Marshalls' Are Going Dark As Funds For Fuel Run Low

Pacific Magazine ^ | July 17, 2008 | Giff Johnson and Suzanne Chutaro

[NRG1973]

With no financial reserves and a national fuel bill skyrocketing beyond the financial ability of the country’s only utility provider, the Marshall Islands is in a countdown to power rationing in its two urban centers, Majuro and Ebeye.

President Litokwa Tomeing declared a state of emergency on July 3 with the hope that this will give some additional traction to requests for help from donor nations, as well as cost-cutting measures at home.

While the Marshall Islands (RMI) government last week announced a ban on local tax- and Compact-funded travel until further notice, ordered street lights turned off at night, and took away Cabinet Ministers’ privilege of free gas for their vehicles, the government has yet to address the biggest drain on RMI government coffers — the nearly $34 million annual government employees payroll bill, which has doubled since 1999.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

The Marshall Islands is facing two key deadlines this week and next: It must pay $6.5 million by July 24 to the South Korea-based fuel company SK Networks for fuel delivered in early June. But it also must place an order for new fuel by July 16, or it risks the possibility of running out of diesel before the next tanker arrives. Government Chief Secretary Casten Nemra said last week that the utility company and the government had cobbled together about half of the $6.5 needed, and Marshalls Energy Company General Manager William F. Roberts said that MEC has been making ongoing partial payments to SK Networks as it get funds to do so. The utility companies on Majuro and Ebeye are running about a $1.5 million deficit per month, a figure that is likely to increase with fuel prices about to hit $150 a barrel.

[NRG1973]

For most of the world, the current oil crisis is an inconvenience. But for smaller, poor countries who burn oil for electricity, this crisis is devastating. Countries like the Marshall Islands must compete for oil on the world market with the USA, and China while their funds are significantly smaller.

[gridlock]

With nations, as with individuals, it sucks to be poor.

You would figure the Marhall Islands would be an ideal environment for wind and solar... Could it be that wind and solar are pipe dreams?

[yankeedame]

[mkjessup]

They should consider going nuclear. Clean, efficient, nuclear power! :)

[MARTIAL MONK]

the nearly $34 million annual government employees payroll bill, which has doubled since 1999

I think I found the 6.5 million they need.

[decimon]

...the government has yet to address the biggest drain on RMI government coffers — the nearly $34 million annual government employees payroll bill, which has doubled since 1999.

Perhaps creating government employees is their biggest industry.

[MIchaelTArchangel]

I thought part of the charm of the Marshall Islands is that they were a paradise where life ran slower as it did eons ago--that is, without electricity!

And by going "dark" as they want us to do because of "Global Warming", aren't they contributing to the islands staying above sea level?

/sarcasm off