Pacific Tenders Magazine Issue 7 by Pacifictenders

JULY - SEPTEMBER 2021 / ISSUE 07

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INFRASTRUCTURE DEVELOPMENT / INDUSTRY

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JULY - SEPTEMBER 2021 / ISSUE 07

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Published by Adkonect PNG PO Box 1954 Port Moresby, PNG www.adkonect.com.pg Founder Publisher Mr. Rodney Rupokets rodney@pacifictenders.com Business and Marketing Director Ms. Namoi Kaluae Editors Mr. Douglas Saefoa (Solomon Islands) Contributing Writers Mr. David Spring (Sydney, Australia) Mr. Jason Som Kaut (PNG) Andrew Fanasia (Solomon Islands) Photographer Andrew Bouro - Torn Parachute Advertising Enquiries

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Distribution PT-Magazine is distributed via a Digital Copy accessed from the Pacifictenders. com Platform reaching all PT Subscriber Companies and Printed Copies Distributed to Government Agencies, Hotels, Retail and Hardware Supermarkets in Honiara & Port-Moresby. Relying on the support of our peers in the Construction and Infrastructure sectors to help this initiative grow.

CONTENTS 06

The Builders Code COVER STORY

SICCI to host Infrastructure Symposium

Contract to upgrade Seghe and Taro runways signed

Solomon Islands: Connecting land and sea

COUNTRY IN FOCUS: NAURU There’s a surprising amount of infrastructure development going on there

Australia’s ten-year SBD 1.5 billion Solomon Islands Infrastructure Program up and running

CCECC Committed to Main Stadium Project

SIG set to receive High Performance Facility

UXO Survey Underway at Proposed Aquatic Centre

DOW UPDATES: JICA commits to PNG road Maintenance Project

HCC addresses its Financial/ Procurement system

TGB Awarded contract to construct SP Data Centre, Call Centre and Control Room Facility

MFMR Aquaculture Centre Construction Works Underway

PNG Parliament amends National Procurement Act

Agape Community

22 benefits from Improved Road Access 23 24

Hemgro Company commence road works at Vura 1 Heights AJ City Mall sets Benchmark

JULY - SEPTEMBER 2021 / ISSUE 07

COVER STORY

THE

BUILDERS CODE Solomons Islands infrastructure legislation

s a wise farmer once said, don’t count your chickens before they’ve hatched. We could apply this caution to the key infrastructure reform bill, whose tortuous journeys into Solomon Islands law is not over yet. The original intention of the Infrastructure Management Bill (IMB) was that it would cover both the enactment of the National Building Code (NBCSI) and a series of standards and laws for civil infrastructure. As we reported in Issue 4 (October, 2020), it was first drafted in 2014 and it still remains as a ‘Bill’, in draft form. It’s back in the news again. Two years ago, SICCI set up a Building and Construction Work Group (BCWG) to consult, amend and adjust the IMB to facilitate its passage into law. During that process, the IMB has been split into two separate bills – one covering the National Building Code (National Building Code Bill) and one for civil infrastructure (Roads and Drainage Bill). This has likely that this has been done to de-link the resistance to the civil infrastructure component (land related) from the push to get the national building code enacted, which has much broader support. This will enable the national building code to be implemented, while remaining issues on the civil infrastructure are resolved. The Ministry of Infrastructure (MID) is the lead agency in bringing the bills to parliament, as well as ultimately implementing them once they pass into law. To support this important process, Australia’s Department of Foreign Affairs and Trade (DFAT) provided specific funding for MID to progress the Bill and the Code by setting up the Solomon Islands Infrastructure Management Bill Assistance (SIIMBA).

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DAVID SPRING PT COLUMNIST Sydney, Australia

SIIMBA has facilitated the consultations, drafting and re-drafting of the bills. Like the building codes in several Pacific Island countries, the NBCSI remains reliant on the technical standards of Australia and New Zealand. However, in updating the NBCSI from its 1990 version, significant attention has been given to ensuring that the code is suitable for the Solomon Islands’ context. This includes a recognition that there are limits to the application of the code, for example, it will not apply to private buildings on Customary Land or small buildings of traditional materials. It also addresses the materials typically used in Solomon Islands, particularly the allowable use of native timber. The code excludes horizontal structures, like bridges and wharves and some special structures such as those for machinery. The benefits of the code are widely touted, and revolve around the concept of reliability. “We believe it will bring about safer building practices and standards for the country,” says Jimmy Nuake, MID’s Deputy Secretary, who has been leading the process for MID. Buildings built to a standard are reliable for the earthquakes, cyclones, winds and loadings they were designed for. This makes investments more attractive, as the risk of losses is reduced. It also makes insurance a more viable business proposition, thus increasing competition and thereby reducing premiums. The economics are clear. But perhaps more importantly, on a human level, the safety of buildings built and certified to a national building code is more reliable – and that’s an incalculable benefit. Notwithstanding, to achieve these benefits, there are costs. The inputs required to achieve the outcomes of a national building code are formidable. The leg-

INFRASTRUCTURE DEVELOPMENT / INDUSTRY

Local construction workers employed by Reeves Envico, setting up the steel foundation during the early stages of the Multi-purpose Hall project in Honiara.

islative framework to encompass planning approvals and building compliance is complex. The testing and conformance of materials will play a central role in building certification – one for which MID’s existing laboratory is ill-equipped. This will either need to be strengthened or commercialised to meet the needs of industry. Enforcement of code compliance can only be achieved with a comprehensive inspection regime, applied consistently across all projects, with an effective system of legal penalties in place for non-compliance. The establishment, independence, agility and effectiveness of this regulatory body is essential to realising the benefits of the new code. Funding for these mechanisms would ideally come from the application fees, underwritten by government. Funding by donors should not be an option for this essential national service.

Levell ing the playing field The introduction of the code will be a challenge for some in the industry who have learned to operate in the unenforceable-building-code environment. For these firms, their costs of doing business will increase. Simultaneously, other firms or new firms will recognise opportunity, as the playing field is levelled, with all firms being required to meet the same safety and quality standards.

