Govt turns to fisheries, mining to replace logging

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March 8, 2023

MoFT Permanent Secretary McKinnie Dentana. Photo by SBM

By EDDIE OSIFELO

SOLOMON Islands will depend on fisheries and mining to fill the gap left behind by the declining logging industry.

Logging is the major contributing revenue earner to the government coffers.

Ministry of Finance and Treasury permanent secretary, McKinnie Dentana told media last Friday that in previous years, they normally recorded two million cubic metres of round logs export.

However, he said now it has reduced below two million cubic metres.

As part of controlling the harvesting of logs, the government came up with a sustainable logging policy.

Dentana said under the policy, a ceiling of below 1.7 million cubic metres is allowed for export to allow for regeneration of the logs.

Apart from that, he said few sectors to fill the gap left by logging are fishery and mining.

He said the government is closely watching Gold Ridge mining as it is expected to commence full commercial production towards end of this year.

According to International Monetary Fund, the current account deficit of the Solomon Islands Government is projected to widen to 15.0 percent of Gross Domestic Product (GDP) in 2023 and remain around 9 percent of GDP over the medium term, reflecting the decline in log production, slowing potential growth of China, the main export destination, and high imports for infrastructure projects.

IFM says foreign reserves are forecast to decline further to 5.8 months of imports by 2027, although they would still be within the adequacy range at this lower level.

Overall, IFM says Solomon Islands economy is recovering from a series of shocks, supported by the reopening of the border and infrastructure spending ahead of the 2023 Pacific Games.

But the recovery has been fragile as Russia’s war in Ukraine has led to higher inflation and a worsening of the terms of trade.

Expenditures related to the Pacific Games and the general elections need to be well controlled to minimize the crowding out of other essential spending. Public investment projects should be phased in line with the economy’s absorptive capacity and accompanying financing arrangements need to be prudently negotiated.

Modernizing legal and regulatory frameworks and strengthening anti-corruption and auditing institutions remains critical for mitigating governance vulnerabilities and corruption risks.

SI to get $82m from ADB

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March 8, 2023

Solomon Islands stands to receive $82.6 million from the Asia Development Bank (ADB) – half as grant, the other half in loan.

This assistance is part of a USD $38 million (SBD 314 million) disaster financing package by ADB for four countries in the Pacific.

ADB announced this yesterday.

The Asian Development Bank (ADB) has approved USD$38 million (SBD 264.5 million) in contingent disaster financing to help Kiribati, Samoa, Solomon Islands, and Tonga respond to disasters triggered by natural hazards and health emergencies, ADB media statement said.

The support comes from the fourth phase of the Pacific Disaster Resilience Program and will provide Kiribati with an USD $8 million grant, Samoa with a USD $10 million grant, Solomon Islands with a USD $5 million (SBD 41.3 million) grant and a USD $5 million (SBD 41.3 million) loan, and Tonga a USD $10 million grant. All four countries have made strong progress on building the resilience of their institutions, which build on the previous phases of the program.

“The Pacific Disaster Resilience Program will provide the participating countries with quick disbursing, flexible budget support for urgent relief, and early recovery from disasters,” said ADB Director General for the Pacific Leah Gutierrez.

Kiribati, Samoa, Solomon Islands, and Tonga are highly vulnerable to the impacts of natural hazards and health emergencies. ADB’s support to the Pacific under previous phases of the program has helped strengthen policy, legislative, and institutional arrangements to manage climate and disaster risk, including health emergencies.

The programme fills a financing gap common in the Pacific during disasters, providing a predictable and quick-disbursing source of financing for early response and recovery activities.

The project is financed by a $5 million concessional loan from ADB’s ordinary capital resources and a $33 million grant from the Asian Development Fund (ADF). The ADF provides grants to ADB’s poorest and most vulnerable developing member countries.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

–ADB PRESS

WE’RE NOT BROKE!

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March 8, 2023

Permanent Secretary for Finance McKinnie Dentana.

Gov’t denies cashflow problem, says $200m in coffers

By EDDIE OSIFELO

MINISTRY of Finance and Treasury has denied any cash flow problem as there is still $200 million in the coffers.

Permanent Secretary, McKinnie Dentana clarified this during a media press conference last Friday.

This came after Ministry of Education and Human Resources permanent secretary, Dr Franco Rodie claimed government sponsored law students did not get their allowances between October and December due to lack of funds in the Finance ministry.

However, Dentana said the government has $200m cash at hand but blames the problem faced by the education ministry on ‘stress on the process’.

He said a lot of pressure came towards the end of the year including holidays.

“It is not a funding issue.

“It is a processing pressure in the ministry of finance, especially as far as our capacity is concerned.

“That is the main issue,” he said.

Dentana said, “for your information they move from 2022 to 2023 almost $200 million in cash.

“That’s why I am saying it’s not a financing issue but a processing stress,” he added.

Island Sun understands the Government still owes suppliers about $9m for their services provided to the government during the covid-19 pandemic.

