Deputy Prime Minister and Finance Minister Professor Biman Prasad has announced the commencement of discussions regarding the corporatization of the Water Authority of Fiji (WAF). Prof Prasad outlined this move during the 2024-2025 National Budget Address, noting that the Ministry of Infrastructure, the Department of Public Enterprise, and the Ministry of Finance plan to initiate this process over the forthcoming six months.
Despite WAF’s current status as a commercial statutory authority, its operations are far from commercial, with only around a tenth of the necessary income being generated for sustainable operation and investment, Prof Prasad said. The failure to address this issue in past years has largely been due to political issues, according to him.
He emphasized that WAF’s flawed financial model leads to its full reliance on government funding. For the past decade, WAF has depended on government grants, which are disclosed every six months. This arrangement hinders the planning of substantial expenditures or the borrowing of funds for investment, barring governmental involvement supported by entities like the Asian Development Bank and the European Investment Bank.
Prof Prasad noted that WAF lacks a business model that would facilitate its independent planning and development, although it should theoretically be commercially independent under its board’s supervision. However, he also underscored the government’s commitment to rectify this situation, ensuring that water and wastewater needs are duly met, and providing certainty for investors, businesses, and homeowners.