On July 24, the Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the Government of the Solomon Islands in Tokyo for a “Development Policy Loan for Strengthening Fiscal and Economic Resilience.” The signing ceremony took place in the presence of Solomon Islands Prime Minister Matthew Cooper Wale and was conducted between Ricky Nelson Houenipuela, Minister of Foreign Affairs and Trade, and Akihiko Tanaka, President of JICA.
Scenes from the signing ceremony
In the Solomon Islands, in addition to growing fiscal deficits and debt, preparedness for natural disasters such as earthquakes and cyclones remains a challenge. Through this project, Japan’s financial support will help secure tax revenue, promote transparent fiscal management, and foster an investment-friendly environment, thereby contributing to the development of a nation resilient to disasters and economic fluctuations. Furthermore, as Japan’s first project to introduce the CRDC (Climate-Resilient Debt Clause)—a mechanism that allows for the deferral of principal and interest payments for a certain period following a major disaster—it will also play a role in supporting post-disaster recovery and reconstruction.
The business overview is as follows.
Development Policy Loans to Strengthen Fiscal and Economic Resilience
Development Policy Loan to Strengthen Fiscal and Economic Resilience
・Country (Target Region)
Solomon Islands
・Business Objectives
The objective of this project in Solomon Islands is to promote the strengthening of domestic resource mobilization, enhance the transparency and oversight of public financial management, strengthen governance, and advance policy reforms related to economic growth, thereby strengthening the country’s fiscal and economic resilience and contributing to the achievement of self-sustaining and sustainable economic growth and the promotion of development.
・Business Activities
This project provides financial assistance to the Government of Solomon Islands to promote policy reforms aimed at strengthening domestic resource mobilization, enhancing the transparency and oversight of public financial management, strengthening governance, and promoting economic growth.
・Loan Amount (Maximum)
3 billion yen (total project cost: 6 billion yen)
The total project cost includes not only the planned loan amount from JICA but also the planned assistance amounts from other JPRG members—namely, the Asian Development Bank (ADB), the Australian government, and the New Zealand government—which are scheduled to provide support in fiscal year 2026.
・Interest Rates
2.35%
・Redemption Period
30 years (including a 10-year grace period)
・Procurement Terms
Untied
・Implementing Agency
Ministry of Finance of Solomon Islands
・ Contributing to the Achievement of the SDGs
Goal 8 (Decent Work and Economic Growth)
Goal 9 (Build the Foundations for Industry and Innovation)
Goal 10 (End Inequality Among People and Nations)
Goal 13 (Take concrete action on climate change)
Goal 16 (Peace and Justice for All)
・Schedule for Future Project Implementation (Tentative)
1. Project completion date: November 2026 (the project will be considered complete upon completion of the loan)
2. Scheduled timing for sending invitations to bid for consulting services (detailed design, etc.): No consulting services are planned for this project.
3. Announcement of the first package for international competitive bidding for the main construction work: No construction work involving competitive bidding is planned for this project.
© Source JICA