THE Fiji Electricity Authority will not take any more loans to finance the completion of the Nadarivatu Renewable Hydro Plant.
The company has acquired the necessary funding to complete the project, FEA said in its 2012 annual report.
FEA said all debt covenants imposed by lenders were satisfactorily met last year to ensure the government - being the sovereign guarantor of all FEA loans - was not exposed.
FEA's total capital projects for last year cost $112 million.
The company said it was the highest ever in the company's history, against $84 million in 2010.
Borrowed funds and generating internal cash flows were used to fund the capital projects, the company said.
The $112 million capital projects included:
* Nadarivatu Hydro Project - $76 million,
* rural and urban reticulation works - $12 million,
* replacement of motor vehicles - $2 million; and
* the heavy fuel oil conversion project in Vuda - $6.4 million.
FEA has a total debt portfolio of around $356 million which must be serviced or repaid over the next 15 years, the company said. This year, the company is expected to pay $37 million in debts and $35 million next year.
And this is expected to be over and above the $60 million annual sum needed to fund capital expenditure plan.
"It will have to keep aside cash surplus of at least $80 million a year and this means that FEA has to record good levels of profits to generate the necessary cash reserves required.
"It is imperative that FEA adopt a business model that will achieve the desired profitability level to ensure that it remains financially sustainable," the company said.