On Tuesday, KOROR, Palau — Palau’s President Surangel Whipps Jr. urged the legislature to swiftly approve a package of amendments and appropriations addressing critical issues like utility costs, a stalled sanitation project, and a struggling pension fund.
In a letter delivered to the Olbiil Era Kelulau, Whipps called for “responsible governance” during these “trying times,” citing external factors like the Ukraine war and rising fuel prices that have squeezed Palau’s finances.
“Our government cannot afford to operate at a deficit and alienate key partners without jeopardizing the financial stability and future prosperity of our beloved country,” he wrote.
The proposed bill targets several areas:
- Utility Relief: Amendments would allow the Palau Public Utilities Corporation (PPUC) to charge recurring costs to commercial customers while residential consumers retain the benefits of a previous law that restricted such fees. This move aims to address PPUC’s revenue shortfall without burdening households.
- Sanitation Project Restart: The bill would resume stalled payments to the Asian Development Bank (ADB) for the Koror-Airai Sanitation Project. A December memorandum of understanding between the government, PPUC, and the ADB outlined specific tasks to complete the project, paving the way for restarting payments and avoiding loan default.
- Pension Fund Boost: The bill allocates funds to the struggling Palau Civil Service Pension Plan, providing temporary relief while leaders explore long-term solutions for its sustainability.
- Coral Reef Center Support: The bill increases funding for the Palau International Coral Reef Center (PICRC), bringing its budget closer to pre-pandemic levels. Whipps highlighted PICRC’s crucial role in marine research and climate change action.
And while Whipps calls for additional funding to resolve the issues, they do not acknowledge that the problems were created by laws promulgated by OEK and signed into law by President Whipps, such as the passing of the budget bill that removed PPUC’s service fee and stopping payment of ADB’s KASP program.
Olbiil Era Kelulau will convene today to address the bills.