Wednesday, February 17, 2016

The Joint Economic Management Committee Allocates $119.3 million Infrastructure Grant Funding for FSM

Palikir, Pohnpei (FSM Office of the President, February 17, 2016) – On January 21, 2016, the Joint Economic Management Committee or JEMCO held a virtual vote with regards to infrastructure grant funding for the FSM and approved an allocation of $119.3 million.  

At the September 1, 2015 Annual JEMCO meeting the FSM had requested a grant of $66.5 million to implement projects, as prioritized by the States, and submitted to JEMCO, as the FY2016 Annual Infrastructure Implementation Plan.  At the time, the JEMCO only provided for three projects – two in Pohnpei and one in Chuuk, totaling $16 million, with these grants to be made available after the updated Infrastructure Development Plan, 2016 - 2025 is completed and transmitted to JEMCO.

On October 2, 2015, the FSM National Government, following Congress approval, transmitted the Plan to JEMCO for concurrence.  This latest action by JEMCO confirms that FSM has fulfilled the outstanding resolution of March 2012, which had seen infrastructure allocations suspended from this date.

The specific projects approved from the FY2016 Annual Infrastructure Implementation Plan include 13 FSM schools, the Pohnpei Health Care Facility, and the Kosrae Hospital.  The FSM has specifically requested funding approval for numerous economic development related infrastructure projects not directly related to the health and education sectors; however, these have not been approved.  Although this represents a setback in overall FSM planning efforts, US officials have indicated that these infrastructure projects should be addressed and considered during upcoming JEMCO proceedings.  FSM Officials plan to address this important issue in the upcoming mid-year JEMCO meeting; with the objective of possible further FY2016 allocations.    

For more information on infrastructure, please contact the FSM Compact Management Division at (691) 320-6260.

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