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Economic Cooperation

◆Project Planing for Palau

Basic Policy: Achievement of sustainable economic development with consideration to the environment and improvement of the people's living standard.

Priority Area 1: Environment and Climate Change

Development Issue 1-1: Environmental Protection

【Background and current situation】
　Assistance from Japan improved the M-Dock Waste Dump into semi-aerobic system (Fukuoka method). It is now operated by the Koror State Government, and the Congress approved the National Solid Waste Management Plan (NSWMP). However, there still remain challenges in　sustainable and appropriate operation and maintenance (O&M) of the disposal site and capacity of the local administration in planning for a new disposal site. In addition, to address the root causes of waste management issues in Palau, 3R (Reduce, Reuse, Recycle) should be promoted through PEEC (Public Education & Enhancement Committee). Container deposit system, which was introduced in 2011, has successfully enticed the private sector into the recycling of cans and plastic bottles, but transparent financial management has been a major challenge.
　An action plan meeting of Micronesia Challenge (MC) was held in December 2006 and it was agreed that 30% of the marine areas and 20% of the terrestrial areas in 3 countries in the Micronesia region and 2 territories (Guam and CNMI) should be declared as Conservation Protected Areas. In order to achieve this objective, Palau enacted Protected Areas Network (PAN) Act to have the national government assist in the management of the protected areas, which were traditionally maintained at a state level. The Palau government has already started establishing national protected areas. In another project, Palau International Coral Reef Center (PICRC) has been conducting environmental studies such as monitoring of coral reefs, but is facing challenges in expanding its activities to knowledge transfer to FSM and RMI due to insufficient budget.
　Therefore, increased budget allocation from the national government is desirable. The marine pollution caused by explosive remnants of war (ERW) under water has also been a concern for Palau. A measure is urgently needed before the corrosion of ERW exacerbates the situation.

　【Strategy】
　Japan will assist Palau’s policy-making process in implementation of NSWMP, which is the fundamental policy of solid waste management. The support for improved O&M of the existing disposal site and planning for a new site will be continued.
　Japan’s assistance will also cover capacity development of PICRC in monitoring of the marine protected areas. It also supports the national government in achieving the targets of MC and Palau PAN, and PICRC in enhancing the public awareness in environmental protection through educational programs.

＜Program for Sound Material Cycle Society in small island countries＞
　To sustain the effects of “Project for Improvement of Solid Waste Management,” one of the technical cooperation projects of Japan, Japan will continue to consult Palau for planning of NSWMP, training for the improved operation and management (O&M) of the disposal site and promotion of 3R through region-focused training programs like “Pacific Regional Initiative for Solid Waste Management (J-PRISM).” In addition, Japan seeks to enhance public awareness in nature conservation through educational activities in collaboration with environmental education volunteers.

・Project for Promotion of Regional Initiative on Solid Waste (TCR): ~2015
・Training Courses for Improvement of Solid Waste Management (TR): ~2013
・Volunteer for Improvement of Solid Waste Management (JOCV): 2013~2015
・Promotion of Simple Composting (GTCP): 2013~2016

＜Program for Natural Environment Conservation＞
　Based on the achievements of “Coral Reef Monitoring Enhancement Project,” a technical cooperation project, Japan will assist in the capacity development of PICRC in coral reef monitoring, and promote PAN and MC to encourage nature conservation. “Sustainable management of coral reef; Answering threat of climate change,” a program within SATREPS is aimed at establishing an inventory and database of coral reef and coastal ecosystem based on environmental and biological survey, as well as compiling scientific policy recommendations for sustainable regional development. Japan will also continue to dispatch volunteers to enhance public awareness in environmental protection.
　Explosive Ordnance Disposal (EOD) project will also be supported by NGO Cooperation Grants to prevent marine pollution caused by ERW. Japan also assists in the coordination and cooperation of the countries in Asia-Pacific in the REDD+Readiness initiative, enhancing the general capacity of Palau in REDD+Readiness.

