Will Huawei build 161 mobile phone towers in Solomon Islands?
Solomon Islands is pushing ahead with a contentious plan to borrow almost $100 million from China to build 161 mobile phone towers across the country with telco giant Huawei, despite an internal report warning the project may not stack up financially.
What is Huawei's deal with the Solomon Islands?
The Solomon Islands government celebrated the deal with Huawei as a historical financial partnership between the two countries to implement a project. The loan for this project will come from the Exim Bank of China, which offers a 1% interest rate.
Will Solomon Islands' 161 mobile phone towers be repayable?
Solomon Islands authorities say the proposed 161 mobile phone towers will expand and improve coverage and that the loan to fund it will be repayable, but experts have questioned if the financial case for the project stacks up.
Why did China announce a new deal with the Solomon Islands?
The announcement of a new deal with China comes after Beijing and the Solomon Islands signed a security agreement in April, which drew criticism from New Zealand, Australia and their allies, including the US and Japan. Also, China is renegotiating a regional security and trade deal with 10 Pacific nations, which fell short of signing in May.
Will the Solomon Islands get a loan from China?
He also confirmed it would be funded by a concessional loan from China, the first time the government of Solomon Islands has borrowed from one of Beijing's main overseas lending institutions.
Is a telecommunications deal a risk for Solomon Islands?
Telecommunications expert Amanda Watson — from the Australian National University's department of Pacific affairs — said the deal could pose substantial financial risks for Solomon Islands.
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