A $20 million loan from the Asian Development Bank (ADB) will help Palau prepare for the coronavirus disease (COVID-19) pandemic and respond to its impact on the economy.

While Palau remains free of COVID-19 as of 29 July, ADB’s program will help the government upgrade the country’s health sector by financing the purchase of ventilators for Belau National Hospital, establishing a COVID-19 hotline for public inquiries, and funding overtime and hazard pay for frontline health workers.

The program will also help implement the government’s economic stimulus package, which includes the provision of concessional loans to local businesses; benefits for the unemployed and assistance finding temporary work in areas such as agriculture, the environment, and elderly care; support for free pre-school and childcare for lower income families, which will particularly benefit women; and subsidies for utilities such as electricity and water.

The loan is provided through the COVID-19 pandemic response option (CPRO) under ADB’s Countercyclical Support Facility. CPRO was established in April as part of ADB’s $20 billion expanded assistance for developing member countries’ COVID-19 response.


ADB is helping Palau stay free of COVID-19 and to be prepared if that changes.

A $20 million loan from ADB will boost the health sector with ventilators at Belau National Hospital, overtime and hazard pay for health workers, and a 24-hour COVID-19 hotline for public enquiries.

And with the critical tourism industry at a standstill, the program will give a big help to Palau’s economy

Elbuchel Sadang, Palau Minister of Finance

ADB and Palau since 2006 has had a really valuable relationship. Since then they have provided all the assistance that Palau needs for its economic development and policy development as well.

ADB’s package will help businesses find low-cost loans, while helping the unemployed find work in areas like agriculture, the environment, and elderly care.

The program will provide subsidies for electricity and water and give lower-income mothers free pre-school and child care.

ADB is committed to the people of Palau and combating the impacts of COVID-19.