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BUSINESS: FEA’S $230m NEW HYDRO-PROJECT
But Monasavu still vivid in mind

Robert Matau

When Fiji’s ancestral forefathers led by the patriarch Lutunasobasoba left Vuda near Lautoka in search of a new home on the north-western coast of Viti Levu (Fiji’s main island where the capital Suva is), they followed a ridge called Tualeita (translated means road of our fathers) or Southern Ridge.
At Nadarivatu, they say that an important decision was made as to which path to follow—the interior road or head straight for the Ra coast.
The decision was important as tribes needed to be resettled and law and order followed by all members.  
The tribes that made up that entourage were led by chiefs who were later to set up the old kingdoms around Fiji.
They named the place they made that important decision Lewa—which translated in Fijian means decision.
On March 10, the Fiji Electricity Authority made another important decision that will not only affect the lives of the villagers of Lewa but the nation as a whole.
Twenty-five years after that hydropower giant in Monasavu was built and commissioned, the village of Lewa will host the next biggest hydro-electricity dam that will help FEA bring power to Fiji’s homes.
But those 25 years were not rosy, far from it. They were as rocky and bumpy as the swells and currents that power the Monasavu turbines and as hard to negotiate as the winding road to Monasavu from Laselevu to the main dam area.
It seems, however, the FEA has learnt from its past mistakes and in an attempt to rid it of the ghost of Monasavu, they have done some homework so that the people of Fiji can enjoy electricity in peace and the FEA can realise its vision and ambition as any corporate entity would.
According to insiders, the FEA will compensate landowners for land that will be flooded and pay royalty and land premiums.
To ensure it is a long-term project, FEA has negotiated a long-term lease so that it can take some of the burden off Monasavu by supplementing power generated to the homes of consumers around the nation.
Any timber merchantable (that can be used for commercial purposes) will be compensated and annual rental is also on the table.
The FEA has identified five villages and five settlements involved in the building process and who are in the main vicinity of the waterways.  This includes Lewa, Buyabuya, Marou, Drala and Koro villages.
The authority with representatives from the District Office, Roko Tui Ba and other officials have been at the head of negotiations.
The problem they may face is identifying through the Native Lands Commission who and where the rightful landowners are.
Last year, the Native Lands Commission held its hearing at Lewa to decide the rightful owner of the title of Tui Cawanisa, the overlord of the Lewa area and allied subjects.
The Chinese Development Bank has stepped in to help FEA develop the concept to its full potential.
When completed Nadarivatu, according to the minister, would have a power capacity of 41.7 megawatts with an annual generation of 101 million units of energy.
FEA hopes to generate hydro-power to displace 22,000 tonnes of expensive diesel fuel per annum and help save about F$25 million per year at current diesel prices.
“This will be a significant saving on our fuel bills, savings on foreign reserves, alleviating some of the balance of payment problems and help keep FEA’s tariff low to boost investor confidence,” FEA chairman, Nizam Ud-Dean, said at the signing ceremony in Suva.
“This makes the Nadarivatu hydro-project one of national importance.”
FEA’s other renewable energy projects include Wainikasou and the Nagado hydro-power stations, to name a few.
“This loan facility gives FEA the ability to commence construction on the Nadarivatu hydro-power project which is expected to generate significant employment opportunities locally and result in substantial benefits socially, economically and environmentally,” Dean said.
 The Nadarivatu hydro-power project is expected to be completed mid-2011 where it would usher FEA and Fiji into a new era of electrification.
A contract has been signed with the Sinohydro Corporation Limited of China to construct the project at a cost of US$150 million (F$230 million).
But the ghost of Monasavu has been a costly sidetrack for what was initially promoted as an ambitious project for taxpayers of the country.
In our Fiji magazine, FIJI BUSINESS of June 2008, we highlighted the High Court order of a payout of F$52.8 million for the 12 mataqali who claim to own the land in the catchment area in Monasavu.
Lawyer for the landowners Isireli Fa said F$9.4 million had already been deposited into their account.
At the time, FEA chairman Joe Mar said FEA would not be looking for a tariff rise application from the Commerce Commission.
With fuel costs pushing reserves ridiculously high, the scenery has changed a bit for FEA.
Even with the loan arrangement sealed, they are not out of the woods yet. Commerce Commission chairman Dr Mahendra Reddy has rejected their fuel surcharge submission saying the fuel surcharge framework would be abolished.
He said FEA customers were charged fuel surcharge based on two variables—the cost of fuel and the amount of fuel used by FEA.
That price, he said “has dropped below the July 2006 price of $1302/t and is approaching the average 2004 fuel price of $756/t,” Dr Reddy said.
“The Monasavu dam water is four metres from the spill level and is probably one of the best water levels in the past five years.”   
So with the Nadarivatu project on the way, FEA anticipates that once again we can make savings on the power of nature to power our homes.




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