FSM Vice President Alik asks Congress for $1.3 million as FY14 supplemental budget

FSMIS (September 19, 2014): On September 15^th, the first day of the Fifth Regular Session of the Eighteenth Congress of the Federated States of Micronesia, Vice President Alik L. Alik transmitted a supplemental budget request in the amount of $1,334,855 to fund activities for certain departments in the Executive Branch, a court judgment against the FSM National Government, and a Public Project Implementation Workshop activity throughout the FSM states.

The requested amount is broken down six ways:

1.     Tax Reform -- $384,370: This amount is for the purpose of activating the Unified Revenue Administration, as established by FSM law. The Customs and Tax Administration for FSM and the Tax Offices for the states are to be unified under one system that will oversee the administration of tax for the governments.

2.     New Ship -- $310,902: FSM is expecting a new ship from the Government of Japan estimated to be available in March, 2015. The requested amount will cover the initial operating cost for the ship.

3.     Patrol Boats repair -- $421,826: This is for the repair of FSS Palikir ($299,845) and FSS Micronesia ($121,981).

4.     Court Judgment -- $52,757: This amount constitutes a final court judgment issued by the FSM Supreme Court against the FSM National Government.

5.      2023 Planning Committee -- $150,000: The amount will augment funding for the activities of the 2023 Planning Committee. The activities include the assessment of financial situation of the post-2023 era, identifying funding scenarios, and completing recommendation on action plan to address budgetary shortfall.

6.     Public Project Implementation Workshop -- $15,000: The amount will be used towards the strengthening of public management  in the implementation of public projects. This will entail conducting workshop with the objective of improving fiscal responsibility, transparency and accountability.

As of report time, Congress has not approved the requested amount.

Vice President Alik informed Congress during his meeting with the Committee to Wait on the President on September 16^th that the FSM Government anticipates collecting around $3 million in revenue collection during the remaining days of Fiscal Year 2014 to cover the $800,000 reported as shortfall in revenue collection.

For further information, email fsmpio@mail.fm.

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. 

FSM DEFENDS ADDITIONAL CONTINENTAL SHELF CLAIM

New York – August 29, 2014.  On August 25, 2014, the Delegations from Federated States of Micronesia, Papua New Guinea, and Solomon Islands began meeting with the 6-man Sub-Commission in the United Nations that examines the Ontong Java Plateau Submission in which the Federated States of Micronesia claims additional continental shelf over what is known as the Ontong Java Plateau south of Kapingamarangi Island.  The joint claim made before the United Nations Commission on the Limits of Continental Shelf (UNCLCS) in New York potentially increases the national territory of the submitting countries by more than 500,000 square kilometers, and FSM shall have the ability to extend its continental shelf further out into the high seas.  The joint submission is made in accordance with the United Nations Convention on the Law of the Sea (UNCLOS), which sets out the internationally-accepted formula for delineating the outer limits of continental shelf beyond the normal EEZ.  The continental shelf could hold precious minerals and rare metals that will benefit future generation of FSM citizens.

The FSM Delegation in New York  included Ambassador Jane Chigiyal, Permanent Representative of the FSM to the United Nations, Mr. Patrick Mackenzie, NORMA Executive Director, Mr. Jeemer Lippwe, Deputy Permanent Representative of the FSM Mission, Mr. Leonito (Jun) Bacalando, Jr., Assistant Attorney General, FSM Department of Justice, and Mr. Alfred Lebehn, Jr., NORMA IT Manager.  It is expected that the examination will continue until the Sub-Commission is satisfied with the soundness of the claim.  Mr. Mackenzie expressed confidence that –

The legal presentation has covered all the relevant provisions of the Convention and Scientific and Technical Guidelines that have been interpreted and applied in support of the Joint Submission.

The comprehensive Scientific and Technical presentation has extensively reviewed the geological and geomorphological aspects of the Ontong Java Plateau region.  Our presentation also demonstrated that the test of appurtenance has been satisfied in accordance with Article 76 of the Convention.

The Delegation committed to continue to engage with the Sub-Commission in answering questions and providing clarification in regard to the OJP Submission.

Vice President Alik meets with Committee to Wait on the President

FSMIS (September 17, 2014): The Fifth Regular Session of the Eighteenth Congress of the Federated States of Micronesia (FSM) opened on September 15, 2014 at the Congress Chamber in Palikir with ten Members of Congress in attendance.  FSM Congress Speaker Dohsis Halbert appointed Vice Speaker Paliknoa K. Welly as Chairman and Senators Joseph J. Urusemal, Tony H. Otto and David W. Panuelo as members of a special committee tasked to consult with the Executive Branch regarding the session.

