Overview:
Can a state stop a national defense project?
Ngaraard State is asking the Palau Supreme Court to halt construction of a U.S.-linked TACMOR radar facility, arguing that permits, impact fees and environmental safeguards were bypassed. The case follows a similar lawsuit from Angaur State — setting up a major legal test over state authority, environmental oversight and Palau’s expanding security partnership with the United States.
The court’s decision could shape how future defense and infrastructure projects move forward across the country.
By: L.N. Reklai
KOROR, Palau — A lawsuit filed by the Ngaraard State Government seeking to halt construction of a U.S.-related radar facility remains active in the Palau Supreme Court, with the court yet to decide whether the project must comply with state permitting and environmental laws.
Ngaraard State filed the case earlier this year challenging construction of the Tactical Mobile Over-the-Horizon Radar (TACMOR) transmitter facility planned for the state. The lawsuit asks the court to stop work on the project until it complies with state laws, local permitting requirements and environmental regulations.
State leaders argue the project moved forward without required state building permits, without payment of impact fees and without proper consultation with the state government. They also claim land clearing and site preparation began before those issues were resolved, causing potential environmental harm.
Ngaraard is also challenging the approval issued by the Environmental Quality Protection Board (EQPB), arguing that the environmental review process was flawed and did not adequately address environmental risks or involve the state sufficiently in the review.
The state initially asked the court for a temporary restraining order to immediately stop construction while the case proceeds. However, the judge declined to issue the order, noting that construction had already been underway for about a month before the lawsuit was filed and that the state had not yet demonstrated a strong enough legal claim to halt the project without first hearing from the national government.
As a result, work on the TACMOR site has continued while the legal case moves forward.
The Republic of Palau government and project contractor Uxell Construction Inc. argue that defense-related projects connected to the United States operate under agreements tied to the Compact of Free Association.
They say that under the Status of Forces Agreement (SOFA), U.S. contractors working on military-related projects do not need to obtain local permits or licenses.
The national government also argues that Ngaraard State is attempting to intrude into the national government’s authority over foreign affairs and defense cooperation.
Court filings in the case say halting construction could cost about $25,000 per day and could delay the project schedule. The TACMOR facility is currently expected to be completed by July.
The case has also included disputes over documents and subpoenas.
During the proceedings, the national government submitted a flash drive containing EQPB documents and meeting minutes. Officials later said several of the minutes included confidential legal advice and asked the court to allow them to withdraw those files and submit redacted versions.
Ngaraard State argued the documents should remain public under Palau’s Constitution and the Open Government Act.
At a March 3 hearing, the court allowed the national government to withdraw the documents and ordered the flash drive returned. The judge also struck several filings tied to that dispute, effectively resetting that portion of the case.
The court said Ngaraard could still request the documents later through normal discovery procedures or public-records requests.
The lawsuit raises broader constitutional questions about the balance of authority between Palau’s national government and its states.
Ngaraard officials argue that states have authority over land use, building permits and environmental protection within their boundaries and that those powers should apply even to defense-related projects.
The national government maintains that agreements tied to the Compact of Free Association give it authority to carry out defense cooperation with the United States.
The case has also sparked public discussion about whether the EQPB can act independently when reviewing environmental permits for defense projects and how cultural sites and natural resources in states hosting those projects will be protected.
Legal observers say the outcome could set an important precedent for future defense infrastructure in Palau.
The Supreme Court’s eventual ruling may clarify whether national or state governments have greater authority over permitting, environmental review and consultation for defense-related construction.
For now, the case remains ongoing, construction on the TACMOR facility continues, and the court has not yet issued a final decision on whether the project must be halted or modified while the lawsuit proceeds.