Marshall Islands declares 'economic emergency' over energy crisis

Energy Daily, via Agence France-Presse: The tiny western Pacific island nation of the Marshall Islands has declared a state of economic emergency as soaring fuel prices threaten to shut down electricity supplies. Failure to resolve the fuel crisis could lead to a "disaster of unimaginable magnitude," President Litokwa Tomeing said in a statement late Thursday.

"Accordingly, I Litokwa Tomeing, on behalf of the cabinet of the Republic of the Marshall Islands, hereby issue this public proclamation declaring a state of economic emergency," he said in the statement, which was broadcast nationally. "The national power utilities are projected to face an estimated shortfall of 17.5 million US dollars to 21 million US dollars over the next 12 months assuming the global (fuel price) trend continues," he said. This shortfall is close to 20 percent of the total national budget.

Tomeing said the country has enough diesel to keep the power generators running until the end of August but needs to find 8.5 million dollars in the next week to pay Seoul-based SK Networks for last month's diesel shipment and a downpayment for the next shipment.

The Marshalls Energy Company told the government last week that it cannot raise the money in time without an immediate cash injection. The cabinet has decided to seek financial help from the United States, Taiwan, Japan, Australia and other countries and donor agencies to prevent a shut down of power in the country of about 54,000 people….