The Asian Development Bank wants the Fiji government to corporatise its Water Supply Department as a condition for providing a US$53 million loan to upgrade supplies in the heavily populated Suva-Nausori corridor.
Fiji TV reports that the ADB has even offered to fund the corporatisation.
Most areas of Fiji are beset with supply problems with water cuts a regular feature in many areas around the capital and rationing in the western city of Lautoka.
Some senior water supply staff have been suspended or disciplined for corruption in the award of tenders and accepting kickbacks.