In the morning of September 16^th, the Congressional Special Committee, better known as the “Committee to Wait on the President”, met with Vice President Alik L. Alik and members of the President’s Cabinet to allow the two branches the opportunity to consult on priority matters for the session.

Vice President Alik led the executive branch team as President Manny Mori is currently in New York to attend the Annual General Assembly of the United Nations as well as other meetings.

At the start of the meeting, Vice President Alik thanked Congress for progressing its review of the fiscal year 2015 Recommended Budget for all the branches, departments, agencies and other operations of the FSM National Government, which was transmitted by the President in April. Given that FY15 is only a couple of weeks away, Vice President Alik stressed the need to have the budget review process by Congress completed soon enough to allow ample time for review by the Executive Branch prior to October 1^st.

The Committee pointed out that Congress has not received any notice of grant awards for sector funding in FY15 under the Compact of Free Association, as amended. The Director of SBOC, the focal office for the FSM on Compact matters, indicated that official notice of award documents will not be available before October 1^st. However, for budgeting purposes, Director Evelyn Adolph commented on her position stating that Congress could progress the budget review process based on available communication regarding FY15 sector grants already approved by the FSM-US Joint Economic Management Committee (JEMCO) during their latest meeting.

The Vice President and the Committee also revisited the FY14 revenue projection tracking which was submitted to Congress on September 2^nd, in which the Department of Finance and Administration alerted Congress to a shortfall of $5 million in revenue collection for the current fiscal year. Vice President Alik said he was happy to inform the Committee that after the report had been made, the FSM Government was able to make some collections which in effect narrowed the shortfall to only $800,000. He also stressed that based on reliable forecast, the FSM Government anticipates receiving another $3 million in collected revenue within the remaining days of FY14.

   

Another agenda item entailed the reporting of the current status of the Information, Communication and Technology (ICT) project, which has a prospective funding support of over $48 million from the World Bank under its IDA 17 funding package. This project would involve major internet capacity improvement through the provision of fiber optic cable connectivity for Yap State and Chuuk State and O3B satellite technology for Kosrae State. Mr. Francis Itimai, Secretary of Transportation, Communication and Infrastructure (TC&I) provided the report as part of an overview of the latest meeting with officials of the World Bank held in Guam earlier this month. According to Mr. Itimai, the World Bank Board will meet on September 29^th, at which time we can know for sure if the World Bank will indeed provide the grant being sought to fund the ICT project.

Vice President Alik also sought Congress support on a proposed bill that will create a 2023 Investment Fund, transmitted to Congress on September 5^th. Additionally, the Vice President also indicated that two appropriation bills for the Weno Road project and the Kosrae State Hospital redesign will be resubmitted to Congress for appropriation.

The last item discussed had to do with a shortfall of around $28,000 in the current personnel budget for a few offices, namely the Office of Environment and Emergency Management, the Personnel Office, the Banking Commission Office and the Public Information Office. According to finance officials, the shortfall resulted from an error in computing fringe benefit, which was fixed on a 11 percent rate -- 2 percent short of the actual needed amont. Vice President Alik asked that Congress lift the restriction on reprogramming for this fiscal year only to allow the offices to use other remaining funds towards personnel costs.

The meeting ended with the mutual expression of support as the officials attempt to close out the current fiscal year and kick off a new one in a beneficial manner.

For further information, call the FSM Information Office at 320-2548 or email fsmpio@mail.fm.

The Joint Economic Management Committee Holds 2014 Annual Meeting

Palikir, Pohnpei (FSM Office of SBOC, September 9, 2014) - On August 28, 2014, the Joint Economic Management Committee or JEMCO held its annual meeting in Honolulu, Hawai’i and approved allocation of a total budget of $51,588,941 from Compact Sector grants for Fiscal Year 2015 for the FSM.  This approved amount is against the total of $73,558,513 requested for the fiscal year. The breakdown of the allocation by sector is as follows:

$          24,395,576            Education                                              

$          20,116,540            Health                                                           

$            2,369,211            Public Sector Capacity Building           

$            1,988,599            Private Sector Development
$            1,518,544            Environment

$            1,200,471            Enhanced Reporting and Accountability

$          51,588,941            Total FY 2015 Sector Allocation  

The Office of SBOC also submitted to OIA for JEMCO’s consideration at its annual meeting project proposals against the prior year unallocated funds. OIA grants managers have indicated that they are recommending favorably to JEMCO a total amount of $3,897,893 in projects against a total FSM request in excess of $9 million. JEMCO will be requested to hold a virtual vote on this allocation later this year.

