Government of the Federated States of Micronesia

Chuuk State Commended; Priority Action Items Requires Attention

Palikir, Pohnpei (FSM Information Services): September 11, 2009 - A couple of action items were mutually agreed upon during the Joint Leadership Conference between the FSM National Government and the Chuuk State Government which took place on August 24 and 25, 2009 in Weno Chuuk.

The Action Items differ from sector to sector and from department to department. Nevertheless they are devised to assist Chuuk State in her financial reform process. The Action Items are categorized as follows:

For the Reform Updates, 1) The Government of Chuuk State is commended for having achieved financial reforms, reducing government deficit and balancing government budget with a budget surplus reported in FY '08. 2) Two remaining items in the financial reform process still need to be pursued through constitutional amendments, which will be put on the voting ballot in 2011: a) Eliminating requirements for specific departments within the Chuuk State Government Executive Branch and, b) Reducing the size of the Chuuk State legislature Branch to a unicameral body.

Action Items for Infrastructure Projects calls for 1) purchase of land for power plant site (through eminent domain, if necessary) and 2) to utilize Compact funding and other financial resources for improvement of road, water and sewerage.

Under Transportation and Communication three areas were considered. 1) Sea Transportation; Action items are; :a) prioritization of dry-docking of the M/V Chief Mailo prior to end of the calendar year 2009, and b) to pursue Government of Japan's assistance for two additional ships. 2) Air Transportation; action items are; a) improve airport security and safety, and b) to upgrade outer island airports. And 3) Telecommunication; and the action items are; a) to support Chuuk connectivity to submarine fiber optic cable, and b) urge the liberalization of FSM TELECOM

Three more areas were also considered under the Private Sector Development; 1) Tourism; action items call for a) support of investment in tourism facilities, including outer island, and b) improve all tourism support services, including services, medical facilities and public safety. 2) Fisheries; action items a) Support and pursue rehabilitation of tuna transhipment facility through China eximbank loan; b) introduce alternative fishing methods for mackerel ("outa") through, JICA assistance, and c) facilitate and promote export of marine products to Guam and Hawaii market outlets. 3) Business Environment; the action item is to improve overall business environment through strategic utilization of Compact grant.

Health and Education presented their own updates and came up with these action items. For Health Services; a) Jointly review and update Chuuk State Primary Health Care Plan; b) Provide training of current health care personnel and provide opportunities for training of future professionals in health care; c) Establish Institutional Review Board to monitor health facility standards and service deliveries; d) Prioritize resolution of land issues for construction and implement of community dispensaries, and e) Improve environmental health through proper solid waste management., and Education; action items are; a) to undertake education institutional reforms with technical support from the FSM National Government; and b) Chuuk State to officially transmit State Education Reform Plan to the FSM National Government for presentation to JEMCO.

Other areas that were also visited with action items include 1). Social Security, action item is to repeal mandatory retirement age law, 2). Prison Facility, action item calls to identify location and construct adequate prison facilities. 3). T3 Program, Chuuk State to take over the funding and management of its own T3 Program utilizing SEG, and 4). Municipal CIP, the action item is to facilitate endorsement of MOU by two remaining municipalities to expedite drawdown of municipal CIP funds at FSM National Government Treasury.

For further information on this release, please contact:

FSM Office of the President
Public Information: Press, Radio, Video
P.O Box 34
Palikir Station, Pohnpei, FM 96941
Tel.: (691) 320-2548/2092
Fax.: (691) 320-4356