Government of the Federated States of Micronesia

FSM And Australia Signed Memorandum of Understanding

PALIKIR, Pohnpei (FSM Information Service): November 2, 2001 - A Memorandum of Understanding (MOU) signed in Palikir ensured that the Federated State of Micronesia will continue to benefit from AusAID, Australia's leading Foreign Aid program.

On August 24, FSM Acting Secretary of Foreign Affairs, Mr. Lorin Robert, and Australia's Ambassador to the FSM, HE Timothy Cole, signed on behalf of the two governments, the MOU to extend the Grant to assist small scale economic and social development projects.

As part of the Australia's bilateral relations with the FSM, the Grant has on The objective of the scheme is to facilitate Government of Australia's contribution to Government of FSM for small scale economic and social development activities and projects through the provision of funds as part of the government of Australia's bilateral aid program with the Government of FSM.

This contribution from the Government of Australia will be an annual Allocation, Administered by the Australian Agency for International Development of the Department of Foreign Affair and Trade (AusAID).

In the Scheme, the contribution to any one project is ideally in the range of US $1,000.00 to $15, 000 and in exceptional circumstances may be in the order of US $30,000.

Under the scope of the Scheme, a broad range of items may be funded including:

  • Small scale government projects with direct benefit, especially in the health and education sector.

  • Village-based self-help projects run by community groups or non-government organizations, including church groups.

  • Any sensible and developmentally worthwhile activities where the input of cash or equipment will have a sustaining and, or catalytic effect.

An annual review of activities under the Scheme is to be submitted during the year, including a summary of approvals and acquittals, is to be submitted annually to AusAID by the FSM Government. This report should assess the effectiveness of the Scheme and should identify any problem encountered during the year with either the Scheme or individual projects.

AusAID has contributed a lot to the development of Pohnpei ever since it began as a Foreign Aid Program.