Govt Signs Loan and Grant Agreement with Adb to Improve Water and Wastewater Services

The Government of Fiji signed a major financing deal with the Asian Development Bank (ADB) to implement the Healthy Oceans and Water Supply Improvement Project, valued at USD$171 million (FJD$385 million) today (23.09.25).

The project will significantly improve water and wastewater services in the country by doubling the treatment capacity of the Kinoya Wastewater Treatment Plant, supporting non-revenue water (NRW) reduction in the Greater Suva Area, and establishing a regional training programme for water and wastewater operators.

Of the total project cost, the ADB is providing a concessional loan of USD$135 million (FJD$304 million) with a 40-year term, a 10-year grace period and a 1% interest rate; the ADB is also providing a 100 per cent grant of USD 10 million (FJD$23 million) to finance regional training and capacity development, while the Fiji Government will contribute USD$26 million (FJD$59 million).

Hon. Prasad said the project is a critical investment in Fiji’s water sector.

“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.”

The Acting Prime Minister also assured that the borrowing is within the Government’s fiscal targets.

“At the end of July 2025, the Government’s total debt stood at around $10.8 billion, or 77.1 per cent of GDP. This project is a priority investment and is factored within our debt sustainability framework."

Hon. Prasad thanked the ADB, the Water Authority of Fiji and the Ministry of Finance officials for their efforts in preparing the project over the past two years.

“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.”