- Background and Introduction:
Fiji’s Exclusive Economic Zone is 70% larger than its landmass and is ranked the 26th largest sovereign ocean space in the world. Fiji is also home to 3.5% of the world’s coral reefs and over 65,000 hectares of mangroves that make up some of the many features of its rich marine biodiversity. In this regard, the Fijian Government is keen to operationalise its blue economy ambitions and sustainably leverage its ocean-based resources to support its post-pandemic recovery and economic diversification. The Fijian Government will be issuing Fiji’s first sovereign blue bond in its 2022-2023 financial year. The issuance will focus on raising capital market finance to support projects in four priority sectors. These are ‘Blue Shipping’, ‘Sustainable Fisheries’, ‘Blue Innovation Financing’ and ‘Sustainable Waste Management’. For the ‘Blue Shipping’ component, the Fijian Government is keen to explore opportunities to procure ships for its government shipping fleet that use renewable energy propulsion systems such hybrid, electric or hydrogen-based technologies. The policy direction for this sectorial focus is to transition Fiji’s maritime transport sector to renewable energy solutions as opposed to the current dependence on high density diesel. This is aligned to Fiji’s Updated Nationally Determined Contribution[1] and its Low Emissions Development Strategy[2] that seek to reduce carbon emissions from Fiji’s domestic maritime sector by 40 percent by 2030 and by 100 percent by 2050, respectively. The broader policy intent is to connect maritime islands at a fraction of the current operational costs being incurred by Government shipping vessels and private sector operators under the Government Shipping Franchise Scheme. Such an approach is expected to unlock the economic potential of Fiji’s maritime sector by improving the viability of establishing businesses and strategic commercial hubs on maritime islands. It will also help bridge the rural-urban divide in-line with Fiji’s 5-Year and 20-Year National Development Plan that seeks to expand the rural economy[3]. Key Facts The Fijian Government currently owns and operates 12 vessels through the Department of Government Shipping Services (GSS). These vessels consist of Motor Vessels, Landing Crafts, Tugs and Barges. All 12 vessels operate on High Density Diesel i.e., marine fuel emit approximately 3.42 kilo-tonnes of carbon dioxide per year. The average passenger movement for the Government fleets is more than 4,000 passengers moving from 2018 to 2020. The passengers include government officials, and maritime islanders. The average cargo movement for the Government fleet is 2,800 tonnes moving from 2018 to 2020. These include building materials, root crops, seafood, frozen food, groceries, items for shops and handicraft to name a few. While the Government shipping fleet is tasked to provide connectivity and services to maritime islands as extension of Government services, the Fijian Government also operates the Government Shipping Franchise Scheme (GSFS) that provides more frequent and commercial services to Fijians and the maritime islands. The GSFS was established on the recommendations of the 1993 Fiji National Transport Sector Plan (‘the Plan’) prepared by the Asian Development Bank (ADB). The GSFS has evolved over the years in terms of its vessel scheduling and routes, however, the overall objectives remain and are as follows: - provide shipping services for uneconomical sea routes to maritime islands which would otherwise be un-serviced;
- promote private shipping operators and internal traders for movement of goods and cargoes;
- encourage the transportation of the maritime public between outer islands and major urban centres; and
- incentivise private sea transport operators through the support of a Government subsidy to service uneconomical routes.
Currently, there are 10 routes under the GSFS, all of which are partially subsidized by the Fijian Government to keep the routes commercially viable for the five private shipping operators that are part of the GSFS. Routes under the scheme are serviced under a collaborative arrangement between the Government shipping fleet and the five private sector operators. The average passenger movement for the GSFS is more than 14,000 passengers annually moving from 2015 to 2020. The passengers mainly consist of Fijians living in maritime islands. The average cargo movement for the GSFS is more than 7,000 tonnes annually moving from 2015 to 2020. - Objective:
UNDP, a partner of the Fijian Government in this endeavor, is seeking a suitable and highly experienced Consultant to: - conduct a detailed technical and financial feasibility study on the most appropriate renewable energy propulsion vessel for the Fijian Government shipping fleet;
- develop a detailed business plan demonstrating the financial viability of procuring the most appropriate renewable energy propulsion vessel; and
- identify options for public private partnership arrangements for operating a suitable renewable energy propulsion vessel as part of the Government Franchise Shipping Scheme.
The Consultant can apply through a firm. The Consultant will need to work with personnel from the Asian Development Bank who are also supporting technical and economic feasibility of the Blue Shipping component. The Consultant will need to prepare work schedules that align with the National Budget submission deadlines of the Fijian Government in a way which ensures that the final deliverables will reflect the policy direction set by the Fijian Government. The Consultant will determine the number, effort and the nature of experts required to achieve the objectives of this TOR, in accordance with their proposed approach and methodology. The Consultant will include in his/her technical proposal, work plan and financial proposal all other supporting staff necessary to achieve the objectives of the TOR in accordance with proposed approach and methodology. | 
