PALIKIR, Pohnpei – On August 1st, 2024, His Excellency Wesley W. Simina, President of the Federated States of Micronesia (FSM) and T.H. Vice President Aren B. Palik, welcomed the Executive Director of the Asian Development Bank (ADB), Rachel Thompson to the nation’s capital, during her courtesy call to Pohnpei. This visit marks a significant moment in the continued partnership between FSM and ADB, emphasizing the mutual commitment to sustainable development and economic resilience. Executive Director Thompson was joined by ADB’s Deputy Director General Mr Hideaki Iwasaki, Senior Country Officer to the FSM Mrs. Maybelline Bing, Senior Operations Assistant Mr. Alan Semens, Adviser Ms. Sweety Kalbesang and Adviser Ms. Maya Yoshizake.
President Simina expressed the nation’s profound gratitude for ADB’s consistent support and substantial contributions to the FSM’s development, particularly in critical sectors such as Renewable Energy, Water & Sanitation, Disaster Resilient Programs, and Sustainable Road Investment. The ADB’s strategic focus aligns with the FSM’s priorities, aiming to foster sustainable growth and improve the quality of life for our citizens.
“ADB’s investment of $218 million to date, including our current portfolio of $71.3 million in projects and technical assistance grants, has been instrumental in advancing our national development agenda,” stated President Simina. “ADB’s support in sectors like renewable energy and water & sanitation not only enhances our infrastructure but also builds resilience against natural disasters, which is crucial for our island nation, particularly in the face of climate change.”
During the meeting, President Simina shared updates on the FSM’s latest initiatives and priorities, emphasizing the need for continued collaboration with ADB to address emerging challenges and opportunities. He highlighted the importance of sustainable development, climate resilience, and infrastructure improvement, areas where ADB’s expertise and financial assistance can make a significant impact.
Another key topic of discussion was ADB’s graduation policy for the FSM, which is currently under review. Presently, the FSM benefits from a grant-only status. However, considering recent economic assessments and with the economic provisions under Compact III now in effect, ADB is evaluating a transition that may include the option of providing loans alongside grants. President Simina provided his insights on this potential policy shift, underscoring the need for a tailored approach that considers the FSM’s unique economic and developmental context.
President Simina also expressed his hope that Executive Director Thompson had productive meetings in Kosrae and wished her successful and insightful visits with Pohnpei and Yap state governments.
The meeting concluded with a reaffirmation of the strong partnership between the FSM and ADB, with both parties committed to continuing their collaborative efforts through its presence in the FSM, to achieve both’s shared goals towards sustainable development and enhancing the well-being of the FSM population.
###
