Arlington, VA – The U.S. Trade and Development Agency is strengthening the U.S.-Palau partnership by funding the development of a new modern hospital in Palau. Today, Palau’s Ministry of Public Infrastructure and Industries signed an agreement with Hawaii-based Architects Hawaii, Ltd. to carry out a USTDA-funded feasibility study that will lay the foundation for deploying cutting-edge U.S. technologies to a new facility in a critical Pacific Island partner country.
“Advancing a free and open Indo-Pacific means standing with our partners on the challenges that matter most to their people,” said Thomas R. Hardy, USTDA’s Deputy Director. “Today’s milestone is exactly the kind of tangible progress that strengthens partnerships and delivers meaningful results for the United States and Palau.”
The project is a top critical infrastructure priority of Palau’s President Surangel S. Whipps, Jr. and an example of America’s enduring commitment to the Pacific Island nation. Among other results, the USTDA-funded study will recommend the ideal location for the new hospital, create conceptual designs, develop financing options, and deliver an implementation plan. It will also identify U.S. suppliers for construction and operation to promote American exports.
The new 120-150 bed facility will replace Palau’s only hospital, Belau National Hospital, bringing increased capacity and state-of-the-art care. It will offer advanced medical capabilities currently unavailable in the country, including emergency care, specialized surgeries, and diagnostic technologies. The facility will also reduce Palau’s medical costs by eliminating the need for millions of dollars in annual patient evacuation to nearby countries for specialized treatment. Better healthcare and lower costs will boost Palau’s ability to invest in its own development and stability, strengthening a vital U.S. partner in the region.
Palau officials said this agreement builds on the growing collaboration with USTDA across critical sectors, from air transportation to communications. It demonstrates how strategic investments in infrastructure can directly improve the quality of life for Palauans.
Charles Obichang, Palau Minister of Public Infrastructure and Industry, said: “Today’s signing is about more than a new hospital. It is about building strong, resilient, and modern infrastructure. Through this partnership with the U.S. and USTDA, we will build the technical foundation for a state-of-the-art national hospital that will expand capacity, bring medical services home to Palau, and reduce the need for our people to travel overseas for care. This new facility will not only strengthen our ability to provide quality care for Palauans, but it will also bring us closer to another goal set by President Whipps of providing healthcare for U.S. veterans who have returned to Palau. In addition, improved facility and services can also help Palau better serve the larger Micronesian region.”
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The U.S. Trade and Development Agency is the U.S. government’s first mover on critical infrastructure development in emerging markets, advancing the shared strategic priorities of the United States and our overseas partners while creating opportunities to deploy trusted U.S. solutions. USTDA funds the upfront technical work that accelerates the development of infrastructure projects, helping them attract the financing they need for implementation and procurement of U.S. goods and services.
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