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Federated States of Micronesia Welcomes ADB Mission

MANILA, PHILIPPINES (25 August 2009) – An Asian Development Bank (ADB) delegation has concluded a visit to the Federated States of Micronesia (FSM) where they discussed Micronesia's development plans and ADB support to economic and social development.

FSM joined the ADB in 1990. Since then the ADB has supported FSM's development through a range of activities including $75 million of concessional financing and $24 million in technical assistance grants under 52 separate projects. This support has been directed towards improving public sector performance; economic policy and management advice; capacity development; fostering private sector development; and public infrastructure. The current strategy between these development partners (FSM Country Operations Business Plan 2007-2009) focuses on (i) good governance, through improved economic management and accountability; (ii) ensuring inclusive social development; and (iii) promoting sustained private sector led economic growth.

"Micronesia's geographic isolation, large number of inhabited islands with a relatively small populations and the unique nature of its federated structure is a challenging environment to foster development and economic growth," said Mr. Sungsup Ra, Director of ADB's Pacific Department.

The delegation found that while FSM benefits from significant donor funding, fish resource revenues, remittances and trust fund income, it has not developed the capacity, policies and institutions that help create and sustain growth.

"ADB must work closely with the government of FSM and the states and develop a better understanding of the political economy in Micronesia to improve the effectiveness of this partnership," said Mr. Anthony Gill, ADB's FSM Country Team Leader.

ADB technical and financial assistance is currently strengthening economic planning and budgeting in national and state governments. Support is being provided to improve utility management across FSM's many utilities while working to improve the water supply in Yap, Kosrae and Chuuk and refurbishing the sanitation treatment plant in Pohnpei. ADB is working to provide electricity generation facilities in Chuuk to ensure the reliable supply of electricity to the citizens of Weno.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members - 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.

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