World Bank Assistance Will Boost Solomons Islands’ Public Financial Management, Private Sector Development, and Support Climate Resilience
WASHINGTON –The World Bank’s Board of Executive Directors approved a US$20 million grant to support the Government of Solomon Islands in improving financial management, strengthen the business environment, and improve emergency preparedness.
The First Solomon Islands Resilience Development Policy Operation with a Catastrophe Drawdown Option will support the Solomon Islands government to increase tax revenue through the government’s Value Added Tax Bill and the introduction of a new nickel royalty based on the value of the metal contained in export shipments. World Bank support is also directed at enhancing public investment management. The goal of the reforms is to increase government revenue, drive economic growth, and deliver better services for Solomon Islands citizens.
World Bank support includes a Catastrophe Drawdown Option of US$5 million that can be accessed by the government for immediate use in response to emergencies such as tropical cyclones, earthquakes, tsunamis, or other disasters.
“This assistance is the first in a series of planned support to drive important economic reforms in Solomon Islands, and we are confident of the positive impact it will have on public services, on the business environment, and disaster preparedness,” said World Bank Resident Representative for Solomon Islands Annette Leith.
To improve the business environment in Solomon Islands, the grant will support steps including reducing energy costs and diversifying the energy mix, increasing access to finance through improved credit information systems, and actions to stimulate foreign investment. These reforms are aligned with the government’s policy of creating more and better opportunities for businesses in the country.
To enhance readiness to cope with climate impacts and natural disasters, the assistance will support updating climate change policies and establishing the legal framework to make buildings stronger so they can withstand extreme weather and climate impacts.