While the ongoing consultation will generate a country-specific code for Solomon Islands, both the approach to it and the outcomes will be useful for other initiatives which are seeking to bring equality to the development of social, economic and environmental infrastructure. The code and other initiatives will be/were discussed at the National Infrastructure Symposium (21-22 October 2021). SIIMBA are still hopeful of getting the National Building Code Bill to Parliament in 2021. The Roads and Drainage code consultation is in planning. Hopefully the hatching of these ‘eggs’ is not too far off into the future. l

About the Author

David is an experienced engineer, with over 20 years’ experience in construction, design and international development. David has been working in Solomon Islands and Vanuatu as a Team Leader for the past six years, specifically on road and bridgeworks. He worked on intra-ministry roles at the Ministry of Infrastructure Development (MID, Solomon Islands) and led the Cyclone Pam road reconstruction project in Vanuatu, understanding donor requirements and how development projects are procured and delivered. Continuing as a Team Leader for MID and with some corporate responsibilities for Cardno, David seeks to deliver equitable access for communities, which generate social and economic benefits.

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JULY - SEPTEMBER 2021 / ISSUE 07

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INFRASTRUCTURE DEVELOPMENT / INDUSTRY

The Pacific Games 2023 Main Stadium construction site at KGVI west.

SICCI to host Infrastructure Symposium The Solomon Islands Chamber of Commerce and Industry (SICCI) will host its inaugural Infrastructure Symposium this year, which will bring together key stakeholders in the infrastructure development sector in Solomon Islands. The two-day Symposium is scheduled to take place from Thursday 21 October to Friday 22 October 2021 at the Foreign Fisheries Agency (FFA) Regional Conference Centre in Honiara. The Solomon Islands Government and development partners announced around SBD10 billion worth of infrastructure projects for Solomon Islands in the next five years. From the Chamber’s perspective, this is a key factor in the country’s economic recovery. Chief Executive Officer (CEO), Ms. Natalina Hong said by hosting this Symposium, SICCI plans to create a platform that will bring together all key role-players, of the public and private sector in the infrastructure development investment space, who have the common goal of accelerating an infrastructure led economic recovery plan. “This will include presentation and information sharing to encourage transparency in the sector and better understanding of key players and immediate issues that stakeholders have to be aware of. “The Symposium is also an opportunity to nurture infrastructure partnership public and private and shape conversation on policy and regulations, reforms in infrastructure, and most importantly to identify whether these massive infrastructure developments are truly maximizing local participation of busi-

nesses and communities,” a SICCI statement today (Friday 24th September, 2021) said. The desired outcome of the Infrastructure Symposium is to get an overview of infrastructure projects across the country and to gauge its impact on the local economy. During the Symposium, SICCI will also be launching its Local Content Paper - a fundamental document to maintain the advocacy for participation of Solomon Islanders in infrastructure or in any development. “Presentations and papers from contributors and panellists will be compiled and made available to the public online or as SICCI series of documentation of infrastructure development and mapping of all infrastructure projects for the next five years. “This in turn will provide opportunities for local contractors or consultancy to gather information on opportunities on how they can be involved in major projects,” the statement said. SICCI wants to ensure that local content is included in the billion-dollar worth of infrastructure projects that are planned for the next five years to boost employment and local businesses so that return to the economy will benefit Solomon Islanders in the road to economy recovery ahead. SICCI believes Solomon Islands can maximise the benefits of infrastructure spending if there are policies and regulations in place to promote local content. -SICCI Media

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JULY - SEPTEMBER 2021 / ISSUE 07

Contract to upgrade Seghe and Taro runways signed Downer to Commence 8 months Off Site Operations starting November By DOUGLAS SAEFOA Honiara, Solomon Islands

he New Zealand Ministry of Foreign Affairs and Trade (MFAT) and Downer New Zealand, have signed a contract worth SBD $230 million for the runways upgrades in Seghe and Taro in Solomon Islands. Downer has been engaged to upgrade the runways in Seghe and Taro to seal all-weather strips — complete with ground lighting — to ensure safer, more reliable, and more economical flight operations. In their response to questions sent by Pt Media, a Statement from Downer said that during 2021 and early 2022 work would involve off-site procurement activities. “We will be working with a local subcontractor to commence crushing and screening rock for use in the upgrade of the runways. This off-site work will commence in November and is likely to take eight months.” “We are expecting Downer representatives to be onsite from February/March 2022 subject to flights and quarantine facilities being available.” “Initial work in April and May 2022 will involve shipping materials to the sites ready for construction commencing at Seghe late in 2022. This will be followed by construction at Taro commencing in April 2023,” the statement said. “This is a significant milestone in realising an important infrastructure priority for Solomon Islands Government, and represents an exciting new phase in New Zealand’s long standing and multifaceted partnership in the aviation sector in Solomon Islands” said New Zealand High Commissioner to Solomon Islands Georgina Roberts, “by working in a spirit of mana’akitanga and kotahitanga we have been able to overcome some of the obstacles that COVID-19 has presented.” “The support of all Ministries has been astounding, and their continued support will make this a success. It is humbling to be back in Solomon Islands, and the team are looking forward to delivering this project to enable the Solomon Islands to thrive,” said Downer New Zealand’s Executive General Manager for Transport, Craig West.

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Prime Minister Hon. Manasseh Sogavare and H.E Georgina Roberts at the signing ceremony.

New Zealand recognises that through supporting safer, more affordable, and more reliable air services, the upgrades in Seghe and Taro will contribute to strengthening and diversifying the local economy — enabling greater prosperity, access to core services, and more equitable distribution of benefits. The work links to other core components of New Zealand’s partnership with Solomon Islands, including in other areas such as tourism. “The Government of Solomon Islands is proud to witness yet another tangible milestone of progress in aviation in Solomon Islands” said the Prime Minister of Solomon Islands, Manasseh Sogavare. “This project has come this far through the culmination of much hard work over the past few years from staff in New Zealand, Solomon Islands, and elsewhere – labouring under a common purpose which speaks to the importance of this sector in Solomon Islands.” The upgrades will be co-funded by the Governments of New Zealand, Solomon Islands and Australia, with a combined total commitment of more than SBD $230 million. l

