13 Jun 2012

Palau's president says just a matter of time before US funding issued

5:11 am on 13 June 2012

Palau's president believes it's just a matter of time before major funding will come through from the United States government, which was agreed to nearly two years ago.

Under the Compact of Free Association, Johnson Toribiong signed a review agreement with the US which allocated about 250 million dollars to Palau for the next 15 years beginning in 2009.

Mr Toribiong says the US government is still trying to find the money by offsetting other existing programmes.

He says under the agreement they were expecting 10 million dollars to pay off the deficit Palau has incurred, along with other allocations.

"There is money for the compact road maintenance and repair and other projects and funding of approximately 40 million for other projects. In the meantime we still get all the federal grants and assistance for health, education, and public safety. It's not that serious but if we get the full package we'd be secure for the next 15 years."

Mr Toribiong says some offers of assistance have been made by Chinese businessmen through the Chinese General Congress in Palau, but he says his government won't consider financial assistance from countries other than the US.