MARSHALL ISLANDS: Responding to the Emergency
Update Report on the Republic of the Marshall Islands State of Economic Emergency Stemming from the Energy and Food Crises
This report is organized into the following six sections (with two appendices):
1. Background
2. The Current Situation
3. Emergency Response Organization and Management
4. Key Response Measures Taken To Date
5. HOW DEVELOPMENT PARTNERS CAN HELP
6. RMI Contacts
Appendix 1. State of (Economic) Emergency declaration
Appendix 2. Orders promulgated under the declaration
1. BACKGROUND
The Emergency Declaration. The Republic of the Marshall Islands (RMI) has recently experienced unprecedented increases in the costs of imported fuel and staple food items. This high and sustained inflation in energy and food prices has had significant impacts on the economy and people of the RMI. This prompted President Litokwa Tomeing and his Cabinet to officially declare a State of Economic Emergency on July 3, 2008.
Why the RMI declared an official emergency. While all Pacific Island nations are facing the same set of energy and food related challenges, the RMI is the only one to have gone so far as declaring an official State of Economic Emergency. The RMI’s leaders chose to declare a State of Economic Emergency for four primary reasons: to avert a national disaster, to raise attention and awareness, to mobilize resources, and to move the country towards stronger longer-term energy and food security.
First, given the high and sustained inflation in energy and food prices, the RMI chose to officially declare a State of Economic Emergency as a means to immediately address the situation and to prevent and mitigate against a national disaster. Second, an official emergency declaration constitutes a strong and vocal statement that will raise local, regional and international attention and awareness on the development challenges facing the RMI. Third, an official emergency declaration would help mobilize domestic and international resources and assistance. Fourth, an official emergency declaration should help the country strengthen its resolve and focus to dramatically improve its self-reliance, sustainability and long-term security, particularly with respect to food and energy supply.
Purpose of this report. As part of the emergency declaration, a series of executive orders were given by President Tomeing to address the energy and food crises. The initial State of Economic Emergency period lasted 30 days, from July 3 to August 1. This report provides an update on the State of Economic Emergency and summarizes the response measures taken by government and other entities since the emergency period began in early July.
This report also discusses ways in which donors and development partners can assist the RMI.
2. THE CURRENT SITUATION
The Energy Situation. The most pressing challenge remains the shortage of financial resources available to cover the rapidly rising cost of fuel supplies for electricity generation in the major population centers. While $5.3 million was provided to the utilities (on a reimbursable basis) by the RMI Government in mid July to enable the next shipment of fuel to be secured (which will provide enough fuel through the end of October), the next fuel order to be made in early October will require another $4 million or so in funds (assuming current price levels remain). Part of this next order can be financed by the utilities themselves but the majority of this will have to be provided by government or another source. Assuming current energy costs (fuel, generation and distribution), consumption levels, and utilities’ revenues remain the same over the coming 12 months, an estimated minimum of $10 million in cash injections will be required to cover the shortage and sustain uninterrupted power supply in the major population centers.
This bleak short-term outlook is primarily dictated by the fact that 100 percent of grid energy supply in the major population centers relies on imported fuel. A shift away from this heavy reliance on imported fuel and towards renewable and more sustainable energy sources is underway but a medium to longer term horizon is required for this transition to take effect.
The RMI must therefore continue to secure financial resources to cover its fuel purchasing shortfalls over the short term while promoting the development of energy conservation and efficiency measures.
In terms of consumer energy costs, while in recent weeks global oil prices have moderated, since January of 2008 prices have continued to climb, forcing the utilities to raise tariffs three times so far this year, with residential rates now pegged at $0.41 per kilowatt hour. Retail diesel and gasoline prices have also continued to rise in 2008, with gasoline prices now approaching $7 per gallon.
The Majuro Consumer Price Index (CPI) has increased across-the-board by a sizeable 24.1 percent since the beginning of this year, while prices in the Housing, Utilities and Major Appliances group jumped by a massive 55.1 percent. Transportation prices have increased by 28.7 percent.
The Food Situation. Food prices continue to rise. Studies and health statistics have highlighted the seriousness of malnutrition, under-nutrition and food-poverty in the RMI and the current high inflation in food will, assuredly, make matters much worse for lower income families, in particular those in remote areas, those with many household members, those with ill family members, and those with very young and very old members.