INFRASTRUCTURE DEVELOPMENT / INDUSTRY

Solomon Islands: Connecting land and sea By DOUGLAS SAEFOA Honiara, Solomon Islands

he Land and Maritime Connectivity Project will upgrade about 35 km of urban and rural roads in Honiara City and the surrounding regions in Guadalcanal Province, construct two rural wharves, reconstruction and strengthening of parts of the Honiara Port and maintenance contracts in various provinces. The funding for this is a Multi-tranche Financing Facility (MFF), and was approved by the Asian Development Bank (ADB) Board of Directors on 4 June 2021. The SBD 1.2bn (USD 150m) project is approximately 50/50 loan and grant. The planned civil works are for six packages of work: • Roads Package (SBD480m) – Honiara CBD, East Guadalcanal • Maritime Package (SBD 275m) – Honiara Port Redevelopment and two Provincial wharves, • Road Rehabilitation/Maintenance Packages (4 packages, total SBD 130m). The funding will also pay for consulting services contracts for construction supervision, Ministry of Infrastructure Development (MID) support and auditors. ADB proposed the project to Solomon Islands government based on improved connectivity, transport efficiencies and the disaster resilience of transportation network. Visit ADB’s project website for more details (www.adb.org/projects/53421-001/main). Various sections of the east-west Guadalcanal road pavements and drainage assets are in poor condition. Despite concerted efforts by MID over 10 years to maintain the road through National Transport Fund (NTF), several sections are no longer economical to maintain and require rehabilitation. The urban

Minister for Finance and Treasury. Hon. Harry Kuma and the Asian Development Bank (ADB) Director General Ms. Leah Gutierrez signed the financing agreement in the presence of senior Government officials of the Ministry of Finance and Treasury, Ministry of Infrastructure Development, and the Asian Development Bank (ADB) in July. (Photo Credit Government Communications Unit.)

roads – Mendana Avenue – also shows signs of superficial pavement deterioration, requiring an asphalt overlay, spot repairs and improved drainage. The section of Tandai Highway from Town Ground to White River is currently two lane and will be widened to four lanes. While there is inconvenience congestion through this road section at times of the day, isolated intersection treatments (Tasahe Drive), turning lanes (key businesses), parking areas and an improvement to general amenity would have enabled the retention of the significant street trees in this area - a valuable asset in climate resilience. The Honiara Port redevelopment is necessary, to upgrade some of the old wharf areas so that they can support container stacking and vehicle movements on the deck. Its redevelopment is also an opportunity to improve the durability of the aging wharf structures for the long term. Kira Kira and Ahunga provincial wharves will be constructed. This will be of great assistance to the safe and efficient loading and unloading of vessels in both locations. Maintenance periods are built into the capital works contracts. Some maintenance contracts are stand-alone contracts. Tranche 1 is financed by ADB and there are no co-financiers involved at this stage. The first tranche of the MFF comprises a loan of US$24,420,000 and grant of US$19,460,000 and works must be completed by June 2023. The contracts are OCB (open competitive bid) contracts, meaning both international and national contractors can bid for these works. Future tranches of work will include the maintenance contracts. According to ADB, the proposed project’s upgraded road and maritime infrastructure will ensure access to basic services, increase income generating opportunities, and promote social cohesion. The MFF will consist of three tranches, implemented over 8 years. l

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JULY - SEPTEMBER 2021 / ISSUE 07

Country in focus: Nauru There’s a surprising amount of infrastructure development going on there

or a country that once considered abandoning its land, Nauru is now doubling-down on longterm investments in the country’s future. Recent investments by Australia, ADB and the GFC should not be mistaken as altruism, but can also be seen from the perspective of government strategy. Let’s look at the arc of history before considering the government’s infrastructure pipeline. Nauru is unique among Pacific island nations. For starters, it’s not an archipelago – it is a single island. It is only 5km across the widest point (21 square km altogether), with a relatively stable population of approximately 12,000. As a raised, fossilised coral atoll topped with phosphate deposits, its geology is rare. Its national sport is weightlifting, which is more often associated with eastern Europe. A pre-World War I British-German détente, led to a 30-year German administration. Following war-time occupation, a post-World War I League of Nations, then later, UN, arrangement led to administration by Australia, and extensive resource extraction. After projections anticipated that Nauru would be uninhabitable by the 1990’s, Australia offered Curtis Island off Queensland, as a resettlement option, including Australian citizenship. Nauru rejected that and sought independence, achieved in 1968. More recently, Nauru has again become a place of increasing geopolitical interest. With countries

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such as Russia, Taiwan and China courting Nauru for various motives, Australia’s concrete presence in the form of an offshore immigration detention facility (since 2001) is also a significant source of local employment. Though controversial in Australia, and originating from Australia’s self-interest, the policy retains bi-partisan support and has resulted in related investments in the country’s infrastructure, particularly the runway and airport. Other donors are now also piling into Nauru. (Literally - the new Aiwo boat harbour construction has 500 No. x 1.2m diameter secant piles, 16m long!) Mainly they’re building infrastructure and institutions, under the rubric of ‘economic growth’ and ‘capacity building’. But why? Let’s take a look at what’s underway, what’s planned, by whom, and whether this presents a genuine opportunity for Nauru, as well as consultants and contractors.

Projects and pipelines The cost of Australia’s “Regional Processing Centre” (aka offshore detention for refugees) is more than $A3 billion since 2012 when it re-opened . The majority of this expenditure goes to Australian-based managing contractors, who manage the facility for the Australian government. There has also been allied expenditure, such as a A$38.5 million hospital upgrade and the extraordinary $400k per month to lease an accommodation ho-

INFRASTRUCTURE DEVELOPMENT / INDUSTRY

tel. Upcoming projects through the AIFFP are yet to be announced. Diplomatic loyalties to China and Taiwan have taken an erratic pathway, switching from Taiwan to China in 2002 and back to Taiwan in 2005. The reasoning for these switches is not transparent, but financial incentives and aid are variously verifiable and suspected. Taiwan’s main contribution to Nauru is in the health sector, providing specialist doctors and other medical aid to the country’s only hospital. A Chinese (mainland) contractor is currently undertaking the Aiwo port work. Nauru has an unusual relationship with Russia, where is has officially recognised new countries and annexed lands in Russian’s sphere, in favour of the Russian position on such controversies. This has reportedly been in exchange for significant sums of Russian aid money. Apart from geo-strategic competition, all of this points to ongoing foreign aid spending in Nauru. The 2019 Nauru Integrated Infrastructure Strategic Plan is the latest PRIF document to attempt to list and prioritise the country’s infrastructure needs. With 53 projects and a price tag of only A$105m in new funding over 10 years, with willing donors, it is not an insurmountable challenge. The challenge is always in aligning interests. Many of the projects are small repair and rehabilitation jobs. Several of the most pressing priorities are renovations to health and education facilities. However, the significant projects are: • 6.5MW solar energy and battery storage (A$36m) • Resealing and repair of existing roads (A$14m) • Resealing and repair of runway and taxiway (A$15m) • Replacement of mooring equipment ($A7.5m) • New septage treatment plant (A$6m)

