AGP Executive Report

Border & security delivery: Australia’s Deputy PM Richard Marles and Solomon Islands DPM Francis Sade officially opened the Western Border Outpost in the Shortland Islands, bringing RSIPF, Customs, Immigration and Biosecurity under one roof to strengthen border management and maritime security, with the facility set to become a sovereign Solomon Islands asset. Development partnerships: PM Matthew Wale urged development partners to align support with national priorities and deliver measurable results, while the UN reaffirmed its commitment to back Solomon Islands’ economic transformation and better coordinate programmes with the GREAT Coalition Government. Land governance upgrade: The Ministry of Lands, Housing and Survey is exploring an Integrated Land Information System to create a single digital record of government land, improve transparency, and strengthen land revenue collection. Climate policy in motion: Solomon Islands is drafting its first National Loss and Damage Policy and Investment Roadmap after consultations, aiming to turn climate impacts into shared responsibilities and financing priorities. Regional fisheries enforcement: A major Pacific IUU operation flagged 16 vessels of interest for possible enforcement action, underscoring stronger regional monitoring of tuna resources. Economic planning: Government earmarked $345.4m (45% of budget) for economic transformation, jobs, tourism and fisheries investment, alongside rural development and infrastructure support. Western Province relief hit by weather: Cyclone recovery in Western Province continues to be delayed as bad weather hampers NGO relief travel and supply delivery.

Western Border Outpost Opened: Australia and Solomon Islands officially opened the Western Border Outpost in the Shortlands, bringing RSIPF, Customs, Immigration and Biosecurity under one roof to boost border and maritime security, with Australia investing over AUD $100m and the project creating 368 jobs. Budget Push for Growth: Finance Minister Gordon Darcy Lilo says $345.4m (45% of budget) is earmarked for economic transformation, jobs, tourism and fisheries, including $210.3m for the resource sector and $102.7m in partner credit/grants for infrastructure and security upgrades. Climate Loss & Damage Policy: Government is drafting its first national Loss and Damage policy and investment roadmap after estimating climate-related losses at US$79m a year (8.69% of GDP), with consultations in Honiara from 10–13 August. Security Treaty Review: A proposed regional security treaty backed at the Forum Foreign Ministers Meeting in Suva will now go to national governments for further consideration alongside existing security frameworks. Pacific Unity Under Strain: Ministers in Suva agreed on a China missile-test statement in principle, but wording and consensus remain contested ahead of Palau’s leaders’ summit. RSIPF Training Upgrade: RSIPF received an upgraded Tactical Training Centre from the AFP, funded by SBD $5.5m, to strengthen operational readiness and safety training. Mining Law Reform: Parliament heard the Mineral Resources Bill 2025 to modernise mining rules, introduce statutory Community Development Agreements, and strengthen landowner and environmental protections. Fisheries Priority: Government reaffirmed Bina Harbour as the central fisheries investment priority through April 2028, pairing it with stronger monitoring, traceability and community safeguards. Economic & Fiscal Updates: Lilo told Parliament debt is manageable (debt-to-GDP 27.2%, below a 35% threshold) and reported 2025 spending of about $5.1b against revenue of $4.1b.

Defence & Diplomacy: Australia says Papua New Guineans will start joining the Australian Defence Force under the Pukpuk Treaty, with recruitment ramping to “thousands” over a decade; Australia’s Deputy PM Richard Marles is also set to meet PNG and Solomon Islands leaders this week, including opening Australia’s Western Border Outpost in the Shortlands. Fisheries: Fisheries Minister Polycarp Paea reaffirmed Bina Harbour as the government’s central fisheries investment priority through April 2028, alongside stronger monitoring, electronic reporting and traceability. Police & Security: RSIPF received a $5.5m upgraded Tactical Training Centre from the AFP, and will run controlled WWII bomb-blast operations across Western and Choiseul (15–31 Aug). Mining & Land Rights: Parliament heard the Mineral Resources Bill 2025, introducing statutory Community Development Agreements and stronger landowner and environmental safeguards. Economy & Budget: Finance Minister Gordon Darcy Lilo told Parliament GDP growth is revised to 3.5% (logging down, mining up) and said government debt stays within safety limits; Cabinet also approved work on a new national bank with a rural component. Infrastructure: Honiara International Port upgrade is moving into the next phase for Berth 1 extension, while the Lofung border outpost handover is set for 17 Aug. Governance & Regionalism: SPC and g7+ leaders met PM Wale on technical cooperation and regional priorities. Community & Development: MCILI and Strongim Bisnis awarded laptops and Starlink units to accelerator participants, while Small Malaita received SBD100,000 for boats and an engine to improve rural access to services. Health & Opposition: Opposition leader Matthew Wale urged “zero risk” delta preparedness ahead of further repatriation flights. Sports Governance: SIFF backed FIFA’s withdrawal of the Forward Enterprise proposal, echoing calls for transparency in football governance.

