Small Island Developing States, or SIDS, are home to approximately 65 million people. First recognized by the United Nations in 1992, the 38 Small Island Developing States (SIDS) are in the Pacific, Indian Ocean, Atlantic, and Caribbean.
Despite their scattered presence across the world’s oceans, these island countries share similar challenges. Their relatively small populations, geographic dispersion, and remoteness present significant economic and developmental challenges. These islands are also highly vulnerable to extreme weather events, which are becoming more intense and frequent due to climate change.
Small Island Developing States must urgently invest in infrastructure that can withstand the impacts of climate change. This includes the construction of practical barriers to protect against severe storms, storm surges, and rising sea levels. Unfortunately, many island nations still lack fundamental infrastructure, including essential roadways.
Adequate and resilient road infrastructure is essential for the economic and social well-being of all Small Island Developing States. It enables the safe and reliable movement of people and goods.
As of 2023, the World Bank actively supports transportation projects in 20 SIDS across Africa, the Caribbean, and the Pacific, impacting the lives of 3 million people. These projects focus on enhancing critical infrastructure, such as water crossings, ports, jetties, and wharves, to withstand extreme weather conditions and to rehabilitate vital bridges and roads.
SIDS need for critical infrastructure
According to The Interpreter, the infrastructure needs of Small Island Developing States (SIDS) are significant, but they cannot address these challenges alone. It is not uncommon for SIDS to leverage geopolitical rivalries to address their substantial infrastructure gap.
In 2021, Australia was the most significant development partner for Pacific SIDS, contributing 18% of the total development finance for infrastructure in these nations. China followed closely with 15% of the funding. However, China is intensifying its efforts through the Belt and Road Initiative, often described as the Chinese “freight train for development,” leading many Pacific Island countries to join the initiative.
Despite China’s growing influence, recent data from the Pacific Aid Map shows that Chinese funding is decreasing. Chinese funding tends to be more expensive compared to other concessional finance options offered by Japan, the Asian Development Bank, and the World Bank.
The article highlights that while China’s infrastructure finance is highly visible in large projects, it only accounts for 15% of the total funding for SIDS infrastructure development. Additionally, contracts awarded to China by Multilateral Development Banks (MDBs) have shown instances of low-ball bidding and concerns over subpar project quality.
Australia and the United States are increasing their financial support for SIDS to balance China’s influence. The Australian Infrastructure Financing Facility for the Pacific (AIFFP) has $4 billion available for investments, including a $1 billion allocation for grants. Additionally, the US pledged another $4 billion for Pacific infrastructure during the 2023 US–Pacific Islands Summit.
Solomon Islands
The Solomon Islands, located in the southwestern Pacific Ocean, consist of six major islands and over 900 smaller ones. The World Bank supports the country’s infrastructure development by enhancing electricity generation through hydropower and solar energy and reducing dependence on imported diesel. It also focuses on upgrading transportation infrastructure, creating jobs, and improving governance and trade.
As of February 2021, the World Bank had 11 active Solomon Islands projects totaling US$299 million.
About US$50 million (17%) is allocated for transportation projects under the Solomon Islands Roads and Aviation Project (SIRAP), which focuses on upgrading key roads in Malaita and improving Honiara and Munda airports. These upgrades will benefit tens of thousands and enhance tourism, health, and education.
In 2022, the World Bank announced an additional US$130 million in funding, including US$89 million for airport infrastructure and improvements to four bridges, to help counter China’s growing influence in the region.
“Providing reliable, climate-resilient transport connections is a major challenge in Solomon Islands,” said Annette Leith, World Bank Resident Representative for Solomon Islands & Vanuatu. The new project will address critical issues in air transport infrastructure (World Bank, 2022).
According to CDO Brown Honimae, the Small Malaita Constituency in Malaita Province prioritizes road infrastructure, which accounts for over 40% of the annual Constituency Development Fund (CDF) budget.
Challenges to infrastructure development in SIDS
Transportation infrastructure is essential for SIDS’ economic and social development. However, these nations must overcome several key challenges to deliver quality infrastructure.
In addition to the financing gap in the Pacific, other significant issues include weak oversight by contract managers, high corruption, and insufficient capacity to manage contracts and projects effectively.
Additionally, the prevailing approach to the Pacific SIDS infrastructure, often called the ‘build-neglect-rebuild’ model, is problematic as it highlights various challenges and failures throughout the asset’s lifecycle.
These include limited access to local construction materials and equipment, poor design due to environmental constraints, substandard construction quality resulting from a lack of skilled labor, inadequate construction standards, and insufficient equipment. Moreover, maintenance and operation practices are often lacking, and no budget is allocated for these activities.
As finance partners step up their support for SIDS infrastructure, providing them with technical assistance, capacity-building, and governance support is crucial.
Additionally, ensuring transparency and accountability in how funds are utilized is vital, as this will enable them to receive the infrastructure they deserve.
Sources:
Nuku’alofa, S. & Borger, J. (2023, September 25). Biden pledges more aid to Pacific islands to counter growing Chinese influence. The Guardian. Retrieved from https://www.theguardian.com/us-news/2023/sep/25/biden-pacific-islands-aid-china
Keeping Communities Connected in Small Island Developing States. (2024, April 23). World Bank Group. Retrieved from https://www.worldbank.org/en/results/2024/04/22/keeping-communities-connected-in-small-island-developing-states
Keen, M. (2023, October 31). Infrastructure for influence: Pacific Islands building spree. The Interpreter. Retrieved from https://www.lowyinstitute.org/the-interpreter/infrastructure-influence-pacific-islands-building-spree
World Bank to spend $130 million on infrastructure in Solomon Islands. (2022, June 3). Reuters. Retrieved from https://www.reuters.com/world/asia-pacific/world-bank-spend-130-mln-infrastructure-solomon-islands-2022-06-03/
October Budget 2022-23: Unlocking opportunities and boosting connectivity through quality, climate-resilient infrastructure. (2022, October 25). Australian Infrastructure Financing Facility for the Pacific. Retrieved from https://www.aiffp.gov.au/news/october-budget-2022-23-unlocking-opportunities-and-boosting-connectivity-through-quality-climate-resilient-infrastructure
Solomon Islands. (2021, February 25). The World Bank. Retrieved from https://thedocs.worldbank.org/en/doc/62fc120ec6beb61a4b3b19a28c9f3258-0070012021/original/Solomon-Islands-Country-Insert-A4-FA-DIGITAL.pdf
Navigating Island Futures in Transport. A guide to developing national transport strategies for Small Island Developing States. Part 1 A 21st Century approach to island transport systems (2021 November). New Zealand Foreign Affairs & Trade. Retrieved from https://www.theprif.org/sites/theprif.org/files/documents/NIFT_Part_I_21stCentury_Approach_FINAL_1.pdf
Solomon Islands: Road Infrastructure Remain Top Priority For Small Malaita Constituency. (2025, February 8). Scoop. Retrieved from https://www.scoop.co.nz/stories/WO2502/S00077/solomon-islands-road-infrastructure-remain-top-priority-for-small-malaita-constituency.htm
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