CPI food prices rose by 11.26 percent from the first to second quarter of 2008. In the third (current) quarter, food prices rose by an additional 13.7 percent. This means food prices have already grown by 26.5 percent this year. The retail price for a standard 20 pound bag of short-grain white rice has more than doubled in the past year. Altogether, retail food prices have jumped by a significant 33 percent in the past year.
State of Emergency Extended. Due to these continued rises in food and energy costs, given the uncertain outlook for the near-term, and in consideration of the fact that response measures are still being implemented (with some response measures requiring more time), the President and Cabinet extended the State of Economic Emergency for an additional 30 days (through early September).
3. EMERGENCY RESPONSE ORGANIZATION AND MANAGEMENT
The Presidential declaration included a number of executive orders to be carried out across the government and the nation in response to the emergency. These orders were to be managed and monitored on an ongoing basis by the National Disaster Committee (NDC). In addition to these Presidential orders, a number of additional immediate, medium and longer term response measures have been identified and/or taken.
The NDC was immediately activated upon the declaration of emergency in early July. As its first order of business, the NDC prepared and positioned itself to undertake its work by:
1. Developing and adopting an Implementation and Monitoring Matrix to ensure that specific measures and actions are properly delegated and effectively implemented and monitored throughout the emergency period; and
2. Forming special Task Forces to deal with specific issues, including
a. A Food Task Force whose role is develop, implement and monitor effective response measures to the food crisis
b. An Energy Task Force whose role is to develop, implement and monitor effective response measures to the energy crisis
c. A Finance Task Force whose role is to seek and secure financial resources for the National Energy Support Account to be used for fuel purchases and energy related activities and projects
d. A Public Relations Task Force whose role is to ensure that a consistent and transparent flow of information is provided to the general public
The NDC and its four task forces have met at least once weekly during this emergency period and are reporting regularly to the Chief Secretary and Cabinet.
4. KEY RESPONSE MEASURES TAKEN TO DATE
The following is a summary of the key measures and actions taken or initiated so far under the State of Economic Emergency. These include both immediate measures to stabilize the near-term situation (particularly with respect to the fuel supply situation) as well as medium to longer term initiatives.
Fuel shipment #14 secured. A $5.3 contribution from the RMI Government to the MEC has allowed MEC to complete the payment requirements for shipment 13 and therefore to secure the next shipment of fuel (shipment 14). RMI now has sufficient fuel supplies for generation (on Majuro, Ebeye, Jaluit, Wotje, and several other small islands) through the end of October. This has provided temporary respite, however fuel shipment #15 (to be ordered in early October) will require an additional (estimated) $4 million and the short to medium term outlook still sees a shortfall of funds for fuel supplies that has yet to be fully resolved.
Diplomatic and development partners informed and engaged. The RMI Ministry of Foreign Affairs has informed all diplomatic and development partners of the state of emergency. A number of partners have offered various forms of assistance and support. Engagement with key partners on a number of initiatives is ongoing.
Government, businesses and households sharply reducing consumption. The consumption of electricity is being more closely monitored. As electricity tariffs have continued to rise, monthly electricity billing data illustrate strong and steady reductions in grid energy consumption. July 2008 data showed the lowest monthly consumption in recent history, with a combined kilowatt billing for Majuro, Jaluit, Wotje and Rongrong of 3.89 million, the first time that monthly consumption has dipped below the 4 million kilowatt hour mark (the average monthly consumption over the 36 months leading up to July 2008 was 4.7 million kilowatt hours). Since January 2008 combined consumption across all customer types (government, commercial, residential and lifeline) has fallen by 16.2 percent. The largest reduction in consumption (in percentage terms) has taken place in the Government, where energy consumption across all ministries and public agencies has fallen by a sizeable 25.3 percent from January to July (from 4.6 to 3.89 million kilowatt hours). Commercial energy consumption has fallen by 9.4 percent while residential consumption has fallen by 24.3 percent. Lifeline consumption has dropped by only 1 percent so far this year.
Government permanent secretaries and agency heads have been ordered to further reduce consumption in their places of work and monthly monitoring of consumption will continue. An initiative to retrofit all government offices with more efficient light bulbs and lighting systems is underway. The government’s ministries and agencies have taken more aggressive measures to reduce consumption. For example, the Ministry of Health (MOH) has enacted measures that include replacement of incandescent light bulbs with more efficient bulbs in all MOH facilities, shutting off lighting in offices with adequate sunlight, reduction of air conditioning use, tighter monitoring of vehicle fuel use, and other measures.
