Palau Signs $28.8 Million Loan for Sewage System Improvement

MANILA, PHILIPPINES – Asian Development Bank (ADB) President Takehiko Nakao and Palau’s Finance Minister and ADB Governor Elbuchel Sadang have signed a loan agreement to fund the Koror-Airai Sanitation Project, which will improve the delivery of sanitation services in Palau.

“The Government of Palau must be congratulated for their integrated approach to improving sanitation and water services,” said Mr. Nakao. “This project will ensure access for the people of Palau to improved water and sanitation services.”

About 80% of Palau’s population of 20,950, who live in Airai and Koror, as well as tourists visiting the island, will directly benefit from the project, which will improve sewage treatment and the operation of the sewerage network in Koror and minimize the frequency and severity of uncontrolled sewage flows. A new sustainable sewerage system in Airai will also be developed.

The project will also ensure sewage treatment and waste disposal meets Palau’s environmental and health standards, and make hygienic public toilets available in Koror.

The project is linked to Palau’s sanitation master plan, which was developed after extensive stakeholder consultation. The Ministry of Finance is the executing agency for 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 is contributing $1.2 million equivalent.