China Eximbank pledges concessional loan for Oil Storage Facility Project

On January 8, 2007, the Vice-President of the Commonwealth Killion met with four people from the China Federal Overseas Construction Co., Ltd. ’s survey team for the oil storage facilities of the Commonwealth along with Chinese Ambassador Liu Fei. Part of the project's goal is to shake off Mobil ’s monopoly on the country ’s oil supply and establish its own independently-owned oil storage facilities that meet international standards using loan from Export-Import Bank of China. April 2-6, 2007, the Federated States of Micronesia ’s Economic Policy Executive Committee convened a plenary committee meeting. The meeting prioritized the development of two key areas through the use of concessional loans from the China; one is to build a national oil storage facility independently owned by the Federal Government. The meeting also led to the establishment of a national oil storage company whose board of directors were appointed by the president and the governors. The meeting designated the Ministry of Foreign Affairs of the Commonwealth and the National Oil Products Working Group to be in charge of liaison with the Chinese Embassy. This was in response to rising concern about high oil prices in the country and the monopoly of foreign oil supply.. The meeting also agreed that the states submitted proposals to use the Chinese government's preferential loan projects, but because the states had different ideas and the projects were very different, the meeting could not reach a consensus. The only consensus was that the federal government would not do the loan projects proposed by the state government. Financial guarantees, the state governments have to figure out their own ways.

Number of official sources

4

Number of total sources

6