ADB's Work in Fiji

ADB recognizes Fiji’s vulnerabilities as a small island developing state. Engagement with Fiji has focused on economic recovery from the impacts of the coronavirus disease (COVID-19) pandemic, and on building resilience to future economic shocks. Since Fiji joined ADB in 1970, ADB has been helping the country achieve these goals largely through investments in transport infrastructure, water supply and sanitation, and public sector management.

In November 2021, ADB reclassified Fiji from a group C to a group B country under ADB’s Graduation Policy. Since January 2022, Fiji has been eligible for technical assistance grants, concessional loans, regular loans, and various trust funds. In the event of a disaster, Fiji is also eligible for emergency response grants and emergency loans.

To date, ADB has committed 118 public sector loans, grants, and technical assistance totaling $989.2 million to Fiji. Cumulative loan and grant disbursements to Fiji amount to $895.44 million. These were financed by regular ordinary capital resources, and other special funds. ADB’s ongoing sovereign portfolio in Fiji includes 2 loans worth $142.1 million.

In 2022, ADB committed $150 million for the Sustainable and Resilient Recovery Program, which helped build upon ADB’s previous engagement while responding to policy challenges intensified by the pandemic.

ADB has been investing in the upgrade and rehabilitation of Fiji’s roads since the 1980s. Since 2014, investments in transport infrastructure have been cofinanced by the World Bank under a $100-million project that is rehabilitating and resealing more than 300 kilometers of roads and is preparing detailed designs and feasibility studies for 3 jetties and 40 bridges that need to be rehabilitated or replaced.

ADB is financing investments to expand access to sustainable water supply in the Greater Suva area through an ongoing project—utilizing a $42-million loan from ADB, and cofinanced by the European Investment Bank and the Green Climate Fund. ADB is currently undertaking a review of development options for the Suva Port, including analysis of sites for potential relocation.

In 2020 and 2021, ADB provided grants totaling $3.4 million from the Asia Pacific Disaster Response Fund to help address COVID-19, Tropical Cyclone Harold, and Tropical Cyclone Yasa. In 2022, ADB committed a $3-million grant funded by the Japan Fund for Prosperous and Resilient Asia and the Pacific to help strengthen the capacity and readiness of Fiji to safely reopen to tourists and rebuild the country’s economy following the COVID-19 pandemic.

ADB’s first private sector operation in Fiji was the Fiji Airways COVID-19 Liquidity Support Facility, a $65-million operation committed in March 2021 to help fund the company through the international travel downturn caused by the COVID-19 pandemic and to support its return to profitable operation.

28261-023: Third Road Upgrading Project in Fiji. Students from the schools along the improved Lodoni road under the Third Road Upgrading Project. Photo: Eric Sales/ADB

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Fiji as of 31 December 2022 was $20 million representing 0.16% of ADB’s total private sector portfolio.

Operational challenges. Fiji faces operational and implementation challenges similar to other Pacific island countries, with limited capacity and frequent staff turnover in key positions affecting both the public and private sectors. Accordingly, ADB initiatives in Fiji seek to deliver appropriate levels of technical assistance and capacity support to ensure effective implementation and sustainable results. ADB’s focus on improving project readiness and introducing risk-based procurement measures will help manage the key risks associated with the lending pipeline for Fiji.

ADB operations in Fiji are enhanced by the presence of the ADB Pacific Subregional Office in the country’s capital, Suva. Domestic presence supports strong coordination and harmonization with other development partners, and significant analytical work has been done to enhance Fiji’s development prospects.

Knowledge Work

ADB brings added value beyond its role in project financing. It provides advice to the Government of Fiji and supports policy reform in the areas of fiscal policy, public financial management, state-owned enterprise performance, private sector and financial sector development, and gender equality. ADB’s flagship publications, including the Asian Development Outlook and the Pacific Economic Monitor, provide key analytical work to support decision-making.

ADB also participates in joint missions with other development partners, including the International Monetary Fund’s Article IV missions, which feature robust discussions with the government on strategic priorities and other critical issues that require coordinated support.

Future Directions

ADB operations in Fiji are guided by a country partnership strategy that is endorsed by the government to ensure it reflects their priority assistance areas. The country partnership strategy, 2019–2023, for Fiji will help drive sustainable growth out of the COVID-19 pandemic. ADB will also help promote private sector investment and growth by investing in infrastructure, providing policy-based loans, and offering technical assistance to improve the business and investment climate. ADB’s engagement with the private sector will focus on innovative approaches and will be open to possible engagement in nontraditional sectors, where ADB’s private sector operations can have a highly catalytic impact, while paying due attention to the risks involved. It is anticipated that there may be investment opportunities in Fiji and regional opportunities with Fijian companies fostering regional cooperation and integration. Target sectors include renewable energy, financial institutions, transportation infrastructure, agribusiness, and health. ADB will seek to crowd in private sector finance, including from commercial banks and provident funds.

In 2023, ADB and the Government of Fiji will begin preparations for a new country partnership strategy for 2024–2028 to guide future engagement.

Last updated: 27 April 2023