Defence Diplomacy: Australia’s Deputy PM and Defence Minister Richard Marles will travel to Papua New Guinea and Solomon Islands (16–17 Aug), meeting PNG’s PM and new Defence Minister to advance the Pukpuk Treaty, and in Solomon Islands joining ministers to open the Western Border Outpost in the Shortlands. Border Security & Police Capability: Australia will hand over the new Lofung Border and Patrol Boat Outpost on 17 Aug, bringing police, customs, biosecurity and immigration under one roof to strengthen the western maritime frontier; RSIPF also received two upgraded Naiad vessels to boost near-shore maritime policing and rapid response. Parliament & Public Finance: Parliament deferred consideration of the 2025 and 2026 supplementary appropriation Bills after required reports weren’t tabled. Mining Law Reform: The Government introduced the Mineral Resources Bill 2025 to modernise mining rules, make Community Development Agreements statutory, strengthen landowner access and compensation, and tighten environmental safeguards. Economy & Revenue: Finance Minister Gordon Darcy Lilo told Parliament growth is revised to 3.5% (with mining, agriculture, tourism and fisheries leading) while logging declines; he also flagged concerns about weak visible capital inflows from mining and announced tax reforms to tackle exemptions and abuse. Regional Cooperation: PM Wale met SPC on technical cooperation (ocean management, fisheries, climate, energy) and met Indonesia’s ambassador on agriculture and education, including coconut value-add. Sports Governance: OFC welcomed FIFA’s withdrawal of the Forward Enterprise proposal, calling for transparency and respect for established processes.

Health & Border Control: Opposition leader Matthew Wale warns the government to take a “zero risk” approach as it prepares for further repatriation flights, saying quarantine SOPs must be strong enough to contain the delta variant and also watch for the more transmissible lambda variant. Mining & Land Rights: The government introduced a new Mineral Resources Bill 2025 to replace the 30-year-old mining law, putting statutory Community Development Agreements at the centre and strengthening landowner access, compensation and environmental safeguards. Parliament & Public Finance: Parliament deferred consideration of the 2025 and 2026 supplementary appropriation Bills after required reports weren’t tabled, while Finance Minister Gordon Darcy Lilo told MPs debt remains within safety limits and flagged concerns about weak visible capital inflows from mining despite strong gold exports. Police & Security: RSIPF received an upgraded Tactical Training Centre from the AFP ($5.5m) and also took delivery of two Naiad maritime vessels to boost near-shore and inter-island policing against organised crime and drug trafficking. Infrastructure & Transport: Honiara Port upgrade works moved into the next phase for Berth 1, and traffic sign installation is underway on upgraded roads to improve safety. Regional Cooperation: PM Wale met SPC on technical cooperation including maritime boundaries and fisheries, while g7+ Secretary-General Helder da Costa praised Solomon Islands’ leadership as it chairs the group. Economy & Revenue: Lilo reported 2025 spending at about $5.1b against revenue of about $4.1b, and said 2026 growth is revised to 3.5% as logging declines and mining, agriculture, tourism and fisheries support demand. Sports Governance: OFC welcomed FIFA’s withdrawal of the Forward Enterprise proposal, urging transparency and respect for established processes. Energy & Development: Cabinet approved work on a new national bank with a rural bank component, and the government launched PacFresH2O to strengthen freshwater security and climate resilience.

