Passed resolution authorizing $10 million loan for PPUC
House of Delegates approved House Joint Resolution No. 10-74-17S authorizing Koror State Legislature to borrow up to $15 million dollars to help fund Koror State Government operations impacted by the COVID-19 pandemic.
The initial request from Koror State Legislature was for $25 million but after meetings with Koror State Governor, Speaker and Legislators and after meetings with President Remengesau, Minister of Finance Elbuchel Sadang, Senate President Hokkons Baules and House Speaker Anastacio, the amount was reduced to $15 million.
Koror State which derived nearly 60% of its revenue from direct and indirect tourism businesses is heavily impacted by the COVId-19 pandemic which has caused Palau to close its borders to tourism.
Anticipating that tourism will not rebound in 2021 and 2022, Koror State had estimated that it will need $5 million to balance 2020 budget, $10 million for 2021 and $10 million for 2020. With vaccine for COVID-19 coming online, there’s a bit of optimism for recovery in 2022.
The resolution still needs to pass the Senate.
Meanwhile, House of Delegates also approved a resolution authorizing President to seek $10 million to assist Palau Public Utilities Corporation. Asian Development Bank recently approved the $5 million that PPUC had requested. Approval of the resolution by the Senate is also necessary for PPUC to acquire the loan.