The NDC is responsible for ensuring that continued reductions in government energy consumption are made.
Tighter controls on government travel, vehicle use and General Fund expenditures enacted. Cabinet called for a freeze on all non-essential international travel (with exemptions on foreign-funded travel and other special cases), stronger enforcement of the government vehicle policy, and tighter controls on non-essential expenditures on the General Fund.
Government travel expenditure on the General Fund is on trend to total approximately $1 million by fiscal year-end (September 30) . This is under budget (approved General Fund budget for travel in FY08 is $1.25 million) and well below the annual average of $1.46 million spent over the five year 2003 to 2007 period. Tight controls on travel will continue.
The Ministry of Justice’s National Police forces have enacted more stringent monitoring of government vehicle use and have cracked down significantly on unauthorized and after-hours use of vehicles.
Requests for General Fund expenditures are being more closely scrutinized by Ministry of Finance officials in an attempt to preserve resources and improve the fiscal balance.
Ministerial fuel allowances cut. The President and Cabinet Ministers cut their government-provided fuel allowances to further reduce General Fund expenses.
National Energy Support Account (NESA) established. The Ministry of Finance has established a special purpose account to hold and disburse funds specifically for the energy sector (primarily to be used for fuel supply procurement). The NDC (through its Finance Task Force) is actively pursuing potential sources of funds to adequately capitalize the NESA in the forthcoming fiscal year. A tentative target range of $10 million will be needed as support funding in FY2009. The Finance Task Force has been instructed to secure from local resources a minimum of $500,000 to be put into the NESA to be used as seed capital and a matching fund.
Fiscal adjustment options being considered. The NDC is pushing for broader fiscal adjustments to be made in response to the current economic emergency and to ensure that adequate resources are available over the medium term. Independent economic and fiscal advice is being sought to help illuminate a way forward. Fiscal adjustment recommendations from the NDC and its economic advisors will be given to Cabinet for consideration in the coming weeks. A proposed Asian Development Bank Loan Buy-down concept is being considered as a potential part of the broader fiscal adjustment package.
Tax holiday on utilities’ fuel supplies to be passed. One of the executive orders issued as part of the declaration of emergency called for the granting of an exclusive holiday on Import and Gross Revenue taxes on fuel supplies imported for generation and sale by the Marshalls Energy Company (MEC). MEC imports fuel on a 60-day cycle to be used for generation on Majuro, Ebeye, Wotje, Jaluit, and several other small islands, as well as for sale to fishing and other vessels (as well as some land-based clients). Fuel imported for generation and sale were exempt from taxes until 2006 when all state-owned enterprises were then required by law to begin paying relevant taxes. The granting of these tax holidays to MEC will reduce its operating costs and will allow it to pass on savings to all its fuel clients (e.g. fishing vessels). This will significantly improve MEC’s competitive position in the international fuel sales business and will help the company regain some of its lost market share in this business (from the early 1990s to 2004 MEC used its high profit margins on fuel sales to cross-subsidize its electricity tariffs).
(Footnote: As of August 23 travel expenditures on the General Fund totalled $843,064. )
An amendment to the Import Duties Act will be introduced in late August in accordance with this order.
Re-establishment and expansion of MEC fuel business actively pursued. The Marshalls Energy Company (MEC) is actively pursuing ways to re-activate and expand its fuel supply business. This includes ongoing discussions with potential fuel and financing suppliers. The MEC Board of Directors has instructed management to consider this a top priority for the utility.
Other measures to enhance utilities underway. The Board for the combined utilities is pushing management for further improvements in financial management and operational efficiency. This includes improvements to MEC’s power system losses and reductions in unnecessary expenses. A deferment on MEC’s debt service payments on its Rural Utilities Service (RUS) loan is actively being pursued so as to ease the utility’s near-term fiscal situation. A new general manager for the combined utilities will be selected in late 2008. The introduction of prepaid household power meters for some Majuro customers will be pursued. The combined utilities Board has also instructed management to acquire the services of an experience grant writer to assist in securing grants for improving capital and equipment. All utilities’ policies are also currently being reviewed by the Board to ensure effective management and operations.
