PALIKIR, Pohnpei, August 12-16, 2024 – Leaders from across the Federated States of Micronesia (FSM) recently gathered at the 13th State and National Leadership Conference in Pohnpei, to address critical issues under the theme “Promoting Social, Environmental, and Economic Resilience.” The conference, chaired by H.E. President Wesley W. Simina, saw a united effort towards fostering collaboration and sustainable development across the nation and culminated with the endorsement of the 13th SNLC Communiqué, four resolutions and the adoption of the National Oceanic Fisheries Investment Policy.

In the FSM’s recent history, the SNLC has been the platform for the heads of the national and state governments, presiding officers of the state and national legislative bodies, representatives of both the private sector and non-governmental organizations to come together as a nation to strategize on priority issues.

In his welcoming address, Governor Stevenson A. Joseph of Pohnpei State set the tone by highlighting the importance of unity among FSM leaders to tackle pressing challenges and drive meaningful actions for the nation’s future. President Simina underscored the significance of inclusivity, sustainability, and infrastructure development in his address, outlining key areas for discussion including social, environmental, and economic development.

Notable outcomes included the adoption of the National Energy Policy for 2024-2050 the endorsement of the National Oceanic Fisheries Investment Policy 2024-2029 and the endorsement of the FSM Trade Policy Implementation Plan, signaling a concerted effort towards long-term growth and sustainable development.

Leaders also agreed on coordinated measures to address environmental and climate change challenges by increasing the allocation of Compact funding towards the environment sector, which has historically been categorized in the 2003 amended compact as a “small sector” rather than a compact sector of higher priority. This decision underscores the leadership’s commitment to the areas of environment and climate change as critical issues that require greater attention and resources.

The Leaders also discussed and agreed to seek congressional support for considering the decentralization of compact infrastructure project implementation. An adopted resolution highlights the concerns raised by state leaders regarding the centralization of infrastructure management and its potential impact on states’ ability to effectively oversee and execute projects within their jurisdictions. Leaders affirmed their commitment to advocating for amendments to Title 55 of the FSM Code to enable a decentralized approach to compact infrastructure implementation in the states.

Leaders also discussed the matter of fuel prices and utility tariffs and expressed appreciation for the National Petroleum Corporation and State Utilities while calling for a review and increased transparency into how fuel prices and utility tariffs are determined. To this end, it was agreed that a Power Tariff & Fuel Surcharge Task Force would be established through a Presidential Executive Order. ​ This task force, comprising CEOs of the state utilities and experts, will meet regularly to assess fuel surcharges and power tariffs. ​ Their objective is to guarantee that these rates are transparent, affordable for consumers, and based on various relevant factors, ultimately striving for the lowest possible rates.

The Leaders also discussed and agreed to seek approval from JEMCO for an extension of the obligation period for FY2024 Compact Sector grants. ​Due to the delayed JEMCO approval of FY2024 Compact allocations, the Leaders emphasized the need for an extension to facilitate the obligation and expenditure of the grants towards the implementation of crucial programs and activities outlined in the FY2024 Annual Implementation Plan.

On August 15th, the FSM also convened the 2nd FSM Development Partners Roundtable, a significant gathering that brought together high-level representatives from various Development and Implementing Partners. The Roundtable, held concurrently with the SNLC, served as a platform for in-depth discussions on critical State and National priorities across key sectors.

FSM leaders and stakeholders engaged in productive dialogue with representatives from countries and organizations such as Australia, Canada, China, the European Union, Japan, the United States, the World Bank, the Asian Development Bank, Secretariat of the Pacific Community, Micronesia Conservation Trust and several United Nations agencies.

Key discussions during the Roundtable focused on achieving a unified understanding of both State and National priorities, enhancing collaboration among stakeholders, and exploring ways to improve best practices for a more robust development framework. Presentations were made on State and National priorities, development frameworks, and project overviews, highlighting the importance of aligning investments with FSM’s development needs.

The Roundtable discussions emphasized the critical need for improved infrastructure, data-driven decision-making, and alignment with broader development objectives to drive economic growth and environmental sustainability in FSM.

The SNLC and Roundtable exercise came to a close on Friday August 16th, following a Leaders Retreat held at Para Nuii. The retreat provided a more informal setting, enabling the leaders to engage in deeper discussions on matters requiring careful consideration and attention. This format encouraged open exchanges of ideas and perspectives, further solidifying the collective commitment to addressing the challenges facing the nation.

During the closing ceremony, Leaders signed the 13th SNLC Communiqué, four resolutions and the National Oceanic Fisheries Investment Policy.

In his closing remarks, T.H. Vice President Palik emphasized the importance of carrying forward the momentum generated during the conference into the broader landscape of governance. He highlighted the critical need to prioritize inclusivity in social development, address the pressing challenges of climate change, and pursue sustainable economic growth. Vice President Palik called on the leaders to maintain the spirit of collaboration that defined the conference, urging Leaders to remain accountable to the commitments made and the partnerships forged. “Together, we can build a prosperous and resilient future for our nation, one that honors the aspirations of our citizens and preserves our cultural heritage” he stated.

On behalf of the Simina-Palik Administration, sincere gratitude is extended to all state governments, development partners, and participants who contributed to the success of the 13th State and National Leadership Conference and 2nd FSM Development Partners Roundtable. The productive discussions and collaborative spirit demonstrated throughout the conference reflect the shared commitment to advancing the FSM’s development goals.

###