Fijians could face electricity supply challenges during the El Niño crisis, as there have been calls for more investment in renewable energy, water infrastructure and roads should be prioritised to support the economy.
This was highlighted by Permanent Secretary of Finance Shiri Krishna Gounder during a panel discussion on Fiji's economic outlook and reform priorities after World Bank Group Senior Economist Tihomir Stucka questioned where the next additional dollar of productive public investment should go and what spending could be reduced or changed to make room for it over the medium-term.
Gounder says about 50 percent of Fiji's electricity is generated from hydropower and other renewable sources, and El Niño could create serious challenges for hydropower generation.
He says this could affect Energy Fiji Limited's operations and electricity supply, with wider impacts on the private sector.
Gounder says investment in renewable energy would help strengthen energy security and reduce Fiji's reliance on imported fuel.
He says the recent Middle East crisis highlighted concerns about fuel supply disruptions and their potential impact on the economy.
Gounder also identifies water supply and wastewater infrastructure as priorities, saying access to water has become a major challenge for the private sector.
He says investment in urban roads is also needed to address traffic congestion, which is affecting productivity.
Gounder says the Government needs to redirect funding from operating expenditure towards capital investment to address the country's infrastructure needs.
He says the public sector workforce, which has grown to more than 42,000 people, should be capped to prevent further increases.
Gounder says difficult decisions, greater public discussion and political consensus will be needed to make savings and direct funding towards productive investment.
