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An AIFFP loan and grant package is connecting a hydropower site at Tina River to the electricity grid in Honiara, supporting Solomon Islands Government’s efforts to improve the affordability and reliability of power for communities.

Connecting Solomon Islands’ capital to electricity via transmission line Tina River is located southeast of Honiara, Solomon Islands’ capital.

Connecting Solomon Islands’ capital to electricity via transmission line

Tina River, Solomon Islands

Approved

Type:
Energy
Investment:
AUD32.4 million

Delivery partners

Solomon Islands Government
Solomon Islands Electricity Authority

We’re proud to work with Solomon Island Electricity Authority to support the construction of a 22-kilometre transmission line connecting the Tina River hydropower site to the electricity grid in Honiara, the Solomon Islands capital.

The system will provide cheaper and more reliable electricity for residential, government and commercial customers, reducing the country’s exposure to volatile global fuel prices. It will also support Solomon Islands to reach its greenhouse gas emissions target under the Paris Agreement.

Cheaper and more reliable electricity

22-kilometre transmission line

The broader hydropower project is the largest renewable energy initiative in the country, and Australia’s largest climate finance investment in the Pacific. It is also the Solomon Islands Government’s first large scale public-private partnership.

To ensure women and girls’ needs are met, implementation of the transmission line includes construction-related pre-employment and business opportunity training with project communities, facilitated by the Solomon Islands Small Business Enterprise Centre.

Our financing package includes a loan of AUD15.1 million and a grant of AUD17.3 million to Solomon Island Electricity Authority.

AIFFP contribution

AUD32.4 million

  Amount (AUD million) Amount (USD million) Fixed interest rate Tenor
Loan $15.1 $10.6 3.05% 24 years
Grant $17.3 $12.1 n/a n/a

*Exchange rate: AUD/0.70USD

Impact

The project will alleviate pressure on household incomes and provide opportunities for improved government services, private sector development and entrepreneurship.

It will promote both economic and social benefits for Solomon Islands, including through construction activity which will provide jobs for local firms and workers. This will also contribute to the post-COVID-19 recovery phase in Solomon Islands.

Latest updates:

  • In 2022/23, AIFFP supported the project parties in attaining financier clearances of the Tina River Hydropower (TRHP) Construction Environmental and Social Management Plans.
  • Construction of the access road commenced in Q3 2023 and dam and powerhouse construction is expected to commence in 2024.
  • Solomon Islands Electricity Authority has commenced the process to procure a civil and construction works contractor for the project.