Overview:
Koror–Airai Sewer Project Nears Completion with $5.5M ADB Grant
After years of delays, the Koror–Airai Sewer Project (KASP) is set to be completed by November 2026. A $5.5 million grant from the Asian Development Bank will fund the final pump station and sewer crossing from Long Island to Malakal, bringing improved sanitation and energy-efficient wastewater services to Koror and Airai.
By: L.N. Reklai
Koror, Palau (January 30, 2026)— The long-delayed Koror–Airai Sewer Project (KASP) is expected to be completed by November 2026 following the approval of a $5.5 million grant from the Asian Development Bank, President Surangel Whipps Jr. announced.
Whipps said the grant funding will allow the government to finish the remaining components of the project, including completion of Pump Station SPS1 and construction of the sewer crossing from Long Island to Malakal. An Australian company has been awarded the contract for the remaining work.
“We can now move forward,” Whipps said, describing the grant as the final step needed to complete the project.
KASP was originally funded through a $26 million loan from the Asian Development Bank and approved in 2014, with completion initially targeted for 2022. The project was designed to improve sanitation services in Koror and Airai.
Delays caused by contractor challenges and disruptions related to the COVID-19 pandemic led the government to request a three-year extension of the project timeline. During that period, loan repayments became due before the project was fully completed, prompting the Palau National Congress to temporarily withhold payments. Loan repayments later resumed following discussions with the Whipps administration, while talks continued on securing funds to complete the remaining work.
Most of the sewer infrastructure in Koror and Malakal has now been completed. Sewage pump stations in Koror have been upgraded, resulting in improved energy efficiency and reduced pumping requirements. The project has also reduced stormwater inflow and infiltration in the Koror sewer network, lowering energy consumption.
According to project updates, Palau Public Utilities Corporation’s response time to sewer system failures has dropped to less than two hours, and the number of sewage overflows has significantly decreased following the upgrades.
The Malakal wastewater treatment plant was commissioned in October 2021 and is meeting effluent discharge quality targets. Solid waste handling and disposal at the facility comply with Environmental Quality Protection Board permit requirements. The proposed Kesabelau wastewater treatment plant has been shelved due to insufficient project financing.
PPUC is financing the upgrading and operation of the Melekeok sewage treatment plant.
Public toilet facilities constructed under the project meet accessibility standards, with separate male, female and handicapped facilities completed and operating at Ernguul Park and Long Island. Facilities planned for Meyuns have yet to be procured.
With the new ADB grant secured, the government expects the remaining construction to be completed by November 2026, bringing the decade-long sanitation project to full completion.