Australia injects AUD $227 million into Solomon Islands budget for 2024-2025

Date:

BY SAMIE WAIKORI

The Australian Government has provided AUD $227 million to support the Solomon Islands Government’s priorities from July 2024 to June 2025.

The funding is being channelled through Solomon Islands government systems to ensure alignment with the country’s development objectives. The funds are distributed as follows:

  • AUD $22 million for general budget support
  • AUD $19 million to the Ministry of Education, Human Resource Development (MEHRD) to support provincial classroom upgrades
  • AUD $17 million to the Ministry of Health and Medical Services (MHMS)
  • AUD $152 million for infrastructure development

The announcement was made by Australia’s Acting High Commissioner to Solomon Islands, His Excellency Andrew Schloeffel, who addressed the Public Accounts Committee (PAC) last week.

Schloeffel reiterated Australia’s strong commitment to supporting the development of the Solomon Islands.

In his remarks, Schloeffel explained that Australia’s assistance program is a mix of on-system and off-system support, designed in close consultation with the Solomon Islands government.

He said on-system support flows directly through the government’s financial systems, ensuring transparency and alignment with national priorities.

However, Schloeffel added some projects are managed off-system due to their complexity or because the Solomon Islands government has requested Australia to directly oversee the project’s delivery.

A key example of off-system support, Schloeffel noted, is the AUD $250 million Naha Urban and Birthing Health Centre, which is being constructed by Australia.

He said given the scale and complexity of the project, it was agreed with the Ministry of Health and the Ministry of Infrastructure and Development (MID) that Australia would take the lead in managing the project for greater efficiency.

“These examples illustrate how we balance locally-led development with on-system support,” Schloeffel said.

Schloeffel further highlighted the off-system programs that provide broader benefits. One notable initiative is the National Transport Fund, which supports infrastructure development over the past years.

In addition, he also said Australia has funded technical advisors who work directly with various ministries to strengthen Solomon Islands’ institutional capacity.

In particular, Schloeffel pointed to the Ministry of Finance and Treasury, where Australian advisors are working on revenue collection, public financial management, budget development, and other key tasks.

“A good example of this is our work in the Ministry of Finance, where we have experts supporting vital functions that strengthen the country’s financial systems,” Schloeffel explained.

In the meantime, the Acting High Commissioner also stressed Australia’s close partnership with the Ministry of National Planning and Aid Coordination, emphasized that all support—whether on-system or off-system would be captured in the Solomon Islands government’s budget documents, ensuring full transparency and accountability.

Photo: Supplied

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