U.S. and Palau Promote Local Business Participation in Landmark Port and Harbor Project

By: Summer Kennard

The United States of America and the Republic of Palau, in partnership, coordinated a Construction Industry Forum to introduce a major infrastructure project focused on the Palau Port and Ice Box Park.

The forum brought together government representatives, traditional leaders, local businesses, and six international and Pacific-based prime contractor companies selected through a rigorous U.S. Navy evaluation process. The event aimed to connect local contractors and service providers with prime contractors as the project moves toward construction.

Officials emphasized that the project is a true partnership developed over several months with the leadership of the Republic of Palau, Koror State, and traditional leaders. A key priority of the project is maximizing the use of local labor, subcontractors, and services.

“This is a true partnership between the United States and the Republic of Palau,” officials said during the forum. “We want to continue that partnership as we move into construction and ensure local businesses are part of this process.”

The multi-million-dollar project includes rehabilitation of the existing public port, dredging the harbor to allow larger vessels to enter, upgrades to navigation aids, and construction of supporting infrastructure. Improvements at Ice Box Park will also be included, using dredged materials to expand usable land.

Contractors attending the forum described the project as both complex and beneficial for Palau. A representative from WCC Construction said the development would significantly strengthen Palau’s infrastructure.

“It’s a very huge and very complicated project, but it’s very good for Palau and for everyone,” the representative said. “Right now, Palau mainly has private ports. Having a public port will be very important for the country.”

Prime contractors also outlined how they plan to work with local subcontractors. John, a representative from Expeditionary Constructors (ECC), said subcontractor selection is based on both capability and business readiness.

“We talk with subcontractors about their capabilities and match those with our needs,” he said. “We also look at how long the business has been established, their workforce, equipment, insurance, financial capacity, and tax records. We always have a strong interest in hiring locally and partnering with businesses here in Palau.”

Local companies shared how they could contribute to the project. A representative from Akiwo Station said they could provide space and logistical support for construction activities.

“We can contribute by providing open lots and space that can be used for construction work, staging equipment, or vehicles,” the representative said. “That can support the contractors as they build their proposals and carry out the work.”

Garner from G&C Construction said local companies can assist in multiple technical areas of construction.

“We can help with underground work, electrical, and structural components,” Garner said. “We can also provide new materials that improve strength, especially for critical parts of the project.”

Environmental reviews, including an Environmental Impact Statement and Environmental Assessment, are currently underway. Officials stated that any environmental requirements resulting from these processes will be incorporated into the final contract before it is awarded.

Construction contract awards are expected later this year. Officials described the project as a major investment that will improve Palau’s port facilities, support economic growth, and strengthen long-term national capacity.