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The jetty will make way for more development opportunities for the Banaban community and the neighbouring islands.
During his visit to the island last week, Prime Minister Commodore Voreqe Bainimarama said the tender was given to Pacific Building Solution and work would commence in October.
"Construction work is expected to complete in February next year and more economical developments will take place because there are a lot of resources available here," Commodore Bainimarama said.
"This will create more employment opportunities for islanders and people living nearby.
"We want to enhance development works so people can make use of the available resources," he said.
Rabi Council of Leaders executive director Marlie Rota said they were grateful to the Government for bringing developments to the island.
"This is the time to develop Rabi and we are very thankful the Government has assisted us greatly.
"We are facing difficulties in marketing our products because we don't have access to transportation but now we will surely be able to trade," she said.