Ministry of finance expects $200 million in development bonds for Pacific Games funding


THE Ministry of Finance and Treasury is anticipating the issuance of $200 million in development bonds, expected to be secured and processed within this month or early October.

This significant financial injection is intended to support the Solomon Islands Government in hosting the XVII Pacific Games, scheduled to take place in Honiara from November 19 to December 2, 2023.

Minister of Finance and Treasury, Harry Kuma, addressed the issue during a parliamentary session in response to inquiries from Leader of the Opposition, Mathew Wale on Monday.

Minister Kuma acknowledged the challenges faced in implementing the development budget due to constraints in borrowing, particularly related to domestic development bonds and development financing from international partners.

Kuma highlighted the ongoing efforts of the Ministry to collaborate with both domestic and international sources of funding.

He stated, “The Ministry has reiterated its commitment to working with development partners and domestic sources, particularly through development bonds, to ensure that the necessary financing is available for the successful delivery of the Pacific Games.”

The Ministry expects the issuance of more than $200 million in development bonds, with these funds anticipated to become available either this month or in early October.

Kuma further revealed that the Ministry is actively engaged with development partners to secure additional budget support, grants, and borrowings. Notable sources of potential support include:

The World Bank, expected to provide support in October.

The European Union, with anticipated support in September.

The People’s Republic of China and the Australia Department of Foreign Affairs (DFAT), expected to provide assistance either this month or in the following month.

In response to inquiries regarding potential bond purchasers, Minister Kuma disclosed that the Ministry expects the Solomon Islands National Provident Fund (SINPF) to contribute around $100 million. Efforts are underway to collaborate with the Central Bank of Solomon Islands (CBSI) to facilitate this transaction in the secondary market.

Additionally, discussions are ongoing with state-owned enterprises, including the Solomon Islands Ports Authority (SIPA) and Solomon Power, to explore their participation in acquiring additional bonds and financing.

The issuance of these development bonds and the collaborative efforts with domestic and international partners are aimed at ensuring the successful organization and execution of the XVII Pacific Games in Honiara, further cementing the Solomon Islands’ commitment to hosting this prestigious sporting event.

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