In addition, JEMCO adopted two education sector related resolutions at this meeting:

·       Resolution JEMCO 2014-1, Use of Compact/SEG Funds – Linkage to Accreditation Status and

·       Resolution JEMCO 2014-2, Personnel Leave Policies for Compact/SEG Supported Personnel. 

Resolution JEMCO 2014-1 resolves for the linkage of Compact/SEG funds usage to accreditation status of schools within the FSM effective in Fiscal Year 2016. The same resolution further resolved that in Fiscal Year 2017, any school that fails the standards pertaining to potable drinking water and sanitary toilets may not receive Compact Sector Grant and Supplemental Education Grant assistance.   

Resolution JEMCO 2014-2 resolves that effective Fiscal Year 2016, Compact Sector Grant and Supplemental Education Grant assistance only towards a limited number of annual (24 hours or 3 days) and sick (80 hours or 10 days) leave for school-based staff during the school year. 

The committee also picked up on the discussions during the midyear meeting regarding the infrastructure sector grant and project implementation in the FSM. Between 2004 and 2014, out of a total $252,000,000 available for infrastructure sector grants, only $150,000,000 worth of projects have been approved and being obligated for infrastructure projects in the FSM. JEMCO members reiterated concerns over this huge amount of unspent funds and expressed commitment to assist in any way to facilitate moving forward on infrastructure implementation. Committee members also acknowledged the progress made by the informal working group consisting of both FSM and OIA staff in working more closely together to ensure that infrastructure project funds are made available to the FSM. Based on these commitments, the FSM PMU will be submitting to OIA a list of priority projects that are ready for implementation and within the capacity for PMU to implement over the coming year. Meanwhile, the FSM Government is working on updating its Infrastructure Development Plan (IDP), which will also include a review of the institutional arrangements for infrastructure implementation at both the National and State level.

For more detailed information about the 2014 Annual JEMCO meeting, please contact the FSM Office of SBOC, Compact Management Division at (691) 320-6260 or email ksigrah@sboc.fm or achugen@sboc.fm.

FSM Supreme Court issues details on the funeral and burial of the late Justice Yinug

On september 9, 2014, the FSM Supreme Court made available the following details regarding the funeral and burial of the late Chief Justice Martin G. Yinug in the State of Yap. 

September 09, 2014

 With great sadness and profound sense of loss, the Supreme Court of the Federated States of Micronesia announces the passing of Chief Justice of the FSM Supreme Court, Honorable Martin G. Yinug, on Sunday afternoon of August 31, 2014, in his home state of yap. 

The remains of the late Chief Justice Yinug are in Yap and details regarding the arrangements for the state funeral and the burial are as follows: The State funeral will be at the Yap State Legislature on September 10, 2014 commencing at 10:30 a.m. The remains of the late Chief Justice Martin G. Yinug will be escorted from Yap State morgue in the morning, to the Yap State Legislature for the State funeral ceremony. At 12:00 p.m. The remains of the late Chief Justice Martin G. Yinug will be escorted from the Yap State Legislature to his home in Guror, Gilman Municipality where he will remain overnight with his family until next day September 11, 2014. On September 11, 2014 at 3:00 p.m., the remains of Chief Justice Martin G. Yinug will be taken to his family cemetery where he will be laid to rest. We ask that you keep the family of the late Chief Justice Yinug in your Prayers and thoughts.

Secretary Henry highlights similitudes between the MTEC’s 2015-2019 work program and the SIDS’ Samoa Pathway

Apia, Samoa (MTC Interim Secretary: September 4, 2014).

On the occasion of the historic signing of the Treaty establishing the Micronesian Trade and Economic Community (MTEC), Mr. Marion Henry, Secretary of the FSM Department of Resources and Development, and Interim Secretariat of the new organization, indicated that the newly established MTEC provides an “…institutional framework as the appropriate channel through which programs and actions related to sustainable economic development, such as the ones identified in the Outcome Document of this 3rd International Conference for SIDS, would be best delivered, implemented and monitored within our Sub-region.”

