Investment levels to remain subdued: RBF

May 21, 2008 07:32:22 PM

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Investment levels in Fiji are expected to remain subdued this year as major projects were either completed in 2007 or are nearing completion, the Reserve Bank of Fiji said in the March quarterly review out last week.

Major projects that were completed last year included the Radisson Hotel, Port Denarau Retail and Commercial Center, Stage 1 of Carpenters Tower, Likuliku Bay Resort and Kadavu House.

Those nearing completion this year include the Great Council of Chiefs complex and the Fiji National Provident Fund building in Nasese, Suva.

Some major projects such as the Momi Bay are still on hold.

“As a result only a marginal growth is projected for the building and construction sector (1.2 per cent) this year,” the RBF said.

Overall, investment in 2008 is projected at 15 per cent of GDP, a similar level to 2007.

The RBF also noted that the building and construction sector performed poorly in 2007.

The quarter 4 building and construction survey report revealed that the total value of work put in place in 2007 totalled $230.3m.

“This indicates a significant decline of 27.3 per cent on an annual basis.”
 
By categories, the value of work put in place in 2007 by the private sector registered a substantial decline of 23.1 per cent (from $256.7m realized in 2006 to $197.4m in 2007).

Similarly, the public sector recorded a fall of 45.4 per cent (to $32.8m from $60.0m recorded by the public sector in 2006.)

Looking at leading indicators, provisional building statistics released by the Fiji Islands Bureau of Statistics (FIBOS) for 2007 show that the total number of building permits issued (1357) declined on an annual basis by 26.8 per cent, the RBF noted.

In line with the lower number of permits issued, the value of building permits also declined over the year (58.0 per cent), underpinned by a decline in both building permits issued for other building and private dwelling categories.

In addition, the total number of building completion certificates issued (559) declined on an annual basis by 8.4 per cent.

However, the value of building completion certificates issued increased over the year by 12.7 per cent.