Express Fiji Highway Project: Overview: Express Fiji is a public-private infrastructure project to build and operate a highway in a Fijian city. Awarded in 2023, the 40-year concession involves a 4-year construction phase followed by 36 years of operation. This project aims to support regional connectivity and boost economic growth by providing a reliable toll-based highway infrastructure.
Key Financials:
Revenue Source: Toll fees for passenger cars and heavy vehicles, with traffic projected to grow annually by 2%. CAPEX: £75M per year over the 4-year construction period. Financing: Non-recourse funding with a 65/35 debt-to-equity ratio, a fixed interest rate, and fees based on a 40-year maturity. Costs and Inflation: Maintenance costs are forecasted to grow 4% annually from a 2023 baseline of £8.9M per year. Target IRR: Financial model structured to achieve a 23% IRR, calculating the required toll rate for heavy vehicles to meet this target. Support & Impact: Backed by UK Aid, this project leverages private investment to enhance Fiji's infrastructure, creating long-term value through sustainable transportation solutions.