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Chuuk Met ADB Water and Sanitation Loan Conditions

PALIKIR, Pohnpei (FSM Information Service): November 28, 1997 - President Jacob Nena, on November 19, 1997, informed Chuuk Governor Ansito Walter that his state has complied with all ADB loan preconditions and that withdrawal of loan proceeds for Project Implementation in Chuuk State may commence.

The conditions of disbursement for the Chuuk Water Supply and Sanitation Project include an official confirmation by state's that Chuuk Public Utilities Cooperation (CPUC) Board of Directors has the ability to set tariff for water supply and sewerage services, without the prior approval of the State Government and that CPUC has the right to retain its revenues. The Chuuk Attorney General has confirmed to ADB of the state's legal opinion on the ADB's concerns.

Nena told Walter that the FSM Office of Planning and Statistics, the executing agency, has informed him that a contract for supply of drilling rig and necessary ancillary equipment has been awarded. The project will involve drilling of thirty waterwells on Weno Island in Chuuk State where more than 16,000 people lived.

In its final report on the project T.A. No. 2137-FSM, Stanley International Group Inc., a Canadian company says that domestic and foreign fishing fleets and tourist industry are concentrated in the state centers. It is hoped that with improved water and sewerage systems and expanded commercial activities will provide the foreign currency the FSM requires to offset the diminishing infusion of capital currently provided by Compact funding.