Japan and Palau Sign and Exchange Notes for Project to Improve Water Supply Systems in Koror and Airai

On May 9, 2025, the signing ceremony for the “Project for the Improvement of Water Supply System in Koror and Airai States” was held at the Embassy of Japan in Koror. The Government of Japan has granted approximately USD 17 million to support this critical infrastructure project aimed at further enhancing Palau’s water supply systems.

H. E. ORIKASA Hiroyuki, Ambassador of Japan to Palau and Hon. Gustav Aitaro, Minister of State of Palau, signed an Exchange of Notes for this additional grant, followed by a grant agreement signed by Hon. Charles Obichang, Minister of Public Infrastructure & Industries and Mr. AOKI Tsunenori, Chief Representative of Japan International Cooperation Agency (JICA) Palau. The signing was witnessed by the representatives of the Government and the people of Palau, including Hon. Eyos Rudimch, Governor of Koror State, Hon. Norman Ngiratecheboet, Governor of Airai State, Mr. Frank Kyota, CEO of Palau Public Utilities Corporation (PPUC) and Mr. Richard L. Misech, Vice Chairman of PPUC Board of Directors.

This latest grant builds upon the success of a previous USD 17 million Japan-funded water project, which began in 2015 and was completed in 2018. The project resulted in the installation of around 5 miles of water transmission mains and upgrade of 8 miles of distribution lines, replacing old asbestos-lined pipes throughout Koror and Airai, and the construction of a 250,000-gallon water tank in Malakal, which strengthened Palau’s water infrastructure.

This new project will further strengthen the water infrastructure by installing transmission mains, upgrading distribution lines, and properly disconnecting the old pipes from new pipes. It will also include installation of smart meters to maximize the effect of the project. This will allow for improved water delivery efficiency and enhanced access to safe and stable water supply.

Ambassador Orikasa commented, “It is hard to see the negative impact of old water pipes underground unless you are affected by a pipe burst or drought. However, the preparation survey for the project revealed that water losses due to problems such as the deterioration of ageing pipes account for almost half of Palau's non-revenue water. It is important that we use the precious water resource more effectively by minimizing non-revenue water for the social and economic development of Palau.”  

Recalling the transformative impact of the previous water project in 2015 and commenting on the integration of digitalization through the new project, PPUC CEO Mr. Kyota said, “We eagerly anticipate working closely with you on this project, driven by our shared vision of securing access to clean and reliable water for all the people of Palau". Other key stakeholders similarly conveyed their commitment to this important initiative.