The Solomon Islands government has agreed to a 448.9 million yuan (US$66.15 million) loan from the Chinese state-owned Export-Import Bank of China to fund the construction of 161 towers by controversial telecommunications giant Huawei.
In response, defence expert Michael Shoebridge has warned that Beijing is “moving fast and in a broad way” in the South Pacific to deepen its influence and has called for the Australian government to cut funding for the Pacific Games due to be held next year.
On Aug. 18, Prime Minister Manasseh Sogavare’s government announced the deal, which they said would help people “enjoy” the Pacific Games.
The deal will come under the Solomon Islands National Broadband Infrastructure Project (SINBIP), and is supposed to be “fully funded” by a 20-year concessional loan from the Export-Import (Exim) Bank of China at a one percent interest rate. Further, the construction and supply of tower equipment will come from Beijing’s Huawei and the China Harbour Engineering Company Ltd….