12 Oct 2009

Marshall Islands could be in line for ADB for first time in 4 years

6:35 am on 12 October 2009

The Marshall Islands is to receive large-scale funding from the Asian Development Bank for the first time in four years.

The change is in response to the Marshall's clearing outstanding debt.

Since March, the Marshall Islands has been current with its monthly loan payments to the ADB.

The Marshall Islands owes more than 60 million US dollars to ADB for loans received in the 1990s and early 2000s, and is paying about 4 million dollars this year, more than 10 percent of the country's locally generated revenues.

The ADB Marshall Islands desk officer officer, Kyoshi Nakamitsu says $3 million grant has been approved in principle by ADB and is awaiting final sign off by top officials at the Manila-based bank.

The grant aims to support improvements for the governments power utility company, including the purchase and installation of pre-paid meters for customers and an experiment with bio-diesel fuel using a coconut oil mix to determine its feasibility.