Fiji secures more than $60m loan to modernise health system

Fiji will receive US$30 million (F$68.9 million) from the OPEC Fund for International Development to modernise the country’s struggling health system.

The concessional loan, signed today, forms part of the US$181.9 million (F$418 million) Pacific Healthy Islands Transformation Project, which also includes financing from the World Bank and Asian Development Bank.

Minister for Finance Esrom Immanuel said the funding would address critical issues facing medical facilities across the country, including the Colonial War Memorial Hospital.

“This is the first phase for the major hospital project as well as the broader health-sector programme,” Mr Immanuel said at the signing.

The project allocates US$77 million specifically to modernise Fiji’s health system, with a focus on early detection and management of non-communicable diseases.

OPEC Fund president Dr Abdulhamid Alkhalifa said the organisation chose to support the project because of its strong development impact.

“We are after the highest development impact, and with the three components of this project, it has a very high development impact and it serves the people of Fiji,” Dr Alkhalifa said.

A recent World Bank review found that Fiji’s health outcomes remain well below those of similar economies and have stagnated for 30 years, with health services ill-equipped and under-resourced.

The 30-year loan carries a six-year grace period and a 1.75 per cent interest rate.

Mr Immanuel said the borrowing remains within fiscal targets, with Government debt projected to reach F$11.7 billion, or 79.8 per cent of GDP, by July 2026.

This marks the OPEC Fund’s first-ever support to Fiji.