A funding Agreement and Arrangement of Thirty One Million Six Hundred Thousand US dollars (US$31,600,000.00) for the Tina Hydro project was signed by senior officials of the Governments of Solomon Islands and the Republic of Korea in Port Moresby last week.
The signing of both documents will now enable the Solomon Islands Government to access a loan from the Government of the Republic of Korea through its Economic Development Cooperation Fund (EDCF) with a repayment period of forty (40) years, including a grace period of fifteen (15) years. The loan will be disbursed by the Export – Import Bank of the Republic of Korea.
The Solomon Islands Government through the powers of the attorney signed by the Solomon Islands Minister for Finance and Treasury, Hon. Harry Kuma has enabled the Solomon Islands High Commissioner to Papua New Guinea, H.E Mr. Barnabas Anga to sign the documents.
H.E. Barnabas Anga on behalf of the Solomon Islands Government and the Ambassador for the Republic of Korea (ROK) to Papua New Guinea, H.E. Kymgu Kang on behalf of the Government of the Republic of Korea, have both recognized and appreciated the progress and developments so far in relation to the Tina Hydro Project.
The signing also marks a transformative piece of historical infrastructure for Solomon Islands, after the many challenges faced by the Government of Solomon Islands and its partners in the initial stages of the Project.
The Project is said to take up at least a quarter of Solomon Island’s history in its process. At this phase, it is envisaged that the Project will certainly reduce electricity tariff, enlighten households and reduce the costs of doing business in Solomon Islands.
The signing, also re-affirms the commitments by previous governments and the current government towards the completion of this Project.
This is indeed, a step forward in the right direction, as this is the first of such Agreement and Arrangement for infrastructure financing for electricity development in the Solomon Islands by both Governments.
H.E. Anga acknowledged the contributions by other partners in this Project for their respective contributions, and on this occasion, the partnership with the Government of the Republic of Korea and support over the past years.
Similarly, H.E. Kang agreed that development of the Tina Hydro Project will certainly cause a greater effect towards social, economic and cultural advantages to Solomon Islands. The Ambassador further stated that such development has shown a greater cooperation between both countries, and will stay committed towards the completion of the Project.