IMF stresses importance of deeper engagement with SI

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March 7, 2023

IMF team leader Mr. Masafa Yabara (L) and IMF Resident Representative (based in Fiji) Neil Saker during the media conference yesterday at CBSI. — IMF team leader Mr. Masafa Yabara (L) and IMF Resident Representative (based in Fiji) Neil Saker.

BY NED GAGAHE

International Monetary Fund (IMF) has said that it will work closely with the Solomon Islands Government to further deepens its engagements in the country.

This was highlighted by IMF Resident Representative based in Fiji Mr. Neil Saker at a press conference recently following the IV 2023 consultation it held with various stakeholders in the country.

“I would just like to stress the importance of deeper engagement with the Solomon Islands. We IMF are focusing much on Fragile and conflict states and we know the history of Solomon Islands.

“So, we want to work with the government to tackle the sources of fragility and to ensure that living standards and level of development continuously rise in the coming years.

“To do that we set out a comprehensive strategy to help the Solomon Islands and this includes intensive surveillance not only from the headquarter but also at the regional head office based in Fiji which also covers the Solomon Islands.

“We also want to expand our capacity development and some of the key areas which includes tax reforms, public expenditure management, banking supervision and statistics so these are all important areas to make sure the future is sustainable.

“So, I just want to highlight that the IMF is also going to work closely with the development partners and with the government of Solomon Islands to try to ensure that growth becomes sustainable for the long term.” Mr. Saker said.

Govt to help HCC with waste management before Games

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March 7, 2023

By EDDIE OSIFELO

HONIARA City Council is expecting additional support from the National Government to build its capacity in waste management, before the Pacific Games in November, this year.

This after HCC has limited capacity to manage waste for the Games.

It was estimated an extra 60,000 of wastes will need to be collected during the two weeks of the Games and dump at the limited Ranadi landfill in East Honiara.

This will add to the 100,000 tonnes of wastes produced everyday Honiara.

Ministry of Home Affairs permanent secretary, Jeffrey Sade Deve told media last Friday for collection and disposal of waste during clean up and during the Games, HCC will utilise its current fleet up to full maximum.

He said for additional support, HCC is requesting additional waste management vehicles, compactor timber truck, skip bin trucks from the National Government.

Further to that, Sade said the HCC stakeholder – CAUSE project will also support with collection and disposal during the Games.

However, he said HCC recently purchased a bulldozer which is now working to deal with wastes at the landfill.

“And HCC will use additional equipment to push and handle waste during the Games,” he added.

In term of Going forward, Sade said HCC is also discussing with interested private waste sector entities to set recycling of green energy production at the Ranadi landfill.

HCC Clerk Justus Denni said despite lack of capacity, they are doing all their best to collect the wastes within Honiara and dump at Ranadi landfill.

“Hoping close to Games, we receive additional support from National Government or private sector entities to help build up capacity in waste collections,” he added.

Secretary to Prime Minister, Dr Jimmie Rodgers said they had few consultations with HCC and Prime Minister has committed National Government to work with HCC to address some of that.

32 buildings burnt during riots to be demolished

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March 7, 2023

261002640_4546194542125772_6762279084870846313_n — Part of the burnt-out China town from the recent riots. Photo supplied.

By EDDIE OSIFELO

ABOUT 32 buildings torched and destroyed during the riots in November 21 are recommended to be demolished immediately.

This came after assessments carried out by Ministry of Infrastructure Development, Development Architectural and building license services, National Disaster Management Office, Honiara City Council and Solomon Islands Fire Services last year.

This happened after HCC convened a meeting with Solomon Islands Chinese Association (SICA) in January 2022.

Ministry of Home Affairs permanent secretary, Jeffrey Sade Deve told media last Friday that in a follow up meeting with SICA, they focussed on the need to rebuild Chinatown.

However, he said it was delayed because some property owners are still waiting for financial supports from the National Government.

Further to that, Sade said some property owners have raised concern of another riot occurring during the National General Elections in April 2023.

As such, he said most of them have agreed to start rebuilding their properties after the elections.

Furthermore, Sade said some of them try to rebuild, so HCC has granted them approval in consistence with National Building Code and building ordinances.

Apart from that, Secretary to Prime Minister, Dr Jimmy Rodgers said from a Pacific Games perspective, they join HCC and speaking with SICA to flatten the structures if they are not going to rebuild.

He said this is to avoid ‘eyesore’ during the Games.

Rodgers said this will also include buildings left standing at King George Six in East Honiara.

Ministry of Finance and Treasury has confirmed the November riots has showed an estimated loss of $811 million in 2021.

It happened after protestors demanded Prime Minister Manasseh Sogavare to step down after his government switched diplomatic ties from Taiwan to China.

However, there were other mixed issues blamed for the riots as well like ‘economic inequality’ and ‘ethnic tension’.

1,000 SIG scholarships will be available for 2023: PS Rodie

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March 7, 2023

Permanent-Secretary-of-the-Ministry-of-Education-and-Human-Resource-Development-Dr-Franko-Rodie-900x450 — Permanent Secretary for MEHRD, Dr Franco Rodie.

