Japan is to provide the Marshall Islands with another large grant for water-making equipment.
Japan's Ambassador to the Marshall Islands Kazuhiko Anzai and Foreign Minister Phillip Muller signed off on a $1.95 million grant which is the second large-scale donation from Japan this year.
Both grants will be used to purchase equipment from manufacturers in the tsunami and earthquake-devastated Fukushima area of Japan as part of a dual aid program of the Japanese government.
The new agreement will allow the Marshall Islands to procure industrial products from small and medium size enterprises in Japan.
Among equipment to be purchased are seawater desalination units to make safe drinking water for drought-effected outer islands and equipment to improve environmental management.
The earlier funding is going largely to improving runways on remote outer islands.