The Solomon Islands government has signed contracts with 83 companies under its Preferred Supplier Arrangement (PSA), clearing the way for the full implementation of the 2026 Constituency Development Fund (CDF) programme.
The Ministry of Rural Development (MRD) said the legally binding agreements followed the completion of the government's supplier qualification process, enabling the approved companies to provide goods, materials, equipment and services for development projects across the country's 50 constituencies.
Of the successful suppliers, 39 are indigenous-owned businesses and 44 are foreign-owned, reflecting stronger participation by local companies compared with previous years.
The ministry said the signing marked a key milestone in rolling out the 2026 CDF budget by allowing constituencies to begin procuring resources needed for rural infrastructure and community development projects.
The PSA is a government procurement mechanism designed to improve purchasing efficiency by pre-qualifying legally registered suppliers for commonly procured goods and services.
Under the arrangement, procurement will be conducted in accordance with Sections 73 and 74 of the Public Financial Management Act 2013 and Section 28 of the Constituency Development Fund Act 2023. The contracts will remain valid for 12 months.
MRD said procurement activities would be jointly monitored by the ministry and the Ministry of Finance and Treasury to ensure compliance with procurement laws and safeguard the delivery of quality goods and services to constituencies.
The ministry said supplier selection underwent a rigorous technical evaluation, including site inspections by the MRD Technical Evaluation Committee, followed by reviews from the Ministry of Finance and the Central Tender Board before contracts were awarded.
It also negotiated fixed prices for a range of commonly purchased items based on prevailing market rates to improve value for money and provide pricing certainty throughout the contract period.
The qualified suppliers will provide products across multiple sectors, including hardware and building materials, forestry products, marine and fishing equipment, plant and motor vehicles, electrification supplies, plumbing and sanitation equipment, communications equipment, sporting goods, agricultural equipment, tailoring and fabric printing equipment, kitchenware and retail goods.
The ministry said 86 companies submitted bids after the tender opened in January, with three applicants disqualified for failing to meet minimum technical requirements.
Under the 2026 programme, the Solomon Islands government has allocated SI$250 million for constituency development, with each constituency receiving SI$5 million.
Of the allocation, SI$3.2 million per constituency will be spent through the Preferred Supplier Arrangement, while the remaining SI$1.8 million will be provided as direct grants.
Funding will be distributed in line with the Constituency Development Fund Act 2023, with 40% allocated to productive and resource sectors, 20% to essential services, 20% to cross-sectoral, inclusivity and gender initiatives, and 20% to social and cultural obligations.
The Ministry of Rural Development said implementation of the 2026 Constituency Development Fund programme is progressing as planned.