・Capacity Enhancement Project for Coral Reef Monitoring (TCP): ~2012
・Sustainable Management of Coral Reef and Island Ecosystem; Answering the Threat of 　Climate Change (STC): ~2016
・Follow-Up Cooperation for the Project of Construction of Palau International Coral Reef 　Center (F/U): ~2013
・Volunteer for Environment Conservation (JOCV): ~2016
・Training Courses for Environment Conservation(TR): ~2013
・Explosive Remnants of War (ERW) Clearance in the Sea of Koror State (Phase I) (JNGA): 　~2013
・Project for Regional Eco-System resilient to Climate Change and Energy Development for 　Reducing Emissions from Deforestation and Forest Degradation (ML): ~2012

Development Issue 1-2: Climate Change

【Background and Current Situation】
　Adaptation to and mitigation of climate change are critical issues for a small island country like Palau. There are hopes and expectations in introduction of renewable energy in Palau. For example, National Energy Policy Framework 2009 targets to support 20% of electrical power source with renewable energy source by 2020.

【Strategy】
　Japan will continue to assist in diversification of energy sources by introducing renewable energy such as solar power generation, and climate change adaptation and mitigation by reduction of greenhouse-effect gas.

＜Introduction and Promotion of Clean Energy Program＞
　Japan will recommend introduction of solar power generation facilities and assist O&M. Its assistance also seeks to reduce fuel fee and green-house gas exhaustion through improvement of energy efficiency of the existing power plants.
・Project for Introduction of Clean Energy by Solar Electricity Generation System (GA): 　~2012
・Training Courses on Renewable Energy or DMS (TR): ~2013

Priority Area 2: Overcoming Vulnerability

Development Issue 2-1: Strengthening Foundation for Economic Development

【Background and Current Situation】
　Stable electrical power supply, as well as improved water supply and sewer system are critical for Palau, as the Palau government aims at tourism-led private sector development and increased foreign investments. Marine transportation is also a vital lifeline for Palau, a country consisting of 8 inhabited islands. In the past, assistance under the trusteeship of USA and from other donors contributed to infrastructure development in Palau. As their capacity on O&M is limited, it is important to support Palau not only from material aspects such as construction of new economic infrastructure, but also from intangible aspects such as establishing preventive maintenance system.
　The large public sector is one of the notable aspects of the Palauan economy, which has been funded from the direct financial assistance of USA. A majority of the labor force has worked for the public sector since the independence. Stimulation of the private sector and employment structure reform will be critical tasks for the future. As experience and expertise base in the private sector have yet to be established, assistance in vitalization of the private sector is needed, especially in tourism, the major industry of Palau.

【Strategy】
　Japan will provide large generators to Palau as a grant to stabilize the power supply. Preventative maintenance system shall also be established through capacity development assistance such as dispatch of technical advisors and senior volunteers for technical training. Water supply and sewer system is also a cornerstone of economic development focused on tourism, which is the largest in Palau.
　Technical training programs will continue to be the main assistance in tourism. Also, Japan will consider dispatch of volunteers in tourism-related fields, responding to the future tourism policies of the Palau government.

＜Economic and Social Infrastructure Development and Improvement of Management and Maintenance Program＞
　Japan will continue to contribute to infrastructure development and O&M capacity development, with special focus on power supply, water supply and sewer systems.
・Expert for Electric ower Supply Improvement Advisor (EXP): ~2013 ・Project for Enhancing Power Generation Capacity in the Urban Area (GA): ~2014
・Volunteer for Economic Infrastructure Development and Improvement of Management and Maintenance (JOCV/SV): ~2015
・Training Courses for Economic Infrastructure Development and Improvement of Management and Maintenance (TR): ~2013

＜Industry Development Program＞
　Japan will assist in the creation of employment opportunities and improvement of livelihoods through promotion of tourism in a broad sense.
・Volunteer related to Industry Development (JOCV/SV): ~2014
・Training related to Industry Development (TR): ~2013 (TBD)
・Fisheries Development (OFCF): ~2013

Development Issue 2-2: Improvement of Medical and Health Services

【Background and Current Situation】
　In Palau, the quality of medical services is not satisfactory due to the chronic shortage of human resources. Additionally, the number of patients suffering from non-communicable diseases (NCD) such as heart disease and diabetes are increasing among middle to senior age groups due to the drastic change of diet to that is heavily dependent on imported food. Not only is NCD a serious health issue, but also has been a major burden to the medical finance. Thus, improvement of the medical service quality, capacity development for clinical management and enhancement of preventative health care are needed.

