Solomon Islands and ADB

ADB supports Solomon Islands’ efforts to stimulate its economy with a focus on energy, urban development, transport, public sector management, and social infrastructure.

ADB's Work in Solomon Islands

ADB is aligning its support with the Solomon Islands National Development Strategy 2016–2035 (NDS), which focuses on improving the social and economic well-being of all Solomon Islanders through economic growth and improved service delivery.

Sustainable economic development is recognized in the NDS and ADB’s Pacific Approach, 2021–2025 as a core priority to maintain and deliver effective services and reduce poverty.

As of 31 December 2023, ADB has committed 126 public sector loans, grants, and technical assistance totaling $481 million to Solomon Islands. ADB’s current sovereign portfolio in Solomon Islands includes 6 loans and 9 grants worth $202.8 million.

Cumulative sovereign loan and grant disbursements to Solomon Islands amount to $261.01 million. These were financed by concessional ordinary capital resources, the Asian Development Fund, and other special funds.

In 2023, ADB committed $45.7 million for an education improvement project that promotes strong gender equity and enhanced climate and disaster resilience in senior secondary school facilities through curriculum reforms and improved learning equipment. ADB also committed a total of $10 million in loan and grant for phase 4 of the Pacific Disaster Resilience Program to help improve the country’s preparedness for disasters triggered by health emergencies or natural hazards.

In 2022, ADB committed $3 million to support Solomon Islands in achieving a high level of readiness for a sustainable solid waste management project in Honiara.

In 2021, ADB committed: a $5.5-million grant from the Asian Development Fund for domestic resource mobilization; additional financing of $5 million from the Global Environmental Facility’s Least Developed Countries Fund for an ongoing urban water supply and sanitation project; and a multitranche financing facility of approximately $150 million for a land and maritime connectivity project. The $6-million Transport Sector Project Development Facility prepared the land and maritime connectivity project.

In 2019, ADB committed a $12-million grant and $18 million in concessional financing to support the implementation of the Tina River Hydropower Project to supply electricity generated from renewable sources to Honiara.

A $7.91-million grant for solar power development is supporting the implementation of grid-connected solar power plants. It will increase the supply of clean electricity, reducing the need for costly shipments of diesel to provincial centers.

A higher education investment program in the Pacific is supporting the expansion of the University of South Pacific campus in the Solomon Islands. The program is also helping to enhance technology-based distance learning programs.

In October 2023, ADB introduced more favorable concessional lending terms for small island developing states, including Solomon Islands, to meet infrastructure needs, strengthen social services, scale up climate action and disaster risk reduction, and assist in minimizing future debt-servicing obligations.

Photo: Asian Development Bank
Children play in a beach on the outskirts of Honiara, Solomon Islands, June 2015. Photo: Luis Ascui/ADB
 

Operational challenges. ADB recognizes Solomon Islands as a small island developing state in a fragile and conflict-affected situation. The country is remote, geographically dispersed, and located in the Pacific Ring of Fire and cyclone zone, making it vulnerable to disasters triggered by natural hazards and extreme weather events. Solomon Islands’ low-income status also makes it vulnerable to commodity price volatility and exogenous economic shocks. Large portions of the population live far from major markets with transport infrastructure and services that are weak, irregular, and expensive.

Knowledge Work

ADB brings added value to its members beyond its role in project financing. ADB acts as a knowledge broker by helping its members engage in regional issues, including climate change and ocean health. ADB’s key flagship publications, such as the Asian Development Outlook and Pacific Economic Monitor, help with macroeconomic forecasting and assess economic and key topical issues to guide national policy development and decision-making.

With knowledge support and activities being demand-driven, ADB works closely with Solomon Islands in identifying and responding to both country and regional knowledge needs. In 2023, the ADB-supported Pacific Private Sector Development Initiative published Finding Balance 2023: Benchmarking Performance and Building Climate Resilience in Pacific State-Owned Enterprises and Invisible Hands: Enabling Pacific Women in the Informal Economy. The ADB-supported Pacific Region Infrastructure Facility published two aviation studies entitled Airline Options for Pacific Aviation Sustainability and Scoping Study for a Pacific Aviation Regional Hub, as well as guidance on Improving National Building Codes and Standards in the Pacific.

