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Highlights for Fiscal Year 2006

Agriculture

Food Security and General Agriculture

The Ministry of RND, as mandated, continues to promote domestic food production for national food security and import substitution. Agricultural extension support activities were expanded on the urban centers (Majuro and Ebeye), and to at least 8 outer islands. There were 15 trainings/workshops on site conducted to about 400 farmers. This clearly indicates that the level of local participation by our rural people is increasing. Training methods included vegetable production, compost making, nursery management, and livestock rearing. Furthermore, to further support the growth of food production, the Majuro Farmers market and the Micro-credit scheme were launched in September 2006. Greater participation from both the public and private sector will only increase RMI agriculture development, thereby contributing to improved quality of life.

The expansion of agricultural extension and other support services is the result of energetic collaboration with many partners and stakeholders, including but not limited to Outer Islands Local Governments, other National Government ministries and agencies, MIDB, Bank of Marshall Islands, ROC Agricultural Technical Mission, CMI Land Grant, FAO and SPC.

Technical and funding support to agriculture development were more realized in 2006 from FAO and SPC, both of whom RMI is a member of. Up to $300,000 were utilized in the implementation of our own national food security projects and FAO's own Technical Cooperation Program (TCP) and Telefood projects. This collaboration is expected to continue into the next 3 years with the up-scaling for phase 2 currently being negotiated by all FAO Pacific countries. With the commitment of FAO, I am pleased to announce that Dr. Jacques Diouf, FAO Director General, has accepted the invitation to visit again Majuro in late April 2007 during the FAO Pacific Ministers meeting.

Projects in the Pipeline

Integrated Coconut Development – As previously envisioned, this will involve replanting, rehabilitation, coconut wood utilization, processing, multi-story cropping with emphasis on proactive community participation. Both RND and Tobolar have submitted project documents to APCC and other potential donors for the initiation of this long planned important endeavor.

Quarantine and Invasive Species

RND in cooperation with MOH, EPA, CMI Land Grant, MALGOV, Public Safety and Public Works have developed the RMI Avian Influenza Emergency Response Plan for Animals. This document is an annex to the RMI Pandemic Avian Influenza Emergency response plan. It provides Standard Operational Procedures (SOPs) drafted by the RMI Avian Influenza Animal Contingency Coordination Committee in response to suspected and/or confirmed Avian Influenza cases with animals. The plan was prepared with the assistance of SPC.

As well, to upgrade our capacity with our trading partners in the region and internationally and at the same time to protect our agriculture, environment and public health, a Quarantine/Bio-Security Bill has been drafted and will soon be introduced to Nitijela. This Bill is intended to replace the Plant and Animal Inspection Act and the Meat Exportation Act and regulations made under them. It will bring together laws relating to both animals and plants, and provide a legislative foundation for action to protect it from the introduction of animal and plant pests and diseases. The Bill will also enable RMI to comply with its obligations to ensure that the animal and plant pests or diseases are not exported from RMI into neighboring countries.

In November 2005, RND joined forces with EPA, OEPPC with support from the Pacific Invasive Learning Network (PILN) to organize the first multi-agency Invasive Species awareness raising workshop. The workshop identified public awareness for as the top priority for invasive species action in the RMI, followed by inter-agency coordination and funding.

Trade & Investment

Product Development

The Ministry of R&D conducted 8 trainings on product development on Majuro, Kwajalein, Jaluit, Wotje, Mejit and Ebon. Over 300 participants (youth, men/women) involved in the trainings. The trainings focused on local products such as Lukiej Oil, Nin Tea and Nin Juice, Virgin Coconut Oil and Breadfruit Products. Resulted from these trainings some individual women and women groups are now producing these products for their own consumption and also for sale. These new local products were introduced and sold at the 3rd USAKA Trade Fair in September 2006.

Trade Facilitation and Trade Policy

Addressing the issues of national policies that complement the Pacific Plan. RND has recently completed its second edition of a National Investment Policy Statement (NIPS). The NIPS addresses issues concerning Labor Movement or what is commonly known as MODE 4, Trade in Services. To help tackle the issues of Trade Liberalization, Enhancement of Private Sector, Administrative Barriers to Trade, Foreign Investment Promotion, RND currently has a working group (National Trade Facilitation Committee) comprising appropriate representatives from the government, the private sector and civil society, to address issues mentioned above. Furthermore, RND has included in the Terms of Reference for this working group to attend to trade facilitations mandated by the Pacific Leaders in 2001. Trade Facilitation basically concerns measures to reduce the impediments to trade flows and the cost of engaging in trade, particularly as they concern customs and quarantine measures.

PICTA

Although the RMI is still not a member of PICTA we are taking measures to study the implications of entering into a free trade in goods agreement. This year RND has held two workshops in partnership with the PIFS and UNIFEM. Collectively the objectives of the workshops are to have the relevant stakeholders i.e. government agencies, private sectors, civil society and NGOs are more involved in the decision making and better understand the consequences and benefits of entering into a Free Trade Agreement.

