ADB Deepens Support for Palau as President Makes Historic Manila Visit

ADB President Masato Kanda said the visit underscores Palau’s importance as a strategic partner as the bank scales up support for the Pacific.

 

The Asian Development Bank (ADB) has reaffirmed its commitment to Palau as President Surangel S. Whipps Jr. became the first Palauan head of state to visit the bank’s headquarters in Manila, marking a milestone in ADB’s expanding engagement with small island developing states (SIDS).

ADB President Masato Kanda said the visit underscores Palau’s importance as a strategic partner as the bank scales up support for the Pacific.

“Palau is a key partner and its commitment to reform is exemplary,” Mr. Kanda said. “This historic visit signals ADB’s readiness to match Palau’s national ambitions with strong, sustained support. We are committed to working closely with the government to deliver on its national priorities.”

The visit comes as ADB strengthens its North Pacific operations, covering Palau, the Marshall Islands and the Federated States of Micronesia. ADB is expanding the North Pacific Team within its Pacific Department and considering a stronger on-the-ground presence to better respond to the distinct development challenges facing these countries.

Mr Kanda praised Palau’s strong macroeconomic performance, recent tax reforms, and efforts to consolidate public debt. He also welcomed the government’s move to initiate pension and social security reforms, confirming ADB’s readiness to support their implementation.

ADB has programmed approximately $94 million in concessional loan financing for Palau for 2026–2028, aligned with the 2023–2026 Palau Development Plan and the 2021–2030 National Infrastructure Investment Plan. Planned investments will focus on energy transition, public sector and public financial management reforms, human capital development, housing, and strengthening public utilities.

The engagement reflects ADB’s broader strategy to provide tailored, long-term support for SIDS, helping them build economic resilience, strengthen institutions and manage climate and external shocks.

Regional partners and stakeholders are encouraged to engage early as ADB and Palau deepen cooperation to deliver inclusive, sustainable development across the North Pacific.