POHNPEI, May 29 2025 - Citizens, communities, and businesses in the Federated States of Micronesia (FSM) and the Republic of the Marshall Islands (RMI) are set to benefit from faster, more effective delivery of public services under a new World Bank-supported project aimed at strengthening institutional capacity and enhancing technical skills in project management of development financed operations.
The Implementation Capacity for Transformative Results (IMPACT) Project, approved by the World Bank's Board of Executive Directors, will provide support to governments in both countries to boost institutional systems and build national skills essential for delivering public services, infrastructure, and other development investments.
With international assistance important for both countries this project ensures that local capacity keeps pace with growing responsibilities.
"This project is an investment in our people and the future of our country," said David Paul, Minister of Finance, Banking and Postal Services, Republic of the Marshall Islands. "By strengthening the way we manage development and growing local talent, especially in our outer islands, we can ensure that every dollar delivers real results for our communities. We're proud to work with the World Bank on a project that puts national ownership and capacity at the heart of progress."
The IMPACT project will provide dedicated support to strengthen core government systems in project management fiduciary reporting, and monitoring and evaluation-improving how projects are planned, tracked, and implemented. Importantly, the project will also invest in the next generation of local leaders, creating internship and mentorship opportunities for young professionals, with a goal of increasing employment of skilled national staff across public institutions. In both countries, women will be actively supported to enter and advance in technical roles, including procurement, environmental and social, and monitoring and evaluation.
"As our development portfolio grows, so too must our ability to lead and deliver," said Rose Nakanaga, Secretary of the Department of Finance and Administration, Federated States of Micronesia. "This project will help us build a stronger, more responsive public service-driven by skilled Micronesians who are committed to serving their communities. It's a timely and strategic investment in long-term resilience and development for FSM."
The initiative builds on earlier efforts by both governments to tackle personnel shortages and reduce reliance on international consultants. Through support for new training programs, career awareness in high schools, and reforms to improve the implementation of government projects, the project will help ensure more predictable, timely, and transparent delivery of development programs.
"This project will ensure that investments-whether in schools, hospitals, roads, or climate resilience-are delivered by strong local institutions and skilled Pacific professionals who understand their country's priorities," said Omar Lyasse, World Bank Resident Representative for FSM and RMI. "Ultimately, this means vital services will reach the people who need them most-more efficiently and reliably."
With US$7.5 million allocated to FSM and US$7.7 million to RMI, the IMPACT project reflects a growing commitment from development partners to support long-term institutional reform and the development of local skills aimed at improving resource management and service delivery, including in remote and outer island communities.
This support is provided through the International Development Association (IDA), the World Bank's fund for the world's most in-need countries to support them to invest in their futures, improve lives, and create safer, more prosperous communities.