Mining law overhaul: The Government introduced the Mineral Resources Bill 2025 to replace the 30-year Mines and Minerals Act, putting landowners and communities at the centre through a statutory Community Development Agreement framework, stronger land access and compensation rules, and tighter environmental safeguards. Police capability boost: RSIPF received a $5.5m upgraded Tactical Training Centre from Australia’s AFP, aimed at professionalising and improving operational readiness. Maritime security upgrades: Australia also handed over two Naiad vessels to strengthen RSIPF near-shore and inter-island maritime response, while a new Lofung border and patrol boat outpost is set for handover on 17 August. Economic management in Parliament: Finance Minister Gordon Darcy Lilo told Parliament debt remains within safety limits, with debt-to-GDP at 27.2%, and reported 2025 revenue of about $4.1b against spending of about $5.1b. Tax and revenue drive: Lilo warned that tax exemptions and abuse are draining revenue, pointing to new tax administration steps and plans for VAT and income tax rewrites. Regional cooperation: PM Wale met SPC to strengthen technical cooperation, including fisheries and maritime boundaries, and Solomon Islands’ g7+ leadership drew praise from the group’s Secretary-General. Energy and infrastructure: Cabinet approved work on a new national bank with a rural bank component, and Honiara Port upgrade works moved into the next phase for Berth 1. Sports governance: OFC welcomed FIFA’s withdrawal of the Forward Enterprise proposal, calling for transparency and respect for established processes. Local development: Small Malaita Constituency praised PRC embassy grant support (SBD100,000) for boats and an engine to improve rural sea transport.

OFC Pro League: Oceania Football Confederation confirmed all 8 original clubs will return for the next OFC Pro League season, with club licence approvals granted for the 2027 season. FIFA/FFE Governance: OFC welcomed FIFA’s withdrawal of the Forward Enterprise proposal and urged transparency and respect for established processes, after New Zealand pulled support for Infantino. Pacific Unity Test: Ahead of the Pacific Islands Forum Leaders Meeting in Palau, ministers failed to agree on a joint response to China’s missile test, underscoring widening diplomatic and security splits. Public Finance & Debt: Finance Minister Gordon Darcy Lilo told Parliament GDP growth is revised to 3.5% as logging declines, while debt is projected to rise slightly but remain within the 35% debt-to-GDP safety threshold; Parliament also deferred supplementary bills over missing reports. Tax & Revenue: Government moves to tighten tax collection, tackle exemptions and prepare a broad-based consumption tax (VAT) plus further Income Tax Act rewrites. Security & Maritime Capacity: Australia handed over two Naiad vessels to strengthen RSIPF maritime policing, and will also hand over the Lofung border and patrol outpost in August. Infrastructure & Services: Honiara port upgrade work is entering the next phase, traffic signs are being installed on upgraded roads, and a PacFresH2O freshwater security programme was launched. Local Development: Small Malaita received an SBD100,000 PRC grant for boats and an engine to improve sea access to services. Politics & Accountability: Attorney-General Gabriel Suri denied a conflict claim over Panatina Chemists, while the Opposition pressed PM Wale to explain the corporate relationship and how it was managed. Regional Education: Western Province signed education agency agreements with MEHRD to strengthen school-level planning, budgeting and accountability.

Public Finance & Debt: Finance Minister Gordon Darcy Lilo told Parliament debt is set to rise slightly, but Solomon Islands remains within its fiscal safety limits (debt-to-GDP 27.2%, below the 35% threshold), while 2025 results showed revenue of about $4.1b against spending of about $5.1b and a $768m deficit. Budget Oversight: Parliament deferred consideration of the 2025 and 2026 Supplementary Appropriation Bills after required reports weren’t tabled. Tax Reform: Government moves to tighten tax collection, tackle exemptions and abuse, and advance reforms including a planned VAT and a rewrite of the Income Tax Act. Banking & Rural Access: Cabinet approved work on a new National Bank with a Rural Bank component in partnership with the World Bank, aimed at bringing formal banking to communities outside Honiara. Energy & Infrastructure: PM Wale says work is underway on a national bank and also plans a regional fuel hub at Aruligo (up to 12 months’ supply) to cut costs and boost energy security; MID is installing permanent traffic signs on upgraded roads. Security & Policing: Australia hands over Lofung border and patrol outpost (17 Aug) and AFP/RSIPF received two NAIAD maritime vessels to strengthen coastal and inter-island policing against illicit trafficking. Youth Justice: The National Youth Justice Bill is stalled as legislative priorities compete, despite UNICEF-funded consultations. Environment & Water: Government launched the PacFresH2O freshwater security programme with partners including GIZ, SPC and Live & Learn. Regional Politics: PM Wale urged Germany and the EU to deepen Pacific engagement, while OFC welcomed FIFA’s withdrawal of the Forward Enterprise proposal, calling for transparency in governance.

