Fiji and Japan have officially signed and exchanged notes for a $72 million Stand-by Loan to fund the second phase of the Disaster Recovery and Rehabilitation project. This initiative aims to bolster the Fijian government’s disaster risk reduction and management policies.
The project is designed to meet the heightened financial demands that arise during recovery periods following natural disasters. It enables the Fijian government to request loans for disaster-related expenses immediately after a natural disaster is declared.
The primary goal of the stand-by loan is to foster economic stabilization and development in Fiji, focusing on augmenting its disaster risk management capabilities and supporting recovery efforts post-disaster.
Deputy Prime Minister and Finance Minister Professor Biman Prasad noted that this highly concessional financing features a repayment term of 40 years, a 10-year grace period, and an annual interest rate of 0.4 percent. He pointed out that these funds will only be utilized in the event of significant natural disasters, following a Cabinet declaration.
Professor Prasad recognized the Japanese government, alongside the Asian Development Bank (ADB), as a key donor contributing to Fiji’s infrastructure development, education, healthcare, and disaster response efforts. He recalled that the initial phase of disaster financing was instrumental in rehabilitation efforts after Tropical Cyclone Harold in 2020.
Japanese ambassador to Fiji, Rokuichiro Michii, highlighted that the concessional loan aligns with the ongoing partnership between Fiji and Japan, with a strong emphasis on disaster response and risk reduction. He affirmed Japan’s commitment to supporting Fiji’s development through official development assistance.
Mr. Michii also mentioned that the signing of this concessional loan is part of a larger series of five exchange notes anticipated to be signed in the coming weeks, with a total value of approximately $133 million.