 In effect Mr. Henry was referring to the following actions identified in the Small Island Developing States Accelerated Modalities of Action (Samoa Pathway) which have direct linkage with the vision, goals and objectives of the MTEC: (1) enhancing the enabling environment at the national and regional levels to attract more public and private investment in building and maintaining appropriate infrastructure, including ports, roads, transportation, electricity and power generation and information and communications technology infrastructure; (2) fostering entrepreneurship and innovation, building capacity and increasing the competitiveness and social entrepreneurship of micro, small and medium-sized enterprises, as well as encouraging inclusive and sustainable industrial development; (3) supporting national, regional and international initiatives that develop and increase the capacity and development impact of the financial services industry in small island developing States; (4) encouraging entrepreneurs to start up environmentally sound businesses through adequate and appropriate incentives; and promoting and fostering an environment conducive to increased public and private sector investment.

It is worth noting that the Work Program 2015-2019, which was adopted by the Ministers on July 16, 2014 in preparation for the signing of the Treaty, contains similar actions to be implemented in the FSM, RMI, and Palau.  “This is not a simple coincidence that there are similitudes between our Work Program 2015-2019 and the actions identified in the Samoa Pathway; but rather, a clear indication that the three entities have a clear idea of what needs to be done in order to advance the economic and social conditions of our people, and ultimately achieve sustainable economic development. We are glad that it is being recognized and articulated in the Samoa Pathway,” says Mr. Henry.

The vision and goals pursued by the FSM, RMI, and Palau through the Treaty are to “…endeavor towards the creation an economic “community” through the promotion of sub-regional trade and economic cooperation and integration to support the achievement of sustainable and equitable socio-economic development of its Member States and improve the standard and quality of life of their People, thus contributing to the progress and development of Asia and the Pacific Region.” 

The Treaty was signed by Presidents Manny Mori of the FSM, Christopher Loeak of the Republic of the Marshall Islands, and Tommy Remengesau Jr. of the Republic of Palau on September 3 in Apai, Samoa at the margins of the 3^rd International Conference for Small Islands Developing States.

 

For more information on the treaty establishing the Micronesian Trade and Economic Community, please contact the Interim Secretariat (FSM Department of Resources and Development) at telephone number (691) 320-5133.

FSM stakeholders to formulate fifth national report to the Convention on Biological Diversity

On September 1, 2014, Mr. Hubert Yamada, Acting Secretary of the FSM Department of Resources and Development (FSMRD) issued an invitation to all departments and offices of the Federated States of Micronesia National Government to participate at a consultation meeting on September 8-9 at the Office of Environment and Emergency Management.

 

Together with partners from the Micronesian Consevation Trust, with Assitant Secretary Alissa Takesy as the focal point, entities in the FSM with vital roles in relation to the Convention will meet to facilitate initial works on the FSM's fifth report as required of parties to the Convention.

 

Resulting from an intitiative of the United Nation Environment Program (UNEP) that began in 1988, the Convention entered into force on December 29, 1993 according to its website. For more information on the Convention visit http://www.cbd.int/history/.

For inquiry regarding actions by the FSM Government and its partners on the Convention and related activities, email fsmrd@fsmrd.fm.

FSM, Marshall Islands and Palau establish the Micronesian Trade and Economic Community

Apia, Samoa (MTC Interim Secretary: September 3, 2014).

On September 3, 2014, the Presidents Manny Mori of the Federated States of Micronesia (FSM), Christopher Loeak of the Republic of the Marshall Islands, and Thomas Remengesau Jr. of the Republic of Palau, officially formalized their historical trade and economic bonds by signing the Treaty establishing the Micronesian Trade and Economic Community (MTEC). The signing took place in the margins of the 3^rd International Conference on Small Island Developing States, during a consultative breakfast Meeting between Pacific Island Countries’ Leaders and Dr. Shamshad Akhtar, Under-Secretary-General of the United Nations and Executive Secretary of ESCAP.

The vision and goals of the Treaty are to “…endeavor towards the creation of a Micronesian Trade and economic community through the promotion of sub-regional trade and economic cooperation and integration to support the achievement of sustainable and equitable socio-economic development of its Member States and improve the standard and quality of life of their People, thus contributing to the progress and development of Asia and the Pacific Region.” 

In their statements following the signing, the three Presidents emphasized the historical importance of the signing event. President Mori underscored the significance of the Treaty and characterized it as a “true reflection of the Micronesian spirit of collaboration which characterized the relations between the three entities.” He indicated that the Treaty provides the appropriate institutional framework through which producers of the three countries could network and meet the demands of the domestic and international markets, in particular for agriculture, aquaculture, and tourism products. Furthermore, President Mori noted that there were provisions in the Treaty allowing the sisters Republics of Kiribati, Nauru, and the Territories of Guam and Commonwealth of Northern Mariana Islands to join at a later stage. 

