SIWA removed from SOE status

The Government announced today that the Solomon Islands Water Authority (SIWA, trading as Solomon Water) is no longer a State Owned Enterprise (SOE).

The Cabinet decision, which will take effect from August 26, 2024, is part of the government’s efforts to revive the water authority’s performance in providing much-needed water services and projects to the public.

Prior to 1992, the organisation was known as the Water Department under the Ministry of Transport, Works and Utilities and its functions were governed by the Water Supply Act. The Solomon Islands Water Authority was only established in 1992 under the Solomon Islands Water Authority Act.

In 2007, the Solomon Islands Water Authority became a state-owned enterprise under the State-Owned Enterprises Act, but the State-Owned Enterprises Act did not establish the Solomon Islands Water Authority.

The State-Owned Enterprises Act does not repeal the SIWA Act which remains in force. The functions of SIWA are set out in section 7 of the Act.

The government statement said that despite numerous efforts by the government to guide and support Solomon Water Services (SIWA) in managing the country’s water projects, SIG continues to face ongoing challenges that undermine confidence in SIWA’s leadership. The long-term construction of a sewerage system along the Kukum highway is a prime example of this problem.

The lack of commitment to these key initiatives reflects poor leadership at SIWA and its incompatibility with national development goals. SIWA has consistently ignored government directives and has been portrayed as independent and unaccountable, which has undermined trust and confidence in its leadership.

Given these significant shortcomings, the SIG must prioritize accountability, transparency, and effective leadership to ensure the successful implementation of critical water infrastructure projects.

The government is concerned that SIWA’s core functions are not being performed, resulting in national projects in the public interest being jeopardized and services in provincial capitals and urban centres being neglected.

As a result, Cabinet removed the Solomon Islands Water Authority from the Schedule to the Solomon Islands Water Authority Act pursuant to Section 28. Currently, the only Act governing the Solomon Islands Water Authority is the Solomon Islands Water Authority Act.

Going forward, the Government will consider appropriate measures to address these issues, which may include restructuring the leadership of the SIWA, enforcing contractual obligations, and exploring alternative management strategies under the SIWA Act to safeguard the interests of the nation and its citizens.

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– Government Communications Department