State Owned Enterprises


SOE Portfolio 2016 Government ownership % Total Assets   SBD (‘000) Total Revenue  SBD (‘000) Total Liabilities    SBD (‘000) Net Profit / (Loss)   SBD (‘000)
CEMA Commodities Export Marketing Authority 100  31,424  2,869  275 (159)
SAL Solomon Airlines Limited 100  168,315  259,701  168,141 (17,244)
SIPC Solomon Islands Postal Corporation 100  29,333  13,345  77,258  962
SIBC Solomon Islands Broadcasting Authority 100  20,281  11,216  2,373  2,004
SIEA Solomon Islands Electricity Authority 100  1,078,678  445,987  108,344  120,049
SIPA Solomon Islands Port Authority 100  696,579  240,839  187,454  122,653
SIWA Solomon Islands Water Authority 100  350,234  112,395  146,271  25,272
PORTFOLIO  2,343,420  1,083,482  689,841  253,696



Performance Highlights

The SOE portfolio [1] has undergone a dramatic turnaround since 2009. Average portfolio return on equity (ROE) increased from (11%) in 2002-2009 to 10% for 2010-2016 and 15% in 2016. Return on Assets (ROA) followed a similar trend. The turnaround can be attributed to (i) financial restructuring of three of the largest SOEs, (ii) tariff increases at SIWA[2] and SIPA, (iii) improved collections for SIEA[3] and SIWA, (iv) privatization and liquidation of non-strategic SOEs and (v) improved implementation of the SOE Act, in particular the community service obligation (CSO) regulations.  In 2016, the Solomon Islands government established a new SOE, Solomon Airlines Airport Corporation Ltd (SIACL), which commenced operations in 2017.

More detailed analysis on the Solomon Islands SOE portfolio can be found in:

Government’s Management of SOEs

Government exercises SOE ownership oversight through the application of the State-owned Enterprises Act 2007 and State-owned Enterprises Regulations 2010. The Act and Regulations cover such matters as the duties and responsibilities of the Accountable Ministers, the principal objective of every SOE to operate profitably; how CSOs are identified, costed and approved; directors’ duties; director selection, appointment and removal; and preparation of the Statement of Corporate Objectives and Annual Reports. For SAL, the only SOE that is a registered company, the Companies Act also appliesSome SOEs are established through their own legislation.

The Accountable Ministers are the Responsible Minister and the Minister of Finance. They are jointly responsible to Parliament for the performance of the SOEs. They must ensure that the provisions of the SOE Act 2007 and Regulations 2010 are implemented. In most cases decisions must be made jointly.

SOEs are monitored by the Economic Reform Unit (ERU) within the Ministry of Finance. They provide reports to the Accountable Ministers on SOE performance.

Important Documents

Periodically the Government approves policies to provide guidance to the SOEs and assist the Government effectively manage its ownership interest. The following are key policies adopted by Government relevant to SOEs.

[1] State-owned Enterprises (SOEs) are listed in Schedule 2 of the Solomon Islands State-owned Enterprise Act 2007; the Portfolio performance presented here includes only commercial trading SOEs. It does not include CEMA and ICSI. CEMA has regulatory functions, while ICSI is a holding company for the Government’s minority shareholding in a number of companies and other investments; .
[2] Now trading as Solomon Water
[3] Now trading as Solomon Power