Palau Public Utilities Corporation Reform Program (Subprograms 1 and 2)

The program provided the environment for private sector participation (PSP) in the sector, although this should only be seen as the start and not the conclusion. Further, independent power producers need to be contracted whenever possible, while carefully monitoring contingent liability risks. More PSP could be encouraged in water and wastewater operations,perhaps adopting franchise or concession arrangements, viability gap financing, or availability payments.