BY NED GAGAHE

Permanent Secretary of the Ministry of Education and Human Resource Development Dr Franko Rodie has confirmed that the total number of Solomon Islands Government funded scholarships that will be made available in 2023 is 1000.

Dr Franko Rodie revealed this at the Prime Minister’s Office (PMO) weekly media conference last Friday.

Rodie said he was informed last week that 500 conditional awards have already been issued and work is currently in progress to issue the actual awards.

“In 2023 the number of scholarship available is 1000. From what I know from last week some 500 awards have been issued. So, what happen is after the selection was done those successful students or candidates were offered provisional awards, so the process has been completed, what they are doing now is to issue the actual awards, so as I speak that is what happening.” Rodie said.

On another note, Rodie said most universities that the government usually sent students have already commenced classes five weeks ago.

He said that he is aware that the delay has caused frustration amongst parents and students but he said that the process has really put the students and parents down.

Rodie confirmed during the conference that so far he doesn’t have any data on how many awards for SINU, how many for USP, FNU and other universities that we usually sent our students.

“But I think many of you are aware that most universities where the students supposed to go have already began lectures five weeks ago. And that is the issue. There has been delay and most parents and students are really frustrated.

“The process has put them dowm. That’s all I can give in terms of the awards. I do not have the data, how many awards for SINU, how many for USP, FNU and other universities that we usually sent our students.

Meanwhile, Rodie said the Chief Executive Officer (CEO) of Solomon Islands Tertiary Education and Skills Authority (SITESA) Constance Nasi was supposed to be here but she is not present to answer some of the questions.

IMF recommends gov’t to review CDF Act

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March 7, 2023

IMF — IFM’s Masafumi Yabara. Photo credit - SIBC Online.

BY NED GAGAHE

International Monetary Fund (IMF) has recommended that Solomon Islands Government commences review of the Constituency Development Fund.

This was highlighted by a team from IMF who have recently visited the country to conduct and presented a preliminary finding on the 2023 IV Consultation held with stakeholders in Solomon Islands last month.

Team leader of the group Masafumi Yabara was asked during a press conference if IMF have now concerned after repeatedly recommending the Solomon Islands government to review the Constituency Development Fund (CDF) Act.

“Yes, you are right we have been recommending the reform of the CDF in a couple of years.

“I see the government is aware of the issue.

“They are really trying to address the issue – the review of the CDF Act, so that establishment of regulation under the Act, so that we support their efforts and we hope it would materialize in the near future.” Mr Yabara said.

Meanwhile, Yabara also said that the trade structure in Solomon Islands is also changing because China has become the dominant trader partner in the last decades.

Yabara said because of that Solomon Islands needs to review the exchange rate basket for which Solomon Islands dollars is pegged with other trading currencies.

“So that is the part of the reason why we recommend the review of the exchange rate. We need to see to what extent the current basket reflects the trade structure.

“We are recommending the review of the basket to confirm that the composition in in line with the trade structure. For now, we are not recommending changing the basket.

HCC EYES BUS SERVICE

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Mavis Podokolo

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March 7, 2023

crowded-bus-stop-at-the-Honiara-Central-Market-under-no-roof-while-waiting-for-King-George-VI-and-Naha-destination—Photo-by-Daniel-Kakadi — Crowded busstop at the Honiara Central Market.

Bus drivers/owners continue to ignore regulations, Council considers takeover

BY MAVIS N PODOKOLO

WITH the long standing issue of short bus route in Honiara the Honiara City Council (HCC) is seriously looking at operating bus services ‘in partnership with some private sectors’.

City Clerk for Honiara City Council Justus Deni confirmed this in a press conference held in Honiara last week.

“We HCC actually launched our programme to crack down on short bus routes.

“This programme worked for the first day but with some mentality issues and attitude problem that people have this programme did not serve its purpose.

“It was noticed that after first few days the issue of short bus route still stands.

“But going forward we are seriously looking at Council running bus services in partnership with some private sector, we have a committee working on that at the moment to develop our policies and ordinances,” Deni said.

Attorney General John Junior Muria adds, this issue of short bus route is related to the Pacific Games 2023 especially how to deal with logistics.

Muria said, “as per Prime Minister Manasseh Sogavare’s statement during the launch of the Safe and Green games, this week a meeting with stakeholders will be held to discuss on how to address certain issues like the short bus route.

“We will be working on an ordinance that if buses did not adhere to what HCC says, HCC has the power to immediately de-register them and they will be unable to operate because their license will be taken away as well, so, the committee will discuss around this particular issue,” he said.

Secretary to Prime Minister Jimmy Rodgers further stressed that there will be harsh penalties made because it is the only way to change mentalities.

Meanwhile, according to HCC media statement measures to crack down short bus route were outlined and effective as of Monday, January 23 but the measures were not observed and adhered to.

New NRH building work given greenlight by disputing parties

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March 6, 2023