The Australian Infrastructure Financing Facility for the Pacific (AIFFP) is partnering with the Solomon Islands Electricity Authority (SIEA) to develop a transmission system.
The system includes a 22km transmission line to connect the Tina River hydropower site to the electricity grid in Honiara by the end of 2023.
Australia has been a long-standing partner with Solomon Islands in the development and implementation of this project. In addition to AIFFP financing for the transmission system, Australia has contributed AUD32.4 million to the Tina River Hydropower Development Project in recognition of the positive economic and environmental benefits this project will bring to Solomon Islands.
The Tina Hydropower Development Project, which will be constructed approximately 20km southeast of Honiara, will be the Solomon Islands Government’s first large scale public-private partnership. It is the largest renewable energy project in the country, and Australia’s largest climate finance investment in the Pacific. The project will help Solomon Islands to transition away from diesel-powered energy, strengthening energy security and reducing the country’s exposure to the volatile global fuel prices. The project will also support Solomon Islands to reach its greenhouse gas emissions target under the Paris Agreement.
|Amount (AUD million)||Amount (USD million)||Fixed interest rate||Tenor|
*Exchange rate: AUD/0.70USD
Solomon Islands Electricity Authority
The project, including the transmission system, will reduce the cost and improve the reliability of electricity in Honiara for both residential, government and commercial customers. This 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, and provide economic stimulus through new construction activity, which will rely on local firm inputs and local labour, therefore contributing to the post-COVID-19 recovery phase in Solomon Islands.