It is my pleasure to welcome you to the ceremony of signing and exchange of Notes, which formalises Japan’s Non Project Grant Aid (NPGA), to assist the Government of Kiribati with its effort to continue implementing necessary structural ongoing reforms programme for sustainable economic growth and development.

In acknowledging the financial constraints faced by the Government of the Republic of Kiribati, particularly, in accommodating high prices of imported items essential for structural adjustment to improve its economic efficiency and competency, the Government of Japan decided to continue providing grant assistance through its NPGA scheme for its fiscal year 2010 in addition to what was provided by Japan in the last five years.

Assistance through NPGA scheme is primarily targeted to assist developing countries with implementation of economic and structural adjustment plans including financial and budgetary reforms for national growth and development. Immediate implementation of such reform in key sectors is necessary to stabilise and enhance socio-economic activities to ultimately improve the livelihood of the people.

In addition, the accumulated money which the Kiribati Government will receive by selling procured goods such as fuel under this grant, the so called, counterpart fund, will be available for use in infrastructure projects. In this connection, I would like to express Japan’s appreciation of the Government of the Republic of Kiribati’s effort to deposit the counterpart fund for phase 1 of NPGA in 2005 and for phase II in 2006, and I remain hopeful that the counterpart fund for NPGA in 2007 will be deposited by its dead line, in due course as well.

It is therefore, my deep conviction that this assistance will be utilised wisely during facilitation of ongoing reform programs for the benefit of the people of Kiribati and equally contribute to strengthen the cordial ties between our two countries Japan and Kiribati.

Thank you.