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Australia has signed a AUD9.1million financing package with Solomon Islands Shipyard Limited to support the operations of the Sasape Shipyard in Tulagi, Solomon Islands. This includes a AUD7million loan through the Australian Infrastructure Financing Facility for the Pacific (AIFFP).

Rehabilitating Solomon Islands’ Sasape Shipyard Sasape Shipyard is operated by operated by Solomon Islands Shipyard Ltd.

Rehabilitating Solomon Islands’ Sasape Shipyard

Tulagi, Solomon Islands

Signed and Announced

Type:
Maritime
Investment:
AUD7.8 million

Delivery partners

Solomon Islands Shipyard Ltd, part of the Silentworld Group

The package will support the land acquisition and redevelopment of Sasape Shipyard, enabling it to service both domestic and international vessels. As the shipyard benefits from access to a natural deep-water anchorage, it will also be able to service larger and more complex vessels up to 500 tonnes.

There is a growing demand for vessel maintenance services in Solomon Islands, with an aging fleet and many commercial vessels which require regular slippage to ensure compliance with safety regulations.

Sasape Shipyard is one of two commercial shipyards in Solomon Islands, with limited quality shipping services in the Pacific. The upgrades to Sasape Shipyard will mean it has the potential to attract vessels from across the region.

AIFFP contribution

AUD7.8 million

 Amount
(AUD million)
Tenor
Loan$5.725 years
Bilateral Grant$2.1n/a

Impact

The Sasape Shipyard upgrades will improve maritime safety, support local jobs and increase demand for vessel maintenance services in Solomon Islands.

As a maritime nation, the Solomon Islands is dependent on shipping for the movement of people and for enabling supply chains and trade. As such, maritime safety is critical to the economic and social fabric of the country.

With COVID-19 impacting business operations and the shipyard’s ageing infrastructure unable to meet the servicing requirements of many vessels, the upgrades will help meet the growing demand for maintenance services in Solomon Islands and across the Pacific.

The finance package will ensure Sasape Shipyard is a sustainable operation that is key to the domestic maritime industry, providing quality slipping services including for larger and more complex vessels.

Restoring the shipyard will support local jobs. Sasape Shipyard is the largest private sector employer in Tulagi, employing a range of staff including administrators, boilermakers and fabricators.