Development assistance in Solomon Islands
Pillar 3 – Economic Recovery in Solomon Islands
Overview
This page provides an overview of how Australia is working in partnership against the Economic Recovery pillar of Partnerships for Recovery. It outlines key related initiatives and summaries of programming and related documents.
Australia will support efforts to promote economic response and recovery, private sector resilience, open markets and supply chains, improved livelihoods and inclusive growth. In response to COVID-19, the Solomon Islands Government announced an economic stimulus package to help cushion the already fragile economy from the impact of the downturn. Australia is supporting that response through a $13 million package of direct budget support, with $8 million allocated to health and $5 million to economic stimulus.
Related initiatives
- Australia's Solomon Islands Governance Program
- Health Sector Support Program – Phase 3
- Education Sector Support Program
- Strongim Bisnis – Phase 2
- Tina River Hydropower Development Project
- Solomon Islands Transport Sector-Based Approach – Phase 2
- Addressing Gender Equality
- Solomon Islands Rural Development Program – Phase 2
- Solomon Islands Growth Program
Governance Program
Up to $30 million, 2017-2021
The Governance Program builds on the public financial management (PFM) and public sector reform gains achieved through the Solomon Islands Economic and Public Sector Governance Program (SIGOV). The Governance Program supports Australia's long-term national interests in Solomon Islands by supporting stability, enabling economic growth, and enhancing human development.
The budget for the Governance Program is approximately 7.5 million per annum. The program includes four components encompassing a number of individual activities:
- Component 1 – Fiscally and socially responsible budgeting and borrowing policies
- Component 2 – A professional public financial management cadre that facilitates improved service delivery
- Component 3 – A more accountable and responsive public service, and
- Component 4 – Strengthening coalitions for reform.
Consultations with the Government of Solomon Islands on the next phase of Australian engagement in the governance sector have commenced.
Related documents
| Name of document | Year published |
|---|---|
| Solomon Islands Governance Program Design | 2017 |
| Solomon Islands Governance Program: Independent Review of Ombudsman Twinning Support and management response | 2021 |
Health Sector Support Program – Phase 3
Up to $99 million, 2016-2021
Australia's Health Sector Support Program (HSSP3) is a five-year, $99 million initiative to support the Solomon Islands Government to deliver health services across the country that meet the needs of communities. Guided by the National Health Strategic Plan and its priorities, HSSP3 funds malaria and other disease control, maternal and child health activities, essential medicine supply as well as access to clean water, basic sanitation and hygiene awareness. Through targeted financing and advisory assistance, HSSP3 is helping increase management capacity and the financial sustainability of the public health system. A key aspect to HSSP3 is funding linked to the achievement of performance benchmarks, which provides strong financial incentives for better health outcomes and health system management. In 2020, HSSP3's established budget support mechanism enabled Australia to quickly pivot support to the Government's efforts in COVID-19 preparedness and response activities, through existing and additional funding. This included the upgrade of the molecular laboratory, and procurement of equipment and consumables to enable in-country COVID-19 testing, and the transfer of COVID-19 grants to all provincial health services.
Related documents
Education Sector Support Program
Up to $64 million, 2020-2023
The Education Sector Support Program is a four-year $64 million ($41.5 million Australian contribution) initiative supporting the Solomon Islands Government to implement its Education Strategic Framework 2016-2030, and National Education Action Plan. The program is delivered in partnership with the Solomon Islands Government and jointly funded by the Governments of Australia and New Zealand. The Program's goal is to improve the quality of basic education which is accessible to all Solomon Islands children. Support is provided through direct budget support to the Ministry of Education and Human Resources Development, technical advisers and grants to NGOs. The program is also supporting the Ministry's Learning Continuity plan to provide learning material and improved water, sanitation, and hygiene facilities to schools across Solomon Islands during the COVID-19 pandemic.
Related documents
Strongim Bisnis – Phase 2
Up to $25.8 million, 2017-2022 (Stand-alone investment since 1 January 2020; $14 million for Phase I managed under the Solomon Islands Growth Program)
Strongim Bisnis works with the private sector and Solomon Islands Government to make a strong, positive and lasting impact through business growth. Tackling the nation's trade and investment challenges, Strongim Bisnis works to provide solutions for businesses and investors in the coconut, cocoa, tourism, horticulture, financial services, timber and waste management industries, while empowering women and youth.
Strongim Bisnis uses a market systems development approach to address poverty through inclusive economic growth, the first of its kind in Solomon Islands. It works with businesses and government to address market constraints for businesses and finds innovative approaches that focus on creation of business opportunities, ‘value-add' and diversification of supply chains and promotes systemic changes to markets so that more people benefit.