Tax exemptions on staple food items granted. The Food Task Force worked to introduce and pass a Nitijela amendment to the Import Duties Act to eliminate import taxes on basic food staples, including rice, flour, baby food and other items. This will eliminate the current 5 percent duty on these food staples and should reduce the corresponding retail prices by at least 5 percent.
Retail Price Monitoring Board called to action. The Retail Price Monitoring Board, created by the Retail Price Monitoring Act of 1992 has been called to action. This will be the first time since the Act was passed in 1992 that the Board will become active. The Board will begin closely monitoring prices to ensure that fair pricing practices are being followed as prescribed by the law.
Food security initiatives being developed. The Food Task Force is pursuing a number of food-security related projects and initiatives, including exploration of re-establishing the public school feeding programs, a national replanting scheme, and an urban Youth Mobilization for Food Security and Health project. The Ministry of Resources and Development is also pursing a technical assistance project from the Food and Agriculture Organization to conduct a food needs assessment. A new National Food Policy will also be developed.
Matrix of donor sources developed. The Ministry of Foreign Affairs has actively engaged with all of RMI’s bilateral and other partners and has constructed a matrix of all bilateral, multilateral, regional, international and other sources of assistance that are available to the RMI for renewable energy and related areas. While the current matrix provides information on resources available primarily for government to tap into, a second matrix will be developed showing sources of assistance available for organizations outside of the government.
Immediate renewable energy projects underway. Although a new energy policy and action plan have yet to be developed (see discussion below on policy and action plan), the RMI has already identified a number of renewable energy projects that can immediately be implemented. With donors support, several pilot and immediate-need renewable energy projects are now underway. This includes a solar street light project for Majuro and Ebeye, an initiative to retrofit all lighting systems in government buildings, a pilot project to establish an outer island mini-copra-mill and biodiesel plant, and others. Donors and development partners are welcome to review these immediate projects and needs (see Section 5 “How Development Partners Can Help.”).
Energy education activities launched. The Public Relations Task Force has launched a series of announcements on the national radio station to educate the public about energy issues. Moreover, on-air interviews have also been conducted on the topic of energy and the current state of emergency. The Ministry of Education is now (as the school year begins) implementing a campaign for energy conservation in the public school. The merging of climate change mitigation in the context of renewable and energy efficiency as part of the campaign was initially discussed for consideration and inclusion.
Asian Development Bank providing assistance. The Asian Development Bank has offered to assist the RMI with a high-profile national energy conservation campaign, with a public launch event tentatively planned for late September (it is hoped that the RMI President will officially launch the event). Along with the energy conservation campaign, the RMI and ADB will collaborate on a Public Policy Forum to discuss the current energy crisis. ADB is also funding a “rapid-assessment” visit in early September by two energy experts. Additionally, ADB and RMI are discussing a potential social safety nets study to assess the impacts of the current food and energy price shocks on vulnerable groups and potential assistance to these groups.
RMI to develop new energy policy and action plan. The Energy Task Force has secured funding assistance from the European Union to allow it to update and renew its National Energy Policy and a develop a new medium term Energy Action Plan (which will include a Renewable Energy Action Plan and a Energy Efficiency Action Plan components). This will be funded through a US $140,000 grant approved by the EU. In addition to the updated policy and new action plan, the RMI will also develop a set of technically-sound renewable energy project proposals (in line with the policy and plan) for donor consideration.
RMI secures energy expertise, technical assistance and capacity development over medium term. In addition to the technical assistance grant provided by the EU to help the RMI develop a new energy policy and medium term action plan, the RMI has also finalized arrangements to ensure that energy expertise, technical assistance and capacity development will continue to be available over the medium term. The Ministry of Resources and Development is making arrangements to recruit a highly qualified energy expert to serve as the RMI’s resident (on-island) Energy Advisor under the AusAID PACTAM program. The Office of Environmental Policy, Planning and Coordination (OEPPC) has also finalized arrangements for the commencement of the GEF “Acting for the Development of Marshall Islands Renewable Energy” or ADMIRE project, a US $1 million project that will provide technical assistance, capacity development and training, and other energy related activities.
Government to retrofit all office lighting systems. An immediate priority of the government is to replace all incandescent light bulbs and to retrofit all lighting systems in government offices. The Ministry of Public Works is tasked with implementing this project over the coming months and is currently surveying all public buildings. This will further reduce energy consumption in government.
