| Project Detail |
The program aims to strengthen state-owned enterprises in Palau by improving the corporate governance and financial management of Palaus electricity and water utility company, Palau Public Utilities Corporation, and providing an enabling environment for private sector participation in the electricity and water subsectors in Palau. The program will support the governments long-term reforms in electricity and water and sanitation.
Project Name Palau Public Utilities Corporation Reform Program (Subprogram 2)
Project Number 54151-003
Country / Economy Palau
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4198-PAL: Palau Public Utilities Corporation Reform Program (Subprogram 2)
Concessional ordinary capital resources lending US$ 5.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector
Energy / Energy utility services
Water and other urban infrastructure and services / Urban water supply
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The program aims to strengthen state-owned enterprises in Palau by improving the corporate governance and financial management of Palaus electricity and water utility company, Palau Public Utilities Corporation, and providing an enabling environment for private sector participation in the electricity and water subsectors in Palau. The program will support the governments long-term reforms in electricity and water and sanitation.
Project Rationale and Linkage to Country/Regional Strategy The reforms of the subprogram 2 target (i) the tariff structure, (ii) enhanced financial management of PPUC, (iii) corporate governance transparency, and (iv) market access for private sector participation. Collectively, these reforms will improve water quality and service (eventually leading to a return to cost-of-service tariffs), increase revenues and liquidity, strengthen corporate governance, operational and technical performance, and ensure transparency for any government support. If enacted, the reforms can open the sector to outside investment, including public-private partnerships, which may significantly improve quality of services. These objectives are foundational to a healthy and sustainable water and wastewater operation for the nation, and fiscal risk management for the public sector.
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