BY: L.N. Reklai with Stefan Ambrusters
BRISBANE, Australia (Aug. 21, 2025) — Palau President Surangel Whipps Jr. outlined an ambitious vision for more than $1 billion in infrastructure investment over the next five years, telling regional leaders and business representatives that the island nation’s future depends on climate resilience, sustainable energy, and strong partnerships.
Speaking at the Pacific Infrastructure Conference in Brisbane, organized by the Australian Pacific Business Council and the Pacific Region Infrastructure Facility, Whipps described Palau’s unique challenges as a nation of 20,000 people spread across 350 islands in the North Pacific.
“We are on the front line of climate change,” Whipps said. “But with those challenges, they bring opportunities.”
Building resilience through partnerships
Whipps emphasized that Palau cannot achieve its infrastructure ambitions alone. The country, heavily impacted by debt accumulated during the COVID-19 pandemic, is seeking partnerships with Australia, New Zealand, the United States, and private investors to advance projects ranging from renewable energy to ports and hospitals.
“Our biggest challenge is now we really can’t take more money out to build infrastructure through loans,” Whipps said. “We need partners, and it’s through those partnerships that we are able to have this aggressive approach to infrastructure development.”
He stressed that projects must be inclusive, climate-smart, locally owned, and impactful, providing long-term benefits for Palauans and the wider Pacific. “When we invest in projects that improve climate resilience, create jobs, enable trade, we do not just advance one nation’s development. We lift the prospects of our region as a whole,” he said.
Green energy and connectivity
A central piece of Palau’s plan is a transition to renewable energy. The government has set a target of 45 percent renewable energy by 2025, though Whipps acknowledged progress has been slower than hoped. He credited Australia’s support through the Australian Infrastructure Financing Facility for the Pacific and independent power producers but pointed to ongoing hurdles.
“The challenge is really coordinating these projects and fixing the transmission problems,” Whipps said.
In addition to energy, Palau is expanding digital and transport connectivity. The country recently completed its first fiber optic cable and is laying a second, while 50 kilometers of new roads are under construction to better connect island communities. Airport upgrades, including an $800 million project with the U.S. military, are also on the agenda to strengthen both security and economic opportunities.
Balancing economy and environment
Whipps also highlighted Palau’s leadership in environmental protection, pointing to its closure of 80 percent of its exclusive economic zone to commercial fishing and its adoption of a marine spatial plan. He said infrastructure development must work in harmony with these conservation commitments.
“Our goal is to transform our economy, to strengthen the resilience, the connectivity and the security of our entire blue Pacific,” Whipps said.
Food security remains a priority as well. Palau is looking to improve its fisheries and modernize fishing ports to balance cultural traditions, local consumption, and export needs.
Aviation and tourism links
Whipps praised Australia’s decision to extend Qantas’ “Paradise Express” flights to Palau through 2026, calling it “our bridge in the sky.” He said rising passenger numbers show the service is becoming more commercially viable and predicted the route would eventually expand to daily flights.
“Thank you Minister Conroy for his announcement yesterday,” Whipps said. “I know that he said we’re extending service till October 2026, but I’m confident that it will be permanent service, because Qantas is going to add more flights.”
He noted that Palau is also diversifying its tourism market, including new twice-weekly flights from Tokyo starting in October. “That’s the whole thing, diversifying into key markets,” he said.
A call to invest
Whipps urged Australian and Pacific business leaders to see Palau’s infrastructure agenda as an opportunity. He cited both successes and challenges, including a community health center project that faltered because foreign design standards did not align with Palau’s needs.
“The importance is using local standards and involving Pacific companies in infrastructure projects,” he said. “The opportunity is there — come and see what’s out there.”
The president concluded by inviting participants to visit Palau, both to experience its environment and culture and to explore potential partnerships. “Our goal is to really transform our economy,” Whipps said. “We know we can do this if we lift each other up.” – Stefan Armbruster contributed reporting from Brisbane, Australia.