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 Name | Palau Public Utilities Corporation Reform Program (Subprogram 1) | ||||||||
| Project Number | 54151-001 | ||||||||
| Country | Palau |
||||||||
| Project Status | Approved | ||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
||||||||
| Source of Funding / Amount |
|
||||||||
| 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 | - | 31 Mar 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 Dec 2020 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 07 Dec 2020 | 0.00 | 0.00 | 0% |
TA 6649-PAL
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 07 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 Dec 2020 | 0.00 |
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.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| Loan Agreement (Ordinary Operations [Concessional]) for Loan 4030-PAL: Palau Public Utilities Corporation Reform Program - Subprogram 1 | Loan Agreement (Ordinary Resources) | Dec 2020 |
| Palau Public Utilities Corporation Reform Program (Subprogram 1): Report and Recommendation of the President | Reports and Recommendations of the President | Nov 2020 |
| Palau Public Utilities Corporation Reform Program (Subprogram 1): Concept Paper | Concept Papers | May 2020 |
| Palau Public Utilities Corporation Reform Program (Subprogram 1): Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | May 2020 |
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
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
-
$5 Million ADB Loan to Support Improvement of Public Utilities Corporation Performance in Palau
ADB has approved a $5 million policy-based loan to fund a program helping the Government of Palau reform the Palau Public Utilities Corporation (PPUC), the state-owned electricity and water utility company.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| 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 |
| Financial and Economic Expert | Individual - Consulting | Closed | 12 Nov 2020 | 18 Nov 2020 |
| 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 |
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
None currently available.