Palau President Surangel Whipps Jr used the Pacific Infrastructure Conference in Brisbane to court public and private capital for more than US$1 billion in projects over the next five years. He told delegates that fiscal space is tight after pandemic borrowing, so concessional and blended finance with Australia, Japan, the United States and private investors will be critical to deliver climate-ready energy, transport and digital connectivity.
Palau President Surangel Whipps at the Pacific Infrastructure Conference. Photos: Dev Nadkarni
Energy transition remains the anchor. Palau’s roadmap targets a 45 per cent share of renewables in electricity by 2025, although grid constraints have slowed progress. Australia’s Infrastructure Financing Facility for the Pacific has begun a grid-readiness programme to improve protection systems and settings, which is designed to unlock future solar and storage at scale without adding to sovereign risk beyond agreed terms.
Digital links are expanding. Work on a second subsea cable, delivered as a branch of Google’s Echo system with trilateral support from Australia, Japan and the United States, aims to add resilience to the existing spur and reduce outage risk. Industry updates indicate the project is budgeted at about US$30 million, with completion targeted in 2025 after delays.
Aviation access is improving at the same time. Qantas confirmed an extension of its weekly Brisbane–Koror “Palau Paradise Express” for another year following strong demand, with Australian government backing cited by several outlets. Whipps described the service as a bridge that supports tourism and trade.
Whipps also balanced growth with conservation. Palau’s National Marine Sanctuary closes about 80 percent of its exclusive economic zone to commercial fishing, a policy that remains under active domestic debate as the government weighs food security and revenue needs. A new Japan-supported master plan will examine options to modernise fishing ports and strengthen the sector while respecting environmental limits.
Project selection will matter as much as funding. Palau is seeking hospital, school, port and coastal-protection investments that are inclusive, climate-smart and adapted to local standards. Officials have also signalled interest in airport and wharf upgrades that support both economic activity and security cooperation, with recent design discussions on Malakal Wharf underscoring that dual objective.
The pitch to contractors and financiers is straightforward. With new air links, a second cable nearing service, and grid upgrades under way, Palau sees a pipeline moving from vision to execution. The near-term tests are coordination across agencies, timely delivery, and designs that fit Palauan conditions as well as international benchmarks.
