Government of the Federated States of Micronesia

FSM Prepares For Infrastructure Development

PALIKIR, Pohnpei (FSM Information Service): August 17, 2001 - On May 30, 2001, President Leo A. Falcam notified the four FSM state governors that the Nathan Associates has been contracted to prepare an Infrastructure Development Plan for the FSM.

The President also asked each Governor to select representatives from their respective states to be members of the National Steering Committee. The committee will be in charge of overall planning to direct the Consultants in their work.

On June 5, 2001 a MEMO was issued from the office of the President reaffirming respective offices of the FSM executive branch that May 29th, 2001 is slated commencement of operation for the Consultants.

The MEMO further stated that the Department of Transportation Communications and Infrastructure is responsible for supervising the work of the Consultants.

The Objectives of the Infrastructure Development Plan are:

  • Provide a comprehensive inventory and assessment of the FSM's Infrastructure,

  • Provide development plans for each sector, and

  • Provide a 15-year development program which should incorporate both capital investment projects and explicit recommendations and action plans on policies, pricing and cost recovery and institutional reform measures needed to ensure the sustainability of infrastructure services.

The plan is intended to serve as a long-term blueprint of maintenance improvements and infrastructure development works and to facilitate decisions on funding requirements and capital investment for infrastructure projects.

Sighted in the Reference Terms for the Plan Preparation are the problems FSM has on air Transport, Sea Transport, Road Network, Electric Power, Water Supply and Sewerage, Solid waste, Health Care, and Educational Facilities.

The FSM role in the Plan is to establish a high level Steering Committee to provide overall direction to the Consultants. In addition, the FSM is to provide the following personnel inputs: (i) A counterpart project manager, (ii) 4 person-month of general technical support from the Department of Transportation, Communications and Infrastructure, Secretarial and administrative support services as well as Office accommodations.

On June 20, 2001 the Economic Policy Implementation Council (EPIC) passed a resolution in their 2000 annual meeting requesting The FSM Congress to appropriate $250,000 to co-finance the development of an IDP for FSM.

The US Department of Interior has approved a technical assistance of $250,000.00 and requires the FSM to match that amount.

The resolution also requests the DTCI and the FSM DEA to work in consultation with the States to develop an improved Public Sector Investment Program (PSIP) process.

The interest of the four FSM States regarding this matter differs in their own respective reasons. Nevertheless, all the states are supportive to this plan.