Solomons

Eec Helps

The European Community (EEC) has approved two im portant projects in Solomon Islands.

The first project, for SIS 6 000 000 concerns the de velopment of the telephone system in Honiara, and in the four provincial centres of Auki, Gizo, Kira-Kira and Tulagi.

Present telephone equipment is obsolete and cannot be ex tended in order to handle the increasing subscriber demand, which has led in the last few years to chronic communi cation problems.

The project would provide seven new automatic telephone exchanges as well as line plant and subscriber apparatus.

The second project will pro vide a credit line of SIS9OO 000 to the Solomon Islands' Devel opment Bank (S1DB). SIDB is to use these funds for loans to small and medium-sized enterprises and co-operatives owned by Solomon Islanders in agriculture, forestry, fishery, livestock, small industries, etc.

EEC, through its European Development Fund (EDF), will finance both projects with special loans on soft conditions (40 year repayment period, 10 years grace, interest 1%).

These new projects bring the total of EEC-financed projects in Solomon Islands to about 5158.9 million. Projects ap proved earlier were a first annual programme of microprojects (5150.6 m); the fishery training school con nected to Honiara Training Institute (5150.7 m); technical assistance in town-planning, and a feasibility study for the telephone project. Financing of these projects was by grant.

All these projects are part of the SI $l2 million (KlO million) co-operation pro gramme between Solomon Islands and the European Community under the first Lome Convention. This con vention was signed in 1975 between the nine EEC States, and 46 developing countries in Africa, the Caribbean and the Pacific (ACP). Solomon Islands become the 54th ACP- State after its independence in July 1978.