FSM & US officials agree to release $150 million of infrastructure funding

The Kaselehlie Press on Facebook today:

Breaking news...according to a press release from the US Department of the Interior, FSM and US officials have agreed on terms to lift the suspension of $150 million worth of infrastructure projects in the FSM.

The FSM and the U.S. have agreed to the following:

1. The United States will immediately lift the temporary suspension of public infrastructure grant assistance to the FSM.

2. The FSM will terminate the current private contractor managing its Project Management Unit as soon as practicable.

3. The FSM will engage the U.S. Army Corps of Engineers (ACE) on a transitional basis to provide technical advice and assistance managing and implementing infrastructure projects, consistent with the FSM Infrastructure Development Plan and relevant provisions of FSM law, funded under the Amended Compact.

4. The FSM will periodically review the involvement of the ACE and make adjustments as appropriate, including ultimately transitioning away from ACE.

It appears that Lyon and Associates will be out of project management and the Army Corps of Engineers will be in.


  • At last, a breakthrough in the stalemate. Good news! Both parties win. Let us hope both the FSM and the USA keep with their commitments so the world will see they are serious and are truly friends who are looking out for each other.

    This move will help the USA in slowing down the encroachment of China into the Micronesian region.
  • Thank you President Trump for releasing the $$$.
  • Now that makes a lot more sense....having the ACE oversee infra projects. I don't know why this was not done earlier under COFA I & II. Lyons is paid and so should the ACE, right?
  • Agree with you Sinbad..
  • Ok, that's for the next 5 years. What have we accomplished for the last 15 years? Would the new ACE make a difference? Soon, the GAO will come out and review our accomplishments and hope that their findings will be positive.
  • Actual DOI news release: U.S. Provided $34.8 Million in Compact Grants to the Federated States of Micronesia for First Half of Fiscal Year 2017.

  • The only loser is Lyons, heheh.
  • Again thank you president trump for releasing the $$$.
  • Lol@PS...Trump likely cant say what COFA stands for. Anyhow, these are mandatory funding grants that need no Presidential release authorization.
  • edited July 2017
  • sinbad, I totally agree with your remarks. More better if ACEremain with us at the beginning. We should retain them ever since.
  • Thank you Saka and last for agreeing with what I think should have been done long before. I recall early on when the OIC (Officer in Charge of Construction) used to oversee the projects that were funded under Federal Programs.

    I hope with all these discrepancies of the public project, the our National Government considers retaining ACE's services.
  • Thank you Mr.Trump for releasing the $$$. If they can blame you for global warming then they can also thank you for the release of the funds.
  • How sovereign is that FSM.
  • How is a sovereign country has to get an approval. I'm not smart but this doesn't make sense.
  • Tokyo, you are very smart to see all this, but may be this is how compact II financial part agreed upon. If not, then we can change the 2023 financial version of compact II.
  • Good luck convincing the U.S. to extend the Compact grant funding past 2023.....especially if you expect the funding to be free from any financial accountability.

    U.S. officials have repeatedly said that this grant funding will not be extended. That is why the Trust Fund was set up to replace it.
  • They should give the moneys to the FSM in Gold Bars instead of digital or paper currency. Only way for Micronesians to use the Gold bars is to use it to make Gold teeth like rap music people.

    This will help to improve accountability and transparency underwear elasticity and natural protection against cockroach teeths.
  • FSM needs to immediately propose an amendment to the COFA II citing the projected shortfalls in the Compact Trust Fund. Anything proposed should be based on this reasoning - that the projected shortfalls are in effect, no different than the US Government knowingly and willfully short-changing the FSM on COFA funding by parking the Compact Trust Fund in the volatile financial markets.

    Based on the volatility of this arrangement, the ultimate underlying motives behind this can be misconstrued as something of a somewhat sinister maligned nature. Which of course could lead to adverse potential political fallout when the situation surpasses the tipping point. And when it does, there is no way to accurately predict the consequences which will most likely negatively impact US National interests in the Western Pacific Region.

    Ultimately, it could undo decades worth of progress through hard work and mutually beneficial interests.
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