【Strategy】
　In health sector, with Global Health Policy 2011-2015 into consideration, Japan’s assistance seeks to promote preventative health care and improvement of medical services. Dispatch of volunteers such as nurses, laboratory technicians and physical therapists will be continued to improve the quality of services in respective fields. Equipment will also be provided through Grassroots Grant for Human Security Project (GGP) for sustainable improvement of medical services.

＜Small-Island Medical and Health Program＞
　Japan’s assistance aims at human resource development in diverse fields to maintain a long-term program against NCD through volunteer dispatch and training programs. It also seeks to improve the quality of medical services with small-scale but effective and sustainable equipment provisions.
・Volunteer for Improvement of Island Area Medical Service (JOCV/SV): ~2014
・Training for Improvement of Island Area Medical Service (TR): ~2013
・Improvement of Equipment in Laboratory in Palau National Hos km,mnmnmn ital (GHGA): 　~2014

Development Issue 2-3: Development of Educational Capacity

【Background and Current Situation】
　Palau’s education system follows American system and consists of 8 years of elementary education and 4 years of secondary education. Palau Community College is the only tertiary education institute in the country and provides 3-year courses. However, the lack of understanding in math and science is prominent among students. The capacity of elementary school teachers is limited in general as only a few of them have taken a teachers training course. “Brain drain” to other jobs and countries is also remarkable as the wages of teachers are relatively low. In 2006, a program for certification of non-licensed teachers was launched and the license became a requirement to teach at schools. However, the contents of the program still need to be improved. In addition, the use of English textbook is preventing adequate understanding of lower-grade students.
　Therefore, a holistic reform of educational system is necessary, such as introduction of systematic teaching methods for elementary and secondary education, improvement of teachers training system and development of supplemental teaching aids. It is also needed to strengthen the partnership between Ministry of Education (MOE) and schools for planning and implementation of practical educational policies. Teaching materials in Palauan language are also desirable. Improvement of educational facilities is stated in Educational Strategic Plan but without sufficient budget allocation, while educational facilities has become deteriorated over time. Repair and improvement of these facilities are necessary.

【Strategy】
　In education sector, with Education Assistance Policy 2011-2015 into consideration, Japan will continue to dispatch volunteers to schools. Improvement of teaching methods and development and promotion of annual teaching plan will also be supported in order to enhance the quality of education and ensure a basic level of understanding among students. Placement of volunteers in MOE will be continued in order to improve teachers training and development of supplemental teaching aids, as well as enhancing communications between MOE and schools in collaboration with volunteers placed in schools. Japan also encourages teachers’ participation in region-focused trainings or regional seminars to experience high quality education to enhance their capacity. Improvement of school facilities will be the main focus of GGP.

＜Educational Assistance Program in Small-Island and Remote Areas＞
　Japan will continue to place volunteers in schools to instruct to teachers. It will also assist teachers by developing and promoting annual teaching plan and supplemental teaching aids to improve the quality of education and ensure students’ basic level of understanding.
　Japan’s assistance intends to enhance cooperation between schools and government administrations through continued placement of volunteer in MOE. Teachers will be encouraged to participate in region-focused trainings and regional seminars and experience high quality education to enhance their capacity.
・Volunteers for Remote and Islands Area Education Support (JOCV/SV): ~2015
・Training Courses for Remote and Islands Area Education Support (TR): ~2013
・Remote and Islands Area Education Support Fields (GHGA): ~2013

【Legend】

【Technical Cooperation】
「TCP」（＝Technical Cooperation Project）
「EXP」（＝Expert）
「TR」（＝Issue-based Training / Training Program for Young Leaders）

【Science and Technology Cooperation on Global Issues】
「STC」（＝Science and Technology Cooperation on Global Issues）

【Citizen Participation】「JOCV」（＝Japan Overseas Cooperation Volunteers）
「SV」（＝Senior Volunteers）

【Follow Up】
「F/U」（＝Follow-up Cooperation）

【Financial Cooperation】
「GA」（＝Grant Aid (other than specific grant aid schemes listed below)）
「GHGA」（＝Grassroots Human Security Grant Aid）
「JNGA」（＝Grand Aid for Japanese NGO's Projects）
「ML」（＝Multilateral Cooperation）