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Development assistance in Solomon Islands

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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 $22 million package of direct budget support in 2022. This complements earlier budget support to Solomon Islands from 2019 – 2021 to help address Solomon Islands fiscal position and maintain critical social services.

Related initiatives

Strongim Bisnis – Phase 2

Up to $32 million, 2017-2023 (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

$60 million, 2009 – 2024 (total Australian contribution)

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 providing additional financing for the transmission system.

Solomon Islands Infrastructure Program (SIIP)

Up to $250 million, 2021 – 2030

The SIIP is a 10-year initiative whose primary objective is to deliver inclusive, resilient, high quality economic infrastructure throughout the country. Current activities include

  • Supporting the Government to roll-out a National Building Code,
  • Supporting the establishment of a National Infrastructure Development Authority,
  • 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.  

The 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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