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Development assistance in Solomon Islands

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Pillar 3 – Economic Recovery in Solomon Islands

Related initiatives

Strongim Bisnis – Phase 3

Up to $18 million, 2023-2026

Strongim Bisnis is Australia’s private sector development program in Solomon Islands, which has operated since 2017 and was extended to a third phase. The program has delivered in partnership with 84 of private sector actors, civil society organisations and government agencies. It has worked across seven sectors: cocoa, coconut, tourism, financial services, timber, horticulture, and waste management; and also had a focus on women’s economic empowerment of women, youth, and people living with disabilities. It supports local partners to assess climate risk and to develop risk management strategies, as well as to adopt more environmentally sustainable and less carbon intensive production processes.

Related documents

Name of document Year published
Solomon Islands Growth Program Design 2017
Strongim Bisnis Independent Evaluation Report and management response 2020

Tina River Hydropower Development Project

$65 million, 2016 – 2027 (total Australian contribution)

The Tina River Hydropower Development Project (TRHDP) is a AUD368 million initiative DFAT committed to supporting alongside a range of financier partners including the Asian Development Bank, the Green Climate Fund, Korea EX-IM Development Corporation and the World Bank.

TRHDP is a 15MW hydropower facility to be constructed southeast of Honiara on the Tina River. On completion, it will meet 100 per cent of Solomon Islands international commitment for emissions reduction under the Paris Agreement and supply almost two-thirds of Honiara’s energy demands. The scale of this project, Australia's largest climate finance investment in the Pacific, will transform the energy landscape in Solomon Islands which currently has the world’s most expensive electricity costs.

The main works construction for the hydroelectric dam is expected to take place April 2024, and peak construction is expected to provide approximately 350 job opportunities. As one of the project’s main stakeholders, Australia’s bilateral program is funding the both the access road (AUD18.4 million) which commenced construction mid-2023. We have also provided $10.4 million to support the project's preparation phase and to support the Tina River Project Office. The Australian Infrastructure Financing Facility for the Pacific (AIFFP) is providing additional financing for the transmission line.

Solomon Islands Infrastructure Program (SIIP)

Up to $250 million, 2021 – 2030

A key vehicle for promoting economic recovery and increasing employment is Australia's 10-year $250 million Solomon Islands Infrastructure Program (SIIP), which will complement our $2 billion Australian Infrastructure Financing Facility for the Pacific (AIFFP).

Australia has delivered an estimated AUD287 million of infrastructure projects from 2011 to 2022. As Solomon Islands’ largest long-term bilateral infrastructure financier and grant partner, we are committed to delivering Solomon Islands’ infrastructure and development priorities furthering our strong partnership, based on transparency and respect. Our infrastructure development is transparent in its objectives, meets genuine development needs, delivers long-term economic benefits, and avoids unsustainable debt burdens.

SIIP will deliver inclusive, resilient, high quality economic infrastructure throughout the Solomon Islands —Current activities include:

  • Supporting the Government to roll-out a National Building Code.
  • Undertaking concept, feasibility and design studies including for the planned Bina Harbour in Malaita.
  • Constructing 10 new markets across Solomon Islands modelled on the highly successful Gizo market project.
  • A new birthing and urban health clinic in Honiara.

SIIP will also provide technical advice, training and skills development to assist the Solomon Islands government to better plan, finance, manage and deliver high-quality infrastructure and improving project management.

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