Enabling Private Sector Environment

RND has also been working closely with private sector and related government ministries/agencies in reviewing the Labor and Immigrations Bills (#83 and #100) the bills were reviewed and recommendations were put forward for further review and approval from the Nitijela. Both bills are now public laws.

Another bill, which is also with Nitijela, is the Secured Transactions Bill, Secured Transaction is an agreement between a debtor and a creditor where the debtor gives the creditor an enforceable interest in movable property to secure a loan. This is indeed a way forward for business development in RMI.

Investment Promotion

RND collaborated with the stakeholders involve in the Foreign Investment Business License (FIBL) to clarify the administrative steps in the investment approval process. As a result, a road map has been produced which outline overall investment approval process that is available on paper and electronically on Ministry of Resources & Development website (www.rmirnd.net).

Commercial Desk Office in Honolulu

As also a top Government priority to strengthen private sector and economic development, the Cabinet approved the establishment of the Commercial Desk Office in Honolulu at the RMI Honolulu Consulate. The principal objective of the office is to lure US established businesses and investors to the unique investment opportunities in RMI. Compelling opportunities exist in sectors including, but not limited to, niche tourism, fisheries and related services, aquaculture, value added agriculture productions and traditional handicraft export.

Since its opening, the Commercial Desk Office was instrumental in facilitating the recent Micronesian Festival and the DOI Business Opportunities Conference, both held in the Honolulu Convention Center in October and November 2006. As well on-going consultations are underway with : 1) Hawaii Chamber of Commerce for potential business contacts to be shared with RMI businesses, and 2) Pacific Command Center at Pearl Harbor for handicraft concession at the.

Small Business Development

RND - Small Business Development Center (SBDC) hosted the 4th Quarter Staff Development Meeting here in Majuro. Participated in this meeting were the SBDC centers from all over Micronesia including the Pacific Island Small Development Center Network (PISDCN) at the University of Guam. During this meeting the SBDC staff discussed the first stage of the Network Strategic Plan (Five Years Plan) for FY 07.

In FY 2006, the SBDC conducted 21 training sessions for 344 participants. These trainings session provided information on small business including Business Plans, Marketing, Taxation, Recordkeeping and other related small business topics.

The SBDC provided counseling to 217 clients on different issues related to small business such as loan requirements, managing a business and many other issues. The number of business loans approved from the banks and through the Micro credit loan scheme during 2006 was 40, which are worth over $150,000. SBDC looks forward to assist more clients who wish to develop business plans in order to start a small business or to obtain a Micro-Credit Loan for a small project whether it’s on food crops, fishing, aquaculture, food processing or others.

Energy

Outer Is. Solar Electrification

The European Union 9th EDF for the Five Pacific ACP members, of which RMI is a member took place in first half of 2006. A Project Management Unit (PMU) was hired to work with member countries in implementing respective country programs; the RMI has opted to use its share of funds towards the Outer Islands Solar Home Electrification Program and selected Ailinglaplap Atoll as the recipient of the systems due to its size and population. The survey of households showed an estimate of 400 houses on Ailinglaplap, including churches, community halls, tool sheds and cooking huts. The proposed implementation date for Ailinglaplap is expected to start in late 2007 to early 2008.

The Solar Program also received an additional $3 million from the ROC government towards purchase of 937 solar home systems from ROC based supplier; MoTech Industries, Inc. Shipment of systems is expected as early as late January 2007. The RMI Cabinet has selected three large atolls, Arno, Likiep and Ailinglaplap for the MoTech units.

A Policy Paper Brief on the Outer Islands Solar Electrification Program has been published and disseminated as of December 2007. This Brief sheds more light on the Solar Program by explaining more clearly the required fees and public awareness campaigns to ensure a sustainable program thus needing support of policy makers and community dwellers in effectively carrying out the Program.

Finally, it is expected that by the end of 2006, approximately sixty homes on Wotho and Wodmej Island of Wotje Atoll will be lit up. Installation is underway and expected to be complete by late December 2007.

Bio-Fuel

Other than the promotion of solar as an alternative energy source, the RMI government has also been seriously considering and increasingly using coconut oil based bio-fuel as a diesel substitute for transport. In its August 2006 report, Tobolar sold over 128,000 gallons of bio-fuel for $2.00 per gallon, showing significant progress made by the RMI to promote this alternative energy source.

In October 2006, a project team comprised of UNDP and SOPAC did a bio-fuel feasibility study to determine the cost effectiveness of setting up a small generator set runned by coconut oil, produced locally. A comprehensive report will be emailed shortly from UNDP-Fiji, which will provide recommendations based on the preliminary assessments and findings.