Parliament & Public Finance: Parliament deferred consideration of the 2025 and 2026 Supplementary Appropriation Bills after required reports weren’t tabled, while Finance Minister Gordon Darcy Lilo flagged concerns over missing capital inflows from mining despite strong gold export earnings. Tax & Revenue: Lilo told MPs the government will tighten tax collection, curb exemptions and abuse, and push reforms including a broad-based consumption tax (VAT) and further changes to the Income Tax Act. Security & Policing: Australia handed over two NAIAD vessels to strengthen RSIPF maritime operations, and will also hand over the Lofung Border and Patrol Boat Outpost in the Shortlands on 17 August. Water & Climate Resilience: Solomon Islands launched the PacFresH2O Programme to protect freshwater resources and build resilience with partners including GIZ, SPC and Live & Learn. Education & Provinces: MEHRD signed key education agency agreements with Western Province, while plans advance for a Solomon Islands National University campus in Western Province. Justice & Youth: Work on the National Youth Justice Bill stalled as legislative priorities compete, despite UNICEF-funded consultations. Local Economy: Faifatala’a kava farmers moved toward a plantation-to-market pilot to meet international demand, tackling transport, processing and quality hurdles. Governance Oversight: The High Court ordered the SDA Church to pay over $831,000 in damages to a Chinese hardware business.

Court Ruling: Solomon Islands’ High Court ordered the SDA Church to pay Xiao’s Hardware Company Limited $831,000+ in damages for business losses after the Church missed a deadline to respond. Policing & Security: AFP Commissioner Krissy Barrett is in Honiara to back RSIPF efforts against organised crime, including handing over a Tactical Training Centre and two maritime vessels. Foreign Policy (China/Taiwan): China’s FM spokesperson warned the Pacific Islands Forum Secretariat to follow the one-China principle regarding Taiwan’s planned attendance at Palau’s leaders meeting. Justice & Governance: Former lands commissioner Alan McNeil welcomed a High Court decision that his suspension was unlawful, saying disciplinary steps were bypassed. Parliament & Oversight: PAC hearings continued scrutiny of supplementary spending, including National Parliament’s digital upgrade request and questioned rental arrangements in the forestry ministry. Health Funding: The Health Ministry sought nearly $6.8m in supplementary donor funding for 2025 spending already incurred. Regional Leadership: PM Wale met Germany’s ambassador, urging stronger EU engagement with Pacific priorities ahead of major regional meetings.

Pacific Security: Forum foreign ministers in Suva failed to agree on a joint statement condemning China’s nuclear-capable missile test, despite growing regional alarm over militarisation and the lack of advance details on where the missile landed. Foreign Policy & Taiwan: China warned the Pacific Islands Forum secretary-general to stick to the one-China principle after Taiwan was confirmed to attend the Palau leaders meeting later this month, keeping diplomatic tensions front and centre. Regional Climate Push: Forum foreign ministers backed stronger climate action ahead of COP31, calling for more climate finance, renewable investment, and Pacific-led momentum through Pre-COP31 meetings. Regional Security Planning: Ministers endorsed a Regional Peace and Security Action Plan 2026–2030 and discussed Solomon Islands’ proposal for a Blue Pacific Ocean of Peace regional security treaty, alongside plans to institutionalise a Pacific Police Ministers Meeting. Parliament & Oversight: The Public Accounts Committee scrutinised multiple supplementary requests, including a $5.6m digital upgrade for the National Parliament and rental-related concerns in other ministries’ office deals. Energy & Infrastructure: Construction has started on a 22km transmission line linking Tina River hydropower to Honiara’s grid, aiming to cut diesel reliance and boost renewable supply. Governance Reform: MPGIS completed a second round of consultations on amendments to the Provincial Government Act, while MRD moves ahead with Constituency Development Fund audits and plans for Constituency Economic Growth Centres. PAC & Social Policy: The Ministry of Women defended a donor-funded supplementary allocation for children’s policy review and monitoring and evaluation work. Business & Telecoms: PM Wale met Satsol as the government prepares telecommunications reforms, with the company seeking to expand services into rural areas.

