THE outcry from Suva residents this week has once again brought to the forefront the need for the upgrading of public infrastructure, especially in the water sector.
Minister of Public Works, Transport and Meteorological Services Ro Filipe Tuisawau had lamented earlier this year that ageing water pipes, some as old as 101 years, were a significant problem causing water woes in and around Lami and areas along the Suva–Nausori corridor.
The Water Authority of Fiji’s Water Sector Strategy 2050 report stated the damage and ageing treatment facilities, are the result of the pressure of development and climate change.
WAF stated, 829,110 Fijians have access to a water supply, utilising 134,108 million litres of drinking water daily, alongside more that 24,500 million litres of wastewater.
However, despite this, many consumers along the Suva-Lami corridor continue to grapple with persistent water shortages and prolonged water issues.
Sections 35 and 36 of the 2013 Constitution clearly stipulates that access to sanitation and clean drinking water are a fundamental human right. So, it was understandable then that concerned citizens turned to social media once again, questioning when these challenges would cease and be resolved.
Ro Filipe reaffirmed the Government’s commitment to ensuring that the water and road infrastructure were climate resilient by re-evaluating budgetary allocations and accessing climate finances.
The WAF 2050 Strategy report estimates a complete overhaul of the aging infrastructure would require approximately $3billion.
It also highlights that 47 per cent of non-revenue water was lost across Fiji’s network, with 125 pipe bursts per 100km of water mains.
Prime Minister Sitiveni Rabuka had also stressed the necessity to upgrade the infrastructure.
WAF infrastructure
Earlier reports stated WAF was not financially viable under the current tariffs, thus it’s heavy dependency on government funding to implement major maintenance work.
Meanwhile, during episode three of Saqamoli talks dialogue hosted by the British High Commissioner, Dr Brian Jones, panel speaker Fiscal Review Committee chairman Richard Naidu said the Government has very limited financial capacity to respond to future shocks, especially with regards to the water infrastructure.
He said in the case of natural disasters, the recovery cost would be around $100million, which would be disastrous for the water infrastructure.
“We have no financial capacity to respond to that, in our current fiscal situation,” Mr Naidu said.
“Yet we’ve still got to find the money to fund all the infrastructure that we need because if we don’t, the economy won’t grow.”
Mr Naidu said about 82 per cent of people have access to piped water, but only 28 per cent have access to reticulated sanitation, and this would cost up to $6billion to address.
“Where are we going to find that money? If you’re following Parliament’s proceedings, the minister said $3billion, for water alone it’s $800million.
“It tells us just to keep the existing infrastructure renewed and operating at $800million over the next five years.
Mr Naidu highlighted the urgent need for regulatory pricing models to ensure financial sustainability.
“Of course, we all know from our water bills that we pay 15 cents per 1000 litres for our water, so that’s 2000 bottles of Fiji water that we get for 15 cents.
“Even people of modest means accept that they must pay more for water.”
Mr Naidu said WAF made an initial request to the Fiji Consumer Council for a price increase.
The council responded that “there was no sufficient detailed data”.
“With or without data, you know a 101 economics student must be able to work out that 15 cents per 1000 litre is not right, not marketable and not close to acceptable.
“It seems to me that the first thing we’ve got to do is get our regulatory pricing model right and get a regulator that understands the issues that are involved.
“Of course, once you’ve got a regulatory regime, you must be able to stick to it.”
Mr Naidu said that’s the reason the Government has got to be seen as a reliable partner because without investors, they don’t have confidence in their pricing regime and their regulatory regime is going to be one of the reasons for them not to come to Fiji.
“We’re in a situation now where we’re just running water authority operations and revenue or capital revenue expenditure is in the order of about $300m a year, yet only $46m in revenue is being raised from water.
“We have 150,000 people on free water. It’s a good thing except that they’ve been there for more than 10 years, and we don’t know if they need free water.”
Mr Naidu said one of the things they have identified is the need for WAF to effectively follow the same path the former FEA did to become EFL.
“There is a need for public-private partnerships because there is no way the Government itself is going to be able to fund that.”
He said that means the Government of Fiji must be a reliable partner.
“I think we have a lot of learning to do in that space because that’s going to be critical to funding the infrastructure we need.
“Which is what we need to deliver the water sector strategy that has really been well set up by WAF.”
Energy Fiji Ltd (EFL)
Also speaking at the Saqamoli Talks was Energy Fiji Ltd chairman Rokoseru Nabalarua.
He said reliability, supply and safety were important factors when it comes to utility.
“When you take those three, you can more or less work out which utility is doing well and which one is not doing well,” Mr Nabalarua said.
“In order for you to run a sustainable operation, you need to have the right vehicle to be able to do it. If you don’t, we end up with some of the issues we face in the country.
“I believe that needs to be set right.”
Mr Nabalarua said in his conversation with the WAF chief executive officer and the Minister for Public Works, he strongly recommended that the sector be fully operationalised.
He said the move would ensure WAF is able to sustain its own operation, maintenance and capital expenditure.
“I know there’s some apprehension about what happens to the lower end of the economy.
“One of the things that we did when I was with EFL was a thorough analysis of our customer base, look at what makes up our revenue and be able to break it down to understand who the big users of energy are.
“I said to them, that’s probably one of the things you’re worried about as a political leader is maybe less than 20 per cent of revenue.
“That is not a problem; we can fix it. We did it and put what we turned into a lifeline pack that takes care of the very low end of the economy.”
To increase or not to increase
Mr Nabalarua said there is also a need to tariff commercial and industrial customers properly.
“The continuity of supplies is very critical because to them, the cost of water is an input to their production.
“They will be able to recover from the market differently in terms of their cost,
“So, they are one of the big users, and there is a need to tariff them properly so that you can sustainably run the operation moving forward.”
Mr Mabalarua said the significance of properly setting up an operation in a way that inventors may find it reliable.
“Once you’re set up commercially, then the ADB, World Bank and financial institution look at you, and they’ll think, ‘we’re dealing with a proper commercially set up entity’.
“We know that sustainability in terms of repayment into the future will be okay.
“You don’t have to wait for the Government to decide what budget you’re going to get each year for your operating expenditure and for your capital expenditure.”
Future plans
The third panellist of the dialogue, the chief policy officer for the National Development Plan, Neelesh Gounder, said the NDP has identified five key outcomes for 2050: clean water, sanitation, liveability and sustainability, financial sustainability, and skilled workers.
Mr Gounder emphasised the NDP’s commitment to integrating water strategies into policies and securing government funding to achieve this outcome.
“Each of the chapters on water and wastewater looks at the current status,” Mr Gounder said.
“We look at the challenges and opportunities and from that we have identified the future strategies and policies, most of which are in line with the water sector strategy 2050, on top of the additional strategies that the Government can employ to ensure that the outcomes are met.
He said the NDP would have a very specific key performance indicator that contains a three-to-five-year plan and a 20-year vision.
He said it would also have a strong and monitored framework.
