Solomon Islands is moving ahead with a national broadband infrastructure project that will see Huawei build 161 cellular towers, “full funded” by a Chinese bank.
The government announced the recent signing of a contracting agreement with Huawei and China Harbour Engineering Company.
A “fully funded” concessional loan from the Exim Bank of China of around A$95.5 million will bank roll the project, at a one per cent interest rate.
“This proposal will be a historical financial partnership with the People’s Republic of China (PRC) since the two countries established diplomatic ties in 2019 as the two countries work closely to ensure the successful implementation and operation of the project,” the Solomon Islands government said in a statement.
“The independent review of the SINBIP showed that the project would generate sufficient revenues for Government to fully repay both the principle loan amount and interest costs within the loan period.”
A new company will be created “on behalf of the government” as the owner of the towers, with the government in talks with Solomon Telekom Company Limited as key operating partner.
The government hopes construction will commence in early 2023, with “the first 48 per cent” of the 161 towers operational before next November’s Pacific Games.
“This should enable people, especially in the rural areas, to enjoy the games even if they do not come to Honiara,” the government notes.
