SOE Port­fo­lio

Fiji Sun - - Sunbiz -

Con­sists of 18 SOEs, pro­vides most of the coun­try’s in­fra­struc­ture ser­vices, and has a sub­stan­tial im­pact on the econ­omy. Has, over the long-term, pro­duced low re­turns, with an av­er­age re­turn on eq­uity (ROE) of 1.9% and av­er­age re­turn on as­sets of 0.9% from 20022014. Con­trib­uted only 4% to gross do­mes­tic prod­uct in 2014, de­spite con­trol­ling an es­ti­mated 12%-17% of to­tal fixed as­sets in the econ­omy. Has achieved a marked im­prove­ment in fi­nan­cial re­turns since 2010, with ROE reach­ing 9% in 2012 be­fore de­clin­ing to 5% in 2014. Has seen five ma­jor di­vest­ments since 2012: 59% of Fiji Ports Cor­po­ra­tion Lim­ited; 51% of Ports Ter­mi­nal, and a man­age­ment con­tract for Suva and Lau­toka ports; 51% of FINTEL; 100% of Fiji Dairy; and 50% of the gov­ern­ment’s re­main­ing 34.6% stake in Amal­ga­mated Tele­com Hold­ings. Is cur­rently un­der­go­ing a broad based re­form pro­gram to strengthen the SOE leg­isla­tive frame­work, im­prove gov­er­nance and mon­i­tor­ing, and fa­cil­i­tate the use of pub­lic pri­vate part­ner­ships.

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