By Pacific Island Times News Staff
More than $400 million in fresh grants have been awarded to the Marshall Islands and Palau under the Compact of Free Association's economic provisions that were renewed this year.
According to the U.S. Department of the Interior, the Marshall Islands has received $372 million in funding support since President Biden signed the COFA Amendments Act into law on March 9.
Palau has received $66 million.
Under a U.S. law that amended COFA, Washington pledged $7.1 billion of mandatory funding Palau, the Marshall Islands and the Federated States of Micronesia over 20 years.
“We are honored to deliver $372 million on behalf of the U.S. government to support the Republic of the Marshall Islands as one of our first actions taken under the newly amended Compact agreements,” Assistant Secretary Carmen Cantor said. “This amount includes a contribution of $200 million to the Compact Trust Fund and is the first installment of United States contributions expected to total $700 million over a four-year period.”
The Marshall Islands COFA grants cover the following:
· $200 million: The Compact Trust Fund provides sources of revenue to help meet the needs of the Marshallese citizens;
· $132 million: The Kwajalein Development Plan Fund supports projects to facilitate resilience and healthy communities throughout Kwajalein Atoll as further described in the Kwajalein Development Plan;
· $20 million: The Climate Fund supports the Marshall Islands' efforts to obtain additional assistance and better cope with challenges from climate impacts, including sea-level rise and other environmental challenges that could threaten the country's existence; and
· $20 million: The U.S. Supplemental Health Fund for health care.
Besides the compact funds, the Marshall Islands also received $3 million in Technical Assistance Program grants, which Cantor said, "play a crucial role in supporting projects in the Marshall Islands that have lasting impacts for communities."
“This year’s TAP awards will build on improvements to existing transportation, waterway and disaster resilience; strengthen renewable energy projects in the capital; and improve customs IT systems for the island nation," she added.
The TAP grants will fund the Arno Atoll boat channel project, the Majuro renewable energy project, Jaluit Atoll disaster preparedness and climate resilience project, and the Marshall Islands Customs Department's IT infrastructure project.
For Palau, the $66 million COFA grants will cover the nation's expenses on education, health, climate adaptation and the environment and public safety among others.
Cantor also announced that the department has completed the first bilateral economic consultations on June 26 and 27 in Koror. This was the first consultation between the two countries under the 2023 Compact Review Agreement.
“These consultations demonstrate the United States’ commitment not just to maintain our relationship with Palau, but to strengthen it,” Cantor said.
“The United States is proud to continue to be Palau’s strategic partner as democracies and free market economies. Our bonds of shared values, shared interests, and friendship run deep. We want Palau to succeed as a democratic and prosperous nation for its own people and as a model for others in the Indo-Pacific region," she added.
The bilateral economic consultations included briefings on Palau’s economic initiatives, Palau’s National Development Plan, and the planned use of economic assistance under the Compact. The group also discussed “dashboard” performance measures and recommendations provided by the Economic Advisory Group for Palau as related to the island nation’s economic, legislative, financial, and management improvements.
The COFA grants will support the Palau Compact Trust Fund earmarked for education, health, climate adaptation and the environment, the administration of justice, and public safety, or for expenses related to the audits required under the Compact Review Agreement.
The funding will also assist the government of Palau in paying debts it incurred before April 1, 2023. This is the first annual contribution of $10 million to be provided over six years.
The $66 million total also included $6 million in Compact Infrastructure Maintenance Funds for fiscal years 2022, 2023 and 2024, representing the last remaining U.S. financial obligation to Palau under the 2010 Compact Review Agreement.
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