ADB Loan To Fund Palau Sewer, Water Upgrades

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$28.8 million project ‘essential’ for economic growth

By Aurea Gerundio-Dizon

KOROR, Palau (Island Times, Nov. 22, 2013) – Finance Min. Elbuchel Sadang yesterday announced at the Economic Symposium that the Asian Development Bank approved Palau’s loan application amounting $28.8 million to fund the maintenance and improvement of water and sewer primarily in Koror State and Airai State.

Following this, Sadang said a resolution has to be adopted by both houses of the Olbiil Era Kelulau to authorize President Remengesau to secure the loan.

But Sadang made it clear that the loan is not for the national government but for Palau Public Utilities Corporation to improve water and sewer systems.

On Wednesday, the House already adopted a House Joint Resolution authorizing and ratifying the authority of the president to secure loan from ADB.

The resolution states that adequate funding is needed to maintain and improve the water and sewer systems in the Republic as the current systems in Koror are deteriorating and major renovation, upgrades and repairs are needed to keep it operational.

The resolution further states that improvements and expansion of water and sewer systems in the Republic is essential at this time to accommodate economic growth and the expansion of residential development in Airai and Babeldaob.

After adoption by the House, the joint resolution will be transmitted to the Senate for its concurrence.

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