The Australian government has set aside over $43 million for its ongoing aid program in Fiji through the Enterprise Challenge Fund and a private company is the first to benefit.

Australian High Commissioner to Fiji James Batley said the fund is an innovative and important part of Australia's aid program in Fiji and is aimed at strengthening the private sector, encouraging economic growth and livelihood benefits for the poor.

And the first to benefit from the fund is a teak plantation project by Future Forests which was today granted $307,399.

Batley said the grant to Future Forests will enable it to expand and modernize seed germination and nursery facilities on Viti Levu and create long term employment and training opportunities for local indigenous landowners and their families in six rural villages in Ra.

He said in addition, landowners will receive ongoing income from leasing their land for plantation use and from royalties or stumpage from each tree planted on their land.