Koror, Palau – The Palau Public Utilities Corporation (PPUC) warned last week of potential water rationing and job cuts unless the government provides urgent financial relief to its struggling water and wastewater operations. The corporation blames the recent enactment of RPPL No. 11-31, which prohibits cost recovery for service delivery and mandates reduced wastewater tariffs, for pushing them to the brink.
“The financial situation of PPUC’s water and wastewater unit is untenable,” said Frank Kyota, CEO of PPUC, in letters to Senate President Hokkons Baules and HOuse Speaker Sabino Anastacio. “Section 39 of RPPL No. 11-31 has exacerbated our already dire situation and left us with no choice but to consider severe cost-cutting measures, including water hours and reduced personnel working hours.”
Water hours, a rationing system limiting access to water during specific times, would be a “huge and embarrassing step backwards” for Palau’s development, the statement emphasized. It would also represent a failure to fulfill the government’s obligation to provide clean water, a fundamental public service critical to public health, welfare, and security.
PPUC claims to have repeatedly informed the Olbiil era Kelulau (OEK) of necessary legislative actions, primarily amending the PPUC statute to enable cost recovery, as mandated by Executive Orders Nos. 373 and 465. However, RPPL No. 11-31’s provisions are seen as a major setback, pushing PPUC closer to implementing the drastic measures.
“Our customers, the people of Palau, deserve better than this,” the statement declared. “While PPUC hopes for government intervention to provide both short- and long-term relief, we are compelled to give notice of what will occur so that the public may be prepared.”
In response to a similar letter, President Surangel Whipps proposed a supplemental budget that includes amendments allowing 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.
It also addressed the 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.