A state-backed Chinese company has won a contract to develop a key port in the Solomon Islands, a major victory in Beijing’s quest to secure a strategic position in the South Pacific. The Solomon Islands government announced Tuesday that the China Civil Engineering Construction Corporation has been selected to lead a US$170 million project to develop the international port in the capital Honiara.
The Solomon Islands have become the unexpected epicenter of a diplomatic standoff between China and the United States, after signing a vast security agreement, with vague outlines, with Beijing in 2022. Both China and the Solomon Islands have denied that the pact leads to the establishment of a permanent Chinese naval base, but details of the deal have never been disclosed.
A company created by the Chinese government
Major infrastructure projects in the South Pacific archipelago are increasingly dependent on Chinese investment, including the construction of a new stadium for this year’s Pacific Games in Honiara. The Chinese company had already won a $7 million contract in 2020 to build a new terminal at Munda International Airport in the western province of the Solomon Islands, according to government contract notices.
The company was established by the Chinese government in the 1970s and played a vital role in the “New Silk Roads” project, a massive initiative aimed at strengthening Beijing’s influence in developing countries around the world. It has contracts for infrastructure projects in Africa, the Middle East and the Pacific, according to the company’s website.
The Honiara port contract was unveiled the same day White House envoy Kurt Campbell visited Honiara, as part of Washington’s latest moves to address China’s growing economic and diplomatic footprint. Campbell met with Prime Minister Manasseh Sogavare, who was instrumental in bringing the Solomon Islands closer to China after severing diplomatic relations with Taiwan.
Source: BFM TV
