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Palau and USTDA Join Forces for New Belau National Hospital Feasibility Study

Asia

Palau and the USTDA have launched a pivotal feasibility study to relocate and upgrade the Belau National Hospital, addressing climate vulnerabilities and advancing healthcare resilience.

The Republic of Palau and the US Embassy have signed an agreement for a $2.37 million grant from the US Trade and Development Agency (USTDA) to conduct a feasibility study for the relocation and construction of a new Belau National Hospital. This initiative aims to identify a safer and more sustainable site for the facility while addressing the healthcare needs of Palau’s population.

A Historic Partnership for Healthcare Development

The signing ceremony took place on October 23, 2024, at the President’s Office in Koror, Palau, with President Surangel S. Whipps, Jr. in attendance. Minister of Public Infrastructure and Industry Charles Obichang and US Ambassador to Palau Joel Ehrendreich formalized the agreement.

President Whipps expressed gratitude for USTDA's backing, emphasizing that relocating and upgrading the Belau National Hospital will enhance healthcare capacity and address climate-related challenges. He also mentioned plans to expand services for US military veterans. Ambassador Ehrendreich stated at the signing ceremony: “This partnership strengthens the longstanding relationship between the United States and Palau, advancing healthcare and building resilience for a sustainable future in the Pacific region.”

Addressing Climate Vulnerabilities

Constructed in 1993 with funding from the US Department of the Interior, the Belau National Hospital is located in Meyuns, a region vulnerable to storm tides. Severe weather events have necessitated patient evacuations to higher ground on two occasions, demonstrating the urgency of relocating the facility. Climate change impacts have exacerbated these vulnerabilities, making the hospital’s current location increasingly unsustainable.

The relocation discussion began in earnest in July 2019 when Palau’s 10th Olbiil Era Kelulau , the country’s legislative body, proposed a bill to move the hospital to a safer location. Now, three states—Airai, Koror, and Ngatpang—have passed resolutions offering public lands as potential sites for the new hospital. Koror State alone has identified three potential sites for consideration.

A Strategic Step Toward Resilient Healthcare

USTDA’s feasibility study will evaluate these proposed sites, assess the hospital’s infrastructure needs, and recommend solutions for a state-of-the-art facility. In the USTDA’s press release, Director Enoh T. Ebong, emphasized the agency's commitment to helping island nations like Palau build resilient infrastructure to address climate challenges and enhance self-sufficiency. She also the importance of this partnership stating, “Our partnership will help relocate and transform the Belau National Hospital to meet the needs of Palau’s citizens while leveraging US private sector solutions.”

The upgraded hospital is expected to reduce reliance on medical support outside the country, improve access to advanced healthcare, and accommodate larger patient volumes with modern medical technologies. In addition to the hospital project, the US has committed $20 million in economic assistance, with $10 million allocated to health sector operations under the recently negotiated Compact of Free Association. These advancements are part of a larger effort to strengthen Palau’s infrastructure and development through partnerships with the United States and other key allies.

Samantha Garcia participates in the Young Professionals Program at the East-West Center in Washington, DC. She is also a student at Ewha Womens University, acquiring her M.A. in Development Cooperation with concentrations in East Asia and Womens Studies.