By: Eoghan Olkeriil Ngirudelsang
AIMELIIK, Palau — The Aimeliik State Public Land Authority (AIMSPLA) has voted to terminate two land lease agreements with Palau Golf Inc. (PGI), citing repeated non-payment of fees and long-standing breaches of contract obligations.
According to meeting minutes, one of PGI’s leases carried an unpaid balance of $78,000, while the other had seen no payment since its execution in 2014.
“PGI has breached the contract so many times and those are more than enough grounds for termination,” AIMSPLA Chairwoman Geggie Asanuma said.
PGI was required to make lease payments in April but requested an extension until the end of May. No payments were made in May or June, though $40,000 was paid in July. AIMSPLA gave PGI until July 22 to settle its balance, but the deadline passed without payment or communication from the company.
Minutes also noted that other contractual commitments, including scholarship contributions for Aimeliik students, had not been fulfilled for years. One legislator said the missed scholarship payments were another violation that contributed to the board’s decision.
Nine AIMSPLA board members were present during the July meeting, with five voting to terminate the leases and four voting to retain them.
PGI held two long-term leases in Aimeliik: one covering about 720,000 square meters across four lots and another spanning 2 million square meters intended for a golf course development. Both were 99-year leases at roughly 4 cents per square meter, with incremental increases every five years.
The larger lease included additional concessions, such as a $50,000 initial payment to establish a state scholarship fund, $10,000 annual contributions thereafter, and royalties tied to hotel rooms planned for the golf course.
That lease was first signed in 1989 but was terminated in 2012 after repeated payment issues. It was renegotiated and reinstated in 2015. With the most recent defaults, the AIMSPLA board has again terminated the contract.