The Asian Development Bank says a $320 million loan to Fiji is “considered complex” as it exceeds its $US50m threshold.
As a result, the ADB states in its Proposed Policy-Based Loan document that due diligence will be required for the loan.
Fiji has applied for a $320m loan from the Asian Development Bank (ADB), with co-financing of $128m from the Australian government, according to the Proposed Policy-Based Loan documents filed with the ADB.
The loan will be under the Sustainable and Resilient Recovery Program and will be used for law and judiciary, public expenditure and fiscal management and social protection initiatives.
The ADB documents also reveals Australia will provide an additional $128m as co-financiers that will bring the total loan amount to Fiji to $448m.
“ADB has a sound record of engagement in public sector management in Fiji, and the MOE (Ministry of Economy) has relatively strong capacity and experience with ADB and development partner financing,” states the ADB document.
“Due diligence for the program, to be prepared in collaboration with partners, will include a risk assessment and mitigation plan, an enhanced sector assessment, and a program economic assessment.”
The ADB says it will carry out a fact-finding mission to Fiji in March, hold loan negotiations in April with loan approval and signing in May.
