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The Cable Challenge

The Cable Challenge
An artist’s impression of the Port Fantasy Terminal which is being developed by Abbas Ali as part of his Fantasy Island development.
January 31
09:12 2015

Lack of supply of locally-manufactured electrical energy cables in the country has started causing hindrance for some developments.

Dominion Cables is the only local manufacturer of electrical energy cables in the country.

However, the Fiji Sun has been informed by some developers, Dominion Cables is not able to meet the recent surge in demand as far as construction works/investment is concerned.

The issue developers have is if they import these high voltage electricity energy cables, it would cost them anywhere between five per cent to 32 per cent fiscal duty.

On top of this, they would incur around 10 per cent import duty and another 15 per cent VAT.

These duty were put in place in order to protect the local electrical energy cable industry.

However, now that it seems the company is not able to meet the demand, there are calls for the Government to relook into this duty.

But, Dominion Cables general manager, Amit Solanki, has denied the supply shortage.

He said: “As far as our deliveries are concerned, we have no issues in delivering within time.”

Mr Solanki agreed they have noticed a slight increase in demand but said they have enough capacity to meet this increase in demand.

“We strongly believe that no projects in Fiji have been delayed due to our delivery,” he said.

Mr Solanki said they do no know which investor/developer are saying there is a shortage but they would really be interested to know who they are.

Fantasy Island

One of the investors who has been affected by this is the Fantasy Island developer, Abbas Ali.

Mr Ali’s Fantasy Island project cannot progress unless he gets reticulation works done.

He said Dominion Cables said it would take them another three months before they could supply. However, they did not provide any guarantee, he said.

Mr Ali said the Fiji Electricity Authority has also informed him that if they are to do the job for his marina, it would take them two years as they do not have enough supplies either.

“In our case we are so frustrated. We found the material in New Zealand and what we are told is we have to pay 60 per cent duty on it,” he said.

“But I am willing to pay the duty and get my job done rather than waiting for two years or three months and not getting the job done on time.”

Feedback:  rachnal@fijisun.com.fj

 

 

 

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