Sunday 22 June 2025 — The Government for National Unity and Transformation (GNUT) has signed two partnership agreements with the OPEC Fund for International Development.
The signing took place in Vienna last week, during the OPEC Fund Development Forum. The two agreements — the Country Partnership Framework and the Framework Agreement for the Establishment of Private Sector Operations — outline a broad cooperation agenda ranging from public infrastructure investment to private sector financing.
Prime Minister Hon. Jeremiah Manele said the agreements reaffirm Solomon Islands’ long-standing ties with the OPEC Fund and reflect a shared vision for sustainable development and inclusive economic growth. He thanked the Fund for its warm hospitality and described the agreements as a demonstration of mutual trust and a forward-looking commitment to advance national priorities.
The Country Partnership Framework sets out the OPEC Fund’s engagement in Solomon Islands from 2025 to 2027. Under this framework, the Fund will provide up to USD 75 million in concessional loans, alongside USD 500,000 per year in grants to support technical assistance, capacity building, and project preparation. The funding will target key national priorities such as climate-resilient infrastructure, water and sanitation, renewable energy, transport, and food security. The framework also places strong emphasis on human capital development, institutional strengthening, and digital transformation, in full alignment with the Solomon Islands National Development Strategy 2016–2035.
The second agreement, the Framework Agreement for the Establishment of Private Sector Operations, creates a legal and policy environment that enables the OPEC Fund to support private investment directly. It allows the Fund to offer loans, guarantees, or equity participation in commercially viable projects across sectors including renewable energy, agribusiness, tourism, and services. The agreement also establishes important operational conditions, ensuring that OPEC Fund activities benefit from tax exemptions, that funds can be transferred freely for repayments, and that the Fund is treated equally with other international financial institutions. In addition, it includes protections for local projects, shielding them from excessive bureaucracy and undue interference.
OPEC Fund President Dr. Abdulhamid Alkhalifa welcomed the signing of the agreements and reaffirmed the Fund’s commitment to supporting both the government and private sector stakeholders in Solomon Islands. He said the agreements demonstrate a mature and trusted partnership and confirmed that a delegation from the Fund would visit Solomon Islands in September.
Prime Minister Manele acknowledged the OPEC Fund’s historic contributions to Solomon Islands’ development, particularly in infrastructure and financial support, and said he looks forward to welcoming Dr. Alkhalifa and his team to Honiara later this year.
The OPEC Fund, established in 1976 by member countries of the Organization of the Petroleum Exporting Countries (OPEC), is a development finance institution that provides sovereign loans, grants, technical assistance, and private sector financing to developing countries, with a particular focus on small and vulnerable nations such as Solomon Islands. Unlike commercial lenders or even some development banks, the OPEC Fund offers highly concessional financing terms, including lower interest rates and longer repayment periods, with a strong focus on sustainability and inclusive growth.
Solomon Islands has enjoyed a long-standing partnership with the OPEC Fund dating back to the early years following the country’s independence in 1978. Past support has included investments in road network improvements and multisectoral balance of payment assistance — all designed to enhance infrastructure and promote economic stability. Importantly, all completed projects funded by the OPEC Fund in Solomon Islands have met their repayment obligations in full.
The new agreements build on this enduring partnership and establish clear frameworks to advance both public and private sector development. Together, they are designed to deliver meaningful, sustainable outcomes while ensuring that financing terms remain fair and aligned with Solomon Islands’ national development goals.
