The European Investment Bank (EIB), the European Union’s long-term lending institution, has agreed to provide $75m loan for a new $405m investment programme by the Water Authority of Fiji.
The 20 year EIB loan will be invested on a water resilience scheme, which includes construction of a new water-treatment plant and upgrading existing wastewater treatment facilities, improving and expanding water networks.
Upon completion, the scheme is expected to support various sustainable development goals including health, economic development and sustainable urban growth. It will also strengthen flexibility of water distribution and wastewater treatment in Fiji.
The government of Fiji, Asian Development Bank and Green Climate Fund have also financed the new water investment project.
Frank Bainimarama, Prime Minister of Fiji and president of COP23, said: “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 $400m, 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.”