Japan and Asian Development Bank (ADB) are helping Palau prepare a plan that will provide secure, reliable and affordable water supply on the island of Babeldaob and in the state of Koror, located in the south of the tightly clustered archipelago.

The Japan Special Fund is providing a $700,000 grant to cover most of the cost of preparing the project, estimated at $875,000. The balance will be covered by the government of Palau. ADB will manage the technical assistance.

"The project will contribute to sustainable management of the national water supply system and improved reliability and security of the water supply in the project area," said Stephen Blaik, water supply and sanitation specialist of ADB's Pacific Department.

Babeldaob is the largest island of Palau, making up 80% of nation's land mass, and consists of 10 states. Limited water supply is constraining development in Babeldaob, and new water sources and expanded water supply networks must be developed. Koror, which consists of several islands, is the state comprising the main commercial center of Palau.

The Ministry of Resources and Development will be the executing agency for the technical assistance, which will be implemented over a one-year period.