New Government buildings to incorporate energy efficient design. The Ministry of Public Works has been ordered (under the declaration) to incorporate energy efficient designs into all future public buildings.
Legislative initiatives considered. A number of energy and food related initiatives are being considered for legislative action. This includes potentially exempting renewable energy supplies and equipment (e.g. solar panels) and “green” vehicles from import duties. This may also include a ban on inefficient light bulbs and lighting systems.
Government ministries and agencies called to develop contingency plans. The RMI Chief Secretary has called on all government ministries and agencies, particularly those who provide critical services, to develop energy contingency plans. The Ministry of Health is the first to have completed its contingency plan and other ministries and agencies are to follow.
RMI to re-prioritize EDF-10 funding. The next round of EU funding assistance (EDF-10), which will total approximately US $7 to $8 million, is currently being re-prioritized to ensure that not only rural areas get energy assistance (which was the primary focus of EDF-9 funding) but that urban areas also receive assistance. Relevant entities in government will work with Cabinet to finalize the allocation of EDF-10 funding over the coming weeks.
Tobolar issues and coconut biodiesel potential being explored. The Energy Task Force and the Ministry of Resources and Development are currently reviewing issues related to the national coconut processing authority, Tobolar, and exploring options to maximize the potential for development of coconut biodiesel in the RMI. Legislative and other potential interventions into the coconut products market will be deliberated by the Energy Task Force (for ultimate submission to Cabinet and Nitijela) in the coming weeks.
OTEC potential being watched by RMI. The RMI is actively exploring and discussing the potential use of Ocean Thermal Energy Conversion (OTEC) technology as an energy source in the RMI over the medium to long-term (as the technology continues to expand and develop). Discussions with key OTEC firms and the US are ongoing.
5.How Development Partners Can Help
While the forthcoming National Energy Policy (and action plan) and National Food Policy will identify the priority areas and projects related to energy and food supply over the coming years, there are a number of areas where donors can provide immediate assistance to the RMI. These immediate areas of assistance are as follows:
1. Funding for the National Energy Support Account.
The RMI has established a special-purpose account in its budget for the purpose of fuel supply procurement and energy related activities and projects. RMI is seeking to capitalize the account with an initial US $500,000 and development partners can match or supplement this.
2. Assistance for immediate-need and pilot energy projects.
The Energy Task Force is now developing a list of immediate-need and pilot renewable energy projects to be implemented. This includes feasibility studies on different renewable energy technologies. Development partners are welcome to provide assistance with these immediate-need and pilot projects. The current list of projects includes: a. Technical and funding assistance to improve electricity utilities management, generation and distribution effectiveness b. Solar street lights for the urban centers of Majuro and Ebeye c. Urban areas school and hospital solarization projects d. Efficient light bulbs and lighting systems for government offices and facilities e. Retrofitting of air conditioning and other systems f. Outer island mini-mill biodiesel pilot project g. Household solar energy systems smart grid pilot project for poverty alleviation h. Site- and facility-specific energy audits and development of energy strategies for individual organizations (government, businesses, NGOs) i. Alternative/renewable power generation systems for various community locations j. Pilot project funding (e.g. there is a proposed “Green Taxi Pilot Project”) k. Training/capacity development to address mitigation of climate change emissions through maintenance of renewable energy units
3. Funding and support for food security projects.
A number of food security projects and initiatives are being planned and development partners are welcome to assist with the following: a. Budgetary support for the re-establishment of public school feeding programs b. Youth Mobilization for Food Security and Health project (funding assistance needed for expansion phase) c. Climate Change Adaptation Pilot Project addressing food security through climate proofing of water resources
6. RMI Contacts
Development partners who are interested supporting the RMI with any of these projects (or who have other ideas for cooperation) are more than welcomed. The official contact person is the Secretary of Foreign Affairs, Ms. Kino Kabua. Email kino.kabua@ntamar.net, telephone (692) 625-3181/3012, fax (692) 625-4979.
Appendix 1. State of (Economic) Emergency declaration
MARSHALL ISLANDS: PROCLAMATION DECLARING A STATE OF (ECONOMIC) EMERGENCY
WHEREAS, the Republic of the Marshall Islands is facing severe fiscal constraints, exacerbated by the limited ability to further absorb shocks from the escalating costs of global fuel supplies; and
WHEREAS, fuel costs from international refineries have substantially increased from a monthly average of US$2.51 per gallon in January 2008, to US$4.11 per gallon in June 2008, prompting tariff increases in the power generation sector; and
WHEREAS, despite these tariff increases, the national power utilities are projected to face an estimated shortfall of $17.5 million to $21 million over the next 12 months assuming the global trend continues.
