ADB's Work in Fiji

The coronavirus disease (COVID-19) pandemic caused Fiji’s economy to contract by 15.2% in 2020 and an estimated 4.1% in 2021. Prospects for recovery in 2022 have improved with the reopening of borders in December 2021. ADB engagement in Fiji focuses on economic recovery from the impacts of COVID-19, and on building resilience to future economic shocks. Through investments in transport infrastructure, water supply and sanitation, and public sector management, ADB is helping Fiji recover from the COVID-19 impacts and strengthen its resilience to future economic shocks.

Fiji joined ADB in 1970. In November 2021, ADB reclassified Fiji from a group C to a group B country under ADB’s Graduation Policy. This means that Fiji will be eligible for loans under a blend of concessional and regular ordinary capital resources, with some access to Asian Development Fund 13 thematic pool grants, beginning January 2022.

To date, ADB has committed 116 public sector loans, grants, and technical assistance totaling $836.8 million to Fiji. Cumulative loan and grant disbursements to Fiji amount to $703.2 million. These were financed by regular ordinary capital resources, and other special funds. ADB’s ongoing sovereign portfolio in Fiji includes 2 loans and 3 grants worth $145.5 million.

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. During 2018–2019, ADB committed a total of $80 million for the Sustained Private Sector-Led Growth Reform Program.

In 2020, it committed an additional $200 million under this program to help finance the government’s COVID-19 response and support reforms to strengthen fiscal management and improve Fiji’s business and investment climate.

ADB has been investing in upgrading and rehabilitating 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 conducting studies on 40 critical bridges and three jetties.

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, with cofinancing by the European Investment Bank and the Green Climate Fund.

ADB expects to finance cost-effective solutions to address flood hazard protection for Nadi town. It is also undertaking a review of development options for the Suva Port, including analysis of sites for potential relocation.

Boat ride in Fiji. Photo: ADB

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Fiji as of 31 December 2021 was $40 million representing 0.28% 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. To help address this, ADB initiatives in Fiji seek to deliver technical assistance and capacity support to ensure effective implementation and sustainable results.

The ADB Pacific Subregional Office in the country’s capital, Suva, enhanced the bank’s operations in Fiji through strong coordination and harmonization with other development partners, and significant analytical work 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 fiscal policy reforms, 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 International Monetary Fund Article IV missions, that involved robust discussions with the government on strategic priorities and other critical issues that require coordinated support.

Future Directions

ADB’s Country Partnership Strategy 2019–2023 for Fiji will help drive sustainable growth out of the COVID-19 pandemic. ADB will 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. The bank will help broaden access to quality services and economic opportunities by making inclusive infrastructure investments, improving social services, and supporting efforts that increase the employment and income-generating opportunities of Fiji’s poor and disadvantaged. ADB will also work to reduce economic volatility in Fiji by investing in climate- and disaster-resilient infrastructure, and by supporting government efforts to build macroeconomic buffers and fiscal resilience.

ADB will support these objectives through policy analysis and advice, sovereign and nonsovereign financing, and targeted technical assistance.