ADB to Help Palau Rehabilitate and Rebuild Sewerage Systems

MANILA, PHILIPPINES – The Asian Development Bank (ADB) is assisting the Government of Palau by providing two loans worth $28.8 million to fund a project that will bring substantial improvements to Palau’s sanitation systems.
The loans will create efficient and sustainable sewage collection systems in Koror and Airai, ensure sewage treatment and disposal meets Palau’s environmental standards, and make safe and hygienic public toilets available in Koror.

“Insufficient and degraded sewerage systems are not only negatively impacting the health of people in Koror and Airai, they’re also adversely impacting Palau’s pristine environment and potentially Palau’s economy,” said ADB Senior Urban Development Specialist Steve Blaik. “ADB is helping mitigate these problems by supporting the government with an integrated approach to improving sanitation and water services in Palau.”

The Koror-Airai Sanitation Project will rehabilitate the sewerage network in Koror to improve sewage treatment and the operation of the network and minimize the frequency and severity of uncontrolled sewage flows. The project will also develop a new sewerage system in Airai.  About 80% of Palau’s population of 20,950 who live in Airai and Koror, along with tourists, will directly benefit from the project.

ADB’s assistance includes a $26.9 million loan from ADB’s ordinary capital resources and a further $1.9 million equivalent loan from ADB’s Special Funds resources. The Government of Palau will contribute $1.2 million equivalent.

The project is linked to Palau’s phased sanitation master plan, which is based on extensive stakeholder consultation. The Ministry of Finance is the executing agency for the project.

Palau became a developing member country of ADB in 2003.