Opportunity or abandoned mine? Some donors have already indicated interest in funding the above projects, meaning that they will be coming to the market in the next 6-12 months. Whether or not foreign aid ‘investments’ really serve the people of Nauru has been written about elsewhere, but there is a clear need for maintenance and upkeep of existing infrastructure and a move to green energy could also reduce the cost of power, and certainly the dependence on fuel imports. Nauru is notoriously difficult to get to and the costs and risks of operating there for foreign firms are significant. But it’s the same playing field for

every firm seeking opportunity. The first project is always the hardest. While the Chinese firm undertaking the new port works are established for that project, the work has not been without difficulties and their bidding on future projects will depend on their appetite for risk and the funding source. In 2018, the Government of Nauru partnered with a deep-sea mining company called DeepGreen, planning to harvest manganese nodules. These polymetallic deposits form around hydrothermal vents in the ocean floor, where tectonic plates are divergent. These metals are considered to be lucrative as a replacement for copper in the world’s clean energy future. The value of deposits within Nauru’s economic zone is not yet known, but this demonstrates the potential for new economic opportunities. Although small-scale phosphate mining continues, by an SOE called RONPhos (formerly the Nauru Phosphate Corporation), the bulk of the ore was extracted by 2000. The effective closure of the mine operation placed strain on the economy, both due to the loss of export earnings and the loss of employment. In that sense, the ‘Regional Processing Centre’ has been welcomed – providing 18-20% of employment. As a small, geographically isolated country, dependent on aid and a refugee processing centre, growing the economy is difficult. Thus, for any firms considering a venture to work in Nauru, it would be prudent to look beyond a single project focus. Nauru cannot be expected to ‘boom’ economically. But, a longer-term strategy would first of all help defray the costs of establishment and remain competitive. And as long as large projects were not the only focus, it would provide an advantage (local knowledge, equipment and labour) for bidding the long list of priority building and civil works. Lastly, aid money alone can’t solve Nauru’s most pressing issue - a major health crisis in the form of obesity (more than 90% of the population) and related type 2 diabetes (40% of the population). Partners who are willing to contribute to the myriad ways this issue needs to be tackled would be welcomed. There is reason to see foreign interest in Nauru continuing into the foreseeable future. Any chance of Nauru abandoning their island home seem as distant as ever. l

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JULY - SEPTEMBER 2021 / ISSUE 07

Aerial view of the Solomon Islands Ports. Photo: Robert Taupongi

Australia’s ten-year SBD 1.5 billion Solomon Islands Infrastructure Program up and running By ELEANOR FENTON Interim Team Leader, Solomon Islands Infrastructure Program

ustralia’s ten-year, SBD 1.5 billion Solomon Islands Infrastructure Program (SIIP) was officially launched by Prime Minister Hon. Manasseh Sogavare and the Australian High Commissioner to Solomon Islands Dr Lachlan Strahan on 25 June. SIIP will focus on economic infrastructure such as transport (land, sea and air), information communication technology, electricity, water and sanitation, tourism and infrastructure that supports rural development. The flagship program comes at a time of great opportunity to maximise the economic benefits of the government’s ambitious pipeline of approximately SBD 10 billion of nation building infrastructure. With the right skills and policy settings in place, there are significant opportunities for local industry participation, local employment, and the needs of all infrastructure users to be integrated through improved infrastructure lifecycle planning, procurement, construc-

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tion, use and maintenance that SIIP promises to deliver. Optimising local content is one of the key principles of the program. During its launch, Australian High Commissioner to Solomon Islands Dr Lachlan Strahan stressed the importance of upskilling industry and contributing to local job opportunities - whilst delivering quality, resilient infrastructure. “Inclusive, quality infrastructure means engaging with the communities using it, and supporting government and the private sector to plan, finance, build and maintain well built assets, Dr Strahan said. “High quality infrastructure will play a significant role in boosting growth in Solomon Islands – especially in response to economic recovery from COVID.” However, optimising local content is complex. It is challenged by tensions between project-level efficiency, effectiveness, and value-for-money considerations on the one hand, and local and national economic outcomes and opportunities on the other. Purposefully planned, designed, and

delivered local content policies and practices can help balance those tensions, and deliver winwin results. SIIP demonstrates Australia’s genuine long-term commitment to sustainable, locally-driven economic development in Solomon Islands – to share skills, improve planning and leave a legacy of well-built projects. The program is designed to deliver four outcomes for Solomon Islands over its ten-year life: 1. Support infrastructure policy development including safeguards and opportunities to integrate climate change, environmental management, gender equality, disability and social inclusion. 2. Build national capacity, focusing on enhancing the capacity of government, local industry and communities to build quality, inclusive infrastructure. 3. Provide direct financing for priority projects, as well as help leverage co-finance contributions from multilateral devel-

INFRASTRUCTURE DEVELOPMENT / INDUSTRY

opment banks. 4. Undertake construction of high priority, high quality infrastructure as demonstration projects. The Program is overseen by a high-level joint Steering Committee that is co-chaired by Secretary to the Prime Minister and the Australian High Commissioner. The Permanent Secretaries for the Ministry of National Planning and Development Coordination, and the Ministry of Finance and Treasury are also members. The Steering Committee provides a strong mutual interest platform for prioritising activities and ensuring effective use of funds. While the SBD $1.5 billion over ten years is Australia’s largest single investment in Solomon Islands, it will need to be managed wisely if it is to deliver on its four outcome areas. In its first meeting, the Steering Committee approved the scoping of up to new 10 markets, across the country, for construction over the life of the program. The markets will be informed by the Gizo market redevelopment in Western Province, delivered by Australia in 2019. This project demonstrated what can be done when planning, people and professionals come together – well governed climate resilient and highly accessible infrastructure, aligned to the strategic objectives of the National Development Strategy, with high levels of local content. While SIIP is in its early days, an office has already been established in Honiara with key team members in place. Because SIIP is offering more than traditional ‘turn-key’ infrastructure projects,

