FSM Information Services
Press Release
President Panuelo Thanks US FAA For $37,222,222 to Fully Rehabilitate Yap State Airport
HONOLULU, Hawaii—On July 23rd, 2021, His Excellency David W. Panuelo—President of the Federated States of Micronesia (FSM)—received Gordon K. Wong and Carlos H. Salas, Manager and Assistant Manager respectively at the U.S. Federal Aviation Administration’s (US FAA) Western-Pacific Region Honolulu Airports District Office, to express the Nation’s profound gratitude for the July 15th, 2021, grant award of $37,222,222 under the Airport Improvement Program to fund the Yap International Airport Runway Rehabilitation Project. The US FAA-funded project is a full rehabilitation project that will include the removing and re-surfacing of Yap State airport’s whole runway pavement, taxiway, and removal of an earth mound that is obstructing the view between the runway and taxiway.
The FSM became eligible for the US FAA Airport Improvement Program’s discretionary funding in December 2003 under the US FAA Western-Pacific Region. Initially, the FSM’s eligibility under the Program was contingent upon a cost sharing agreement of 95% as the US FAA’s share and 5% as the FSM’s share. For grants issued starting in FY 2012, however, the cost sharing was revised to reduce the US FAA’s share to 90% and increase the FSM’s share to 10%.
On March 27th, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law, approving ten billion dollars in supplementary funds to provide economic relief to eligible airports, including the FSM, in response to COVID-19 Pandemic. Crucially, from the FSM National Government’s perspective, the CARES Act provided funds to increase the federal share to one hundred percent (100%) for Airport Improvement Program and supplementary discretionary grants already issued in FY 2020. On March 11th, 2021, His Excellency Joseph R. Biden Jr., President of the United States of America, signed into law the American Rescue Plan Act of 2021, approving eight billion dollars in funds to continue providing economic assistance to eligible airports. The American Rescue Plan Act also retained the federal share increase to one hundred percent (100%) for grants issued in FY 2021.
Given that the demand for Airport Improvement Program funds exceed their availability, the US FAA bases distribution of these funds on national priorities and objectives. The Program’s funds are typically first apportioned into major entitlement categories such as primary, cargo, and general aviation. The remaining funds are then distributed to a discretionary fund, in which the FSM is eligible under.
In FY 2020, the Yap Runway Rehabilitation Project went out for bid and a contractor was recommended to the US FAA; however, it was not awarded due to limited funding available. It was then prioritized for the FY 2021 grants cycle to ensure funding was secured.
The FSM is deeply fortunate, and the FSM National Government is profoundly thankful, to have received this grant to fully rehabilitate the Yap State airport’s runway and taxiway.
“Gordon [K. Wong, Manager at US FAA] and Carlos [H. Salas, Assistant Manager at US FAA], I want to express to both of you, on behalf of the People and Government of the FSM, our incredible and overwhelming gratitude to you and to the US FAA for the Yap International Airport Runway Rehabilitation Project. This US FAA-funded initiative will provide enormous and genuine assistance to the People of Yap State, and the whole of the FSM. Be confident that the FSM assuredly does not take this kindness for granted.”
“Please pass on my personal gratitude, and the gratitude of the People and Government of the FSM, to your superiors at US FAA,” President Panuelo requested. “This news is so positive and will provide such a meaningful and real service to our country. The US FAA office here is like a family to the FSM. We are so very thankful, so very grateful to the US FAA for their generosity and for their assistance to our country. It’s further evidence that the FSM-US Enduring Partnership is truly an alliance of genuine partners and friends. Thank you.”
