Introduction

This Factsheet outlines the current progress in advancing Sustainable Public Procurement (SusPP) in Fiji based on a desk review. The review applies an analytical framework of six Pillars (or "building blocks") of SusPP systems.

The Framework is designed to make clear that countries do not need to follow a linear step-by-step path to build effective GPP systems. Rather it is important to examine local contexts and prioritize the Pillars with the most potential in the country. No matter where a country starts, a balanced approach to implementation calls for progress on all Pillars to some degree.

This Factsheet is organized as follows:

• "Country Overview" section with executive summary, indicative maturity rating, key achievements, potential pathways forward and timeline of key events related to advancing sustainable public procurement.
• "State of Play & Forward Looking Analysis" section that summarizes the research findings from the desk review for each Pillar theme.
• "Key Stakeholders Driving the Agenda" explores opportunities for ADB teams to open discussions with country counterparts and add value to the work of partners.

The Factsheet is intended to be a living document to promote knowledge sharing and support training activities at ADB. It will be revised and improved as new information is uncovered and advances are made. If you have new information, please contact ychu@adb.org.

Public procurement expenditure accounts for 13% of GDP in Fiji. The Fiji Government has worked to modernize its procurement system and bring it into line with international best practices and standards, including the adoption of sustainable public procurement. The 2010 Procurement Regulations stipulate that procurements align with the principle of value for money and 2019 Procurement Guidelines encourage procuring entities to practice sustainable public procurement.

Following the experience of the COVID-19 pandemic, the Government of Fiji has reinforced its commitment to modern, sustainable procurement practices that deliver value for the people of Fiji. The Fiji Procurement Office is working to raise awareness on the concept of value for money and sustainable procurement. Further training opportunities and procurement tools on SusPP are planned for development.

SusPP can contribute to Fiji's green growth, climate change and SME development ambitions. The country was the first Small Island Developing State to commit to a net zero goal, to be achieved by 2050. It aims to source 100% of its energy from renewables by 2030 and reduce 10% of its GHG emissions through energy efficiency measures. Job creation is a priority in the agriculture, tourism and fishery sectors to help diversify the economy and tackle poverty.

>> Visual snapshot of Sustainable Procurement Maturity Level

Maturity Level:

Early-Intermediate Stage

Key Achievements

• The Ministry of Finance to promote SusPP
  
• Procurement Regulations set value for money as a core procurement principle and draft Guide to Procurement Planning offers guidance on adoption of green criteria by procurers
• Renewed interest to promote local suppliers and green enteprises following the experience of COVID-19 pandemic
• Codes and standards for green buildings and infrastructure under development
  

Ongoing work

• Codes and standards for green buildings and infrastructure under development
  

Potential pathways forward

• Create opportunities for dialogue between procuring entities and private sector to understand market readiness
  
• Provide support and financing to domestic firms and SMEs to adopt green practices and technologies
• Offer more training opportunities and supportive tools (ecolabels, critieria, case studies, guides) to help procuring entities identify sustainable goods and services
• Consider supporting centralized procurement approaches to simplify SusPP (listings, marketplaces, framework agreements, joint procurements)
• Develop monitoring system to track progress and impact of SusPP
  

>> Timeline of Implementation of Sustainable Procurement Activities

2010

2014

2017

2019

2021

2023

Procurement Regulations 2010 centralize the procurement law framework

Green Growth Framework recognizes green procurement as a key expenditure tool

20-year National Development Plan places green growth as a guiding principle

Guide to Procurement Planning offers instructions on SusPP

Fiji commits to net zero emissions by 2050 and 100% renewables by 2030

1st Fiji Public Procurement Symposium confirms commitment to SusPP

Pillar 1: Government Vision & Awareness of SusPP

Governments that establish a clear policy vision on SusPP can accelerate the shift from procurement as an adminstrative to strategic function, making clear how SusPP can deliver on important national social and environmental goals.

Progress to date:

Vision for SusPP

The Government of Fiji formulated a vision for green growth in 2014 in the Green Growth Framework for Fiji: Restoring the Balance in Development that is Sustainable for our Future, a draft document that has not been formally adopted. The draft Framework recognizes that public procurement of green goods and services can be a key expenditure tool.

Following the disruptions caused by COVID-19, the Fiji Procurement Office has developed a "Tomorrow Now" strategy. The Strategy is a "rethink" that indicates the Procurement Office's focus on improving supply chain resilience by increasing the supplier base for critical goods and services and reassessing pricing methodologies and contract terms.

Fiji confirmed its commitment to modernizing its procurement system and aligning with international best practices, including sustainable procurement at the 1st Fiji Public Procurement Symposium held in February 2023. The dialogue emphasized the belief that the traditional approach to procurement is no longer sufficient. Rather, a change in mindset is needed towards delivering value for money for the people of Fiji. The Fiji Procurement Office has signed the Sustainable Procurement Pledge (announced by Twitter).

