- Australian High Commission project, Honiara, Solomon Islands
Department of Foreign Affairs and Trade
4.1The Department of Foreign Affairs and Trade (DFAT) seeks approval from the Committee to proceed with the proposed Australian High Commission Project, Honiara, Solomon Islands.
4.2The project will construct a new chancery and supporting facilities to house the functions of the Australian High Commission (AHC). The new building will replace the existing office accommodation and will be constructed on a newly acquired site.
4.3The estimated cost of delivery of the project is $135.3 million (excluding GST).
4.4The project was referred to the Committee on 9 October 2024.
Conduct of the inquiry
4.5Following referral, the inquiry was published on the Committee’s website.
4.6The Committee received one submission and one confidential submission. A list of submissions is in Appendix A.
4.7On 15 November 2024, the Committee received a private briefing, and then conducted a public and in-camera hearing at Australian Parliament House, Canberra. A transcript of the public hearing is available on the Committee’s website.
Need for the works
4.8Australia and the Solomon Islands enjoy a close and longstanding relationship based on regional and international cooperation, trade links, a substantial development assistance program and support for maritime surveillance within the context of broader security operations. Australia's vision is to support the Solomon Islands in its own efforts to strengthen its democratic institutions, improve its economic position and increase environmental resilience.
4.9The AHC in Honiara supports Australia’s diplomatic presence in the South Pacific. This is consistent with the objectives of the Pacific Step-up, one of Australia’s foreign policy priorities, highlighted in Australia’s 2017 Foreign Policy White Paper, and National Defence: Defence Strategic Review 2023.
4.10The existing chancery was constructed in the 1980s and purchased by DFAT in 1988. The building has had an extension and fit-out since opening but no longer meets the Australian Government’s accommodation needs. DFAT advised the Committee of the following shortfalls:
- Facilities do not meet DFAT security, functionality or capacity requirements. These limitations generally restrict the ability of the AHC to conduct business.
- Lack of capacity to meet planned growth. The existing facilities cannot achieve any further densification due to physical limitations.
- Operational inefficiencies due to split campus. The existing facility is split between the chancery and the Annex, leading to a range of operational inefficiencies such separation of work areas and duplication of security, equipment, and public areas.
- Deteriorating existing infrastructure condition and non‐compliant systems. The engineering infrastructure has varying levels of non‐compliance, and the building infrastructure is at the end of its useful economic life.
- Inability to achieve inter government expectations. The existing facilities are not fit‐for‐purpose, and do not convey the importance of the relationship between the Australian and Solomon Islands governments.
- Inability to provide facilities for official purposes. The current facilities do not provide adequate representational areas to host functions, which is an expected responsibility of Australia in a host country.
Options considered
4.11The following options were considered:
- Option 1 - Do nothing: Continue with the current arrangements, maintaining the chancery in its current form and continuing to lease the Annex building.
- Option 2 - Demolish and rebuild at current site: Demolish the current chancery building, temporarily relocate chancery-based staff to interim working accommodation, construct new premises on the current site, and end the lease of the Annex.
- Option 3 - Lease at a new site and fit-out: Identify an existing building that will accommodate all users in one building and do a new fit-out that meets user and security requirements. The security brief requirements will need to be met by the leased facilities. Base building upgrades will likely be required at any new leased area and are likely to be extensive.
- Option 4 – Pre-commitment lease at a new unidentified site: Enter into a pre-commitment lease for a new build site, including fit-out. A new lease site that will accommodate all users in one building, and a new fit-out that meets user and security requirements.
- Option 5 - Land exchange and construct new chancery: Involves a land exchange with the Solomon Islands Government and construction of a new, purpose‐built facility.
- Option 5 was assessed by DFAT as the best option to support the current and forecast operational requirements and to provide a safe and secure environment. This preferred option was assessed in detail from a design, cost, qualitative benefit and delivery perspective and was assessed as offering the best value for money.
- The Solomon Island Government offered a brownfield site at Lot 1792, Lengakiki Road, in exchange for the existing chancery site. The Memorandum of Understanding (MoU) for the land swap was executed on 20 October 2022. The existing site will be handed over with its buildings, which can still be used:
… this building has reached the end of its working life as a chancery and fails to meet the continued security requirements as a chancery, but, as a building and as land, it certainly remains suitable for commercial purposes. So I think in that regard, we are being very good neighbours.
Scope of the works
4.14Upon completion, the new AHC compound will include:
- permanent chancery
- guardhouse and sallyport
- services facilities and landscaping
- secondary guard facility
- outdoor carparks, and porte cochère
- terraces and covered awning.
- The compound will include a total gross floor area of 10,036 sqm including two basements and four floors for office accommodation, staff areas, building services equipment and representational areas. The fit-out of the chancery is part of the scope of works. The new chancery will provide 129 work-points in total, equating to a nominal occupational density of 14.7sqm of usable office area per work-point.
- Improved security is an important part of the proposed works. Perimeter security will be provided via the external compound wall, security lighting, electronic security and monitoring, restricted vehicle access, controls on public access and clear separation of public areas.
- The AHC is currently occupied by DFAT, Defence and AFP. The proposed works has been designed to include adaptable office space to accommodate any future whole of Australian Government initiatives.
- Construction will use an Australian modular, prefabricated, off-site manufactured approach. The modular construction allows the buildings to be constructed and commissioned in Australia, then dismantled, shipped, and reassembled on-site in Honiara. DFAT has similar works underway using the same construction methodology in Abuja (Nigeria), Funafuti (Tuvalu) and has completed a new embassy in Rabat (Morocco).
