The World Bank has approved a new financing package of over $200million for Fiji to help fund fiscal, climate and disaster resilience and efforts to support private sector development.
The Fiji Growth and Resilience First Development Policy Financing with a Catastrophe Deferred Drawdown option (CatDDO) was approved last week by the World Bank’s board of directors.
It includes a budget support financing of $US95 million ($F212.44) and the option to access a further US$30m ($F67m) in emergency financing in the event of a major crisis or disaster.
“We are committed to supporting the Government of Fiji as it continues to strive towards greater fiscal resilience to build buffers and the strengthening of its disaster preparedness and response,” said Stefano Mocci, World Bank country manager for the South Pacific.
“This initiative also aims to increase private sector investments for Fiji through more concerted efforts for greater economic prosperity and healthier, more resilient communities.”
The new financing is expected to advance important policy reforms to increase government revenue, the World Bank said in a statement.
“This work will ultimately ensure Fiji is better placed to drive investments in public services such as health and education.
“The new support will also strengthen disaster preparedness at Fiji’s divisional levels, through improving disaster risk planning as part of the country’s new National Disaster Risk Management Bill, as well as boosting healthy school initiatives that restrict the sale of unhealthy foods in schools nation-wide.”
Deputy Prime Minister and Minister for Finance Biman Prasad said Fiji had “big challenges requiring big responses.”
“This World Bank support will help accelerate our efforts towards building a healthier, more resilient and sustainable economy, as well as supporting our work to attract more investment from the private sector,” he said.
The new World Bank support also aims to open up more opportunities for private sector investment in the renewable energy sector as well as boosting Fijian Government reforms to make it easier to start and operate a business – such as a reduced need for business certificate renewals for low-risk businesses.
