Japan’s New Assistance  

$2 million for Economic Development

 

A new assistance by the Government of Japan, “Non-Project Grant Aid (NPGA)”, has set up in the F.S.M. for the first time. 200 million Japanese Yen (approximately 2million USD) is available strictly for the purpose of Economic and Social Development of the F.S.M..

 

Exchange of Notes: Left: Secretary Robert, Right: Ambassador Sato

 

 

 

The Exchange of Notes signing ceremony was taken place on January 21, 2009 at the conference room of the Department’s Foreign Affairs in Palikir, in the presence of H.E. Vice-President Alik-Alik. Most of the cabinet members also joined and witnessed the historical moment. H.E.Mr. Shoji Sato, Ambassador of Japan to the F.S.M. on behalf of the Government of Japan and the Secretary of Foreign Affairs of the F.S.M. H.E. Mr. Lorin S. Robert exchanged the Notes on the Grant Aid of 200 million yen.

 

Distinctive features of the NPGA this time are expressed in the remarks made by Ambassador Sato. It was initiated by responding to President Mori’s speech in which he announced the economic crisis mainly caused by the worldwide ballooning oil prices. In addition, it is to be noted that the cabinet room suddenly went black when the Former Prime Minister, Mr. Yoshiro Mori had a meeting with President Mori last September. Ironically, this happening certainly convinced Mr.Mori to be aware of the current and serious needs of F.S.M. Furthermore, the significance of assistance was doubled when NPGA was expressed by H.E. Prime Minister Taro Aso during his meeting with President Mori in Tokyo last November prior the official cabinet approval. Although it took some time to reach to this point, Japanese Government’s commitment for the NPGA to the F.S.M. this time is based on its firm intention of giving support to F.S.M.’s economic and social development.

NPGA is for the purpose of contributing to promotion of the economic structural adjustment efforts, as well as mitigation of the economic difficulties including indebtedness. Therefore, it does not have a ‘project’ so that it is called ‘Non-Project’.

 

NPGA will be implemented through the purchase of the products by the procurement agent, and the Government of F.S.M. will deposit the ‘counterpart funds from its sales. The counterpart funds shall be utilized by the F.S.M. for its development goals according to the own development plans.

 

Ambassador Sato reaffirmed the strong ties of partnership between Japan and the F.S.M., and reassured that the Japanese Government’s continuous support to the Government and people of the F.S.M.

Signing the Notes

 

Back to Page Top

Back to HOME