Page 32 - IB September 2018 Edition

Business Intelligence - FIJI

FNPF buys out GPH partners

By Dionisia Tabureguci

UNCONFIRMED reports have emerged that the Grand Pacific
Hotel (GPH) in Fiji is now fully owned by the Fiji National
Provident Fund (FNPF).
The historic building, local landmark and well known icon
of South Pacific tourism has been the subject of months
of negotiation among its three shareholders – the FNPF
(25%), Papua New Guinea’s National Superannuation Fund
(NASFUND - 50%) and PNG-based property development
firm Lamana Development (25%).
It is understood the PNG partners were divesting, barely
10 years after they bought into it and that FNPF was in
talks with them for a total buyout.
Although no official word has been issued, sources close
to the negotiations informed Islands Business that the The plan to restore the then derelict building was taken
deal had closed and that the PNG partners were treated to up by successive governments, which finally led to FNPF’s
a farewell dinner. All three parties remained tightlipped involvement in its ownership in 2005, when the property
on the development and questions sent to them remained was bought by a joint venture between the now scrapped
unanswered. FNPF Investment Ltd (80%) and the now disbanded Fiji
NASFUND had bought into GPH in 2010 for a reported Investment Corporation Ltd (20%), a former government
F$90 million (USD42.23m), which included 50 per cent of investment vehicle operational under Laisenia Qarase’s
the businesses and refurbishing the building, which had prime ministership.
remained derelict and empty ever since the Nauru Govern- It is not known how much the PNG owners have now
ment, which had previously owned it via its Nauru Phos- sold their shares for and if they have managed to recover
phate Royalties Trust, bought it in 1988 but could not keep their investments.
up with the deterioration until it had to close it in 1992. Now redesigned and refurbished, the ‘Grand Ole Lady’, as
The Fijian Government of 2000, under Prime Minister the GPH is more commonly referred to, was built in 1914
Mahendra Chaudhry expropriated the property just before by Union Steamship Company and sits on a portion of over
the coup of that year. two hectares of land along the foreshore of Suva harbour.

$500m scent of sandalwood Lal said the massive investment would be a major economic
MINISTRY of Forests has completed mapping more than stimulant in the market through new job creations, multiple
50,000 sandalwood plants in farms across Vanua Levu, Viti party engagements from businesses as well with the massive
Levu, Kadavu and Lomaiviti valued at FJ$500 million (US$235 injection of funds circulating in the economy as a whole.
million). Undertaken by the ministry’s sandalwood develop- With the infrastructure upgrade Vodafone will convert 100
ment department, research officer Maika Daveta said they were 3G sites to 4G+ and additional 244 new 4G+ sites will be
continuing the mapping exercise to ascertain the number of developed and commissioned.
trees in farms around the country. Daveta said the plants al- The company also confirmed that high speed internet ser-
ready surveyed were one to eight years old and would mature vices would be provisioned for existing rural and peri-urban
in the next 19 to 28 years. “Sandalwood heartwood takes 20 population in areas such as Muaniweni, Tailevu, Lomawai,
to 30 years to mature and we are expecting a sandalwood Naiyala, Moto and in islands such as Kadavu, Yanuca, Beqa
export boom in the years between 2038 or 2048 when these and Levuka will have access to high speed internet services.
plants mature,” he said. “By the time these trees mature, they
should find a raw price of F$10,000 per tree in the market.
Farmers count loss due to drought
Vodafone invests $207m in network ACCORDING to surveys carried out by the National Farmers
MORE than $207 million (US$97.2 million) has been invested Union, sugar crop in the north of the country has already been
by Vodafone Fiji in the past 20 months in mobile network reduced from the forecast of 750,000 tonnes at the beginning
infrastructure development. of the season to 600,000 tonnes because of the drought. Union
With this massive network investment the company is con- president Surendra Lal said they were expecting the forecast
fident that its high speed 4G+ network coverage will increase to be reduced further.“However, our main worry is the crop
to more than 90 per cent of the Fiji’spopulation. for the next season because there are a lot of weak and un-
Vodafone’s regional chief executive officer Pradeep Lal said healthy new seedlings,” Mr Lal said. “Fresh vegetables are
this financial year the company’s board had approved a capital in short supply and expensive, but most farmers involved in
expenditure of US$75 million for the current financial year market gardening are facing hardship through loss of income.
and they had spent another US$21 million in the past eight Government will have to provide relief assistance to farmers
months on upgrading their network. if the situation continues to deteriorate. (Fiji Times)

32 Islands Business, September 2018