Additional SBD$180-million grant and loan financing agreement to build a 22 kilometers transmission system for the Tina River Hydro Project signed
The signing of the projects financing agreement by the government and Australian High Commission
The Solomon Islands and Australian governments have signed an additional 180-million Solomon dollars grant and loan financing agreement to build a 22 kilometers transmission system for the Tina River Hydro Project in Honiara yesterday.
The support was funded under the Australian Infrastructure Financing Facility for the Pacific which consists of a base grant, a contingency grant, and a concessional loan.
Speaking during the signing ceremony, Prime Minister Manasseh Sogavare says, the fund will assist the government to finance the project’s transmission system.
“The funds that will be made available in today’s signing will assist the Solomon Islands government to finance the Tina River transmission system which will which will ensure the transmission line provided between the hydropower station and the power distribution center that will distribute power to users.”
Solomon Power Chief Executive Officer Donald Kiriau explains the transmission component of the project.
“This is component three of the Tina River Hydro Power Project. The construction of the transmission line from Tina to Lunga Power station.”
Meanwhile, Australian High Commissioner to the Solomon Islands, Dr. Lachlan Strahan said, “The agreement brings with it a partnership between Solomon Power and the AIFFP that will see reliable, sustainable renewable energy delivered to the people of Honiara for many years to come”.
The Tina River Hydropower Project is Australia’s largest-ever climate finance investment in the Pacific. The AIFFP financing package brings Australia’s investment in the project to more than SBD360 million since 2009. The package consists of a concessional loan of SBD84.8 million and a grant of up to SBD96.8 million.
by Gina Maka’a