SIIP will focus on economic infrastructure such as transport (land, sea and air), information communication technology, electricity water and sanitation, tourism and infrastructure that supports rural development.

the program has commenced engagement with government, industry groups and the community sector to establish relationships and understand infrastructure and capacity needs. It’s already clear from SIIP’s early consultations with groups representing women, people with disabilities and youth, that there is more room for the inclusion of the voices of the people who use infrastructure in their daily life. They say that improvements in access would increase their ability to contribute to economic activity and participate in the wider community. SIIP comes with high expectations and commences in challenging

times. As Solomon Islands and the Pacific grapple with the health and economic impact of COVID-19, such an investment stands to strengthen the enduring economic ties between the two countries. It also offers the chance to demonstrate elsewhere in the region what it takes to deliver competitive, locally-constructed, resilient and economically empowering infrastructure. The Solomon Islands Infrastructure Program is an initiative of the Australian Government implemented by CARDNO. For information contact info@ siip.com.sb. The SIIP website will soon be launched at siip.com.sb

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Pacific Games 2023 UPDATES

from the2021 Sol 2023 National JULY - SEPTEMBER / ISSUE 07Hosting Authority

Aerial view of the main stadium project area: (Plot 1) KGVI West, (Plot 2) KGVI East.

CCECC Committed to Main Stadium Project The ongoing construction work at the 2023 Pacific Games Main Stadium Project site is progressing and on schedule to the proposed handover date which is May 2023. By DOUGLAS SAEFOA Honiara, Solomon Islands

ell-coordinated efforts between the Sol2023 Games Facilities Committee from the NHA, the Project Management Team from the Central South Architect and Design Institute (CSADI) and China Civil Engineering Corporation (CCECC), the contractor, has culminated in the steady progress of the project. A recent media visit to the site organized by CSADI and CCECC, revealed the current stage in the pro-

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gressive work that has been done in this massive project. The project covers two sites, which includes KGVI East (Plot 2) and KGVI West (Plot 1) and is within a total plan area of approx. 152,000 m2 and a total construction area of 26,000 m2. Up to now, great progress was made including completion of works critical to construction of the different sporting venues: PLOT 1 Excavation work, Foundation for main stadium Road backfill PLOT 2 Training field Track and hockey pitch foundation Drainage trench around the training field construction and its pre-made covers Foundation of training field supporting houses At the same

Pacific Games 2023 UPDATES from the Sol 2023 National Hosting Authority INFRASTRUCTURE DEVELOPMENT / INDUSTRY

Onsite Development KGVI East Stadium Site - Majority of the civil works have now been completed - Foundation works for the 1000 seats are underway - It is anticipated that the practice pitch will be delivered by December 2021. KGVI West Stadium Site - Tower cranes have been erected - Civil works are well underway - Foundation works to the east and western grandstand have commenced - UXO works to site completed - Aquatic centre works scheduled to commence before the end of December 2021.

Foundations work on the practice pitch at (Plot 2) KGVI East.

time, the installation and adjustment of heavy construction equipment were utilized such as tower cranes with coverage area of over 10,000 m2, crawler-type hoist crane and multiple earth-moving machines and carrier vehicles. According to Zhang Tenglong, Vice Team Leader of Project Construction Technical Group, the use of these large-scale machines, which are being used in Solomon Islands for the first time, greatly improves the efficiency of site construction. The project has also enabled the direct employment of nearly a hundred people, and with skill training, they have improved their working techniques and could complete the work more efficiently under the lead of site engineers. It has also enabled extended benefits to local suppliers and sub-contractors. “We also procured large quantity of construction materials from local suppliers, including approximately 1,800 tons of cement and 20,000 tons of sand and gravel and other building auxiliary materials.” “The local suppliers that cooperate with us increased employments of local workers because of business promotion.” said Zhang. Meanwhile, Ruan Xiangju Team Leader of Project

Management Group, CSADI, said the project since start has been seen a steady progress due to close coordination between skilled expertise from both China and Solomon Islands. “During the past five months of construction, we have been working closely with NHA and have built great relationships and mutual trust, effectively carrying out the implementation of project through weekly regular meetings with NHA site representatives, to track the progress of works timely as per the implementation agreement (for instance borrow area, UXO work, temporary power connection etc.). “Furthermore, during the whole construction process Solomon Islands representatives have had the opportunity of learning the Chinese Construction Codes and Chinese state of the art techniques which will contribute to bolster and facilitate the high quality development of Solomon Islands construction industry.” said Ruan. The USD85 million 2023 Pacific Games Main Stadium Project, in Solomon Islands, is the first construction project fully financed and aided by Peoples Republic of China which serves as a symbol of friendship and positive development between the two countries. l

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Pacific Games 2023 UPDATES

from the2021 Sol 2023 National JULY - SEPTEMBER / ISSUE 07Hosting Authority

SIG set to receive High Performance Facility By DOUGLAS SAEFOA Honiara, Solomon Islands

fter almost 25 months, the Solomon Islands National Institute of Sports (SINIS) Center is set to be handed over to the Solomon Islands Government (SIG) on November 19 2021. The project started in September 2019 when the Solomon Islands Government launched the tender for the contract in search of a suitable contractor to build the facility. This was vital to SIG’s ambitious campaign targeting 40 Gold medals in the upcoming Pacific Games in 2023, in Honiara. Eventually China Civil Engineering Construction Corporation (CCECC) Ltd was successfully awarded the contract in November 2019. The construction then took off following a remarkable groundbreaking ceremony on December 6 2019. The Solomon Islands Government has invested over SBD20 million dollars to have its first ever high performance facility constructed and it is now ready to receive the completed facility. Solomon Islands National Hosting Authority Project Management Unit Supervisor Ken Grossmith confirmed that Prime Minister Honourable Manasseh Sogavare will officially open the facility on November 19 2021. “The 2023 Pacific Games High Performance Program will be operated out of this building, and this consists of a range of programs—including strength and conditioning, coach development, talent identification, and elements such as nutrition planning, sport psychology, many of which are already being worked on so that they can be rolled out very quickly. “In order to get SINIS up and going a major procurement exercise is underway now to put in the specialized equipment needed, and staff recruitment is progressing for the approximately

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70 full time staff that will be engaged to run the programs here,” said Grossmith.

