Fiji has secured more than US$66.7 million in concessional finance from the Asian Development Bank to bolster the nation’s health system and shore up climate resilience for vulnerable coastal communities, the government announced on Thursday. The package comprises a US$50 million low-cost loan for the Pacific Healthy Islands Transformation Project (PHIT) and a US$16.7 million grant to fund nature‑based coastal protection and livelihoods initiatives.
The PHIT loan is part of a wider regional financing facility totalling US$181.94 million and will be implemented over six years with an expected completion date in 2031. Finance Minister Esrom Immanuel said the project will prioritise modernising Fiji’s healthcare system and tackling the country’s heavy burden of non‑communicable diseases, with the stated objective of increasing access to quality health services across the islands.
The concessional terms for the PHIT loan are unusually generous: a 40‑year maturity that includes a 10‑year grace period and a fixed interest rate of 1 per cent. The long tenor and low rate are intended to ease near‑term fiscal pressure while allowing the government to invest in systemwide health improvements such as service delivery upgrades and strengthened health sector decision‑making, officials said.
The complementary coastal resilience package, valued at nearly US$17.9 million including a government contribution of about US$1.19 million, will be implemented by the Ministry of Agriculture and Waterways over five years and is also due for completion by 2031. That project focuses on restoring foreshore areas, deploying nature‑based coastal protection measures and building climate‑resilient livelihoods for communities most exposed to sea‑level rise, storms and erosion.
Minister Immanuel framed the financing as consistent with Fiji’s fiscal targets and strategic investment priorities, saying the borrowing “reinforces Government’s commitment to responsible financing” while acknowledging development partners for their support. His comments come as Fiji manages a heavier debt profile than in previous years; government debt stood at about FJ$10.8 billion at the end of October 2025, equivalent to roughly three‑quarters of GDP, underscoring why concessional terms were important, analysts note.
The ADB package builds on other international support for Fiji’s health sector in recent months, including bilateral and multilateral contributions toward health infrastructure and planning. Together, these funds are expected to provide a mix of immediate facility repairs, longer‑term system strengthening and investments in climate adaptation that target communities at the frontline of coastal hazards.
Implementation details and rollout schedules for the PHIT components—including which facilities and service areas will be prioritised—are expected to be released as project procurement and planning advance. For coastal works, the Ministry of Agriculture and Waterways will lead community consultations and nature‑based interventions designed to both protect shorelines and sustain local livelihoods through climate‑resilient activities.
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