Page 34 - IB May 2018 Edition

Business Intelligence

World Bank pushes

for $4m zone in Fiji

By Anish Chand

ISLAND Business is able to reveal an architectural impres-
sion of how the Wairabetia Economic Zone (WEZ) will look
like once its completed at a site near Lautoka city, on the west
coast of Fiji’s main island.
The project, which is in its planning stages is estimated to cost
F$8 (US$3.9m) million. According to the zone’s “master-plan Lautoka area showed an increase between 2009-2016.
consultancy, ” the WEZ will be located on 40 acres of land that “Lautoka tallied only 75 registered investment projects from
is partly classified as state foreshore and native lease. 2009 to 2016 - and 31 of these 75 were already implemented
Part of the development will see mangroves and other vegeta- for a total of just over FJ$13 (US$6.3m) million,” noted the
tion cleared and fishing grounds disrupted. An environment World Bank report.
and fisheries impact assessments will be carried out soon. The World Bank found companies most interested in the
“Companies acknowledged the potential of developing the concept of the Lautoka MSZ are looking for attractive leases
Nadi-Lautoka corridor, especially considering the possibilities and well located warehousing space.
of servicing the adjacent tourism industry, the availability of “The price inflation on properties and leases in the central
relatively low-cost workers - many of them recent graduates division was mentioned often, and the western province is ris-
from three nearby universities – and the logistical proximity ing in interest as a cheaper alternative in that regard; “Nadi is
to the international airport and port,” said a World Bank as- Suva 10 years ago” as mentioned by one of the managers. One
sessment of WEZ. of the companies suggested the Lautoka MSZ could leverage a
“The “overcrowding” of Suva, reflected in heavier traffic “green” framework by developing or promoting facilities that
and scarcity of land plots and labour, was another factor that implement sustainable and efficient use of resources – renew-
reinforced the rationale of developing more manufacturing able solar energy, efficient illumination of warehouses,” said
and service ventures in other divisions,” the bank said.It said the assessment.The performance of the Lautoka port received
the bank has looked at business registrations in the Lautoka mixed reviews in the World Bank assessment.
District to ascertain if businesses will base their operations at “Companies from the region reported that the port was operat-
Wairebetia. ing on a single crane to move containers, creating bottlenecks
“The town of Nadi and the city of Lautoka are almost on par in terms of waiting periods to offload and board cargo,” says
in terms of medium and large new business registrations in the assessment.
2015 whilst Ba accounts for only 144 new businesses during Fiji’s Minister for Trade and Investment Faiyaz Koya informed
that year. Lautoka City exhibits more critical mass in industries parliament in March that the project is expected to create em-
such as manufacturing and wholesale and retail, whilst Nadi ployment opportunities for over 5,000 locals once it is fully
confirms its anchoring on accommodation and food services, operational.
construction, real estate activities, and transport and storage ac- The project is being undertaken using a phased approach in
tivities notably associated with tourism,” says the World Bank. partnership with the International Finance Corporation/World
Tourism and manufacturing investment trends solely in the Bank Group.

Fiji issues green bonds in (US$205m) were climate change resilience or adaptation related.
“Rehabilitation and construction of schools damaged by Tropi-
London Stock Exchange cal Cyclone Winston, rehabilitation and upgrade of roads, bridges
and jetties including works related to waterways constitute a
major part of the climate change resilience or adaptation budget
By Anish Chand of F$417.6 million,” says the Fijian government.
The remaining 15 projects, valued at F$17.4 million
THE Fijian Government has identified F$434.9 million (US$8.52m) are climate change mitigation projects. Some of the
(US$213m) worth of projects it says will be financed through the major projects identified to be undertaken from the Green Bond
green bonds it recently issued at the London Stock Exchange. funds include US$1.22m for the construction and upgrades of
Seven sectors have been identified in which the finance raised evacuation centres and sea walls in low lying areas and provide
from these bonds will be used. water tanks and rain water harvesters to homes in rural and
The information is contained in a document titled “Fiji Admis- maritime areas whilst also helping in relocating villages and
sion Particulars” that is now available to prospective investors. settlements in extreme cases.
Prime Minister Frank Bainimarama launched the F$100million
(US$49m) Green Bond in London last month while attending the Other projects are:
Commonwealth Heads of Government Meeting. - Grant given to schools in disaster prone areas to upgrade
A total of 86 projects were identified from the 2017-2018 bud- their building to cyclone proof standards (F$2m)
get which would be financed through this so called green bond - Support the rehabilitation of non-government primary
initiative. Of this, 71 projects with a total value of F$417.6 million schools damaged by Tropical Cyclone Winston (F$5.2m)

34 Islands Business, May 2018