Design and Build While it is a “one of a kind” building for the Solomon Islands in terms of its use—it is important to note that it was designed to be a relatively simple structure. “Taking into consideration cost effectiveness we focused on function rather than form—so architecturally the building is a simple steel framed building. The key to the building functionality—which is the same thing we have done with all our facilities is to make sure that they are multifunctioning, meaning that the space design is about making sure we have flexibility in use. For instance the facility has a full court that supports basketball, netball, volleyball and badminton—but also provides a programming space for things like meeting space, sport seminars etc,” Grossmith explained. The flooring is fully a multipurpose product that allows all these uses and still provides the sport performance required. “An idea of how we made the facility more functional is to add a mezzanine extension over the gym equipment space so that a combat zone for mat sports like judo, karate, taekwondo can be conducted without impact to court users. The other space needs were carefully thought out about how a facility should be run to allow control of people into the space, provide confidential spaces for assessments, treatments etc,” he added. The SINIS is more than just this building—it also includes an existing hostel and recreation area, a new ablution block to deal with users who will be training outdoors which includes a sprint track, a beach volleyball court and a lighted playing field.

INFRASTRUCTURE DEVELOPMENT / INDUSTRY

UXO Survey Underway at Proposed Aquatic Centre By DOUGLAS SAEFOA Honiara, Solomon Islands

zimuth Group of Surveyors have been engaged by the Sol2023 National Hosting Authority to conduct the third round of Unexploded Ordnance (UXO) survey at the proposed aquatic centre site at the former SINU rugby pitch at the Games Village, in Honiara. Azimuth begun conducting UXO surveys in the third week of September following a request by the China Civil Engineering and Construction Corporation (CCECC) Ltd for a third round of surveys on the proposed aquatic centre building area for 6-meter-deep below ground level, due to the construction of the swimming pool, which will be beyond 2 meter below ground level. This UXO survey needs to be conducted to ensure the area is clear of any UXO before construction work starts on that area. Work carried out involved: site inspection, site marking, set administration and safe parking area, required vegetation clearance and all other necessary project control measures on site to ensure all working areas are cleared at all times throughout the duration of the project. The process included clearance, detection/identification and removal of UXO’s and other chemical munitions that pose a risk to personnel on-site. UXO scanning was set to a required 6 meter depth below ground lev-

Azimuth UXO BAC technicians demonstrate the detector search depth to the Quality Assurance Team.

Azimuth UXO BAC technicians conducting Unexploded Ordnance (UXO) surveys at the proposed aquatic centre site at the former SINU rugby pitch at the Games Village, in Honiara.

el whilst escorting and disposal of UXO’s and other explosive materials were established according to authorized protocols. Azimuth also provided the required certification of works. Remove all metal signals from the ground and place in a metal collection point. The contract was due to complete within a period of a week and a half. In addition, Azimuth Surveys was provided a variation to carry out additional UXO survey of the proposed Multipurpose Hall site (former agri-

culture farm next to Girls Dormitory) at KG VI East over 3 days. The UXO Battle Area Clearance (BAC) Tech/Operator for Azimuth Surveys has the certificates in EOD training provided by the Australian Army and experiences with RSIPF Explosives Ordinances Division (EOD) and Azimuth Surveys has vast experience with similar tasks with clients including the Ministry of Health and Medical Services, Solomon Power and the Anglican Church of Melanesia. l

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Department Of Works & Implementa�on

JULY - SEPTEMBER 2021 / ISSUE 07

Vision 2050, PNG Sustainable Development Goals 2018-2030, Na�onal Transport Strategy, The Na Interna�onal Copora�on Agency (JICA) Capacity for Rural Road Maintenance Project Phase 1 - 2 objec�ves is to improve road maintenance and capacity for DoW to achieve its mandate through it via the successful delivery of goods &

Phase 1 - Successfully Completed Highlights 2013 - 2017

CDRM 1 - WHP. WNB. ESP & Morobe.

Prime Minister Hon. James Marape, MP.

11 20

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Minister for Works & Implementa�on Hon. Michael B Nali, CBE, MP.

Capacity Development for Rural Road Maintenance

INFRASTRUCTUREINDUSTRY DEVELOPMENT / CONSTRUCTION / INDUSTRY

a�onal Road Network Strategy (NRNS), The Connect PNG Policy 2020 - 2040 and The Japanese is supplemen�ng the improvement of 21,000kms of Sub-Na�onal Road Network. JICA CDRM ts Plant Transport Division to provide accessibility to the rural popula�on, to access the market services to the remote parts of PNG

Phase 2 - Commencement JCC First Mee�ng: Update

CDRM 2 - Madang. ENBP. Western & West Sepik Province.

, CMG, JICA Experts on CDRM Project

Ac�ng Execu�ve Director Corporate Service Ms Molong Molean

PTB Plant A

PTB Plant A Contact Media Unit

Phone: 324 1114 Mobile: 7145 9256/ 7538 7036 /73088707 Email: konopakana@gmail.com

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21 11

COMMUNITY ACCESS AND URBAN SERVICES ENHANCEMENT

JULY - SEPTEMBER 2021 / ISSUE 07

Agape Community benefits from Improved Road Access

CAUSE proves it can, yet again On 10th March this year, the FCL Civil & Construction Ltd won a contract to construct the climate resilience spot improvement on the Agape road of West Honiara. It only took the company six months to complete the 218 meters concreted road ahead of January 2022, which is the expected completion of the project. The new improved road replaced the old rugged road, which has been a headache to the residents living up there. It is estimated more than 1000 people will benefit from this new road. Moses Au, a resident of White River who uses the road every day said the upgrade has benefited the women through health, and the residents sporting teams

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that use the road for their training every morning. There are people who are also renting at Agape, and most times public transport, especially taxis refuse to go there, as conditions of the road is very poor. Agape also has a church, so with the new upgrade it has given them relief and hope for the future. Meanwhile, Stephen Maesiola the Permanent Secretary of Ministry of Infrastructure Development representing CAUSE Project and the ministry, acknowledged FCL Civil & Construction Ltd for the excellent and fast job done. PS Maesiola urged the contractors to produce good quality of work and do their best or else will face consequences.