 

Shareholding and Voting Power

Number of Shares Held
708 (0.007% of total shares)

Votes
39,822 (0.299% of total membership, 0.46% of total regional membership)

*Overall capital subscription
$9.5 million

*Paid-in capital subscription
$470,000

*United States dollar figures are valued at rate as of 31 December 2023.


ADB Governor: Harry Degruit Kuma
ADB Alternate Governor: McKinnie Dentana
ADB Director: Rachel Thompson (Australia)
ADB Alternate Director: Lisa Wright (Australia)
ADB Director’s Advisor: Sweety Kalbesang (Palau) and Sabuhi Jafarov (Azerbaijan)

Financing Partnerships

Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in Solomon Islands:

  • Sovereign cofinancing: $457.39 million for 17 investment projects and $9.2 million for 13 technical assistance projects since 1983

In 2023, Solomon Islands received a $700,000 grant cofinancing from the Ireland Trust Fund for Building Climate Change and Disaster Resilience in Small Island Developing States for the Senior Secondary Education Improvement Project.

 

Future Directions

ADB’s Pacific Approach, 2021–2025 serves as the country partnership strategy for Solomon Islands and focuses on building resilience against economic shocks, delivering sustainable services, and promoting inclusive and sustainable growth. This approach remains aligned with the government’s strategic focus on increased infrastructure development, prudent financial management, affordable energy, and strengthened essential health and education services.

Investments in road and maritime infrastructure will enhance connectivity and spur economic activity. Planned interventions in sustainable solid waste management will increase the quality of life in the country. Support to improve public financial management practices will contribute to economic recovery and enhanced productivity. Energy reform and investments in renewable energy will deliver cheaper, more reliable, and cleaner power. Investments in social infrastructure will enhance health services in the rural areas.

This article was originally published in the ADB and Solomon Islands: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

Last updated: 2 May 2024

Contacts

Pacific Liaison Coordination Office
Established: 2005
Regional Director: Shane Rosenthal
45 Clarence St, Level 20
Sydney 2000, NSW, Australia
Tel: +61 2 8270 9444
Fax: +61 2 8270 9445
E-mail
www.adb.org/offices/pacific/main

Solomon Islands Pacific Country Office
Established: 2018
Level 1, Heritage Park Commercial Building
Mendana Avenue, Honiara, Solomon Islands
Tel: +677 23333
www.adb.org/solomon-islands
@ADB_Pacific
adbpacific

Ministry of Finance and Treasury
P.O Box 26, Honiara
Tel: +677 21058 / 21074
Fax: +677 27855

Spotlight on Solomon Islands

Tourism-Driven Economies in the Pacific to Feel Brunt of COVID-19 Pandemic — ADB

News Release

Tourism-Driven Economies in the Pacific to Feel Brunt of COVID-19 Pandemic — ADB

The economies of the Cook Islands, Fiji, Palau, Samoa, and Vanuatu are the Pacific countries likely to feel the brunt of the COVID-19 pandemic, according to a new report by ADB released today.

Reconnecting Solomon Islands After the Cyclone Ita Floods

Project Result / Case Study

Reconnecting Solomon Islands After the Cyclone Ita Floods

ADB’s Transport Sector Flood Recovery Project helped reinstate bridge approach roads, culverts, and stream crossings and rebuilt three elevated bridges, reestablishing a seamless east–west road link on Guadalcanal and within Honiara. All works incorporated climate- and disaster-proof design.

Pacific Energy Update 2019

Institutional Document

Pacific Energy Update 2019

This document highlights how ADB technical assistance and energy sector projects are helping to build resilient, low-carbon economies, while increasing access to clean, reliable power in the Pacific.

Asian Development Bank and Solomon Islands: Fact Sheet

Publication

Asian Development Bank and Solomon Islands: Fact Sheet

ADB works closely with the Government of Solomon Islands on development strategy, transport infrastructure, private sector development, promotion of renewable energy sources, and public finance management reforms and macroeconomics.