WENO, Chuuk, July 7–9, 2025 – His Excellency President Wesley W. Simina and the Governors of the four states of the Federated States of Micronesia (FSM) convened in Chuuk State from July 7 to 9, 2025, for two strategically linked gatherings: the FSM Petroleum Corporation (FSMPC/Vital) Chief Executive Council (CEC) Meeting, and the national Chief Executive Council (CEC) Meeting. Held consecutively, the meetings provided a platform for strengthened coordination between the national and state governments and underscored a shared commitment to national unity and self-reliance.
From July 7 to 8, President Simina joined Governor Alexander Narruhn of Chuuk, Governor Stevenson Joseph of Pohnpei, Governor Tulensa Palik of Kosrae, and Acting Governor Francis Itimai of Yap for the first Vital CEC Meeting held in five years. The meeting focused on reinforcing oversight of FSMPC and accelerating the nation’s transition toward energy security and sustainability. FSMPC’s Board and leadership provided key operational updates, emphasizing the corporation’s role in stabilizing fuel prices, expanding renewable energy solutions, and implementing critical infrastructure projects. Leaders acknowledged FSMPC’s resilience in maintaining competitive fuel prices amid global volatility and highlighted its forward-looking investments in regional storage, risk mitigation, and long-term energy planning.
The Council adopted a series of resolutions that reinforced FSMPC’s mandate to deliver affordable and sustainable energy across the nation. These included directives to expedite the full implementation of the Tonoas Coconut Project in Chuuk; accelerate the Lehnmesi Hydro Plant Project in Pohnpei; ensure equitable and transparent implementation of all national energy projects—particularly in underserved and outer island communities; and improve collaboration between FSMPC and the Pohnpei Utilities Corporation to meet the growing energy demands of the FSM Capital in Palikir through infrastructure upgrades, renewable energy planning, and fair pricing structures.
Additionally, the Council reviewed FSMPC’s legal framework—including the Enabling Legislation, Divestment Act, Coconut Tree Act, and Transformation Act—and called for modernized corporate governance, timely board appointments, and stronger onboarding processes. Increased national-state oversight and more frequent CEC engagements with FSMPC were emphasized as key to improving accountability and performance. A site visit to Tonoas and productive discussions with local leaders further underscored the importance of grounded, inclusive project design. President Simina and the Governors concluded the Vital CEC by reaffirming FSMPC’s role as a national institution central to balancing sustainability, affordability, and development.
Following the Vital CEC, President Simina and the Governors reconvened for the national Chief Executive Council meeting, where they addressed broader national priorities, economic governance, and sovereignty-related issues. The session concluded with a unified communiqué articulating key decisions and shared policy direction.
The Council affirmed its commitment to safeguarding the long-term integrity of the Compact Trust Fund, currently valued at approximately $1.8 billion. While acknowledging state-level appeals for limited drawdowns, leaders agreed that even withdrawals within the allowable four percent cap could undermine the Fund’s future value. They collectively reaffirmed their responsibility to preserve this national asset for future generations through disciplined, coordinated management.
Updates on U.S. federal assistance programs in health and education were also reviewed. Leaders expressed concern over recent funding suspensions, including the loss of $2 million in health grants, and pledged to ensure continuity of critical services while improving coordination across all levels of government. In the education sector, members emphasized the need for more equitable support across the four states and reaffirmed the national government’s key coordinating role.
The Council welcomed a high-level briefing on the U.S. CONVENE Act and underscored the importance of developing an FSM national security framework that reflects the nation’s sovereign interests and foreign policy values. A draft framework will be developed for internal consultation.
On deep seabed minerals, the Council reaffirmed its precautionary pause approach, emphasizing the need for science-based decision-making, robust regulatory frameworks, and alignment with international environmental and legal standards.
Additional discussions covered improved fiscal governance, including the recommitment to monthly disbursement of fishing fee revenues, enhancements to the FSM Trust Fund and customs operations, and the introduction of digital systems to increase transparency. Leaders agreed to revise the existing customs Memorandum of Understanding to strengthen coordination between national and state governments.
The Council also reviewed a proposed FSM Bonding Policy aimed at making infrastructure development more accessible to local contractors. Members supported flexible bonding mechanisms and adjusted risk rates based on international best practices. In support of climate resilience and sustainability, the Council endorsed the development of a national Green Growth Initiative.
Together, these back-to-back meetings demonstrated the strength of national-state partnerships and the leaders’ shared vision for a unified, self-reliant FSM. From energy reform and fiscal stewardship to national sovereignty and sustainable development, President Simina and the state governors emerged with renewed momentum and unified resolve through their adopted CEC Communiqué and Resolutions.
###
