Government of the Republic of Fiji

03/18/2026 | Press release | Distributed by Public on 03/18/2026 04:11

DECISIONS OF THE 4TH CABINET MEETING HELD ON 17 MARCH 2026

1. FUEL RESPONSE
Cabinet approved the drafting of relevant Regulations to strengthen fuel supply resilience and enable contingency measures to prioritise fuel allocation for essential services and critical infrastructure if required.

Cabinet also approved the appointment of the Permanent Secretary for Public Works, Meteorological Services and Transport as the Fuel Controller, the establishment of a Fuel Advisory Committee comprising key Permanent Secretaries, and the creation of a Cabinet Subcommittee for Energy to oversee energy-related matters and guide a coordinated national response.

These measures are Government's precautionary response to escalating geopolitical tensions in the Middle East and the resulting instability in global energy markets, which may disrupt international oil supply chains and fuel prices.

Fiji currently has arrangements in place for up to three months of national fuel supply, and Government will continue to closely monitor global developments, fuel shipments, and domestic stock levels.

2. PROPOSAL TO ALLOCATE 0.1% OF THE TRAINING LEVY TO THE FIJI LEARNING INSTITUTE FOR PUBLIC SERVICE
Cabinet approved the allocation of 0.1% of the 1% Training Levy, paid by employers, to the Fiji Learning Institute for Public Service (FLIPS) to strengthen training and professional development within the Civil Service. As the largest employer, the Civil Service will benefit from this arrangement.

The distribution will not increase the levy paid by employers, but will redistribute existing funds to support capacity development within the Civil Service.

3. REVIEW OF THE BUILD, OPERATE AND TRANSFER SCHEME AND PROPOSED TRANSITION TO BUILD, OPERATE AND OWN
Cabinet endorsed the transition of Government-leased buildings developed under the Build, Operate and Transfer (BOT) scheme to a Build, Operate and Own (BOO) model.

The change follows a review of the scheme, which was originally introduced in the late 1990s to enable Provincial Council Companies (PCCs) to invest in property development and increase iTaukei participation in commercial activities.
Under the BOO model, PCCs will retain long-term ownership of their buildings while Government continues as a tenant under revised lease arrangements.

Cabinet also endorsed the proposed BOO implementation arrangements, including the use of the Public-Private Partnership policy framework, strengthened governance and compliance mechanisms, and updated rental rates based on current valuations.

The transition aims to ensure sustainable management of the properties while supporting the financial viability of PCCs.

4. THE RENEWABLE HYBRID PROJECT: A PILOT DEMONSTRATION PROJECT BY AEON ENERGY GROUP
Cabinet approved the implementation of the Renewable Hybrid Project (RHP) at Bouwaqa Village, Vatulele.

The Renewable Hybrid Project is a grant-funded pilot initiative supported by the Government of the United Kingdom and implemented by AEON Energy Group.

The Renewable Hybrid Project will pilot the integration of solar, wind and wave energy technologies within a mini-grid to support rural electrification. The project will begin with the installation of a 50-kilowatt solar photovoltaic system with battery storage.

5. ESTABLISHMENT OF EMBASSY OF THE UNITED ARAB EMIRATES IN FIJI
Cabinet endorsed the establishment of a resident Embassy of the United Arab Emirates (UAE) in Suva, marking a significant milestone in Fiji-UAE diplomatic relations.

Fiji and the UAE established diplomatic relations in 2010, with Fiji opening its mission in Abu Dhabi in 2012. The proposed mission will be the first diplomatic presence from the Gulf region in Fiji, with expected accreditation across the wider Oceania region.

The establishment of the UAE Embassy will strengthen bilateral cooperation in areas such as renewable energy, climate resilience, trade and investment, education, and development assistance, while reinforcing Fiji's role as a regional diplomatic hub in the Pacific.

6. ESTABLISHMENT OF THE EMBASSY OF THE STATE OF ISRAEL IN SUVA, FIJI
Cabinet endorsed the establishment of a resident Embassy of the State of Israel in Suva.

Fiji and Israel established diplomatic relations in 1970 and have maintained cooperative engagement in areas such as peacekeeping, agriculture, security, and development cooperation. Bilateral relations have continued to strengthen in recent years, including through agricultural cooperation with MASHAV - Israel's Agency for International Development Cooperation and the opening of Fiji's Embassy in Jerusalem in 2025.

The establishment of Israel's Embassy in Suva will enhance bilateral cooperation in areas such as security, climate change, agriculture, and emerging technologies, while further strengthening diplomatic engagement and collaboration between the two countries.

7. GRANT AGREEMENT BETWEEN THE GOVERNMENT OF FIJI AND THE ASIAN DEVELOPMENT BANK ON ENHANCING CLIMATE RESILIENCE OF COASTAL COMMUNITIES SECTOR PROJECT
Cabinet approved a $16.7 million grant-funded initiative by Asian Development Bank with co-financing from the Oceans Resilience and Coastal Areas Trust Fund on "Enhancing Climate Resilience of Coastal Communities Sector", to strengthen the resilience of Fiji's vulnerable coastal communities to climate change impacts.

The project will implement nature-based and engineered coastal protection measures, including mangrove restoration and protective structures, to address coastal erosion, flooding, and rising sea levels. It will also support climate-resilient livelihoods through training and capacity-building programmes for coastal communities, while strengthening the institutional capacity to manage and scale coastal resilience initiatives.

8. FIJI - PACIFIC HEALTHY ISLANDS TRANSFORMATION PROJECT
Cabinet approved a US$50 million (approximately FJ$110.6 million) concessional loan from the Asian Development Bank to support Fiji's participation in the Pacific Healthy Islands Transformation (PHIT) Project, aimed at strengthening the country's health system.

The PHIT Project is a major regional health reform initiative designed to improve access to quality health services and strengthen the management of non-communicable diseases (NCDs).

The project will support the modernisation of Fiji's health system, strengthen regional health cooperation, and improve evidence-based decision-making in the health sector.

9. NATIONAL DISASTER RISK FINANCING POLICY 2026-2031
Cabinet endorsed the National Disaster Risk Financing Policy 2026-2031, to outline the Government's strategic approach in strengthening Fiji's financial resilience towards natural disasters and climate-related hazards.

The policy provides a framework for managing the fiscal impacts of disasters by improving the coordination and use of disaster risk financing instruments, strengthening public financial management systems, and enhancing disaster risk information and assessment. It also supports the establishment of mechanisms to ensure timely, transparent, and cost-effective financing for disaster response and recovery.

Cabinet also approved the development of an Implementation Plan and Disaster Risk Financing Manual, with technical assistance from development partners including the World Bank and the Asian Development Bank, to guide the operationalisation of the policy.
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