A new package of World Bank support to Fiji, approved last week, will see a major boost for the country’s fiscal, climate, and disaster resilience, as well as efforts to support private sector development.
The Fiji Growth and Resilience First Development Policy Financing with a Catastrophe Deferred Drawdown Option (Cat DDO), approved by the World Bank’s Board of Directors, includes budget support financing of US$95 million (approx. FJD214.6 million) and the option to access a further US$30 million in emergency financing (approx. FJD67.8 million) in the event of a major crisis or disaster.
This new financing will advance important policy reforms to increase government revenue. This work will ultimately ensure Fiji is better placed to drive investments in public services such as health and education. The new support will also strengthen disaster preparedness at Fiji’s divisional levels through improving disaster risk planning as part of the country’s new National Disaster Risk Management Bill, as well as boosting healthy school initiatives that restrict the sale of unhealthy foods in schools nationwide.
“While we continue to make important reforms and progress in addressing our development priorities; these are big challenges requiring big responses,” said Hon. Biman Prasad, the Fijian Deputy Prime Minister and Minister of Finance. “This World Bank support will help accelerate our efforts towards building a healthier, more resilient and sustainable economy, as well as supporting our work to attract more investment from the private sector.”
The new World Bank support also aims to open up more opportunities for private sector investment in the renewable energy sector, as well as boosting Fijian Government reforms to make it easier to start and operate a business – such as a reduced need for business certificate renewals for low-risk businesses.
“We are committed to supporting the Government of Fiji as it continues to strive towards greater fiscal resilience to build buffers and strengthen its disaster preparedness and response,” said Stefano Mocci, World Bank Country Manager for the South Pacific. “This initiative also aims to increase private sector investments for Fiji through more concerted efforts for greater economic prosperity and healthier, more resilient communities.”
This credit financing is funded through the International Development Association (IDA), the World Bank’s fund for the world’s most in-need countries.