8 May 2022
Last week when he officially opened a cocoa and copra buying buying centre at Pakera in Central Makira, the Prime Minister, Hon. Manesseh Sogavare said that the strength of the country lies in the rural areas. I agree with the PM’s observations and why I was so very pleased justn a few days before the Pakera visit of the proposal to create more than 5,000 jobs with the creation of a major tuna plant at Bina in conjunction with the development of BINA Harbour becoming a major climate resilient port capable of handling the export of tuna and tuna products.
The proposed development of the tuna processing plant and the development of BINA Harbour coincides with USAID funding behind development planning and “project transaction services” helping the SIG to move forward with the creation of a BINA BONALE pineapple processing plant.
The BINA Harbour development project is supported by Australia and New Zealand that sees the creation of a BINA Harbour port and Tuna Processing Plant as being highly beneficial from a range of local economic and employment opportunities; much in keeping with what the PM has said about the strength of the country lying in the rural areas.
The Bina Harbour Tuna Processing Plant, to be built under a public-private partnership (PPP), is also expected to generate up to $40 million in foreign direct investment and an annual revenue stream for the government and people of Solomon Islands of $3.5 million. The International Finance Corporation (IFC), a member of the World Bank Group, has been confirmed as lead transaction advisor and will continue working with the Solomon Islands Government to engage a private sector partner to develop, finance, build and operate the plant.
"This national priority project will enable us to create employment, derive more benefit from our sovereign tuna resource, and add an important contribution to our economy. We are now working with IFC to develop best practice approaches to structuring this transaction," said Nestor Giro, Solomon Islands' Minister for Fisheries and Marine Resources.
The project is expected to create 1,600 jobs at the Malaita tuna processing plant, mostly for women. It's estimated a further 4,000 jobs will be created indirectly on the back of growth in related industries.
"I am delighted to see this crucial development project making strong progress," said Daniel Suidani, Premier of Malaita Province. "The Bina Harbour project offers the opportunity for a world class tuna processing facility based on sustainable resources a offering opportunities for quality employment and diversifying our province's economy."
Solomon Islands has a valuable tuna resource, but the majority of the catch is processed elsewhere, denying the country the wealth that could be captured locally by onshore processing. Under the proposed PPP, long-term fishing rights will be allocated to the investor that constructs and operates the plant. The processing plant will not only support the growth of Solomon Islands' tuna fisheries industry but also make it more competitive and give better secure access to key markets in Europe and elsewhere. It's expected the tuna industry will be able to charge a premium through sustainability and best labor practice certification.
"We are pleased to support the government of Solomon Islands by helping bring in the private sector to establish this important development project. Bina Harbour offers access to this valuable and sustainable tuna fishery, in an area with an abundant workforce and a prized natural harbor," said Thomas Lubeck, Manager for IFC's Asia Pacific PPP Transaction Advisory Team. "This project has the potential to change people's lives in Solomon Islands, creating jobs and sustainable growth at a time when the nation has been hit hard by the impacts of the Covid-19 pandemic."
As part of their long term support to the fisheries sector in Solomon Islands, New Zealand has been funding early engagement with the Bina landowners and the work of an interim Project Management Office. New Zealand is now scaling up this support, and is currently procuring a Bina Harbour Project Office to drive work at the site, as well as working with the Solomon Islands Government on a new package of support to engage with landowners at Bina. Acting High Commissioner Don Higgins noted that "New Zealand is here for the long haul and sees Bina as a critical part of our partnership with Solomon Islands. The Bina Harbour Project Office will help to bring all stakeholders together and we look forward to seeing this critical project progress."
Importantly, the Australian High Commissioner Dr Lachlan Strahan has said this crucial project requires a big team effort. "If it's to be realized, a project of this scale will require considerable quantities of water. It's vital to make sure that the water needs of both the local communities and the Bina project are met. That's why Australia is funding a water and sanitary study under its Solomon Islands Infrastructure Program."
The observations and comments by the Australian High Commissioner about the need for a “team effort”with such a proposed large scale development cannot be simply dismissed out of hand, and I would like to make one or two personal observations in terms of coordination and clear thinking about the development and functionability of a Tuna Processing Plant.
I envisage the plant to be on a much larger scale that the tuna processing factory already operating in Noro and consequently its full operational will need a large workforce, quite possibly in excess of the 1,600 already mentioned.
I have, in the past visited and seen the work at Noro and also visited the large tuna fish processing plants situated at Hat Jai in Thailand where many more thousands of local people are fully engaged in the tuna fish processing operations, from fish handling, gutting, cleaning, packaging, canning, refrigeration and shipping. In the refrigeration, packaging and shipping departments the work force many times exceeds 1,600 employees.
In the Bina area, including Kwaio itself, will there be sufficient people to be fully employed at the proposed tuna processing plant, in port operations and at the proposed pineapple processing plant?
I guess there will be any willing to get work at Bina from the thousands in the country presently without gainful work, but given that should happen, what about the supporting infrasctructure and development that will see the need for accommodation near the tuna processing plant and near enough to the port facility?
I believe moving forward on the whole Bina projects will need much more than “team effort”from this point on but very careful and coordinated planning with the IFC, the Malaita Province, the SIG, USAID officials, New Zealand, Australia and, importantly with local landowners for, apart from filling job vacancies there will be major disruption caused to the lives of local communities.
All that said I have waited for 25 years to witness the development of Bina to benefit the people, the national economy and can truthfully say it was a dream of the SIAC Government way back in 1997, when it assumed power, a fact known to the present PM as he served as the Finance Minister in that administration.
Yours sincerely
Frank Short
