Solomon Islands Government (SIG) last week signed a US$5 million (SBD$40m) contingent disaster financing grant under the third phase of the Pacific Disaster Resilience Program.
The grant agreement was signed on Friday, 11th December between the Minister of Finance and Treasury Harry Kuma and an Asian Development Bank (ADB) representative in Honiara.
A statement from ADB explained the program will support policy actions to strengthen disaster resilience and provide contingent disaster financing for emergency response and recovery.
Ministry of Finance in a statement said, the total grant of USD$5 million or approximately SBD$40 million was approved by the ADB Board on 24th November 2020, towards Solomon Islands commitments and response to any natural disaster.
“The support will be disbursed directly to the Solomon Islands Government whenever there is a new state of emergency declared due to natural disaster like a tropical cyclone, flooding, tsunami, etc.
“The funds can also be disbursed and used by the Government on related expenses in response to a health crisis, include when the COVID-19 is spreading into our communities,” the statement said.
The Permanent Secretary (PS) of the Ministry of Finance and Treasury McKinnie Dentana confirmed that as part of the Government’s prudent fiscal and economic management, through the Ministry of Finance and Treasury, additional external resources were sought to ensure that the country is ready at all fronts as far as government’s resources are a concern, in order to keep the country and our people safe.
“Especially, now that we are moving into the cyclone season as well as we expect more locals and foreigners repatriated from very high-risk COVID-19 infected countries, its is important that Government finance is secured and stable,” Mr. Dentana pointed out.
Furthermore, the PS also revealed that he will lead a Solomon Islands Government delegation with the Permanent Secretary of the Ministry of Health and Medical Services Pauline McNeil to a loan and grant negotiation with the World Bank Group for concessional financing up to US$5 million for further Covid-19 emergency financing.
The permanent secretary also confirmed that part of this financing will be used for the COVID-19 vaccination roll-out and implementation plan in 2021.
“This is how we prepare the country financially during the time of crisis,” PS Dentana stressed.
By MOFFAT MAMU
Newsroom, Honiara
