Pacific IDB directors discuss economic solutions at quarterly meeting
BY MARK RABAGO Saipan Correspondent
GARAPAN, Saipan – Lindsey M. Timarong, president and CEO of the Pacific Islands Development Bank; told board directors on May 12 at the Crowne Plaza Resort Saipan that collaborative solutions are essential to tackle persistent tourism stagnation, workforce housing shortages, and inflationary pressures affecting the region’s recovery.
Timarong told the Journal, “This quarter’s meeting is especially important because we’re not only reviewing our annual and audit reports, but also discussing key updates to our organizational strategic plan. It’s a critical year for PIDB.”
Each PIDB board meeting rotates among the member islands. After convening in Palau during the first quarter, Saipan was selected as the second-quarter host.
“We rotate across our shareholder jurisdictions so that our leadership can see firsthand what’s happening in our communities,” she said. “That allows us to go back and make informed policy decisions that are grounded in the realities of the region,” Timarong said.
During the morning session on May 12, she said each board director delivered an update on the current conditions in their respective islands. Timarong described a consistent theme: economic stagnation and widespread concerns about how to fund and sustain development amid rising costs.
“This morning’s discussion centered around stagnation in the tourism sectors throughout the region,” Timarong said. “There’s a shortfall in housing and accommodations, not just for residents but also for foreign labor needed to support infrastructure projects tied to Compact of Free Association renewals and global trade demands.”
She said that across the PIDB’s membership — which includes the Northern Mariana Islands, Guam, Palau, the Marshall Islands, and the Federated States of Micronesia (Chuuk, Pohnpei, Kosrae, and Yap) — there is growing concern that rising costs of goods, utilities, and construction materials are not being matched by private sector wage growth.
“There’s also an open question about whether private employers can afford to match public sector pay raises, which are sometimes used to justify housing and business loans,” she said.
Despite those pressures, Timarong emphasized that the PIDB remains focused on offering targeted financial products and institutional support to help its members weather these challenges.
“We are here to find collaborative solutions,” she said. “That’s what these meetings are about.”
Timarong acknowledged the visible economic downturn in the NMI that many board members observed upon arrival.
“Some of our members arrived as early as Saturday and started noticing the situation on the ground,” she said. “Our director from the CNMI gave a very sobering update —pointing to recent business closures and a lack of economic activity.”
Former lieutenant governor Diego T. Benavente, who represents the NMI on the PIDB board, provided a frank assessment of the commonwealth’s situation. He said hotel occupancy rates are as low as 20%, with major retailers and tourism-driven businesses — including DFS and hotels, having shut down in recent months.
The Pacific Islands Development Bank board of directors includes (from left) Andrew May of Chuuk, Frank Atalig of Guam, Diego T. Benavente of the NMI, Anjojo Kabua of the Kwajalein Atoll Development Authorit, Wilbure Heine of the Marshall Islands, Robson Henry of Kosrae, Lindsay M. Timarong, president and CEO of the PIDB, Elbuchel Salang of Palau, director of PIDB, Rosa Wilbacher, manager of PIDB, and Julius Tun of Yap and Sihna Lawrence of Pohnpei, both directors. Photo by Mark Rabago
Benavente also cited concerns over shifting federal support. “We used to rely on the federal government during crises—after 9/11, during SARS, or COVID 19. But now we’re seeing a different administration, one that’s aggressively looking to cut programs. That’s scary for communities like ours.”
Despite the struggles, Benavente said the NMI is grateful for PIDB’s presence. “It may seem small but having so many PIDB representatives and staff here — staying in hotels, eating at restaurants, renting cars — helps. It’s a shot in the arm.”
On May 14, the PIDB board of governors convened. The board is comprised of executive and legislative leaders from each jurisdiction and had other regional leaders in attendance.
Among them was Lester Mursai, speaker of the Chuuk State Legislature, who chaired the meeting; Gov. Lourdes A. Leon Guerrerowho served as vice chairwoman; Nicolas Figuere-Larouan, speaker of the Yap State Legislature, who served as secretary.
“These are the voices that shape policy for our bank and help us chart a path forward,” Timarong said. “It’s a rare opportunity to have so many of the region’s top leaders in one room.”
The Pacific Islands Development Bank was established by the Association of Pacific Island Legislatures to serve as a financial and development institution for Micronesian. The NMI contributed $2 million to the bank’s capitalization, with funds already being utilized for housing and commercial loans in Rota, Tinian, and Saipan.
Benavente said PIDB’s ability to help residents access capital is one of the few bright spots for the NMI.
“We’re not just holding meetings — we’re building something that delivers real support to our islands,” he said.
Other attendees on May 12 were Andrew May of Chuuk, Robson Henry of Kosrae, Frank Atalig of Guam, Julius Tun of Yap, Wilbur Heine of the Marshall Islands, Anjojo Kabua of the Kwajalein Atoll Development Authority, and PIDB manager Rosa Weilbacher. mbj
