ADB and Japan $1.4m grant for Palau [1]
Sunday, July 15, 2007 - 18:50. Updated on Tuesday, July 21, 2015 - 11:08.
The Government of Japan and the Asian Development Bank (ADB) will help the Republic of Palau improve economic and infrastructure management. The technical assistance grant of $1.4 million will begin in August 2007. ADB will administer the project, and provide $1 million of funding from the Japan Special Fund, with the balance provided by the Palau Government.
A signing ceremony for the newly approved project was held at this week's Forum Economic Ministers Meeting (FEMM). The Finance Minister of the Government of Palau, Elbuchel Sadang; ADB Vice President C. Lawrence Greenwood; and Charge d'Affairs of Japan, Kunio Nakamura, participated in the ceremony, which marked the first ever technical assistance grant provided to Palau since it became a member of ADB in 2003.
The technical assistance grant will help Palau update its Master Development Plan and provide assistance to strengthen economic policy formulation and budget management.This grant marks the beginning of a long and valuable partnership, through which ADB will continue to provide support to Palau's development priorities," said Mr. Greenwood.
"The updated National Development Plan will consolidate the Government's vision for the future, focus development and investment, and facilitate preparations for Compact negotiations between the Government and the United States," said Mr. Greenwood. "The plan will be prepared with widespread community and government consultation."
Negotiations for the renewal of the Compact of Free Association between Palau and the United States governments are expected to begin in the second half of this year. "The Republic of Palau is in a critical transition period," said Philip Erquiaga, Director General of ADB's Pacific Department. "The Compact negotiations are significant as they form the basis of the next 15 years of development planning in Palau. ADB recognizes the importance of being well prepared and are pleased to help facilitate this process by assisting in the update of the National Master Plan."
This commitment is in line with ADB's current program strategy with Palau, which runs from 2007-2009. The objectives of the strategy include strengthening economic and fiscal management, promoting policies for private sector development, and facilitating sound infrastructure development and management.
Palau comprises about 340 islands on the western edges of Micronesia, in the west central Pacific Ocean. Although the Pacific nation has been an ADB member since 2003, it was reclassified as a Pacific developing member in 2005. Palau's economy consists primarily of tourism, subsistence agriculture, and fishing. The government is the major employer of the work force.
ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 67 members ... 48 from the region. In 2006, it approved loans and grants for projects totaling $8.5 billion, and technical assistance amounting to almost $242 million. ADB, 13/07/07.