The World Bank has approved a US$15 million grant to assist the Republic of the Marshall Islands in strengthening its management of public funds and developing local financial expertise. The funding, provided through the International Development Association, is part of the Strengthening Public Financial Management II project.
The initiative aims to improve budget processes and financial reporting within the Ministry of Finance, Banking and Postal Service. This builds on earlier efforts that introduced a national financial management information system and updated laws related to public finance and procurement.
A key focus of the project is addressing workforce shortages in finance roles by providing training and certification for Marshallese staff in areas such as accounting, internal audit, and procurement. There will be an emphasis on supporting women professionals. By doing so, officials hope to reduce dependence on international consultants and encourage the development of local expertise.
“Good public financial management is the foundation for effective development,” said Omar Lyasse, World Bank Resident Representative for Marshall Islands. “Behind every road, hospital, or school built with public money is a financial system making it possible. This project will support the government of Marshall Islands to deliver services more effectively and build public confidence in how funds are used.”
The program also plans to expand digital systems across government agencies. Officials say this will help decrease payment delays, improve transparency in finances, provide timely data for decision-making purposes, and enhance access to budget information for citizens. Efforts will include mechanisms designed to involve communities more directly in understanding how funds are allocated.
In addition to improving routine operations, new digital systems are expected to help safeguard vital financial records from climate-related risks while also supporting requirements needed for Green Climate Fund accreditation.
The overall goal is not only better service delivery but also enabling access to global climate finance opportunities through strengthened governance standards.