6 Feb 2007

Taiwan commits 40 million US dollars to Marshall Islands

11:42 am on 6 February 2007

Taiwan has committed itself to contribute 40 million US dollars over the next 16 years to the trust fund for the Marshall Islands.

The pledge comes as the fund reached the 75 million dollar mark at the end of last year.

But despite the boost by Taiwan, government officials in Majuro are concerned that the interest generate from the trust fund may not be able to replace the large-scale U.S. grant funding to the country.

Last year, the US Government Accountability Office said if trust fund investment earnings were low, the trust fund might be inadequate to replace US government funding that will end in 2023.

The Marshall has been given financial support through the Compact of Free Association.

The US set up a trust fund to create a source of revenue for future generations.

Similar arrangements were put in place for other small island countries, such as Kiribati and Tuvalu.