Other related national goals and strategies

In 2017, the country simulateneously released its 20-Year National Development Plan (2017-2036) and a comprehensive 5-Year Development Plan (2017-2021) with a vision of “Transforming Fiji.” Green growth is a key guiding principle in the implementation of these Plans. Several national priority actions are outlined that SusPP can contribute to implementing:

• Support development of Micro, Small and Medium Enterprises (MSME).
• Encourage industries to adopt more environment-friendly technology and practices
• Ensure all imported technologies are consistent with "Green" technology specifications, i.e. energy efficient, low carbon emissions,
• Examine options for effective and efficient rainwater harvesting systems within urban centres. The recommended solutions for each urban centre to be integrated into Municipal plans.
• Explore the use of green vehicles for PSVs and commercial vehicles and viability of developing electric vehicle charing infrastructure
• Ensure all new buildings have an energy conservation plan before they are approved.
• Purchase and trial of a vessel fuelled by renewable energy, assessment of 4-stroke outboard motors, and study of incentives for low-carbon domestic shipping

Fiji was the seventh country in the world and the first Small Island Developing State to pass climate legislation with a net zero emission goal by 2050. The coutnry amis to reduce 30% GHG emissions from the energy sector by 2030 including by reaching close to 100% renewable energy power generation and reducing GHG emissions by 10% through energy efficiency improvements.

Other national priorities include promotion of sustainable agriculture, fisheries and tourism activities.

Pillar 2: Legal & Regulatory Framework

Procurement law reform can be key to clear obstacles to implementation by establishing "value for money", not "lowest price", as a core procurement objective, and authorizing procurement approaches suited to SusPP.

Progress to date:

Public procurement in Fiji is regulated by the Financial Management Act 2004 and Procurement Regulations 2010. The 2010 Regulations consolidated several previous regulations in an effort to centralize and streamline procurement. It applies to procurement conducted by all officials in Government Agencies and the Fiji Procurement Offices. The concept of "value for money" is recognized as a procurement principle.

The Fiji Procurement Office released Procurement Guidelines in 2010 that elaborate on the procurement framework. Value for money is recognized as a guiding principle of procurement. This entails going beyond initial cost (purchase price) to conduct a "whole-of-life value for money assessment" that considers all relevant direct and indirect benefits and costs over the whole procurement cycle. This opens the door for SusPP practices, even if sustainability is not explicitly promoted.

On social procurement, the Procurement Regulations 2010 specifically do not allow for preferences to be given to domestic suppliers.

Pillar 3: Institutions & Capacity

Progress to date:

Key Institutions

The Ministry of Finance is responsible for oversight of procurement in Fiji. The Fiji Procurement Office administers most Fiji Government tenders for goods, services and works valued at $50,000 and above. However, there are 25 government departments and SOEs exempted from the procurement policy and regulations. A central Tender Board was created by the 2010 Regulation, consolidating several previous Tender Boards, with the authority to approved all regulated procurements.

Capacity Building

The Fiji Procurement Office has developed a Procurement Competency Framework to guide procurement professionalization. The Framework highlights "sustainable development, environmental issues and social issues" as core knowledge on Fiji's procurement framework. It emphasizes the need for skills to align procurement with Agency and Government strategy, engage with markets, and understand environmental issues related to construction works. However, the Framework does not require a separate competency on SusPP, unlike the Global Standard for Procurement and Supply by the Chartered Institute of Procurement & Supply (CIPS) that explicitly contains skills related to SusPP.

The Fiji Procurement Office hosts a public procurement blog to discuss the latest trends, strategies and best practices in procurement. The blog links to an article on "What is Sustainable Procurement and why does it matter?" from the Chartered Institute of Procurement & Supply (CIPS). Other articles emphasize the need to look beyond lowest price and select contracts that deliver value for money for the people of Fiji.

The 1st Fiji Public Procurement Symposium was held in February 2023. The Government announced plans to launch a series of training programs and online resources to support professional development of the public procurement community in Fiji. These plans aim at meeting the need to better support procurement officials and stakeholders to make strategic decisions and promote a culture of continuous learning.

Pillar 4: Market Practices

Market dialogue throughout the procurement process helps procuring entities to choose realistic sustainability criteria and ensure suppliers succeed in delivering on sustainability commitments over the contract duration.

Progress to date:

Market dialogue

The Government recognizes the need for more dialogue and engagement between government ministries and the private sector, to advance efforts to modernize the procurement system. Market dialogue is actively encouraged in the draft Guide to Procurement Planning released by the Fiji Procurement Office.

Green enterprises

A Pacific Green Entrepreneurs network was launched in 2020 to support entrepreneurs (particularly women and youth) develop green businesses with business models that contribute to national climate and sustainable development goals (SDGs). The network offers mentorship, training, incubator and accelerator programs. Over 30 Fijian startups have graduated from the program, offering a potential pool of businesses that can respond to green criteria in public procurements.

A new Blue Economy ClimAccelerator was launched in 2023 to support entrepreneurs with solution related to maritime activities including maritime transport & infrastructure, ports, and waste disposal management.

Green buildings

No information was found on public procurements of green buildings. However, the private sector is making green building advancements in the country. For example, the first "Green Building" was constructed in Fiji in 2020 in a project managed by Kramer Ausenco (Fiji).

