Solomon Islands is set to move ahead with a national broadband infrastructure project that will deploy up to 161 cellular towers using equipment from Huawei.
The government yesterday announced the “recent signing” of agreements with equipment vendor Huawei and contractor China Harbour Engineering Company (CHEC).
The project, called SINBIP, will be “fully funded” with a concessional loan from the Exim Bank of China of approximately CNY448.9 million, which equates to around A$95.5 million.
“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 government said that an “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.”
It is intended that a new company is set up “on behalf of the government” as the owner of the infrastructure.
The network will need to interconnect with the existing core of Solomon Telekom Company Limited (STCL). A memorandum of understanding (MoU) for that to occur is still forthcoming.
The Islands’ government is hoping to finalise outstanding agreements so it can commence construction of the network in 2023.
It wants to have 48 percent of the network in place by the time it is due to hsot the Pacific Games in November 2023.
“This should enable people, especially in the rural areas, to enjoy the games even if they do not come to Honiara,” it said.
The ABC reported that it had obtained a report that cast doubt on the project’s financials.
Australia has previously intervened to fund telecommunications infrastructure in the Solomon Islands to keep Huawei out.