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
Up to $29.1m, 2009 – 2024 ($18.7 million contribution initially managed through Solomon Islands Growth Program)
The Tina River Hydropower Development Project (TRHDP) will build a 15 MW hydropower facility southeast of Honiara on the Tina River. It is Solomon Islands' first large-scale public-private partnership (PPP) and Australia's largest climate finance investment in the Pacific. The project aims to shift the energy landscape in Solomon Islands to a more reliable, accessible and affordable footprint, providing about 70 per cent of Honiara's electricity needs.
Tina Hydro Limited will build, own operate and maintain the hydropower facility for the first 30 years, before transferring ownership to the Solomon Islands Electricity Authority (SIEA). The construction phase is expected to take place during 2021–24, and peak construction is expected to provide approximately 350 job opportunities.
Several bilateral and multilateral partners support the project. Australia provided $10.4 million to support the project's preparation phase and has provided $18.7 million to support construction of the access road to the dam site and powerhouse, and to support the Tina River Project Office. The Australian Infrastructure Financing Facility for the Pacific (AIFFP) is also negotiating additional support for the TRHDP.
Solomon Islands Transport Sector-Based Approach – Phase 2
Up to $21m, 2016 – 2021
The second phase of the Solomon Islands Transport Sector-Based Approach supports the Solomon Islands Government to implement its transport infrastructure priorities under the National Transport Plan. With this investment, $12.5 million has been provided to the Government's National Transport Fund (NTF), along with technical assistance to support the Ministry of Infrastructure Development (MID) to manage NTF governance arrangements and strengthen financial management and procurement procedures.
Complementing this, Australia will provide $8.5 million to the Asian Development Bank for its Sustainable Transport Infrastructure Improvement Program (STIIP), which is delivering new and improved transport infrastructure projects around the country in partnership with MID and through the NTF.
Addressing Gender Equality
Through Pacific Women (2012-22) Australia has committed $34.8 million over ten years to advance gender equality and support women's empowerment in the Solomon Islands.
The Solomon Islands Gender Equality program ($4 million per annum) works with the government, international and local NGOs, and the private sector to improve the political, economic and social opportunities of Solomon Islands women and girls to end violence against women and girls. The program aims to reduce violence against women and girls and ensure:
- survivors of violence have access to support services and to justice
- women have expanded economic opportunities to earn an income and accumulate economic assets
- women, and women's interests are increasingly and effectively represented and visible through leadership at all levels of decision-making, and
- women have a stronger sense of their own agency, supported by a changing legal and social environment and through increased access to the services they need.
The program works in partnership with the Ministry of Women, Youth, Children and Family affairs to support institutional strengthening, it provides funding and support to targeted service providers and violence prevention activities including supporting the national rollout of the SAFENET Response and Referral Network. Over the next two years the program will continue to focus on eliminating violence against women and girls (EVAWG) and expand activities focused on women economic empowerment to address the impact of COVID-19 on women and increase support to women's organisations.
Consultations with the Solomon Islands Government on the next phase of Australian engagement will be undertaken in early 2022.
Related documents
Rural Development Program - Phase 2
Up to $32 million, 2007 ‑ 2022
The Rural Development Program (RDP) Phase 2 (2015-2021) is a joint program with the World Bank, Australia, the European Union, International Fund for Agricultural Development (IFAD) and the Solomon Islands Government.
The program is raising the living standards of rural households by improving rural infrastructure and services and helping the Ministry of Agriculture and Livestock to improve its support to farmers. Phase two provides small scale village infrastructure projects in every rural ward of Solomon Islands, supporting productive alliances between private sector and smallholder farmers, and stimulating agribusiness activity in rural areas.
The World Bank has recently undertaken a virtual scoping mission to initiate the design process for phase three of the RDP scheduled to commence in 2022. The next phase will seek to build on emerging commercial partnerships to strengthen rural industries and promote sustainable livelihoods.
Related documents
| Name of document | Year published |
| Evaluation of the Solomon Islands Rural Development Program | 2013 |
| Solomon Islands Rural Development Program – Project Performance Assessment Report [PDF] | 2016 |
| Project Completion Report Validation [PDF] | 2016 |
Solomon Islands Growth Program
Up to $50 million, 2016-2021 (included Strongim Bisnis Phase I and Tina River access road support)
The Solomon Islands Growth Program (SIGP) was established as Australia's flagship economic growth umbrella investment in 2016. SIGP's goal was to see increased private sector investment in a more inclusive economy. It focused on providing increased cash incomes for men and women and a more productive environment for the private sector. It undertook catalytic activities addressing economy-wide constraints to growth, promoting growth in selected sectors and influencing change in the business environment. It is due to conclude in mid-2021.
SIGP supported the Gizo Market Redevelopment, the Solomon Islands Chamber of Commerce and small-scale transport infrastructure. It was also used to support the first phase of the Strongim Bisnis project, which is now a standalone investment, and part of Australia's contribution to the Tina River Hydropower Development Project.
Related documents
| Name of document | Year published |
|---|---|
| SIGP Concept Note | 2015 |
| SIGP Design | 2017 |
| SIGP Mid-Term Review and management response | 2018 - 2019 |