Exchange of Notes concerning Japan’s Grant Aid to Palau

2019/3/14

Exchange of Notes concerning Japan’s Grant Aid to Palau

1 On March 8 in Tokyo, Mr. Toshiyuki Yamada, Ambassador Extraordinary and Plenipotentiary of Japan to the Republic of Palau and H.E. Mr. Francis Matsutaro, Ambassador Extraordinary and Plenipotentiary of the Republic of Palau to Japan exchanged notes concerning two grant aid (total grant of up to 400 million yen) in the presence of Mr. Shinzo Abe, Prime Minister of Japan and H.E. Mr. Tommy E. Remengesau Jr., President of the Republic of Palau.

2 Overview of the Projects

Assistance for Sustainable Economic Development (Economic and Social DevelopmentProgramme) (grant up to 200 million yen)

Palau has developmental difficulties common to the Pacific island countries, such as the country landscapes scattered in vast waters, small domestic market and distant geographical location from the international market. Government of Palau places the fishery industry as a traditional key industry in the "Palau 2020: National Master Development Plan". It aims to sustainably develop marine resources in harmony with the natural environment and focuses on prevailing aquaculture, regulating and monitoring coastal and offshore fisheries. Furthermore, delays in infrastructure development such as improvement of electric power facilities are impeding the development of tourism industries and the promotion of overseas investment towards the economic growth. Therefore, overcoming these vulnerabilities are essential for the social and economic development of Palau. This cooperation is expected to contribute to Palau’s sustainable economic development through improvements in land and sea transportation, infrastructure development and aquaculture promotion by providing fishery related equipment and construction machineries (boat with outboard motor, tugboat and power shovel) to the Government of Palau.

      2.   Assistance for Maritime Safety and Infrastructure Development (Economic and Social Development Programme) (grant up to 200 million yen)

Palau has developmental difficulties common to the Pacific Island countries, such as the country landscapes scattered in vast waters, small domestic market and distant geographical location from the international market. Currently, channel beacons necessary for night navigation are not sufficiently maintained in Palau. Therefore, improvements of channel beacons are an urgent issue, since vessels including surveillance vessels are currently obstructed with their safe navigation. This cooperation is expected to contribute to the economic and social development through the stabilization of society, by improving Palau’s maritime security and infrastructure through the provision of channel beacons to the Government of Palau.

3      The two cooperation above will be implemented as a cooperation contributing to the pillars of assistance announced by the Government of Japan during the 8^th Pacific Islands Leaders Meeting held in Iwaki City, Fukushima Prefecture on May 18 and 19, 2018, which are “Strengthening the basis for self-sufficient, resilient and sustainable development" and "Free, open and sustainable ocean".