President Loeak noted that “the signing occasion marked a significant milestone for the three Nations in their efforts to fully integrate trade and economic initiatives.” He also stressed that “the Micronesian Trade and Economic cooperation and integration initiative constituted a building block towards greater integration of the three Countries in the Pacific, Asia and the global economy as envisaged in the New Framework for Pacific Regionalism.” 

Taking the example of the copra industry, which collapsed in Palau 20 years ago, President Remengesau Jr. stressed that through sub-regional trade and economic cooperation and integration pursued under the treaty, it would be possible for productive sector to consolidate the volume of the products available, and thus increase the raw material available to support the development of small industries.

The Presidents of the three Countries commended the partnership between the MTC Interim Secretariat and technical agencies (the Commonwealth Secretariat-EU funded Hub & Spokes Programme II, ESCAP, the Pacific Islands Forum Secretariat, and the Melanesian Spearhead Group Secretariat), which led to the development of the Treaty; and invited Development Partners present, among which Australia and the United States of America, to lend their support to the successful implementation of the Treaty. The Deputy Secretary General of the Pacific Islands Forum Secretariat, Ms. Cristelle Pratt, commended the FSM, RMI, and Palau for their sub-regional integration efforts, and re-affirmed PIFS’ unwavering support for the implementation phase of the Treaty.

The signing of the Treaty was attended by the Prime Minister of Samoa and President of the 3^rd International Conference on SIDS, Tuilaepa Sailele Malielegaoi, as well as Presidents and Prime Ministers of the Cook Island, Kiribati, Nauru, Tonga, Vanuatu and Tuvalu.

For more information please contact the Interim Secretariat (FSM Department of Resources and Development), at telephone number (691) 320-5133.

FSM Leaders endorse the outcome of the 2014 FSM Health Summit

A new milestone for the health sector in the FSM was reached on August 20, 2014 when the FSM Leadership endorsed the recommendations from the 2014 Health Summit.  The 2014 Health Summit was attended by about 200 participants from all sectors in the FSM, key stakeholders and partners.

The first two days of the Summit (August 18-19) were dedicated to technical discussions and presentations focusing on key health areas.  At the end of the second day, the technical groups presented the outcomes of their discussions and were framed into recommendation for the Leadership to endorse.

The recommendations were translated into a strategic plan called Framework for Sustainable Health Development in the Federated States of Micronesia: 2014-2024 , which was presented during a brief ceremony on August 20, 2014 by the Secretary of the FSM Department of Health and Social Affairs (Dr. Vita Skilling) and the Health Directors from the FSM States or their designees (Mr. Paulino Rosario – Pohnpei, Mr. Resty Shotaro – Chuuk, Mr. Kun Mongkeya – Kosrae, and Mr. Dominic Taruwemai – Yap).  In his 2014 Health Summit address, which was delivered by Chief of Staff Leo Falcam Jr., the President underscored the need to control cost of health care by improving the local health infrastructure and build local diagnostic capacity.  As a way forward, the President also highlighted the need for the entire health systems to focus more on prevention.  Present at the ceremony were the Chief of Staff on behalf of HE President Manny Mori, Members of the President’s Cabinet, Honorable Governor John Ehsa, Honorable Governor Johnson Elimo, health directors or their designees,  and members of the diplomatic corp.

At the conclusion of the ceremony, the Governors or their designees from all the FSM States and the President of the FSM accepted and endorsed the Framework in the form of a signed “communique”.

The development of the Framework was guided by the following principles:

• That health is a human right;
• That health is integral to national development;
• That health requires sustainable resources and financing;
• That health requires effective leadership and governance; and
• That health requires multi-sector approaches and partnerships.

The vision of the Framework is to ensure that people and communities are healthy and have universal access to quality health services while the mission is to promote and protect health and well-being of island communities in the FSM. This Framework builds on the principles outlined in the national and state constitutions, each of which affirms the right to healthcare for all citizens.

The Framework contains six (6) strategic focus or priority areas: (1) health leadership and governance, (2) primary health care, (3) health financing, (4) health information and surveillance, (5) health through the life course, and (6) social and environmental determinants of health.

Technical support for the 2014 Health Summit was provided by the World Health Organization (WHO) Suva Office through Dr. Ezekiel Nukuro and Dr. Sevil Huseynova, Mr. Richard Moufa, and Ms. Carla Hegwood (Intern) from the WHO Country Liaison Office (CLO) for the Northern Micronesia based in Pohnpei, FSM.