China-Solomons Security Review: PM Matthew Wale says Solomon Islands is reviewing its 2022 security agreement with China, promising “no more secrecy” and insisting Parliament must be fully informed and give informed consent on any deal that binds the country. Pacific Security Tensions: A China missile test has deepened divisions across the Pacific Islands Forum, with foreign ministers unable to agree on a joint condemnation and concerns rising over growing militarisation. Parliament & Governance Scrutiny: The Public Accounts Committee questioned multiple supplementary requests, including a $5.6m digital upgrade for the National Parliament and rental-related concerns in other ministries, while also probing Tina River Hydropower spending and essential service delivery. Energy & Infrastructure: Construction has started on a 22km Tina River transmission line to bring up to 15MW of renewable power to Honiara, aiming to cut diesel reliance. Provincial Governance Reforms: MPGIS completed consultations on amendments to the Provincial Government Act, and MRD moves to strengthen CDF governance through audits and a review of the CDF Act 2023. Local Development Support: East Central Guadalcanal’s constituency office thanked the PRC Embassy for $100,000 toward a community-led sanitation project. Labour Data Gap: MCILI told PAC it lacks a single database for the formal labour workforce, with a labour database survey planned. Women & Community: RSIPF’s Women’s Advisory Network meeting backed leadership and gender inclusion in policing, while tributes continue for veteran journalist George Atkin.

Security & Sovereignty: PM Matthew Wale says Solomon Islands has started a review of its 2022 security agreement with China, promising “no more secrecy” and insisting Parliament must be fully informed before any deal binds the country. Parliament & Governance: Wale also pushed for stronger, more independent Parliament, including greater control of parliamentary finances and an independent Parliamentary Budget Office. Foreign Policy Tensions: China warned the Pacific Islands Forum Secretary-General over Taiwan’s planned attendance at the Palau summit, as Pacific leaders remain divided after China’s missile test. Public Finance Oversight: The Auditor-General seeks $6.7m for audit methodology upgrades and clearing provincial audit backlogs, while PAC scrutinised supplementary funding for SIBC ($2.5m) and Honiara Senior High School ($3.3m). Constituency Development Funds: MRD is reviewing the CDF Act 2023 and says all 50 constituencies will undergo CDF audits using a community participatory approach. Rural Growth & Services: MRD is developing policy for Constituency Economic Growth Centres, and Guadalcanal will pilot a mobile system to collect business licences and property taxes. Health & Social: Essential medical supplies availability sits around 83%, and PAC urged it toward 90%. Education Debate: MPs warn Free Education must not empty provinces unless provincial schools are strengthened first. Disaster Preparedness: Minister Derrick Manuari opened regional geohazard and tsunami early-warning meetings in Honiara. Sports Funding: PNGFA puts MSG Prime Minister’s Cup participation on hold over unpaid obligations, while Home Affairs seeks an extra $5m for Oceania Rugby Sevens. Energy & Telecoms: PM Wale met Satsol on rural telecom expansion plans, and Polar Power received orders for 15 more solar hybrid systems to support broadband rollout. Court Ruling: High Court orders two logging companies to pay $62m damages to Isabel communities over unlawful logging.

