The President of the Asian Development Bank (ADB), Masato Kanda, recently met with Palau’s President Surangel S. Whipps Jr. during his visit, highlighting the bank’s commitment to enhancing support for small island developing states. Kanda emphasized that the development of such islands is a strategic priority for ADB, remarking on Palau’s commitment to reform as exemplary.
“This historic visit signifies ADB’s readiness to align with Palau’s national goals, ensuring robust, sustained support. We are devoted to collaborating closely with the government to fulfill its national priorities,” Kanda stated.
Whipps’ visit to ADB’s headquarters in Manila coincided with the expansion of ADB’s North Pacific operations, which include the Marshall Islands, the Federated States of Micronesia, and Palau. The ADB is not only strengthening its Pacific Department’s North Pacific Team but is also contemplating boosting its presence in the region to adapt to the distinctive needs of these nations.
Kanda praised Palau’s recent robust macroeconomic achievements and congratulated the government on its successful tax reforms. He acknowledged the government’s strides in minimizing public debt and supported the recently initiated pension and social security reforms, affirming ADB’s readiness to assist with these initiatives.
In terms of concrete financial backing, ADB has planned around $94 million in concessional loan financing for Palau from 2026 to 2028. This funding aligns with the 2023-2026 Palau Development Plan and the 2021-2030 National Infrastructure Investment Plan. Key focus areas for this investment include energy transition, public sector and financial reforms, human capital development, housing, and strengthening public utilities.
This partnership exemplifies a hopeful collaboration that aims to drive sustainable development in Palau and enhance the resilience of small island nations in the Pacific region.
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