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         SOLOMON ISLANDS: INTERIM STRATEGY NOTE FY 2010 - FY2011
                         CHAIRMAN'S CONCLUDING REMARKS
                                Meeting of Executive Directors 

                                       April 29, 2010 

      The Executive Directors discussed the joint IDA-IFC Interim Strategy Note (ISN) for
Solomon Islands for FY I 0-11. They welcomed the ISN as the first stand-alone strategy for
Solomon Islands, and noted the extensive consultations in preparation.

        Directors commended the Government's efforts in responding to the financial crisis, and
maintaining social stability and the basic functions of the state. However, they noted that
significant economic and development challenges remain. In this connection, Directors urged the
Government to step up its efforts in enlarging transparency, efficiency of public spending and
good governance.

        Directors broadly supported the selection of an ISN as the appropriate instrument, given
the fragile state and uncertain political and economic outlook of the country. They noted its
focus on its three areas of engagement: (i) addressing surmountable barriers to growth; (ii)
enhancing regional and global integration; and (iii) promoting effective public administration
and management. Directors welcomed the program's selectivity and flexibility. They noted, in
particular, the emphasis on responding to the immediate fiscal constraints, while setting the stage
for economic diversification, the effective use of natural and financial resources, private sector
development, and economic stability. The importance of improving service delivery, addressing
urban unemployment, and attracting socially and environmentally responsible investment in line
with the Government's development priorities was highlighted.

         Directors encouraged concrete efforts to help the country improve its social indicators
and accelerate progress toward reaching MDG goals, through efforts targeted toward gender,
youth, and employment issues. They welcomed the emphasis on areas where gaps remain in the
overall program, and where catalytic investments and capacity building efforts could enhance
larger Government and donor programs. Directors encouraged public and private small state
regional initiatives. They acknowledged the risks to the ISN, but agreed with the mitigating
efforts, including keeping the project design simple, promoting close donor collaboration, and
providing intensive implementation support.

        Directors welcomed the close collaboration between IDA and IFC and expressed support
for IFC's planned activities to complement IDA's activities. In this connection they appreciated
the joint IFC/IDA ISN Results Matrix. Several Directors noted the need to provide support to the
mining sector, as well as the opportunities in fisheries and tourism. Additionally, Directors
emphasized the importance of the Bank in playing a central role to help strengthen donor
coordination, including through the recently established Government-donor Core Economic
Working Group.

       Finally, Directors looked forward to a full Country Assistance Strategy which is aligned
with the priorities identified in the country's forthcoming five-year National Development
Strategy.