Solomon Islands - The Second Resilience Development Policy Operation

Overview & Synopsis

The development objective of the Second Resilience Development Policy Operation for Solomon Islands is to improve fiscal management, create the enabling environment for private sector development, and enhance resilience to climate change, natural disasters and health emergencies. The operation will help create better jobs for Solomon Islanders while also contributing to the World Bank Corporate Scorecard indicators. The reform program will contribute to sustainable growth and job creation by: (i) restoring fiscal space through updated fees, mining royalty rules, and improved public investment management to support labor-intensive infrastructure and services; (ii) expanding micro-, small, and medium enterprises (MSME) access to finance and attracting foreign direct investment (FDI) through credit reporting and investment promotion reforms, fostering entrepreneurship, youth employment, and women-led firms; and (iii) safeguarding livelihoods by reducing the economic impact of disasters and health shocks through strengthened disaster risk financing, and health policies. Pillar 1 aims to support fiscal management by reforming the tax system, improving the fiscal regime of the extractives sector, and strengthening the management of public investments. Pillar 2 seeks to improve the business environment by reducing energy costs, expanding access to credit, and promoting foreign investment. Pillar 3 supports climate and disaster resilience by strengthening building standards, improving the institutional and regulatory framework for disaster risk management, and enhancing preparedness and response in the health sector; this aligns with the government’s broader objective of improving access to quality health for all and of protecting communities from climate and other external shocks.