Wednesday, September 17, 2014

IDA grant of $14.4 million awaits acceptance from FSM Congress

FSMIS (September 17, 2014): The Board of the International Development Authority (IDA) approved a financial grant of $14.4 million to be used for energy sector development in the Federated States of Micronesia (FSM). 
FSM laws require that a foreign financial assistance must be approved and accepted by the FSM Congress through resolution. 
In place of President Manny Mori, Vice President Alik L. Alik transmitted to Congress a resolution for the approval and acceptance of the financial assistance before implementing agents for the project can begin their work. 

Generally, the grant will help in three main areas: 1) Increasing available generation capacity and efficiency of electricity supply in the power utilities in all the States -- $9.2 million; 2) Further enhancing National and State energy planning -- $3.4 million; 3) procurement of technical assistance and securing project management -- $1.5 million. 

Under the first component, namely the generation capacity and efficiency of electricity supply, the grant will enable the acquisition of a 2MW generator for the Pohnpei Utilities Corporation (PUC); a 1.2MW generator for the Kosrae Utility Authority (KUA); a 1.5MW generator, Capacitor banks, temperature compensated digital fuel meters and prepaid meters for the Yap State Public Service Corporation (YSPSC); and 200KW of grid-connected photovoltaic generators and 200 lamps for the upgrade of public street lighting system for Chuuk Public Utility Corporation (CPUC). 

Under the second component, for National and State energy planning, the project will finance a National Energy Master Plan incorporating all plans from the state utilities in order to achieve goals pursued under the Energy Sector Policy. This policy has called for the reduction of heavy reliance on imported fuels and the achievement of a 30 percent increase in the utilization of renewable energy by 2020. 

The third component, for technical assistance and project management, will enable capacity building for the Energy Division in the FSM Department of Resources and Development and the Association of Micronesian Utilities in terms of data collection, statistics and the development of an information management system. 

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