Palau received the US$80.4 million allotted for fiscal year (FY) 2025 under the renewed economic provisions of COFA on its 30th anniversary of independence on 1 October. On the left is Palau's President Surangel Whipps Jnr and on the right is US assistant secretary for Insular and International Affairs, Carmen Cantor. Photo: Pacific Island Times
Palau received the US$80.4 million allotted for fiscal year (FY) 2025 under the renewed economic provisions of the Compact of Free Association (COFA) on its 30th anniversary of independence on 1 October.
"The US government congratulates Palau on the 30th anniversary of its independence and is honoured to award these funds under the new 20-year Compact Review Agreement between our two countries," assistant secretary for Insular and International Affairs, Carmen Cantor, said.
"We are proud of the strong relationship that we share with Palau," Cantor said in Koror, where she joined the nation in celebrating Palau's 30th anniversary of independence.
The funding announcement includes $50 million for the United States' second and final contribution to the Palau Compact Trust Fund under an agreement signed in 2023.
Economic assistance grants to support and strengthen Palau's health and education systems total $20 million and, lastly, the amount of $10 million represents the second of six annual payments from the United States to support the reduction of Palau's public debt.
In exchange for economic assistance under COFA, the US gets exclusive rights to use Palau's waters, air and land.
COFA's economic provisions would have officially expired on 30 September but the US and Palau agreed to renew them one year ahead of the expiration.
Under the renegotiated COFA, annual funding assistance for Palau is extended from FY 2024 to the end of FY 2043. Palau will receive $890 million in compact grants over the next 20 years.
Cantor also presented Palau with a check for $314,086 in Coral Reef and Natural Resources to fund the development of its system of natural accounts in connection with the United Nations System of Environment-Economic Accounting program,
The program seeks to compile and assess the conditions and statistical value of natural resources such as mangrove, seagrass and corals.
"It is fitting to commemorate Palau's 30th anniversary of independence with a grant that emphasizes Palau's strong reputation as the protector of natural resources for its people," Cantor said.
"Palau has been a regional leader in demonstrating that a clean and healthy environment is inextricably linked to the health and economic interests of its local communities.
"These grant funds will help Palau organize data on its environment and natural resources and support economic decision-making that considers these important assets."
-Pacific Island Times