Capital Funding for Essential Pa Enua Equipment

The Ministry of Finance and Economic Management (MFEM), through its Major Projects and Procurement Support (MPPS) Division, has released the 2025/26 Pa Enua Capital Distribution Fund (PECDF) Circular inviting application submissions from Island Governments.

The annual PECDF provides capital funding support to Island Governments for the purchase, replacement or capital improvement of essential plant and equipment. As funding is limited, PECDF is allocated through a competitive process. To ensure taxpayers’ funds are spent effectively, procurement will be led by the MFEM Procurement Team in accordance with the Procurement Policy. Priority will be given to items that support the delivery of core services and are necessary, fit for purpose, economical, standardized, and aligned with asset management plans.

These capital assets support each island to effectively deliver core government services and support community operations.

In recent years, the PECDF has supported the procurement and replacement of a wide range of essential capital assets including vehicles, trailers, plant and machinery components, outboard motors, and renewable energy system components such as solar batteries and inverters. These investments have enabled Island Governments to sustain essential services, respond to urgent operational needs, and extend the useful life of existing assets.

Delivering capital assets to the Pa Enua presents ongoing challenges.  Limited domestic shipping capacity, high freight costs, and the need for tailored ship to shore transfers contribute to delays and increasing costs. Despite these challenges, the PECDF has delivered practical and tangible outcomes. Recent examples include the replacement of Mitiaro’s roller engine - enabling the continued use of the landing strip and roading infrastructure maintenance; the supply of tractor and trailer components for Rakahanga - restoring operational capacity; and the delivery of new outboard motors for Manihiki- supporting transport and marine operations including cargo transfers.

Replacement trailers for Atiu and Mauke are nearing completion, strengthening each islands ability to move heavy equipment and undertake routine works across the islands. In Penryhn, cargo trucks were procured to provide transport for people, and cargo for core service and community operations. 

Submission of a completed PECDF Application Form and Checklist by the EO is required in order to be considered for funding. Each island has different operational needs and priorities, and the application process ensures that requests are assessed fairly, transparently, and in line with the purpose of the Fund. Island Governments are therefore encouraged to complete the application forms thoroughly and accurately, providing all required information and supporting detail. Only applications submitted by the closing date will be assessed for funding consideration.

Ms. Tiare-A-Alicy Teokoitu, Procurement Manager, MPPS says “The Pa Enua Capital Distribution Fund plays an important role in supporting Island Governments to maintain essential services.

Our focus is on working alongside island administrations to identify practical, fit-for-purpose solutions and deliver equipment that meets real operational needs, despite the logistical and cost challenges of operating in remote island environments.”

Further information on the Pa Enua Capital Distribution Fund please contact the MFEM MPPS Procurement Team at mfem.procurement@cookislands.gov.ck or phone 29516.