Australia cements Solomon Islands deal amid China influence debate
Canberra: Australia has formally agreed to a deal to help build a 4000km (2500 mile) internet cable to the Solomon Islands.
The Solomon Islands had originally given the contract to Chinese company Huawei.
Prime Minister Rick Houenipwela has said the decision followed “concerns raised by Australia”, which neither nation has elaborated upon.
Analysts say Canberra is concerned about China’s influence in the region, a subject of recent Australian debate. Australian Prime Minister Malcolm Turnbull said yesterday: “As we step up our engagement in the Pacific, we are working as partners with Solomon Islands more closely than ever to ensure stability, security and prosperity in the region.”
Australia is expected to commit about A$100m (FJ$155.9m) of its foreign aid budget to the project. The deal will bring high-speed internet to the island chain via an underwater cable from Sydney.
Australia agreed to a similar deal with Papua New Guinea last year. Australia is the dominant source of foreign aid for the Solomon Islands. Last year, Canberra ended a 14-year peacekeeping mission and signed a renewed security agreement.
What is the controversy?
Mr Houenipwela said his country had abandoned its 2016 agreement with Huawei, a private telecommunications giant. Canberra has previously blocked Huawei from taking part in Australian infrastructure projects, citing national security concerns.