Infrastructure - Fiji Islands Trade and Investment Bureau

The Government’s Public Works Department looks after the nation’s water supply. An estimated 70 percent of Fiji’s population have access to clean piped water considered one of the most refreshing in the world. There are 32 major regional water supply schemes. Compared to international rates, Fiji’s water rates are relatively cheap.

The Suva Regional Wastewater section of the Public Works Department handles permitted standards of effluent quantity and method and location of discharge of effluents.

The Fiji Electricity Authority holds the monopoly in all facets of the energy sector – generation, transmission and distribution. Hydro and diesel are the two sources of power for the FEA. Its supply capacity currently stands at 50 megawatts, however rising use of electricity have prompted government to call for submissions from independent power producers.

Electricity is accessible to all areas with the declared boundaries of cities, towns and townships. This accounts for more than 70% of the population who have electricity supplied to them. Electricity is available to all main centers at 240 volts, 50 cycles A.C.

Fiji has 4777.13 kilometers of proclaimed road. The main sections of which are tarsealed linking Suva, Nadi and Lautoka, the major cities and town of the main island of Viti Levu. The Suva-Nadi highway is 185 kilometers long. Nadi, where the international airport is based, can be reached (from Suva) at the highway speed of 80 kilometers per hour in less than 3 hours. There are regular bus, taxi and motor vehicle rental services available. The main mode of travel between the two main islands, Viti Levu and Vanua Levu which separated by Bligh Waters, is by air and sea. The Public Works Department is responsible for administration of roads in Fiji.

Some 87.90 percent of land is owned by Fijians in communal tenure. Fijian land, which is reserved for the special use of its owners, may not be leased except with their consent. Surplus land outside reserve may, through Native Land Trust Board (NLTB) be leased by anyone. NLTB is the body with whom the landowners have entrusted the management of their land. The number of NLTB tenants from multimillion-dollar resort hotel companies to small vegetable farmers and households is growing almost daily.

There are five main lease classifications – agricultural, residential, commercial, industrial and special.

The government controls about 3.91 percent of the land. Government land, like NLTB, may not be sold. The availability of state land is usually advertised in the case of residential. However, this does not preclude consideration being given to individual application where the land is required for special purposes in Fiji.

The normal method of conveyance is by lease. Each lease category has different conditions and terms. The leasing cost would comprise of yearly rental payment to the appropriate authority plus the actual lease or premium cost. Leases may be sold, transferred and varied. However, such dealings are subject to consent of NLTB and Lands Department.

Government Lease for industrial purposes is normally up to 99 years and rental reassessed every 10 years. NLTB lease is shorter in term for land nearer to urban locations and the term is for a 50-75 year period. Annual rental is reassessed every 5 years. The maximum rental that can be levied in both cases is 6 percent of unimproved capital value. Leases also generally require leasees to effect improvements within a specified time.

Apart from the requirement of the NLTB and Lands Department, the use of land covered by a leasehold is also affected by town planning, conservation and other requirements and regulations, specified by central and local government authorities.

This accounts for approximately 7.94 percent of the total land area. Land held in freehold tenure is negotiable with the private owners and estates and in certain cases may require cabinet approval.

Land for this purpose is available. Freehold developed land is available as noted below. NLTB land is also available for development.

Rent and construction rates for buildings depend on location, type and standard of construction and the size. The “Economy of Scale” syndrome is generally true for commercial rents for buildings and to some extent to the acquisition cost of freehold land. Whereby, the rate per unit for a larger area would generally be less than the equivalent rate for a small space within the same premises for development.

The cost of acquisition of freehold land and the cost of premium for leasehold land will be dependent on the cost of development of the land.

Rental Cost of building or factory space estimated	$ 18 - $25 per sq.ft per annum	Note: rental cost general for basic warehouse/ storage. Rental could be more than estimated depending on location, building features and designs.
Construction cost of factory building on average	F$ 150 – F$ 200 per sq. ft depending on location)	Note: this is the basic construction rate for industrial built factory and rental may vary with the type building features and design.
Industrial premises for purchase - 2000 sq.meters	F$350,000 – F$450,000	Land cost also varies with location.
Freehold development land acquisition cost for 1 acre	F$400,000 – F$550,000	General acquisition cost varies with location.

Currently, construction firms can design and build factories according to your equirements/ needs. They can build factories to lease, rent and sell. In certain cases they can also arrange finance.

KALABO TAX FREE ZONE

The Kalabo Tax Free Zone, on the outskirts of Suva, was officially opened on September 1, 1997. The TFZ was constructed with a European Union grant of $7.6 million.

In June 1997, Cabinet agreed to delegate the responsibility of the management and administration for the KTFZ to the Fiji Islands Trade and Investment Bureau (FTIB).

The KTFZ is situated in Daniva Road, Valelevu, Nasinu. The total area is 32 acres and is under Crown lease. Five garment manufacturers are currently based at the KTFZ. There are six factory buildings in the zone, an administration complex and a Service Center. The Center has seven shops and a child care center. There are 11 fully developed vacant lots available for companies who are interested in constructing their own factory buildings.

The current factory buildings are designed as such to maximize natural ventilation so air conditioning costs are reduced. The buildings have the facility of having a mezzanine floor should the tenant require additional space. Initially, the KTFZ has a total factory space of 137,300 square feet. It has now increased to 189,000 square feet with the introduction of a new mezzanine floor in two factory buildings.

The Customs Department is located on site to act as the link between the factory operators in the zone and the Suva port. Data on all incoming shipment destined for factory operators in the zone are fed into a computer on arrival and picked by Customs officials at KTFZ who issue clearance orders. Likewise, export shipments are checked in the zone first with the information entered into the computer. The goods are then cleared for loading at the port.

The introduction of the Tax Free Zone (TFF/TFZ) scheme has boosted the growth of the garment industry. Provisional figures released by the Bureau of Statistics show that at the end of June 1998, Tax Free Factories employed an estimated 12,989 out of 111,941 people in paid employment. Garment exports have also increased. For 1997, garments made up 60 percent of total export to Australia, Fiji’s largest market. Garment exports to Australia increased by 31 percent from $150.9million in 19997 to $198.2million in 1998.

As from 1 January 2001, the Tax Free Factory/Tax Free Zone scheme has been withdrawn. However, all enterprises, which have been approved under the said scheme prior to 31 December 2000, will continue to benefit from the scheme until expiry of their licence.

FTIB officials are also based at the zone to assist with administrative services. The FTIB is taking an active role expanding the zone by constructing additional factory buildings in the vacant lots.