Press Release, Forum Secretariat.

The Pacific Islands Forum Secretariat today refuted allegations that it was embroiled in a "turf war" with the Pacific Power Association (PPA) over implementation of a EUR11.4 million energy project in five Pacific ACP countries.

Responding to comments made in the regional press this week, Forum Secretary General, Greg Urwin, said, "This project is funded through the European Union's national programmes with Palau, Federated States of Micronesia, Republic of the Marshall Islands, Nauru and Niue. Because of this, the Forum Secretariat took no part in its design. The Forum Secretariat is responsible for Regional funds received from the EU, not National funds.

"At a late stage in the project's development we were asked by the EU if we would act as Contracting Authority because other means of administration were considered impractical. We agreed to this, providing countries gave us their mandate, which they did.

"The role of the 'contracting authority' is to oversee and ensure that a project is managed and implemented according to the terms of the Financing Agreement made with the EU. It is responsible for overall project financing and can be held accountable by the EU for any financial losses that might occur. It should not be confused with the role of the implementing agency - which is to manage the physical, financial and technical aspects of a project on a day-to-day basis.

"The Forum Secretariat has no say in who implements this project - that is a decision for the five Pacific ACP States and the EU. What we require is that the agency selected provides a financial guarantee for the funds entrusted to it.

"Our principal concern is that the assets of the five Pacific ACP states are protected and that financial risks to the Forum Secretariat and, hence to all our member countries, are reduced", Mr Urwin said.

*There are two main forms of European Union Development Assistance to the Pacific ACP country members. One, -the National Indicative Programme (NIP)

- is managed bilaterally between the EU and individual country governments.

The other, known as the Pacific Regional Indicative Programme, (PRIP), is administered on behalf of Pacific ACP countries by the Secretary General, Pacific Islands Forum Secretariat in his capacity as Regional Authorising Officer. Currently the RAO administers 20 regional projects with a total value of EUR73 million.