CABINET has endorsed the outcomes of a feasibility study for a proposed $792 million shipbuilding and ship repair facility in Lautoka, marking a step towards revitalising Fiji’s shipbuilding sector and strengthening its maritime capabilities.
The decision was made at a Cabinet meeting last week, where the outcomes of the study identified Lautoka as the preferred location because of its proximity to existing port infrastructure and the availability of land.
The study estimated the project would generate $2.7 billion in revenue against operating costs of $2.4 billion over 30 years.
It recommended a public-private partnership (PPP) model to attract private sector expertise and financing, reduce the Government’s financial exposure and support the facility’s long-term sustainability.
A phased, repair-first approach was also proposed, allowing operations to become established and local skills to develop before shipbuilding activities expand.
The Australian Government has indicated its support for the next phase of the project through technical, legal and financial assistance for the procurement process.
Continued engagement with the Australian Infrastructure Financing Facility for the Pacific (AIFFP) would help facilitate the transaction process and identify a suitable private sector partner.
The proposed facility is expected to attract foreign investment, create employment opportunities and strengthen local industries and supply chains.
It would also support the transfer of skills and technology to Fijian workers and businesses.
In the longer term, the project aims to strengthen Fiji’s maritime capabilities and position the country as a regional centre for shipbuilding, vessel repair and maritime services across the Pacific.