WHEREAS, these fossil fuel products are used primarily in the power generation and transportation sectors; and
WHEREAS these two sectors contribute significantly to the economy, the health, property and general well-being of people of the Republic of the Marshall Islands; and
WHEREAS, the power utilities in Majuro, Ebeye, Wotje, Jaluit, Kili and others, consume an average of 570,000 gallons per month at the current cost of US$2.8 million; and
WHEREAS all private and public transport services such as taxis, buses, inter-island and outer-island shipping operations, as well as the national airline service are all facing the hardships brought on by the escalating cost of fossil fuel product prices; and
WHEREAS, of most concern is the direct impact that the increasing cost of fuel has on the price of staple food items in the Republic; and
NOW THEREFORE, mindful that the failure to take immediate short and long-term appropriate measures to resolve the prevailing fuel crisis could lead to a disaster of unimaginable magnitude, the Cabinet has, based on the Combined Utilities Report, as endorsed by the National Disaster Committee, and acting pursuant to Section 1102 of the Emergencies Act 1979 (7 MIRC 11) at its meeting on June 26, 2008, authorized the issuance of this proclamation, declaring a State of (Economic) Emergency.
ACCORDINGLY, I Litokwa Tomeing, on behalf of the Cabinet of the Republic of the Marshall Islands, hereby issue this public proclamation declaring a State of (Economic) Emergency.
FURTHER, I have promulgated the necessary Orders that will go into effect during the State of Emergency. Such Orders are necessary to protect the national interests, and in particular, to ensure the well-being, health and property of the people of the Republic of the Marshall Islands are not placed at risk. Further Orders may be issued if and when circumstances warrant.
FURTHER, this Declaration shall remain in effect until 31 days from the date hereof, unless renewed by Cabinet.
Given under my hand this 3rd day of July 2008.
H.E. Litokwa Tomeing PRESIDENT
Appendix 2. Orders Promulgated under Declaration
ORDERS
Pursuant to Section 1102 (6) of the Emergencies Act 1979 (7 MIRC 11) and the Proclamation declaring the State of (Economic) Emergency, I, LITOKWA TOMEING, hereby promulgate the following ORDERS:
That All Government Ministries, Departments and Agencies are hereby urged to work in unison to achieve the successful implementation and achievement of the following measures in the period of the State of (Economic) Emergency.
(1) That all Government Ministries, Departments and Agencies are hereby ORDERED to take immediate steps to implement energy conservation measures, to save on utility costs.
(2) In addition to paragraph (1) above, and in particular:
(a) The Ministry of Finance:
(i) That the Ministry of Finance shall establish a National Energy Support Account as a measure to create capital funds (reserve) for the purchase of fuel, and to mitigate against the adverse effects of the rising cost of fuel.
(ii) That the said Account shall be utilized only: (A) to secure a fuel supply line; (B) to address the maintenance needs of the power generation sector; (C) to stabilize costs associated with the outer island transportation sector; (D) to stabilize the cost of delivering staple food items to the outer islands;(E) for the implementation of projects on alternative energy development, both in the outer islands and the urban centers.
(iii) The said Account shall be replenished by: (A) the reprogramming of available funds from other accounts within the General Fund; (B) funds that may be appropriated by the Nitijela, (C) grants and other contributions from domestic or foreign sources, including the Asian Development Bank and the World Bank; (D) unexpended capital projects funds.
(b) Ministry of Foreign Affairs:
(i) The Ministry of Foreign Affairs: (A) shall seek financial and other types of assistance from the RMI’s closest allies, including the United States, Republic of China (Taiwan), Japan, Australia and other development partners during this time of hardship. (B) shall seek financial and other types of assistance from regional and international organizations, to help with projects aimed to lessen the dependence by the RMI on fossil fuel, and to initiate renewable alternative energy activities.
(c) The Cabinet:
(i) The Cabinet to look at introducing legislation in the Nitijela aimed at: (A) providing for tax exemptions on selected food items, to ease the financial constraints caused by the rise in world fuel prices; (ii) provide for: (A) providing tax holidays for combined utilities services; (B) offering protection to the combined utilities services as sole suppliers of electricity within the Republic; (C) offering protection of the re-fueling business sector. (iii) All earnings generated from the sale of fuel are to be used to supplement the utility tariff rates and to provide the capital to purchase fuel.
