2026-27 bilateral allocation [budget estimate]

$2.6 million

2026-27 total Australian ODA [budget estimate]

$8.5 million

2025-26 total Australian ODA [budget estimate]

$7.5 million

2024-25 total Australian ODA [actual]

$3.6 million

Australia works in genuine partnership with Palau to promote peace, prosperity and resilience across the region and help achieve Palau’s development objectives. 
Our development program in Palau seeks to respond pragmatically to Palau’s priorities. Priority areas are expected to include: 

• Institutional strengthening of government agencies, including public sector management, taxation and disaster preparedness
• Strengthening communities, including health systems, gender equality, disability and social inclusion (GEDSI), youth and scholarships
• Delivery of critical infrastructure and support for connectivity, energy transition and economic opportunities
• Support for Palauan students to study at institutions in Australia through Australia Awards scholarships.

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

Program highlights

• Australia is supporting Palau’s tax reform efforts, specifically the introduction of a Goods and Services Tax (GST). This is delivered through specialist tax advisers and access to Australian Tax Office support (SDG17).
• Digital health systems strengthening: Through Project Olangch, Australia supports health system strengthening in Palau by improving the use of digital health and supply chain systems and data. The project will strengthen data driven decision making and system resilience while building sustainable local capability (SDG3).
• Australia is partnering with Palau to expand connectivity in the Pacific with a non-stop flight service between Brisbane, Australia and Koror, Palau. The Palau Paradise Express commenced in May 2024 and is supported through the Australia-Pacific Partnerships for Aviation Program. Aviation is vital to sustain tourism and regional connectivity (SDG10; SDG8).
• Renewable energy: Australia through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), is investing in Palau’s grid upgrades and battery storage to enable more solar power and reduce diesel reliance. The Palau Renewable Energy Integration Project (AUD16.28 million) investment will enable up to 25 per cent of Palau’s total electricity demand to be provided from renewable energy (SDG7).
• Internet connectivity: Through the Australian Infrastructure Financing Facility for the Pacific (AIFFP) Australia is co-financing, with the US, Japan and Palau, construction of a second fibre-optic undersea cable to Palau. This will improve the robustness of internet connectivity and build on bandwidth capacity of the first cable constructed in 2017 to provide increased reliable, secure digital connectivity in Palau and improved access to government services (SDG9).
• In partnership with Norwegian People’s Aid, Australia is supporting on-going clearance and removal of explosive remnants of war in Palau and to build local capacity for future clearance work. This will mitigate risks to life and the environment and is expected to support land development and economic growth (SDG14).