Federated States of Micronesia and ADB
In the Spotlight
ADB will invest over $1 billion worth of energy projects in the Pacific from 2019 to 2021 to increase renewable energy generation and improve access to affordable and sustainable electricity in the subregion.
Pacific Energy Update 2019 details how ADB is helping its Pacific developing member countries undertake a structural shift away from fossil fuel-based energy sources and towards renewables. Read more
The 2019 growth forecast for the Pacific subregion has been raised from 3.5% to 4.2%, driven mainly by higher liquefied natural gas production in Papua New Guinea and increased construction expenditure in Samoa and Solomon Islands, as well as lower-than-projected economic decline in Nauru.
However, project delays in Papua New Guinea, tepid growth in some economies, and slower recovery in others will likely moderate subregional growth to 2.6% in 2020. Read more in the latest Pacific Economic Monitor
ADB is scaling up its assistance in the Pacific, with our active portfolio growing from $500 million in 2004 to $2.6 billion at the end of 2017.
The government and the people of the Federated States of Micronesia (FSM) have been working with ADB since 1990. According to a country brief, the FSM received a total of $99.57 million of support from ADB through loans, grants, and technical assistance by the end of 2010.
ADB supports the Federated States of Micronesia (FSM) by prioritizing investments in energy, water supply and sanitation, and basic education; and providing technical assistance that supports public administration reforms.
The economy of FSM, driven largely by the fishing industry, has otherwise been stagnant, and significant development challenges remain.
Development support has focused on stimulating the private sector and on achieving medium-term fiscal sustainability, to ensure sufficient resources are available as the expiration of compact grants in FY2023 approaches.
Projects in the Federated States of Micronesia
- Preparing the Chuuk Water Supply and Sanitation Project
- Renewable Energy Development Project
- Pacific Private Sector Development Initiative, Phase IV
- Pacific Region Infrastructure Facility Coordination Office-Leveraging Infrastructure for Sustainable Development
- Pacific Disaster Resilience Program (Phase 2)