Exchange of Notes concerning Grant Aid to the Republic of Palau for Project for the Rehabilitation of Arterial Roads in the Metropolitan Area

May 22, 2007

  1. The Government of Japan has decided to extend a grant aid up to a total of 1,405 million yen (426 million yen for FY2007 and 979 million yen for FY2008) to the Republic of Palau for the Project for the Rehabilitation of Arterial Roads in the Metropolitan Area.  Notes to this effect were exchanged on May 22 (Tue) (May 22 local time) in Koror between Mr. Kunio Nakamura, Japanese Charge d’Affaires ad interim, and Hon. Temmy Shmull, Minister of State of the Republic of Palau.
  2. The outline of the project is as follows:

    (1)  What is this project about?

    This project is intended to extend a grant aid for the Bureau of Public Works, Ministry of Resources & Development of the Republic of Palau, to repair and maintain about 12.5km-parts of Arterial Roads, which connect Palau’s Islands of Koror, Malakal, Ngarkebesang and Babeldaob.

    (2)  Why is this project needed?

    Arterial roads are the most important roads in Palau, connecting Koror Island, in which the metropolitan functions are concentrated, Malakal Island, which has an international port, Ngarkebesang Island, which contains the Office of the President and the national hospital, and Babeldaob Island, where a new capital is being constructed.

    The roads were constructed about 70 years ago when Palau was under Japanese mandate, but as no large-scale repair work has been done since 1994, there is conspicuous damage caused by deterioration.  Inadequate drainage facilities have also caused damage to the pavement, and increasing traffic has been posing a serious problem together with the deterioration.

    In such a situation, the Government of Palau has requested from Japan grant assistance to repair and maintain about 12.5 km of the arterial roads.

    (3)  How effective will this project be?

    When implemented, this project will increase the traffic of the trunk roads and improve the low running speed caused by traffic jams as the flow of traffic will become smooth.

    The time that rainwater is pooled on the roads, 208 days a year at present, will be reduced to zero, ameliorating traffic disturbance caused by long hours of flooding.

    Smoother traffic will improve local development and metropolitan functions, activate the  economy, and increase access to social services such as medical care and education.



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