MAJURO, MARSHALL ISLANDS (18 September 2019) — The Asian Development Bank (ADB) has approved a $500,000 grant as additional financing for the ongoing Marshall Islands Public Financial Management Project that is improving public financial management and promoting state-owned enterprise (SOE) reform in the Pacific island country.
ADB’s grant will scale up and extend the benefits of the current project by further helping the Ministry of Finance prioritize and implement reforms to strengthen public financial management in line with the scope of the ongoing project.
“The government’s strong commitment to good governance is clear through their improved management of public finances under the project,” said ADB’s Principal Economist for the Pacific Ms. Ananya Basu. “The project has already improved grant monitoring procedures, established stronger links between planning and budgeting, and helped set up an SOE Monitoring Unit within the Ministry of Finance.”
The additional financing will further strengthen tax administration and accounting systems. It will assist the government in drafting a legislation for a proposed Fiscal Responsibility Act to improve fiscal transparency. The government will also use part of the additional financing to promote a more balanced gender representation at board level by providing training focused on empowering women to serve on SOE boards.
Improved donor coordination remains an essential component and is critical to the success of the project.
ADB has been supporting the Republic of the Marshall Islands since 1990 and has committed loans amounting to $93.1 million, grants worth $34.5 million, and technical assistance projects totaling $22.2 million. ADB’s development program in the country seeks to reduce costs by increasing the supply of renewable energy, manage risks by improving disaster risk financing, and create value by delivering safe water and sanitation services and developing the private sector.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.