Asian Development Bank (ADB) President Masato Kanda recently welcomed Palau President Surangel S. Whipps Jr. during a historic meeting at the bank’s headquarters in Manila, marking the first visit by a head of state from Palau. This significant encounter highlights ADB’s intensified focus on providing support to small island developing states (SIDS), with Kanda underscoring the strategic importance of Palau in these efforts.
“Palau is a key partner and its commitment to reform is exemplary,” remarked Kanda. The historical nature of this visit reflects ADB’s commitment to aligning its support with Palau’s national goals, promising sustained assistance in achieving the nation’s priorities.
Whipps’s trip is timely, as ADB is expanding its operations in the North Pacific, which includes the Marshall Islands, the Federated States of Micronesia, and Palau. To better cater to the unique needs of this subregion, ADB is enhancing the Pacific Department’s North Pacific Team and exploring ways to increase its presence locally.
During the meeting, Kanda praised Palau’s solid macroeconomic performance and commended the government’s success in tax reforms and debt consolidation efforts. He also acknowledged the government’s initiation of pension and social security reforms, expressing ADB’s readiness to support their implementation.
Looking ahead, ADB has earmarked approximately $94 million in concessional loans for Palau between 2026 and 2028. This funding aligns with Palau’s 2023–2026 Development Plan and the 2021–2030 National Infrastructure Investment Plan, focusing on key areas such as energy transition, public sector reforms, public financial management, and human capital development, among others.
Established in 1966, ADB is a prominent multilateral development bank dedicated to promoting inclusive, resilient, and sustainable growth throughout Asia and the Pacific. By collaborating with its member countries and partners, ADB employs innovative financial strategies and strategic alliances to tackle complex challenges, enhance infrastructure, and foster environmental stewardship. This partnership between ADB and Palau underscores a shared vision for sustainable development in the Pacific region, paving the way for a prosperous future.