For years, China courted Fiji’s ports. Now Australia is trying to make sure it never gets the chance.
Since 2019, Canberra’s Australian Infrastructure Financing Facility for the Pacific has committed AUD 2 billion across 28 projects in 11 Pacific nations, according to the facility’s FY2023-24 annual update, cited by the Australia Pacific Islands Business Council. Fiji, the region’s second-largest economy, has received a substantial share of that money. The Australia Fiji Business Council reports that AIFFP has committed over FJD 232 million, about AUD 150 million, in loan and grant financing to the country, spanning aviation, road and bridge rehabilitation, and maritime infrastructure.
It’s a fraction of what the country actually needs. The Australia Fiji Business Council also reports that its broader infrastructure pipeline carries a total package value of US$750 million, or FJD 1.7 billion, spanning 104 distinct projects, funded through a mix of sources including the national government, the World Bank, the Asian Development Bank, and bilateral partners including the Chinese and Japanese governments. Australia’s AIFFP money is real, but it’s one contributor among several, not the whole story.
Why this matters now
The country sits at the center of a geopolitical tug-of-war that came to a head in late 2023. Reuters reported at the time, via U.S. News & World Report, that Fijian Prime Minister Sitiveni Rabuka told parliament in November 2023 that he wanted to collaborate with China on a key port modernisation and shipyard project, after discussing it in a meeting with Chinese president Xi Jinping.
Four months later, the cabinet reversed course. Reuters reported on March 21, 2024, that the government said its cabinet had agreed to enter into a memorandum of understanding with Australia to upgrade ports and shipbuilding infrastructure, after Australia committed to financing. The formal MoU was signed weeks later. According to Fiji’s Ministry of Foreign Affairs, the Memorandum of Understanding on Port Infrastructure and Services was signed by Prime Minister Rabuka and Australian minister Pat Conroy, providing a framework for cooperation on future investments to support its maritime needs, with immediate effect brought through a grant agreement to develop a Lautoka Port Masterplan. Rabuka said, per the same ministry statement, that Australia’s commitment to upgrading the country’s ports is in line with the Ocean of Peace concept proposed as a vision for the Pacific region.
The money on the ground
Beyond the ports deal, AIFFP’s commitments in the country break down into four areas, according to the agency’s own published project records.
Roads. AIFFP’s official news release describes a AUD 72 million concessional, results-based financing package supporting the renewal of more than 1.5 million square metres of road surface and replacement of nine key bridges through the Fiji Transport Infrastructure Restoration Project.
Energy. The Australia Fiji Business Council reports that AIFFP is supporting a feasibility study for the Namosi hydropower scheme and off-grid renewable energy projects aimed at transitioning the country toward a cleaner energy future.
Flood defense. AIFFP’s own investment list confirms a grant supporting the Republic of Fiji Government with essential catchment management and upstream flood mitigation work.
Ports. The Lautoka masterplan and shipbuilding revival described above, per the Fiji Ministry of Foreign Affairs and Reuters.
The bigger picture just got bigger
Baird Maritime reported in May 2026 that the foreign ministers of Australia, India, Japan and the US agreed to jointly build a port in the country and signed pacts covering critical minerals and energy security, unveiling their first joint infrastructure project as a group. US Secretary of State Marco Rubio said, per that report, that the announcement was a response to insufficient port capacity in the Pacific Islands.
The open questions
The Development Policy Centre at the Australian National University, via its Devpolicy Blog, has reported that AIFFP has committed $656.6 million in loan financing to PNG alone, a country currently rated by the IMF as at high risk of debt distress, and that AIFFP’s interest rates are less concessional than other lenders such as the Asian Development Bank.
On the China relationship specifically, Reuters reported that the country told the Guardian it would not scrap a decade-old policing agreement with China after a government review, though Chinese officers would no longer embed in its police force.
