BY JOHN HOUANIHAU

Leader of the Opposition Mathew Wale criticized the inflated costs associated with the Tina Hydro project, attributing them to poor negotiation practices.

In response to inquiries regarding whether the Solomon Islands secured the best deal for this renewable energy initiative, he highlighted that the cost for a 15-megawatt project in regions with similar GDP levels, such as those in Africa, typically ranges from USD 35 million to USD 15 million.

“The 15-megawatt hydro project was overpriced for us, with costs around 260 million US dollars at that time,” Wale said during a live podcast earlier this month.

“We have been misled into signing agreements that should have cost 10% of the current figure, which is now 400 million and may increase further by the time of completion in two years,’’ said Wale.

He anticipated that by the time the project reached completion, the total cost could spiral to USD 500 million.

“At present, it exceeds USD 400 million. This is a clear case of exploitation and an indication of poor negotiation,” he said.

Mr. Wale further said that the government, along with the Ministry of Finance and Energy, has demonstrated incompetence in their negotiation efforts.

“We are committing to a 30-year agreement with a 40% reduction in tariffs, yet we remain the most expensive in the region. How can this be considered a favourable deal?” he questioned.

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