The Republic of Palau is an independent country in a Compact of Free Association with the USA. It is a Micronesian country, comprising approximately 300 islands with a total land area of 458 square kilometres. The country's resident population of approximately 18,000 people live on nine of the islands.
Palau is a high-income microstate, with an economy dominated by grants and tourism. It faces structural constraints similar to other small island states: a narrow economic base, remote location, small population, infrastructure challenges, limited business climate, and exposure to climate change impacts.
2024 marked the 30th anniversary of the establishment of diplomatic relations between Australia and the Republic of Palau. Australia’s development cooperation program in Palau supports Palau’s priorities, including tax reform, digitisation of the health and agricultural sector, tertiary education and training, aviation connectivity, cyber security, renewable energy, gender equality, removal of UXOs and community, media and sports projects. Australia's goods and services trade with the Republic of Palau in 2023 totalled AUD10 million. This was largely comprised of travel, both business and recreational, and prepared and preserved meat.
The AIFFP in Palau
Australia’s investment in Palau, through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), includes:
Infrastructure sectors: off-grid renewable energy; and telecommunications and digital
Partners (A-Z): Belau Submarine Cable Corporation; Governments of Japan, Palau and United States; Palau Public Utilities Corporation; and Solar Pacific Pristine Power Inc
Projects (A-Z):
Building Palau’s first utility-scale solar power plant
Expanding digital connectivity in Palau via a submarine cable system
Palau Renewable Energy Integration Project
Australian Embassy, Koror
2nd Floor, RT Building
Koror
Phone: +680 488 4628
Email: koror.embassy@dfat.gov.au
For more information on Australia and Palau’s diplomatic relations, see the DFAT website.