- DFAT advised the Committee that the works will reflect the challenges of the location, including seismic risk, high rainfall, severe weather events such as cyclones and the overall security environment. DFAT described these risks:
We think there are three key construction risks in this space. One is around the site conditions. You saw that it's on the edge of an escarpment. That's clearly going to be a challenge in terms of earthworks. Site stabilisation is going to be important, particularly because, as you have identified, it is in a high seismic hazard zone. Those environmental events you have alluded to—the possible seismic, cyclonic and flooding events—are also one of our key project risks. The third project risk is around the security environment that we're operating in—whether or not there are any instances of civil unrest, whether or not the port is closed and how to ensure that there is that continuity of workforce.
4.20In relation to seismic events, geotechnical engineers provided additional design requirements to mitigate seismic risk. The design requirements include setbacks from boundaries, additional design requirements and engineering advice on the existing retaining walls.
4.21The site’s history and observations through the survey show a low potential for ground contamination on site. However, buried asbestos sheet and metal contamination was discovered through previous demolition activities. The contractor responsible for undertaking earth works will take the appropriate precautions to mitigate this risk. The Committee also heard that there is a small but real risk of unexploded ordnance, which would be dealt with using existing expertise in Australian based organisations or local police:
…as part of our very long-running 42-year-old Defence Cooperation Program, the ADF does work closely with the Royal Solomon Islands Police Force to build their capability and capacity to deal with UXO, so the RSIPF does have some capacity of its own.
4.22The construction of the new buildings will provide a certain amount of disruption to neighbours, and occasionally to passing traffic. DFAT advised the Committee that all appropriate measures will be taken to mitigate the disruption, nuisance and other issues that may arise while undertaking the works. The modular construction methodology significantly helps to minimise time and construction noise onsite over traditional construction methods.
Community and stakeholder consultation
4.23The following entities have been consulted about the works:
- DFAT Office of The Pacific (OTP), key Post stakeholders, and senior representatives of DFAT’s Diplomatic Security Division (DSD) and Information Management Division (IMD)
- Honiara City Council
- Solomon Power
- Solomon Water.
- DFAT will undertake further consultation with stakeholders as part of the design process. There will also be ongoing engagement with local stakeholders to gain an understanding of the requirements of development submissions and facilitate the timely submission, review, and approval of the works.
Cost of the works
4.25DFAT selected a design and construct delivery methodology for this project. This method is appropriate to a volumetric modular construction methodology for delivery of a project to a remote location to the required quality outcome. It enables DFAT to maintain control of the various project stages including the approval of selections and specifications for building finishes, materials, and services, while allowing the contractor to use market knowledge and competition to control cost and value for money.
4.26The Committee heard that the building industry in Honiara is variable with limited experienced and qualified contractors. The modular delivery method will allow for most of the structures to be constructed in Australia to Australian standards and delivered to site for reassembly, cladding and commissioning. This methodology will limit the onsite construction period but will allow for some local sub-contractors with appropriate skills and experience.
Not only will this project create jobs in Australia and promote development in the prefabrication industry; it will also provide an opportunity to engage and partner with local industry and further develop, support and grow local capability and skill sets.
4.27A project management and contract administration consultancy with international experience has been engaged to provide project administrative and superintendency services to oversee the contract, with on-site support to be provided by a security cleared DFAT project manager.
4.28An independent cost planning consultant Rider Levett Bucknall (RLB) has been engaged to manage the review of project budgets and provide input and advice on any project variations or claims. RLB also developed the cost estimates for the concept design which was peer reviewed by another cost planning consultant, Turner & Townsend, to verify the estimate.
Public value
4.29DFAT has emphasised the public value of the project in supporting the Australian Government’s ongoing foreign policy objectives and representational requirements:
A new chancery will support facilities to provide for the Australian government's existing operational requirements as well as for future foreign policy objectives and needs. It will support the functions of the mission, which will act as a hub for advancing Australia's economic, development and security partnerships in Solomon Islands, one of our most significant Pacific relationships.
4.30DFAT stated that the modular construction approach will contribute to the development of the prefabrication industry and create jobs within Australia.
4.31The contractor will also employ and train professionals and tradespeople for in-country works with to develop the local construction industry to become non-reliant on external support to deliver complex projects. The contractor will continue to engage with the Australian Pacific Training Coalition in sourcing undergraduates to provide on the job training.
Committee comment
4.32The Committee did not identify any issues or concerns with the proposal, and it is satisfied that the project has merit in terms of need, scope and cost.
4.33The Committee appreciates the importance of Australia’s ongoing relationship with the Solomon Islands and the need to have a fit-for-purpose chancery in Honiara.
4.34The Committee supports the use of modular prefabricated construction and acknowledges the many benefits for Australia. However, it is also important that local businesses and workers are involved in the construction wherever possible. The Committee encourages DFAT to use this build to support and strengthen the local construction industry.
4.35Having regard to its role and responsibilities contained in the Public Works Committee Act 1969, the Committee is of the view that this project signifies value for money for the Commonwealth and constitutes a project which is fit-for-purpose, having regard to the established need.
4.36The Committee recommends that the House of Representatives resolve, pursuant to section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the following proposed works: Australian High Commission Project, Honiara, Solomon Islands.
4.37Proponent entities must notify the Committee of any changes to the project scope, time, cost, function or design. The Committee also requires that a post implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.
Mr Graham PerrettMP
Chair