THE Nausori Town Council (NTC) signed a $6million loan offer from the Fiji Development Bank (FDB) for the relocation of the new Nausori market and bus stand yesterday.
This was in addition to the $3m that was contributed by government.
NTC special administrator Napolioni Masirewa said the total cost of the project was $16m while the remaining $7m was the value of the land which was already secured.
"The interest rate for the loan is about 5.5 per cent for the next 20 years. We hope to pay $50,000 a month for the next 20 years or so. If God's willing, we might complete repayments earlier than that," Mr Masirewa said. This means, the council was expected to repay $600,000 a year and $12m in 20 years for the $6m loan. For government's contribution, he said they were paying $1.5 million per annum for two years beginning in April next year.
FDB acting chief executive officer Nafitalai Cakacaka said they were happy to assist the council with the transformation of Nausori Town.
"Nausori is the town of the future and the bank is adamant this is a worthwhile investment considering government's plans to improve the country's municipalities," Mr Cakacaka said.
He said with NTC accepting the financial offer, FDB was breaking new ground with Nausori Town in terms of providing finance for municipalities.
In addition, the new bus stand is expected to ease traffic flow which has been a problem for the past few years and the construction of the new market would address the demand for space by market vendors. Mr Masirewa said construction was expected to be completed by April-May 2014.