China grants $800,000 to FSM to subsidize the newly launched airline between the Federated States of Micronesia (FSM) and Papua New Guinea in 2016 (Linked to Record ID#64186)

Project narrative

Based on the release from the Congress of Micronesia, on December 9, 2016, China and Micronesia signed a handover certificate. China agreed to provide a grant of USD 800000 to the Government of Micronesia to subsidize the newly launched airline on December 3rd, 2016 between the Federated States of Micronesia and Papua New Guinea. A resolution to accept the grant was submitted to Congress on December 15, 2016,. On January 26, 2017 a report by Transportation and Communications standing committee was sent to Speaker Wesley W. Simina. The report detailed a public hearing for the resolution held on January 24, 2017 as well as explanations regarding of the proposed grant by FSM officials. The USD 800,000 grant would provide a subsidy for the new service by Air Niugini through June 2017. It would function as a pool of travel money to be tapped by FSM government employees who fly on Air Niugini and that the leftover money would carry over to the next year. The resolution got the approval on January 31, 2017. During the 2015 Pacific Forum Meeting, Air Niugini was granted the Foreign Air Carrier Permit, which approved the commencement of Air Niugini’s twice weekly commercial air services at the beginning of December 2016. It will see Port Moresby become a major regional hub for travellers from FSM, Solomons, Vanuatu, Fiji, and Australia travelling to PNG and beyond – including to Bali, Singapore, Hong Kong, Manila, and Narita. It is linked to Record ID#64186, China has also agreed to supply an additional $800,000 grant by May 2017.