a 40-year repayment period, a 10-year grace period, and a 1% interest rate. In addition, the ADB is providing a grant of $23 million to fund training and capacity building across the region.
The Fijian Government will contribute $59 million toward the total cost.
Speaking at the signing ceremony, Acting Prime Minister and Minister for Finance, Professor Biman C. Prasad, said the agreement represents a strategic investment in Fiji’s water security and environmental resilience.
“Our water and wastewater sector faces some major challenges including aged infrastructure, high levels of leakage, and over-capacity wastewater systems which threaten both our environment and economic development,” Prof Prasad said.
He stressed that the borrowing is responsible and aligned with government fiscal policies.
“At the end of July 2025, Government’s total debt stood at around $10.8 billion or 77.1 percent of GDP. This project is a priority investment and is factored within our debt sustainability framework.”
Hon. Prasad also acknowledged the extensive groundwork behind the agreement and thanked all stakeholders involved.
“On behalf of the Prime Minister and the Government of Fiji, I express our sincere appreciation to the Asian Development Bank for the great partnership and for supporting Fiji’s development priorities through both financing and technical expertise.”
The project is expected to boost public health outcomes, protect marine ecosystems, and contribute to long-term climate resilience in urban areas. Construction and implementation phases are expected to begin in early 2026.
