IT has emerged that the proposed extension of the Honiara International Airport, formerly Henderson International Airport, could be built for half the price if the project is put on public tender.
The proposed project would see an additional 800 metres to the airport runway, according to sources familiar with the project. The Government is actively engaged in talks with the Chinese Government for the USD60 million (SBD480 million) loan.
Critics told Solomon Star the extension of the runway could cost only about half, if the project is put on public tender. Three Chinese State-Owned Enterprises – China Railway, China Harbour and China Civil Engineering Construction Corporation (CCECC) – are believed to be vying for the project.
Unlike the other two, CCECC is a large state-owned enterprise with a global presence in infrastructure development. In Honiara, CCECC is known for its involvement in projects like the National Stadium for the 2023 Pacific Games and the Munda Airport terminal. They are also working on the Auki Road upgrade, emphasizing local job creation.
It is understood the Chinese government has agreed in principle to release the loan, but the decision remains with the GNUT government.
Under the plan, the runways would be extended by 800 metres to accommodate larger passenger and cargo planes such as the Boeing 767 aircraft or bigger, the sources said.
It is also understood China was approached about the loan and, according to the sources, it has agreed in principle to provide the facility. At the same time, Beijing is believed to have raised concerns about the size of the loan, the ability of the government to service it and the implications on the economy.
Of particular concern is whether extending the runway is a priority at this point in time of Solomon Islands development.
“This is a huge loan even if it is a concessional one,” they said.
According to those in the know, China charges one per cent on its government-to-government loans.
“There is no question about the government’s intention. It wants to prepare for tourism growth. But right now, Solomon Islands does not have the capacity to accommodate large tourist arrivals.
“For example, the number of hotel rooms in Honiara and elsewhere is insufficient, amenities are not up to scratch and so on,” the sources said.
The sources suggested that instead of using the loan money on the extension of the airport runway, the money should be spent on critical infrastructure projects throughout the nation.
The needs to make up its mind and fast.
They fear that once the financing is locked to the extension of the runway, all other critical projects which would address the nation’s economic growth would remain untouched. Their conditions would continue to deteriorate, they said.
They warned that the burden of repaying such a loan would simply deepen the government’s growing financial crisis. Right now, the government must face the reality – it does not have the money to service the loan, let alone to pay for social services,” the sources said.
“They identified the critical projects with economic potential as the Auki-Atori East Road, the Auki-Sulufou North Road and the Auki-Su’u West Road. These roads will unlock Malaita’s development potential for investments as well as for delivery of social services such as education and health.”
“There are similar projects in other provinces too. These should be the priority, instead of the runway extension at the Henderson International Airport. The runway extension can come later when the nation is ready to pay back this and other loans,” they said.
By Alfred Sasako
