The newly opened European Investment Bank office in Suva will build on pipeline projects, including a planned hydropower plant in Fiji, a major water and sanitation project in Timor-Leste, rehabilitation and greening of port infrastructure in Papua New Guinea, and a multipurpose port in Kiribati.
Fiji’s Deputy Prime Minister and Minister for Finance, Biman Prasad told Islands Business that the setting up of the EIB office sends a strong message to the private sector about the commitment of the Fiji government and its development partners to develop and improve infrastructure.
The government has expressed its concern about the level of national debt, and Prasad notes that EIB is operating in a “somewhat competitive“ lending market.
“It could help if we have to borrow, even though we are in a tight fiscal situation already, that we could have some borrowing at rates which would be competitive, and which could be useful and sustainable,” Prasad said at the EIB office opening.
“But our focus right now, in the next budget, would be to look at how we can consolidate our fiscal position. It can be quite daunting. We are in a recovery phase right now, we don’t want to do anything to stall that recovery. So we have to balance fiscal consolidation with investment in infrastructure, investment in the social infrastructure, health, social welfare education,” he continued.
EIB Global has signed a letter of intent with Energy Fiji Limited (EFL) to support two major renewable energy projects, the Qaliwana and Vatutokotoko hydropower plants. The projects will help to increase the share of renewable energy in Fiji’s generation capacity by 15%, bringing it up to 75%.
EIB Vice-President, Ambroise Fayolle told officials gathering for the EIB opening that the office: “will help address key issues such as climate change and climate resilience, the energy crisis and food insecurity more efficiently. Looking ahead, I am confident that we will be able to make a difference in helping to unlock green, sustainable and empowering growth and development for Fiji and the Pacific region.”
Since it began work in the Pacific region in the 1960s, the EIB says it has granted more than €760 million (US$814 million) in loans and equity, and mobilised more than €5.1 billion (US$5.47 billion) in investment.
Benoit Cambier, who will head the office, says its aim is to also to develop new partnerships. “We expect to foster our cooperation with the European Commission, other partners and donors in delivering even more targeted support for key projects in the Pacific region under Team Europe’s Global Gateway and Green-Blue Alliance for the Pacific initiatives,” he said.
EIB is also looking to invest in New Caledonia, having recently signed a letter of intent with Agence Française de Développement (AFD) in Nouméa.
