Fiji: Largest ever EIB support for water investment in a small island state
10 November 2017
At the COP 23 climate summit Frank Bainimarama, Prime Minister of Fiji and President of COP 23, today welcomed new support from the European Investment Bank to better protect water infrastructure against extreme weather events in Fiji.
The new long-term EIB loan to support investment by the Water Authority of Fiji signed at COP 23 earlier today represents the EIB’s largest ever loan in the Pacific and largest ever support for water investment in a small island state by the world’s largest water financier.
The European Investment Bank, the European Union’s long-term lending institution, will provide USD 75 million for a new USD 405 million investment programme by the Water Authority of Fiji. The scheme will strengthen resilience of water distribution and wastewater treatment following Cyclone Winston, the world’s second strongest storm ever recorded, that hit Fiji in February 2016.
In the presence of Prime Minister Bainimarama, and climate leaders from around the world, the 20 year EIB loan was formally signed at the EIB Pavilion at COP23 by the Hon. Aiyaz Sayed-Khaiyum, Attorney-General and Minister for Economy, Public Enterprises, Civil Service and Communications of the Republic of Fiji and Ambroise Fayolle, Vice President of the European Investment Bank responsible for development and lending operations in the Pacific.
"This welcome financing will be used with funding from the Green Climate Fund, the Asian Development Bank and the Fijian Government. A great many people in Fiji will benefit from this project, which will cost a total of approximately USD 400 million, and I am grateful to the EIB for its support and its foresight. Financing of projects to build resiliency in developing countries is critical, and I sincerely hope that this project can serve as a model for other developing countries that wish to access blended financing on behalf of their own people,” said Frank Bainimarama Prime Minister of Fiji and President of COP23.
“As the bank of the European Union, the European Investment Bank recognises the crucial importance of investing in water and improving access to clean water and sanitation worldwide. Small island states are vulnerable to a changing climate as witnessed by the devastation caused by Cyclone Winston in Fiji last year. We pleased to support transformation water investment on the island of Viti Levu that will benefit hundreds of thousands of Fijians and better protect key services from extreme weather.” said Ambroise Fayolle, Vice-President of the European Investment Bank.
More than 275,000 people living around the capital city of Suva will benefit from the new EIB-financed water investment that will both help to improve current service levels and reduce leakages and enable quicker resumption of water supply following cyclones.
The scheme includes construction of a new water-treatment plant and upgrading existing wastewater treatment facilities, as well as improving and expanding water networks. Once complete, the scheme is expected to support a number of sustainable development goals including health, economic development and sustainable urban growth.
The new water investment is also financed by the Government of Fiji, Asian Development Bank and Green Climate Fund. It follows extensive due diligence by the Asian Development Bank and represents the first EIB co-financing with the Green Climate Fund.
Ahead of the signing ceremony the EIB hosted a workshop to outline practical experience gained from three water projects around the world to enhance climate resilience. Priyaraj Lakmal Munasinghe, CEO of the Water Authority of Fiji and representatives of the Lilongwe Water Board in Malawi and the EUR 5 billion Emscher River renovation project highlighted key issues to consider and discussed how to overcome practical challenges with climate experts at COP 23.
Over the last decade the EIB has provided more than USD 40 billion for water investment around the world in Europe, the Caribbean, Latin America, Asia, Africa and the Pacific.
Small islands are among the most vulnerable to the effects of climate change. Discover in this interactive map how the European Investment Bank is helping them adapt to climate change and mitigate its effects.
The European Investment Bank, the European Union’s long-term lending institution, is committed to supporting implementation of the Paris Climate Agreement and backing climate-related investment around the world.
The EIB, active in more than 130 countries, is the world’s largest financier of climate-related investment and largest single issuer of green bonds. A quarter of all EIB financing supports climate action and the EIB is committed to providing USD 100 billion for climate related investment in the five years up to 2020.
At COP 23 in Bonn, EIB climate experts and senior management will highlight the EIB’s broad support for climate investment in diverse sectors, announcing a number of new policy initiatives and project investments. A regularly updated agenda of EIB events and contacts can be found here.
Firms in the European Union are facing many hurdles that may shift their focus in investing in the green transition. The pandemic is high on this list, followed by the new shock linked to the war in Ukraine.
During its summit in Elmau (Germany), the Group of Seven (G7) endorsed the Emerging Market Climate Action Fund (EMCAF) as an example of a concrete innovative and market-led approach to mobilise private investments for climate relevant infrastructure and to enhance multilateral finance and collaboration. In addition, Germany announced to increase their investment in the fund.
During the UN Ocean Conference, the European Investment Bank announced €97 million co-financing to support the resilience of Romanian Black Sea coast to erosion and floods. This new investment is allocated under the Structural Programme Loan ‘Romania EU Co-financing for Environment for the programming period 2014-20’.