World Bank Grants $15M to Boost Public Finance Skills, Systems in Marshall Islands

The World Bank’s Board of Executive Directors has approved a US$15 million grant to help the Republic of the Marshall Islands (RMI) modernize the way public funds are managed, improve transparency, and build a stronger domestic pool of financial professionals. The initiative — the Strengthening Public Financial Management II project — will be implemented by the Ministry of Finance, Banking and Postal Service and is designed to enhance budget preparation, financial reporting, and service delivery.

Building on Previous Reforms

This new project builds on the achievements of earlier World Bank support, which saw the introduction of a national financial management information system and updated public finance and procurement laws. These foundational reforms have already improved oversight and reduced inefficiencies, but significant capacity gaps remain — especially in skilled personnel.

Currently, many finance roles in government remain unfilled, and reliance on international consultants is high. The Strengthening Public Financial Management II project aims to change this by training and certifying local staff in accounting, internal audit, and procurement — with a particular emphasis on empowering women in public finance roles.

Strengthening Local Capacity

The goal is to develop a new generation of Marshallese finance professionals who can manage the country’s public resources independently and sustainably. By reducing dependence on external expertise, the government will be better positioned to manage projects, deliver services, and ensure accountability in the long term.

Omar Lyasse, World Bank Resident Representative for the Marshall Islands, highlighted the importance of strong financial systems:

“Good public financial management is the foundation for effective development. Behind every road, hospital, or school built with public money is a financial system making it possible. This project will support the government to deliver services more effectively and build public confidence in how funds are used.”

Embracing Digital Transformation

A core component of the project will be the expansion of digital systems across government agencies. The adoption of these systems will:

• Reduce payment delays to suppliers and contractors.

• Enhance financial transparency by making data more accessible and reliable.

• Provide real-time, detailed financial data to improve decision-making.

• Strengthen public access to budget and procurement records.

Citizen engagement will be boosted through mechanisms that allow communities to track how public funds are spent, fostering greater accountability and trust.

Linking to Climate Resilience and Finance

In a country highly vulnerable to climate-related disasters, digital financial systems will also help safeguard vital fiscal data. Moreover, the project will support the RMI in meeting Green Climate Fund (GCF) accreditation requirements, unlocking new opportunities for global climate finance.

The improved systems will make it easier to demonstrate transparent and accountable use of funds — a key requirement for accessing international climate funding streams that could finance resilience and adaptation projects in the Pacific nation.

Funding and Implementation

The US$15 million grant comes from the International Development Association (IDA), the World Bank’s fund for the world’s most vulnerable countries. The investment underscores the World Bank’s long-term commitment to strengthening the Marshall Islands’ institutional capacity and ensuring that public finance systems are fit for purpose in the digital age.

Once fully implemented, the project is expected to deliver faster, more transparent, and more resilient financial operations, helping the government to better serve its citizens and meet the challenges of both economic development and climate change.