Overview:
Ngaraard State has formally notified the national government that it will not waive building and permit fees for the proposed U.S. Air Force radar facility. In a letter to Minister of Public Infrastructure Charles I. Obichang, Governor Sharp Sakuma and state officials said the Military Use and Operating Rights Agreement between Palau and the U.S. does not exempt such fees at the state level.
By: Bernadette Carreon
The State of Ngaraard has told the national government it will not waive building and permit fees for the proposed U.S. Air Force radar facility, arguing that a military agreement with the United States requires the exemption.
In an October 3 letter to Minister of Public Infrastructure Charles I. Obichang, Ngaraard officials led by Governor Sharp Sakuma, said they reviewed the Military Use and Operating Rights Agreement (MUORA) between the U.S. and Palau and could not find the language the minister quoted to justify waiving the fees.
The letter said the national government cited Article VII, paragraph 5 of the MUORA. But when Ngaraard reviewed the agreement, they found Article VII is about military post offices, not fees.
Article V of the MUORA does exempt U.S. forces from some taxes and customs fees charged by the national government, but Ngaraard claimed this “does not extend to building or permitting fees” at the state or local level.
In the same letter, state officials have asked the minister to provide the actual document he quoted so they can discuss it further.
Ngaraard officials addressed the fact that U.S. federal policy exempts the military from state and local fees in America.
“However, this project is not taking place in the United States; it is taking place in the State of Ngaraard,” the letter states.
Ngaraard imposes impact fees on all construction projects in the state. The fee compensates residents “for what is taken from them by development projects undertaken within their ancestral homeland.”
“Given the significant harm that the project poses, we feel strongly that it is appropriate to impose our impact fee,” the letter added.
At a recent forum with the Palau Media Council, Governor Sakuma told voters he is working to ensure “impact fees are paid to the State to benefit the people of Ngaraard.”
Governor Sakuma reiterated that Ngaraard State supports the TACMOR project and remains committed to working with the national government, while expecting the Ngaraard State’s decision to be “understood and respected.”
The Ministry of Public Infrastructure has not yet responded as of this time.