Overview:
Palau’s long-delayed correctional facility in Ngchesar is facing further setbacks, with officials citing legal and procurement barriers—particularly around power connection—as the main obstacle to completion. Despite nearing the final stages of construction, the project has missed its 2025 deadline, prolonging pressure on the overcrowded Koror jail.
Ngchesar prison project misses 2025 deadline amid procurement law challenges and ongoing construction work
By: Eoghan Olkeriil Ngirudelsang
KOROR, Palau (March 26, 2026) — Government officials say delays in completing the long-awaited new correctional facility in Ngchesar are tied to construction challenges and legal hurdles, particularly involving the installation of a power supply, despite earlier assurances that the project would be finished by the end of 2025.
Minister of Public Infrastructure and Industries Charles Obichang said the government has not misled the public about the project timeline but has instead pushed contractors to accelerate completion.
“We are not misleading the public regarding the completion of the new correctional facility — rather, we tried to push the timeline and contractors to complete the project,” Obichang said during a press conference this week, adding that the public should expect completion within the coming months.
The facility has been highly anticipated as overcrowding at Koror Jail continues to strain the prison system. Officials have linked the overcrowded conditions to a series of prison escapes and violent incidents, including deadly assaults among inmates in recent years.
During a Senate hearing on Oct. 20, Capital Improvement Projects Manager Lee Otobed told lawmakers the facility was expected to reach substantial completion by December 2025.
“Since 2015 to 2025, over $4 million has been spent on the Palau National Quarry construction company for the construction of the facility,” Otobed said.
To address remaining work, the government restructured the final phase of construction into five separate packages in August, collectively valued at $1 million and funded through Taiwan stimulus grants. The contracts were awarded in mid-October, with Surangel and Sons Construction receiving packages A through D, and Neco Construction awarded package E.
The final phase includes construction of outdoor amenities such as a chapel and basketball court, modifications to housing areas for female, juvenile and male inmates, installation of electrical and mechanical systems, and development of a water supply system.
Despite progress, President Surangel Whipps Jr. said the project’s biggest obstacle remains connecting the facility to a reliable power source.
While the Palau Public Utilities Corporation (PPUC) has indicated it could complete the power connection within six weeks, existing procurement laws require the utility to post performance bonds similar to private contractors when undertaking government projects. Whipps said PPUC is unable to meet those bonding requirements, delaying the process and preventing the facility from becoming operational.
On March 9, Whipps said he formally requested legislative action from the House speaker and Senate president to amend the law and remove the barrier.
“Hopefully when Congress convenes in April, lawmakers can pass an amendment addressing the issue — or even earlier would be better,” Whipps said.
Officials maintain that once the power issue is resolved, the correctional facility can be completed and opened, easing pressure on the current prison system.