Pillar 5: Procurement Operations

Various tools and procurement approaches can be employed to help procurers more easily identify environmentally friendly goods and services and attract a competitive market response.

Progress to date:

Guidebooks

The Fiji Procurement Office offers a draft Guide to Procurement Planning first released in 2019 and last updated in March 2023. The Guide contains specific recommendations for procuring entities on how to integrate sustainability and social considerations into public procurement contracts.

Section 7.5.2 on "Sustainable deliverables" notes that sustainability considerations should be addressed as an important component of the overall procurement strategy and where appropriate detailed in specifications. It outlines the following sustainability aspects:

• strategies to avoid unnecessary consumption, improve efficiency and reduce waste
  
• minimise the environmental impact of the goods/services over the whole-of-life
  
• calculate value-for money over whole-oflife – encompassing sustainability impacts and efficiencies
  
• consider the environmental credentials of the goods/services
  
• consider the suppliers’ sustainability credentials
  
• consider the suppliers’ approach to corporate social responsibility
  
• help foster a viable Fijian market for sustainable products and services by supporting businesses and industry groups that demonstrate innovation in sustainability.

Section 8.3 on "Consideration of Fijian business participation" makes clear that agencies cannot favour Fijian suppliers. However, the Guide offers approaches to ensure that local businesses are given a full, fair and reasonable opportunities to compete for government opportunities:

• conducting market research to identify capaciable Fijian enteprises
  
• avoid procurement activities that are overly complex, too large scale, contain unnecessary requirements or ambiguous information.
• aligning with local workforce skills identified in market research
• spliting tenders into smaller contracts

Procuring entities can allocate an evaluation weighting to local content for bids from foreign suppliers if considered a benefit to the country in terms of job creation, training and knowledge transfer.

Total Cost of Ownership Tools

The Fiji Procurement Office website provides access to a Total Cost of Ownership calculator (Excel-based) based on a New Zealand Government template. The TCO calculator outlines eight cost categories for procuring entities to consider, including:

• all initial costs on purchase (one-off)
  
• regular ongoing operational costs (per annum)
• fuel/energy costs (per annum)
• regular service and maintenance costs (per annun)
• anticipated downtime (per annum)
• additional support costs (per annum)
• other one-off costs (e.g. regular overhaul, recalibration and testing)
• disposal costs (one-off)

The calculator also encourages procuring entities to take into account the potential salvage or resale value of equipment, parts and operational items.

Codes and Standards

The country plans to develop other tools that can support procuring entities to undertake SusPP, outlined in the National Development Plan 2017-2021:

• Update the codes and standards for buildings and industry to require minimum standards for energy use for ventilation, cooling and lighting and enforce the application of these in both the public and private sectors.
  
• Introduce a rating system based on energy efficiency level of buildings (both existing and new) relative to legislated standards. Achievement of standards will earn certification and receive benefits from government.
  
• Develop Codes of Environmental Practice (COEPs) for road and bridge works that set out environmental standards and procedures to mitigate the environmental impact of the planning, design, construction, operation and maintenance of urban and rural roads and bridges.
  

In March 2022, a "Sustainability Chapter" was developed by the Global Green Growth Institute and submitted to the Government of Fiji to consider as an addition to the Fiji National Building Code, to support implementation of Article 72 of the Climate Change Act.

Pillar 6: Monitoring & Impact Measurement

Monitoring systems are essential to gather the information needed to keep SusPP implementation on course and communicate on the benefits achieved for the country.

Progress to date:

The Fiji Procurement Office produces annual reports with statistics on government procurements. However, no evidence of monitoring of sustainable or green procurements has been found to date.

Projects Supported by ADB

The Asian Development Bank (ADB), through its country partnership strategy (CPS), 2019–2023, will support Fiji to achieve sustained, inclusive, private sector-led growth. Opportunities to integrate SusPP include:

• Integrate SusPP support activities into into existing ADB projects that advance improved public sector management, post COVID recovery of MSMEs and sustainable infrastructure works.

• All ADB projects can integrate criteria to prefer locally produced food to contribute to the Government of Fiji's goals to create jobs in the agricultural and fisheries sectors.

ADB, through its TA9427 – Supporting Public Financial Management Reform, is supporting the Fiji Government to incorporate sustainable procurement in its public procurement framework, including promoted as a Guiding Principle in the proposed procurement regulations amendment. The TA also includes development of associated policy and implementing guidelines, tools, training and awareness raising among suppliers, contractors, government agencies and the public.

Other Initiatives supported by National/International Agencies

The Global Green Growth Institute (2015 to present) provided technical assistance that led to the development of the Sustainability Chapter, as an addition to the Fiji National Building Code, to support implementation of Article 72 of the Climate Change Act. GGGI will also provide support to the government for the development of a green public transport plan for a selected municipality. Implemented in partnership with New Zealand´s Ministry of Foreign Affairs and Trade (MFAT).

References

ADB, 2023. Asian Development Bank and Fiji: Fact Sheet.

Sustainable Public Procurement Challenges and Opportunities for Fiji, 2023.

Fiji Procurement Office, website on Sustainable Public Procurement.