The Fiji government will use taxpayer funds to pay Japan nearly 3-million US dollars in compensation for the failed Lami jetty project.
Fiji TV reports that the out of court settlement came after the Japanese ambassador threatened to take legal action against Fiji.
The jetty project was cancelled by the prime minister and cabinet just a month after construction began, following revelations of bungling by the fisheries ministry last year.
The Fiji government has also had to pay compensation to a local company, J S Hill, which was sub-contracted to build the jetty.