(d) The Ministry of Health Services:
(1)That the Ministry of Health shall take steps to safeguard the delivery of health services and to ensure that Contingency Plans for Majuro and Ebeye hospitals are in place during this period of emergency.
(e) That the Ministry of Public Works:
(i) The Ministry of Public Works shall: (A) shall carry out a survey of all lighting, air conditioning and other electrical systems on all public facilities and where necessary, to replace and re-fit all public facilities with more energy efficient equipment; (B) reduce the public street light hours and commence the procurement process for suitable solar street lights. (C) assist other Ministries and Agencies with Contingency Plans to ensure that the essential infrastructure and delivery of public services are safeguarded. (D) adopt future public facility design concepts based on energy efficient models, inclusive of alternative energy sources and related specification requirements, for long term sustainability and affordability. (E) ensure that the combined utilities (MEC/KAJUR) are directed to further reduce operational expenditures, where necessary, and to secure favorable terms with vendors abroad to ease the current fiscal pressure resulting from the high energy costs. (F) takes steps to ensure that the combined utilities (MEC/KAJUR) are further directed to take pro-active steps to reduce loss of energy generation, improve operational efficiency and other measures as necessary.
(f) The Ministry of Resources and Development:
(i) The Ministry of Resources and Development shall: (A) devise an arrangement that will make available alternative energy projects, such as the Outer Islands Solar Project, to residents in the urban centers (Majuro and Kwajalein); (B) take steps to accelerate efforts to achieve bio-diesel processing capacity, for the Marshall Islands Tobolar Processing Plant, to lessen the high dependency on imported fossil fuel. (C) take steps to put in place, agreements with all vessels that transship in our waters, and all vessels licensed by MIMRA to fish in our waters, to purchase fuel exclusively from MEC.
(g) The Ministry of Education:
That the Ministry of Education shall carry out energy conservation awareness education programs in the community.
(h) The Ministry of Internal Affairs:
That the Ministry of Internal Affairs shall: (i)conduct energy conservation awareness programs on the national radio; (ii) engage non-government organizations and civil society to assist in the energy conservation awareness efforts, to ensure that the message reaches the wider community.
(i) The Ministry of Justice:
(i) The Ministry of Justice shall: (A) enforce the “Government Vehicle Policy” that requires all Government vehicles to be returned to the designated parking lot at 5:00 pm. All vehicles operating after working hours are required to obtain prior authorization. (B) ensure that energy conservation measures are implemented at all public facilities. (C) ensure that Law and Order is maintained throughout the period of emergency.
(j) The General Public:
All citizens and residents of the Republic are hereby urged to conserve, save and reduce the consumption of electricity at homes and other establishments, in order to reduce the level of power generation required at the nation’s power plants, to manageable levels.
(k) The Private Sector:
That the Private sector is urged to support the efforts of the Government in this period of emergency. As a contribution to the Government’s efforts, the private sector is urged to import fuel efficiency products, and take general remedial measures to minimize the adverse impact of the fuel crisis on the economy. To this end, the private sector is encouraged to maintain constant dialogue with the Government and the nation’s combined utilities services.
(l) Medium and Long term Measures:
The Government shall: (i) seek technical assistance to update the National Energy Policy, and to ensure that there is identified, an action plan that identifies measurable objectives to guarantee national energy security and sustainability over the long term, to reduce the nation’s high dependency on imported fossil fuels, and further, to counteract the impact of high fuel prices on the cost of living. (ii) expedite the site specific feasibility study, and consider the concept and the viability of the Ocean Thermo Energy Conversion (OTEC) in the Republic of the Marshall Islands.
(m) National Disaster Committee:
The National Disaster Committee shall monitor the progress of this Declaration, and shall choose an appropriate time in the course of implementation, to review such progress in accordance with the goals set, and to submit to Cabinet a report to that effect.
(n) General:
That the Cabinet shall take, from time to time, additional measures deemed necessary to assure the well-being, health and property of the people of the Marshall Islands are not placed at risk.
Given under my hand this 3rd day of July 2008.
H.E. Litokwa Tomeing PRESIDENT
