Palikir: The Asian Development Bank (ADB) and the Government of the Federated States of Micronesia (FSM) today signed a $5.5 million grant to help fund the preparation of ADB-supported road transport projects in the FSM.
The FSM’s Department of Finance and Administration Secretary Eugene Amor and ADB Pacific Department Deputy Director General Emma Veve signed the agreement, which will fund assessments, planning, and capacity building for implementing road transport projects.
ADB is providing $5 million from its Asian Development Fund for the grant, while the Government of the FSM is contributing $500,000.
"This grant will use ADB’s project readiness financing (PRF) to hasten the delivery of projects that will resolve critical, medium-term transport challenges, as well as build long-term capability to sustainably operate and maintain roads," said Veve in a press release on Monday.
Along with bottlenecks of bad roads and the impacts of climate change, the FSM’s road network is facing increased use. The number of vehicles in the country grew 30% in the 4 years to 2019, and traffic flows that reduced during the coronavirus disease (COVID-19) pandemic are set to grow again as economic activity resumes.
The PRF will help expedite a series of road and bridge projects in all four of the FSM’s states that will improve connectivity and help protect against climate change and disasters triggered by natural hazards. To enable these projects to proceed, the PRF will rank and prioritize them, produce engineering surveys and detailed project designs, and prepare procurement plans and bidding documents. This assistance will reduce start-up delays and ensure quality design.
The projects advanced under ADB’s PRF will contribute to the FSM’s Pave the Nation Program and dovetail with support from other development partners to bridge a funding gap in the FSM’s transport infrastructure needs.