World

RM294 mil Chinese loan to Solomon Islands raises US suspicion

Funds to enable Huawei build 161 telecommunications towers across Pacific nation

Updated 4 years ago · Published on 19 Aug 2022 1:00PM

RM294 mil Chinese loan to Solomon Islands raises US suspicion
Huawei is tasked with building 161 telecommunications towers across the Solomon Islands after the Pacific nation secures a RM294 million loan from China.– @raetlomi Twitter pic, August 19, 2022

SYDNEY – Solomon Islands said yesterday that it had secured a US$66 million (RM294 million) loan from China to fund tech giant Huawei to build 161 telecommunications towers across the Pacific nation.

The deal marks the first financing the islands country has received from Beijing since it signed a secretive security pact in April, following the severing of diplomatic links to Taiwan.

The Solomons’ government said the deal was a “historical financial partnership” that comes after it restored ties with Beijing in 2019.

But the Solomons’ growing financial and security links to China have roused concern from the United States and its allies.

Western officials said China could use the security pact to build a military base in the country – something the Pacific nation’s prime minister, Manasseh Sogavare, has repeatedly denied.

Under the terms of the deal, the Solomons will receive a 20-year concessional loan from state-linked Export-Import Bank of China that will fully fund Huawei’s construction of the towers, the government said.

Almost half of the towers would be built before the country hosts the Pacific Island Games in November 2023, according to the government’s statement.

The towers would allow Solomon Islanders, especially those in rural areas, to be able to watch the games even if they are not able to come to the capital, Honiara, the government said.

Earlier this month, Sogavare proposed changing the country’s constitution to delay national elections until after the games, saying the country could not afford both events.

Sogavare’s comments were slammed as a “lame excuse” by opposition leader Matthew Wale, who told The Guardian that any delay to the polls would amount to “an abuse of the people’s right to exercise their vote.”

The next election – due to be held before September 2023 – will be the country’s first since widespread rioting by anti-Sogavare protests broke out in Honiara last year.

It would also be the first poll since Sogavare signed the security pact with Beijing which – according to a leaked draft – allow Chinese security forces to be called in to quell unrest.

If the push to delay elections is successful, Solomon Islands would not go to the polls until 2024 at the earliest. – AFP, August 19, 2022

Related News

Malaysia / 2d

Eligibility for PTPTN repayment deferment to be verified with LHDN

Malaysia / 1w

MOHE: 1.16 million PTPTN borrowers owe RM10.7b in outstanding repayments

Opinion / 1w

Two major issues Malaysia must solve: Food import dependence and population decline

Malaysia / 2w

PM Anwar loses beloved elder brother; Idrus Ibrahim passes away

Malaysia / 2w

Anwar asks Loke to reconsider resignation over Najib pardon

Opinion / 1mth

Foreign influence, covert activities within Malaysian politics and society

Spotlight

Malaysia

Haze: Schools in Johor, Melaka, and Negeri Sembilan to close tomorrow

Malaysia

Tun Mahathir’s health improves, but not ready to leave hospital

Malaysia

LPT3 row puts Kelantan’s infrastructure priorities under scrutiny

Malaysia

Terengganu royal family member sues two banks over RM1.99m missing from savings

Malaysia

Irene Sofiya murder probe referred to Johor prosecutors for review

Malaysia

Teacher denies negligence charges over fatal school SUV crash in Kota Bharu

Malaysia

Sulaiman Md Ali opts out of Melaka polls, will not defend Lendu

You may be interested

World

Malaysia seeks China’s satellite technology to improve flood warnings, combat cross-border crime

World

IMF warns AI sell-off; Soaring bond yields could trigger global market turmoil

World

North Korea test-fires tactical ballistic missile amid rising regional tensions

World

Five Malaysians held in Tokyo over RM3.1m cocaine haul hidden in shoes

World

Indonesia rules out national disaster status for forest fires despite regional haze

World

Fresh magnitude-6 earthquake strikes Panama after deadly tremor

World

Iran says US response on Hormuz Strait reopening proposal falls short