RSIPF & Gender Leadership: More than 200 women police officers met in Honiara for the RSIPF Women’s Advisory Network AGM, supported by RAPPP, to shape the RSIPF Gender Strategy 2026–2036 and strengthen leadership, wellbeing and inclusion. Parliament & Accountability: PM Matthew Wale pushed for stronger, more independent Parliament, including greater control over parliamentary finances and an independent Parliamentary Budget Office. China Security Deal Review: Wale says Solomon Islands has begun reviewing its 2022 security agreement with China, promising “no more secrecy” and insisting no treaty should stand without Parliament’s informed consent. Court & Environment: The High Court ordered two logging companies to pay $62m to Isabel communities over unlawful logging, including damage to water sources and customary rights. Education Push Under Scrutiny: Government is laying groundwork for fee-free education in 2027, while Opposition demands full costings and the “machinery” needed for classrooms, teachers and funding. Public Finance Watch: PAC questioned SIBC’s $2.5m supplementary allocation and paused MID’s supplementary budget review after figure discrepancies. Local Governance & Revenue: Guadalcanal will pilot a mobile system for business licence fees and property taxes to cut cash handling and improve transparency. Land & Housing Reform: Government plans five major land and coastal governance bills, plus a national housing bill, aiming for clearer, fairer land administration. Economy & Oversight: CBSI projected improved growth in 2027, while also warning risks from El Niño and global conditions.

China Security Review: Prime Minister Matthew Wale has started a review of Solomon Islands’ 2022 security agreement with China, promising “no more secrecy” and saying he was only allowed to read the deal one day before a Canberra meeting in May—he told Parliament the principle must apply to all treaties: no agreement should stand without Parliament’s informed consent. Parliament Watch (PAC): The Public Accounts Committee questioned OPMC’s proposed $2.5m SIBC supplementary allocation, while also hearing requests including OAG’s $6.7m for audit methodology upgrades and clearing provincial audit backlogs, and scrutiny of MEHRD’s $76.89m supplementary budget. Free Education Fight: MPs and Opposition are pressing for clarity on the 2027 free education rollout—Wale says full costing will come to Parliament in December, while critics warn the policy needs the “machinery” (teachers, infrastructure, funding plan) before fees are removed. Local Governance & Revenue: Guadalcanal will pilot a mobile revenue collection system for business licence fees and property taxes, aiming to cut cash handling and improve transparency. Land, Housing & Coastal Reform: Government is preparing five land and governance bills, including customary land governance, land dispute resolution, housing, land information systems, and coastal/marine governance. Regional Politics: Pacific foreign ministers failed to agree on a joint statement condemning China’s ballistic missile test, and Taiwan is set to attend the Palau leaders meeting after being blocked last year. Economy & Resources: CBSI projects a better 2026-27 outlook, and mining royalty rates are set to move with global gold prices, alongside plans for new labs to verify mineral exports.

Treaty Transparency & Sovereignty: Prime Minister Matthew Wale says his government has started reviewing Solomon Islands’ 2022 security agreement with China after he was only allowed to read it one day before a Canberra meeting, and he told Parliament “no more secrecy” on deals that bind the nation, urging Opposition leader Manasseh Sogavare to back the review. Free Education Push: Wale and Education Minister Stephen Kumi reaffirm free education for 2027, with a Free Education Taskforce already working on financing, legislation and consultations, while Opposition MPs demand full costings and warn the education system must be ready. Land, Housing & Coastal Reform: Government plans five major land and housing bills—customary land governance, land dispute resolution, national housing, land information systems, and coastal/marine governance—aimed at modern, fair and transparent land administration. Mining & Royalties Overhaul: A sliding-scale royalty system will tie gold royalties to global prices, alongside new laboratories to verify mineral exports and a proposed 25% state equity stake. Public Finance Scrutiny: The PAC halted MID’s supplementary budget review over mismatched figures, and Wale says fiscal leakages are being plugged by ending resource-sector tax exemption MOUs and restoring a single lawful exemption authority. Local Delivery: In Malaita, Ou’oumatawa received a $190,000 CDF-funded 2-ton truck to boost emergency response and transport; in Guadalcanal, the province accepted Wale’s apology for missing Second Appointed Day. Regional Security Tensions: Pacific foreign ministers failed to agree on a joint statement condemning China’s missile test, highlighting growing reluctance to let outsiders dictate Pacific positions.