Australian High Commission
Honiara
Solomon Islands

Australia injects SBD14 million into Rural Development Program

26 November 2013

Australia injects SBD14 million into Rural Development Program

Australia is providing a further SBD 14 million (A$2 million) for the Solomon Islands Rural Development Program (RDP) to boost small-scale village infrastructure and agriculture services to help raise the standard of living in rural areas.

The new funding was announced by the Australian High Commissioner to Solomon Islands Matt Anderson and Permanent Secretary to the Ministry of Development Planning and Aid Coordination (MDPAC), Jerry Manele at the RDP workshop in Honiara today.

The Rural Development Program is a seven-year, US$35 million program led by the Solomon Islands Government, with support from Australia, the World Bank, European Union, and the International Fund for Agriculture Development (IFAD). Australia has contributed SBD 70 million (A$10.5 million) to RDP so far.

Mr Anderson said the RDP is playing a critical part in helping to raise living standards of rural households.

“With 84 per cent of Solomon Islanders living in rural areas, supporting communities to improve food security and create livelihood opportunities is critical,” Mr Anderson said.

“Australia’s additional support to the RDP ensures more Solomon Islanders can participate in training to promote effective farming techniques, boost their family’s food security, create more jobs and have better facilities and infrastructure in their village.”

The RDP, which is managed by the Ministry of Development Planning and Aid Coordination (MDPAC), has three main focus areas: grants to communities to build small-scale village infrastructure; capacity building in the Ministry of Agriculture and Livestock (MAL), particularly in rural agricultural extension services; and assisting rural businesses to access finance for business expansion.

Under the small-scale village infrastructure area, RDP is aiming to complete 370 village infrastructure projects to help around 300,000 people. Some 203 projects have been approved in the first 3 funding cycles in six provinces (Malaita, Choiseul, Western, Temotu, Isabel and Makira). So far, 111 infrastructure projects such as village water supply systems, community halls, health posts, and solar charging stations have been completed, helping around 70,000 people.

Minister for Development, Planning and Aid Coordination Connely Sadakabatu said a further 167 projects have been approved in the current funding cycle this year, which will also include projects in Guadalcanal and Central provinces.

“Communities decide on their priority infrastructure needs and prepare a list of possible projects for each ward, with the Ward Development Committee prioritising one project per ward for funding during each funding cycle,” Mr Sadakabatu said.
 

Through MAL’s outreach program, extension staff works with farmers to providing training and research support. To date, 31,654 farmers have participated in training, with nearly half of farmers, women. Assistance with increasing capacity at head office, and upgrades to buildings, boats and vehicles have also been provided.

The third focus area assists rural businesses to access finance for business expansion activities. Some 58 rural businesses have been supported with SBD7.8 million in equity, which leveraged SBD48.9 million in recipient equity and bank loans, and created around 350 to 400 new fulltime jobs. Almost 70% of grants were made to businesses in Guadalcanal, including Honiara, and Malaita and a further 14% to businesses in Western Province. Over half were for activities in the agriculture and tourism sectors.

World Bank Country Representative to Solomon Islands, Anne Tully said the new funding announced by Australia to RDP, along with the injection of US$4m by the Solomon Island Government this year, and additional financing from the World Bank will enable RDP to finance a 4th round of subprojects that will extend the project to 90% of SI's wards.

Over the course of four funding cycles, more than 300,000 people - more than half the population - will have benefitted from program investments in water supply, classrooms and health aid posts among other investments.

"We look forward to continuing our work together in support of the rural communities of Solomon Islands, and in sharing the experience of RDP with other countries so that the global lessons of community-driven development can improve the effectiveness of these programs, as powerful instruments for addressing poverty, particularly by improving access to basic services,” Ms Tully said.