COMMUNITY ACCESS AND URBAN SERVICES ENHANCEMENT

INFRASTRUCTURE DEVELOPMENT / INDUSTRY

Hemgro Company commence road works at Vura 1 Heights Urban road works and rehabilitation continues in and around Honiara through the continuous support of the World Bank Funded CAUSE project. Just recently in March 2021 CAUSE-MID saw the need for improved road access for people living within Vura 1 and

Vura Heights East Honiara. The road works contract valued at SBD 2.755 million dollars was awarded to local contractor Hemgro General Maintenance and Service Company who since the start of the contract were also assisted by community members of the attributed community.

The project is expected to continue on for one year and will lapse in March 2022. Current Work being done include applied concrete to the sloppy sections of Vura 1 road and the Vura heights road. The Vura 1 road is 120 m long concrete while the vura heights is 320m long.

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ADVERTORIAL JULY - SEPTEMBER 2021 / ISSUE 07

Ribbon cutting L-R: Aaron Dawen Zheng, Prime Minister Manasseh Sogavare and Guadalcanal Provincial Premier Francis Sade.

AJ City Mall sets Benchmark By DOUGLAS SAEFOA Honiara, Solomon Islands

The newly launched AJ City mall owned by AJ Enterprises, located at Lungga, Central Guadalcanal has risen the standard of design and construction in the country, setting higher standards for genuine investment in Solomon Islands. AJ Enterprises which started as a general hardware shop in Honiara, almost 20 years ago has eventually evolved into one of the most popular construction companies in the country. AJ Enterprises are well known for their modern builds including Capital Park commercial center and Mokolo building along the Matanikau River. AJ Enterprises LTD Director Aaron Dawen Zheng, a naturalized Solomon Islands Citizen confirmed that the total cost of building was SBD$120 million, an amount which most if it had been sourced through bank loans from the Bank South Pacific. The new 5 storey mall features a total of 50 units and offers offices for rent, gym, food courts, pubs, cinema, clinics and many other more. Solomon Islands Prime Minister recognized the commitment and vision for the country shown by Aaron and his team in successfully pulling through despite restrictions succumbed to by Covid-19 pandemic. “Mr. Aron Zheng, your contribution to the building industry has not gone unnoticed. I understand that you have been in the Solomon Islands for around 20 years and started off in the hardware business and only ventured into the construction industry in 2016. However, your contribution to date in the construction industry is noted, and this building is a demon-

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stration of that,” he said. “I am told that this building is the first one in this country to have an escalator. In this age and time, I would have thought that we would already have buildings with escalators in it, however, this is the first building of its kind in this country,” said the Prime Minister. The Guadalcanal Provincial Premier Francis Belande Sade also spoke highly of the development and opted that the AJ City would set the new standard for any future developments within Henderson area. Moreover, Mr. Sade revealed that the provincial government is looking at further developing the Henderson area into a fully-fledged township within Central Guadalcanal. l

INFRASTRUCTURE DEVELOPMENT / INDUSTRY

The gathering at the launch of the new mall.

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JULY - SEPTEMBER 2021 / ISSUE 07

HCC addresses its Financial/ Procurement system HONIARA City Council (HCC) is on the right direction to address its procurement system after it was heavily criticised with other maladministration practices resulted in a Special Audit Report done by the Auditor General’s Office early this year. By ANDREW FANASIA Honiara Solomon Islands

CC was in total mess early this year hitting the media headlines with damning allegations of corrupt activities made which later highlighted in the Special Audit Report. The HCC special audit report shows the unbudgeted for and illegal procurement of fire extinguishers and vehicles for the council were worth at $1.8 million and $4.2 million respectively. As a result Opposition Leader Mathew Wale said, “Given the magnitude of the allegations, the right thing to do is to stop the current HCC and take whatever action necessary to address the causes of such corrupt practices.” But that is water under the bridge now as HCC new Executive under the leadership Lord Mayor and Councillor Eddie Siapu said they are trying their best to change the tide around. And with HCC newly appointed City Clerk things are rolling in the positive direction in terms of HCC procurement system. Already there were few steps currently taken to address the Auditor General’s Special Report on HCC Procurement. According to HCC these steps were taken; 1. Creation of Draft Financial Management Ordinance a. HCC has taken the first step and drafted a draft Financial Management Ordinance; b. Draft Financial Management Ordinance has been submitted by HCC to Ministry of Home Affairs for further deliberation already; c. Ministry of Home Affairs has deliberated on the draft Financial Management Ordinance already; d. Draft Financial Management Ordinance is currently with AG Chambers for legislative review; e. As soon as the AG Chambers finalises the draft ordinance, the City Clerk will meet to adopt and pass the Ordinance before the Minister of Home Affairs signs the documents for the ordinance to be gazetted According to HCC senior officials the Financial Manage-

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ment Ordinance is drafted specifically to address the Procurement policy and procedures of the Council. The Financial Management Ordinance if aims to address: (i) Budgetary policy and procedures ;(ii) Procurement policy and procedure; (iii) Other financial matters that requires the guidelines into Council’s Revenue and Expenditure. Another very important undertaking HCC is working towards to address their procurement system is to review the Honiara City Act 1999. The Council in consultation with the Ministry of Home Affairs are currently also reviewing the HCC Act 1999. Pacific Tender Magazine was reliably informed that the Term of Reference (TOR) for hire of consultant to commence review of the City Act has been finalised and was published on print media last month. “The Consultant will be the key person to conduct drafting of the new City Act. Consultant should be recruited this month if time permits otherwise it might be next month,” according to HCC senior official. Honiara City Lord Mayor Eddie Siapu confirmed that the review of the Act will address key points raised in the Audit Report in regards to Council’s financial system. “We want to make sure that HCC financial system is addressed to safe guard how we operate in terms of our procurement system,” he said. As soon as the consultant is recruited the commencement of the HCC Act Review plus consultation will be carried out by the Taskforce that is Chaired by the Ministry of Affairs. It is understood that HCC is currently adopting the Solomon Islands Government (SIG) Procurement System with some slight changes in regards to compliance processes within the procurement system. A temporary measure until the Financial Management Ordinance is finalised by AG Chambers and will later seek passage by HCC. According to Cr Siapu, his new Executive prioritises these financial mechanisms in order to put its procurement system in place as highlighted in the Special Audit Report. “I believe through this undertaking accountability in procurement and other financial matters is very crucial for HCC Management and Governance body,” he added. l

