Solomon Islands said Thursday that it had secured a $66 million loan from China to fund tech giant Huawei building 161 telecommunications towers across the Pacific nation.
The deal marks the first financing the islands country has received from Beijing since it signed a secretive security pact in April, following the severing of diplomatic links to Taiwan.
The Solomons’ government said the deal was a “historical financial partnership” that comes after it restored ties with Beijing in 2019.
But the Solomons’ growing financial and security links to China have roused concern from the United States and its allies.
Western officials say China can use security pact to build a military base in the country – something that the prime minister of the Pacific Nation, Manasseh Sugavare, has repeatedly denied.
Under the provisions of the agreement, Solomon will receive a 20-year concession loan from an export-import bank related to the state that will fully fund the construction of the Huawei Tower, the government said.
Nearly half of the tower will be built before the country hosted the Pacific Island Games in November 2023, according to the government’s statement.
The tower will allow Solomon Islanders, especially those in rural areas, to be able to watch the Olympics even if they cannot come to Capital Honiara, the government said.
Earlier this month, Sugavare proposed to change the state constitution to postpone the national election until after the match, said the country was unable to buy the two events.
Sugavare’s comments were slammed as “paralyzed reasons” by the opposition leader Matthew Wale, who told the guardian that the delay for the election would be the same as “misuse of people’s right to use their voices.”
The next election – will be held before September 2023 – will be the first country since the riot that extends by anti -Sogavare protests broke out in Honiara last year.
This will also be the first poll since Sugavare signed a security pact with Beijing who – according to a leaky design – allows Chinese security forces to be called to extinguish riots.
If the urge to postpone the election success, Solomon Islands will not go to the election until 2024 earlier.