Palau: Palau Public Utilities Corporation Reform Program (Subprogram 1)

Sovereign (Public) Project | 54151-001

The proposed Palau Public Utilities Corporation Reform program aims to strengthen the corporate governance and financial management of Palau's water and electricity utility company, Palau Public Utilities Corporation (PPUC), and improve electricity market by supporting tariff reforms. The programmatic approach is proposed through policy-based loans to finance two subprograms during 2020 2022. The programmatic approach will (i) confirm sequencing of reforms and investment projects in coordination with the IMF and other partners, (ii) ensure long-term continued engagement as the reforms are multi-fold and require multiple years to implement and yield results, (iii) facilitate provision of advisory and analytical assistance to support implementation of reforms, and (v) adjust the size of respective subprograms with the pace of implementation.

Project Details

Related Projects

Project Name Palau Public Utilities Corporation Reform Program (Subprogram 1)
Project Number 54151-001
Country Palau
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 4030-PAL: Palau Public Utilities Corporation Reform Program (Subprogram 1)
concessional ordinary capital resources lending / Asian Development Fund US$ 5.00 million
TA 6649-PAL: Strengthening Institutional Capacity of Palau Public Utilities Corporation
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed Palau Public Utilities Corporation Reform program aims to strengthen the corporate governance and financial management of Palau's water and electricity utility company, Palau Public Utilities Corporation (PPUC), and improve electricity market by supporting tariff reforms. The programmatic approach is proposed through policy-based loans to finance two subprograms during 2020 2022. The programmatic approach will (i) confirm sequencing of reforms and investment projects in coordination with the IMF and other partners, (ii) ensure long-term continued engagement as the reforms are multi-fold and require multiple years to implement and yield results, (iii) facilitate provision of advisory and analytical assistance to support implementation of reforms, and (v) adjust the size of respective subprograms with the pace of implementation. Transaction technical assistance (TA) will facilitate program implementation, including providing technical advice to and building the capacity of the Ministry of Finance (MoF) and PPUC.
Project Rationale and Linkage to Country/Regional Strategy

The Government of Palau recognizes the strong link between economic growth and the urgency of energy reforms to sustain supply by modernizing its infrastructure. Given the importance of energy sector in the economy, its improved governance and performance can have far-reaching effects in all segments of the society, impacting the day-to-day lives of citizens, and other parts of the business sector. With adverse impact of Covid-19, the sector reforms including good governance financial sustainability and development of contingency plan are critical to ensure its positive contribution to economic efficiency, competitiveness and energy security. PPUC reform is a good practice example and could be an important driver in the reform of the overall SOE sector in Palau.

The program will complement and underpin ADB's proposed project loans during 2020 2022 for (i) power transmission enhancement, (ii) disaster resilient clean energy financing and (iii) developing PPP transaction for renewable energy. This lending program and ADB's overall energy sector strategy are also designed to support PPUC's investment plan and the government's target for 45% renewable generation by 2025.
Impact Financial sustainability and sector performance achieved
Project Outcome
Description of Outcome Reliability, sustainability, and affordability of the energy system improved
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Tariffs reforms managed

PPUC financial management and sustainability

PPUC corporate governance and transparency
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Abbasov, Rafayil
Responsible ADB Department Pacific Department
Responsible ADB Division PAEN
Executing Agencies
Ministry of Finance
3rd Floor, Executive Bldg, ROP Capitol
Ngerulmud, Melekeok State,P.O. Box 6011
Koror, PW 96940, Republic of Palau
Timetable
Concept Clearance 13 May 2020
Fact Finding 20 Jul 2020 to 07 Aug 2020
MRM 02 Oct 2020
Approval 07 Dec 2020
Last Review Mission -
Last PDS Update 07 Dec 2020

Loan 4030-PAL

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2020 10 Dec 2020 03 May 2021 31 Mar 2021 30 Sep 2021 07 May 2021
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.00 Cumulative Contract Awards
ADB 5.00 07 Sep 2021 5.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 07 Sep 2021 5.00 0.00 100%

TA 6649-PAL

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2020 29 Dec 2020 29 Dec 2020 30 Jun 2022 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 07 Sep 2021 71,624.04

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

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Related Publications

None currently available.

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Tenders

Tender Title Type Status Posting Date Deadline
Municipal water Supply and Sewerage Specialist Individual - Consulting Closed 04 Jun 2021 10 Jun 2021
High-Technology Expert (Energy, Green Hydrogen) Individual - Consulting Closed 06 Apr 2021 12 Apr 2021
Financial Management and Governance Expert Individual - Consulting Closed 23 Jan 2021 29 Jan 2021
Water and Sanitation Expert Individual - Consulting Closed 19 Jan 2021 23 Jan 2021
Gender and Social Development Expert Individual - Consulting Closed 12 Nov 2020 18 Nov 2020
Tariffs and Regulation Expert Individual - Consulting Closed 12 Nov 2020 18 Nov 2020
Financial and Economic Expert Individual - Consulting Closed 12 Nov 2020 18 Nov 2020

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.