Cracks in Solomons lease deal

A SOLOMON Islands province has agreed to lease a large island to a Chinese developer to develop into a special economic zone, weeks after the country opened diplomatic ties with China.

But cracks abound: there has been no official announcement and the provincial premier says the deal is on ice.

Experts say the arrangement in Central Province would give the developer and other Chinese firms a strategic inlet into the Solomon Islands, which until last month was one of Taiwan’s dwindling allies in the Pacific.

The Government traded Taiwan for China in a move it said would promise more development for the nation.

The Central Province agreement, signed on September 22, would give Beijingbased Sam Group an exclusive fiveyear development lease for Tulagi island and its surrounding islands, according to a copy shared on Facebook on Friday by a Solomon Islands youth group which is proTaiwan.

Central Province premier Stanley Manetiva confirmed he had signed the ‘‘strategic cooperation agreement’’ in Honiara with representatives of Sam Group, but said it was not legally binding and the company would have to comply with local laws and respect landowner rights on Tulagi.

‘‘To be honest here, leasing Tulagi will not be possible,’’ he said. ‘‘Nothing will eventuate on the agreement.’’

Solomon Islands deputy opposition leader Peter Kenilorea jun was worried the lease would still go ahead.

‘‘It raises a lot of concern for me. I didn’t see any protection, or at least any obligation in the agreement that I saw that also safeguards the interests of Central Islands Province peoples and the resources.’’

Local businesses on Tulagi have welcomed what they say is sorely needed development on the island.

‘‘We don’t have any banks, and services here is quite low, and having investors to come and improve the place would be really great,’’ Vanita Motel and Restaurant owner Teika Dennis said. — RNZ