INFRASTRUCTURE DEVELOPMENT / INDUSTRY

TGB Awarded contract to construct SP Data Centre, Call Centre and Control Room Facility Tropic Group Builders (TGB) of Solomon Islands was successfully awarded an SBD$26.8 million contract from Solomon Power (SP) for the construction of the Data Centre, Call Centre and Control Room Facility on August 23 2021. These works are part of Solomon Power’s targets to install and commission a Supervisory Control and Data Acquisition (SCADA) System across its operations and also to improve and enable a resilient communication technology system for Solomon Power.

The construction of the Data Centre, Call Centre, and Control Room building at Lungga was also identified as one of the key components to the approved Information Communication Technology (ICT) Strategy. On December 12 2019, contractor FMC Pacific (SI) Ltd was awarded a contract to develop Detailed Design and Tender Documents for construction of the East Honiara Green Village Development project, which consisted of the following components:

Construction of Data Centre, Call Centre and Control Room

Construction of East Honiara Substation Enclosure

Construction of East Honiara Green Village

The contract will be implemented within a 12 month period.

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JULY - SEPTEMBER 2021 / ISSUE 07

Aerial view of foundation works of the fish ponds.

MFMR Aquaculture Centre Construction Works Underway By DOUGLAS SAEFOA Honiara, Solomon Islands

he second Phase of the National Tilapia Freshwater Hatchery Project under the Ministry of Fisheries and Marine Resources is currently in progress with the constructions of 10 outdoor ponds, power supply for the hatchery and water supply underway. Solomon Islands Government is in partnership with New Zealand Government through “Mekim Strong Solomon Islands Fisheries MSSIF” to ensure the establishment of all the needed facilities of this National Project. The Parties have identified Aruligo in West Guadalcanal (Former ICLAM site) as the main site for the development of the tilapia facility. Phase II involves construction of 10 (25mX15m) Fish Ponds and Pond Drainage system. The construction of the Ponds will include foundation and bedding works, pond slab, walls and all required drainage pipe works. Capital Constructions PTY Ltd was contracted to build the fish ponds, and is already at 19% project

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Capitol Construction workers laying ground beams.

completion. According to Capital Construction they are currently doing Ground Excavating, levelling & pond reinforcement works. Also on site are FT Builders who were contracted to do Water Supply, Storage & Reticulation Works. Ongoing works include; Profiling of the battery Shed House & work on the base of the 3 tanks. Other works pending under phase II infrastructures include: Post Entry Quarantine Facility, Construction of 6 Staff Houses, Site Clearance & Demolition Works and Landscaping works. Once all the above works are completed within Phase II, the Importation Order of the Genetically Improved Farmed Tilapia (GIFT) Species will com-

INFRASTRUCTURE DEVELOPMENT / INDUSTRY

Polyethylene sheet being laid to prevent moisture transmission.

mence, which is expected to be on the last quarter of 2022 depending mainly on the completion of the above tasks. Upon entry into the country the Tilapia Species will be in quarantine for 14 days at the Post Entry Quarantine facility located in Honiara before transported to the hatchery site at Aruligho for farming (breeding). Training of interested fish farmers will occur firstly

in the Guadalcanal province then going out to other provinces. Trainings on fish handlings and fish farming techniques etc. Phase 1 of the Facility development at Aruligho was completed in 2020, which saw R&D Construction build an Office Building and an open fish Tank House. Bisivotu Enterprise and JM Enterprise were also contracted during phase 1 and, were involved in setting up fencing works on site.l

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JULY - SEPTEMBER 2021 / ISSUE 07

PNG Parliament amends National Procurement Act BY PT Media PNG The National Parliament of Papua New Guinea has passed the amendment the National Procurement Commission Act 2018 in September. Finance Minister Sir John Pundari who introduced this bill received 87-7 votes in favour to have the amended National Procurement Commission Act 2021. The amendments made are part of the bigger Public Financial Management Reform in how the Government conducts its procurement in the country, and are in line with the greater ambitions of the Prime Minister James Marape and his government that focus on driving the economy forward, and ensuring that value for money is achieved in all government procurements. Previously, procurements under the value of K10 M were open solely to national companies but with the amendment, districts with a procurement threshold of K2.5 M will now receive K5 M tender and provinces have increased from K5 M to securing contracts worth K10 M. The increase in procurement threshold for the following are: • Minor procurement: K5,000 to K50,000 • Standardised procurement (valued at K5,000): range between K500,000 – K1 M • Major procurement (valued at K500,000): <K1 M • Provincial Committee of the Board: K5 M to K10 M • District Committee: K2.5 M to K5 M

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• Specialised Committee: K1 M to K5 M However, only the National Executive Council (NEC) remains at K10 M. With the changes the K10 M procurement threshold reserved for local companies has been increased to K50 M. These changes, Sir John Pundari said gives power to districts and provinces under the National Procurement Commission. Prior to the changes, many districts and provinces find it difficult because of the existing bottleneck. This procurement reform is envisaged at providing equal and fair opportunities to citizens and local SMEs to participate at all levels of government procurements. “These bills are meant to fix some of the legacy issues of our country, in as far as the process of procurement is concerned. I’d like to offer my commendations, at the highest level, to all Members of Parliament,” Prime Minister James Marape said. According to the Finance Minister, Sir John Pundari, the new NPC will have a structure similar to those of the Provincial Health Authorities. PM Marape also stressed that there were conflicts between the procurement laws when it comes to international agreements, regulations and guidelines. He said for donor funds, the conditions will remain in respect to the procurement that uses the funds.

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JULY - SEPTEMBER 2021 / ISSUE 07