68558
                     Solomon Islands: Development Policy Operation 1

                               SUMMARY OF DISCUSSION


                              Meeting of the Executive Directors

                                          April 26, 2012


       The Executive Directors approved a grant in the amount of SDR1.3 million (US$2
million equivalent) to Solomon Islands for a first Development Policy Operation on the
payment terms and conditions set out in the President’s Memorandum (IDA/R2012-
0082).

        Directors expressed support for the development objectives of the operation and
for its programmatic design. Directors also commended the Solomon Island authorities
for their progress in restoring political and economic stability, their achievement in debt
reduction and for rebuilding internal and external buffers following the global
economic crisis.

        Directors noted the establishment of the government-led, multi-donor, Core
Economic Working Group tasked with coordinating policy dialogue and provision of
aid in support of the government’s Economic and Financial Reform Program. Directors
also noted that substantial risks remain with regard to frequent changes of government
and low government capacity but expressed satisfaction that adequate mitigating
measures are in place. The need to improve institutional structure and build capacity
was emphasized.





This summary is not an approved record.