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Republic of Palau

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Republic of Palau Development Cooperation Factsheet

May 2023

Estimated Australian ODA: 2023-24: $4.8m
Gross National Income Per Capita: USD12,790 (2021)
Population: 18,024 (2021)

Australian ODA 2021-22 Actual ($m)* 2022-23 Estimated Outcome ($m)* 2023-24 Budget Estimate ($m)*
Country Programs 1.2 20.1 1.9
Regional 2.5 17.8 12.7
Global 1.1 2.2 0.2
Other Government Departments - - -
Total ODA to TPalau 4.7 - 4.8

*Due to rounding, discrepancies may occur between sums of the component items in totals
** Prior to its reinstatement as an ODA eligible country, assistance to Palau (2022-23 estimate: $4.0 million) was delivered through non-ODA funding.

Australian ODA to Palau by Sector Group 2023-24 Budget Estimate. 3% Economic Infrastructure and Services. 27% Agriculture, Trade and Other Production Sectors. 7% Governance. 25% Education. 32% Health. 0% Humanitarian. 6% Multisector and General Development Support.

Australia works in partnership with Palau to promote peace, prosperity and resilience across the region and help achieve Palau's development objectives.

Our development cooperation program in Palau seeks to respond pragmatically to Palau's priorities, including economic growth, renewable energy, environment, gender equity, tax reform, disaster preparedness, healthcare support and education. 

Strategic direction

Australia will continue to listen and consult with the Government of Palau to ensure the development program meets genuine needs.

In 2023-24, Australia will continue to support Palauan students to study at institutions in Australia and the region through Australia Awards Scholarships.

Program highlights

  • Through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), Australia is providing support to construct and operate a solar voltaic facility and battery energy storage system, which will meet 20 per cent of Palau's energy needs and will reduce the Palauan Government's dependency on diesel generation (SDG7).
  • Co-financed with Japan and the United States, and through the AIFFP, Australia is supporting construction of an undersea cable to Palau that will provide greater system redundancy (SDG9).
  • Australia is providing $2.5 million for the Australia-Palau Connector (APC), which commenced in February 2023. The APC is supported through Australia's Pacific Flights Program and has re-established weekly commercial flights connecting Palau to Australia. It is expected to help diversify the tourism industry and support Palau's COVID-19 economic recovery (SDG10; SDG8).  
  • In partnership with Norwegian People's Aid, Australia is supporting on-going clearance and removal efforts of explosive remnants of war in Palau. This will mitigate harm to life and the environment and is expected to support land development and economic growth (SDG14).
  • Australia supports Palau's tax reform efforts, specifically the introduction of GST. This is delivered through specialist tax advisers and access to Australian Tax Office support (SDG17).


Priority Sustainable Development Goals: 
1, No Poverty.
3, Good Health and Wellbeing.
5, Gender Equality.
7, Affordable and Clean Energy.
8, Decent Work and Economic Growth.
9, Industry, Innovation and Infrastructure.
10, Reduced Inequalities. 
11, Sustainable Cities and Communities. 
14, Life Below Water.
17, Partnerships for the Goals.
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