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ADB Approves $9.2 Million Loan to Marshall Islands to Improve Water Supply and Sanitation Facilities in Majuro Atoll

Water shortage in Majuro Atoll, capital of the Marshall Islands, will be eased with the improvement of water supply and sewerage facilities under a loan equivalent to about $9.2 million approved today by the Asian Development Bank.

The loan of SDR 6.062 million from the Bank's Special Fund resources has a term of 40 years, inclusive of a 10-year grace period, and an annual service charge of one per cent. The loan will finance 80 per cent of the total project cost of $11.6 million while the Government will provide $2.4 million (20 per cent). Proceeds of the loan will be relent by the Government to the Majuro Water and Sewer Company.

The project will avert water rationing in Majuro Atoll and instead provide piped water supply on a 24-hour basis. About 27,000 people in Majuro, representing more than 50 per cent of the country's population, will benefit from upgraded water supply and sewerage services that will lead to improved urban environment, health, sanitation and welfare.

Majuro relies on piped water supply systems while almost all atolls and islands depend largely on rainwater or shallow wells for water. The lack of water supply facilities has constrained the country's economic and social development, worsened by problems arising from a fast- growing population and urban migration.

The project will also help the Government implement policy reforms that will equitably distribute services and facilities throughout Majuro, commercialize public utility functions, improve water resources management and conservation, and eliminate Government subsidies to the Majuro Water and Sewer Company for its operation and maintenance.

The Ministry of Public Works will be the Executing Agency for the project. A Project Management Office within the Ministry and a Project Implementation Committee consisting of representatives of the Government and the Majuro Water and Sewer Company will be responsible for day-to-day implementation of the project.

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