GNUT initiates Cost-Benefit Analysis on the Proposed Federal System for Solomon Islands

The Government for National Unity and Transformation (GNUT), through the Office of the Prime Minister and Cabinet (OPMC), is initiating a Cost-Benefit Analysis (CBA) on the proposed Federal System of Government for Solomon Islands.

This important national study aims to assess the potential social, economic, administrative, and governance implications of transitioning from the current Unitary System to a Federal System, providing an evidence-based foundation to guide future policy decisions and national dialogue.

A local consultant has been engaged to undertake the CBA, which will be peer reviewed by two international Professors, an economist and a political scientist.

The report will be subjected to review by national and provincial stakeholders and representatives from NGOs and the private sector to ensure that the analysis reflects local realities, perspectives, and development priorities as well as harmonises with international best practices.

To mark the commencement of the study, the OPMC will convene a Focus Group Discussion (FGD) on Wednesday, 5th November 2025, in Honiara.

The FGD will bring together key experts from Government Ministries and a private expert familiar with the subject matter.

Participants will discuss the study’s objectives, methodology, work plan, and expected outcomes. Engagements and consultations with Provinces, stakeholders and political groupings will follow, stretching into early 2026.

Underscoring the Government’s commitment to inclusive dialogue and evidence-based policy making on the country’s future system of governance, the experts will establish the best and solid foundation to anchor the CBA study, ensuring it is aligned with sound and credible economic theory and at the same time reflects local realities.

The study will employ conventional economic tools used in CBA studies, including NPVs, BC ratios and sensitivity analysis to test the feasibility, worthiness and responsiveness of different variables to changes in certain factors.

The GNUT Government reaffirms its commitment to promoting informed national discussions on governance reform and ensuring that any future transition is guided by sound analysis, broad consultation, and the best interests of the Solomon Islands and its people.

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GCU statement