Fiji has secured major funding support through two agreements signed with the Asian Development Bank to transform the health sector and build resilience for coastal communities facing climate risks.
Minister for Finance, Commerce and Business Development, Esrom Immanuel says the first agreement is a USD 50 million concessional loan, equivalent to about FJD 112 million, for the Pacific Healthy Islands Transformation (PHIT) Project, co-financed with the World Bank as lead financer, along with USD 30 million from the OPEC Fund and USD 8.44 million from the Pandemic Prevention, Preparedness and Response Trust Fund.
Immanuel says the loan forms part of a broader USD 181.94 million or about FJD 406.7 million financing package, making it the largest and most transformative health sector reform project in the Pacific.
He says the preparation of the project began following the release of the Fiji Health Sector Review Report in November 2024 by the World Bank.
He says the project aims to increase access to quality health services across Pacific Island countries, with a strong focus on the prevention, early detection and management of non-communicable diseases.
He adds that the project has three key components, which include strengthening regional health systems to improve access to quality care and essential supplies, modernizing Fiji’s health system, and strengthening stewardship through evidence-based decision-making and regional learning.
He says the financing comes on concessional terms, including a 40-year maturity period with a 10-year grace period and a fixed interest rate of 1 percent.
He confirms that the Ministry of Finance and the Ministry of Health and Medical Services will implement the project over the next six years.
Immanuel also stresses that this borrowing is within our fiscal targets and investment focus area.
He says at the end of July 2025, Government’s total debt stood at around $10.8 billion, equivalent to 78.9 percent of GDP, and debt is projected at $11.7 billion or around 84 percent of GDP by the end of July 2026.
The second agreement is a USD 16.7 million grant, equivalent to about FJD 37.33 million to support the Enhancing Climate Resilience of Coastal Communities Sector Project.
Immanuel says the Fiji Government will contribute an additional USD 1.19 million or FJD 2.7 million, bringing the total project cost to USD 17.89 million, or about FJD 40 million.
He says the project will be implemented by the Ministry of Agriculture and Waterways over a five-year period and is expected to be completed by 2031.
He says the initiative will reduce climate exposure and vulnerability of coastal ecosystems and communities through integrated and nature-based coastal protection solutions.
He says these include hybrid coastal protection systems, mangrove restoration, improved drainage, and a comprehensive foreshore restoration program, along with training and capacity-building for local communities.
The Minister says the project will also support climate-resilient livelihoods through training, workshops and educational materials, while improving institutional capacity for integrated coastal protection.
ADB's Regional Director for the Pacific, Azusa Sato highlighted that the agreements reflect a shared commitment to protect lives and livelihoods by strengthening health systems and building resilience to climate impacts.
Sato says non-communicable diseases remain a leading cause of premature illness and death in the Pacific, while health systems face increasing pressure from geography, climate risks and rising costs.
She says the PHIT project will improve access to quality services, focusing on prevention, early detection and better management of NCDs, while reinforcing Fiji’s role as a regional hub for health training and referral services.
Sato adds that Fiji is among the countries most exposed to natural hazards, with tropical cyclones, flooding, droughts and rising sea levels causing annual losses equivalent to about 5.8 percent of GDP.
She says the Climate Resilience Project will restore and protect about 3,000 metres of coastline and riverbanks across 15 at-risk communities through nature-based approaches such as mangrove restoration and improved drainage.
She adds the project will place communities at the centre of delivery by building local capacity, supporting livelihoods and enhancing biodiversity, while strengthening natural coastal defences.
