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Cabinet has approved changes to the 1993 Rural Electrification Policy to allow electricity to be accessible to more people. The changes will see a reduction in the community contribution toward the capital cost of the project from 10% to 5%. There will be a subsequent increase in the Government’s contribution toward these costs from 90% to 95%. Cabinet based its decision on a submission by the Minister for Works, Transport and Public Utilities, Colonel Tomoci Natuva. Colonel Natuva said that the Government is determined and committed to empowering Fiji’s rural population to increasingly meet their social obligations through economic opportunities. He said that rural communities have been adversely affected and are burdened even more with the costs of electrification. “The rural communities through no fault of theirs, but for the circumstances they find themselves in, are subjected to paying a 10% contribution towards electrification. “The impact of this financial burden is evident from the national number of rural homes that have no electricity and the increasing number of individual families and community groups that have approached the Department/Ministry and through Provincial Offices seeking assistance to waive the 10% contribution for the reasons briefly mentioned above.” Colonel Natuva explained that the Rural Electrification Unit within the Department of Energy is responsible for the overall coordination of the rural electrification programme. For the first four years since 1994 Government allocated $1m annually for rural electrification. Funding increased to $3m in 1998, and further increased to $6.5m in 1999. In 2000 funding decreased to $1.6m, increased to $3m in 2001 and $5m in 2002. From 2003 to 2008 funding was at $6m per annum. Government has spent a total of approximately $52m for rural electrification since 1994. The request for assistance in rural electrification has totaled 1,653 requests over the years and of the total requests received, 1,155 have been assisted with 498 requests still to be considered for assistance and implementation by the Department. Colonel Natuva said that the Government through the Ministry of Finance and National Planning will consider the appropriate level of funding to meet the proposed changes. He added that a review of the impact of the policy changes will be undertaken in December 2009. -End- (No.1433) |
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