Tue. Jan 21st, 2020

Law inked to back airport expansion, contractor tax exemption

Palau International Airport(File Photo)

A law had been signed Wednesday, March 27, backing the financing mechanism for the international airport expansion and authorizing Palau’s president to grant tax exemption to the main contractor of the project.

President Tommy Remengesau, Jr., in his transmittal letter to the national congress dated March 27, called the project “a milestone” for the country and “will help open the door for new levels of investment and economic growth.”

The law, RPPL-10-33, stated in its legislative findings that the Olbiil Era Kelulau (OEK) supports and endorses the financing mechanism for the construction and renovation of Palau’s only international airport.

It also supports the $28,770,00 loan issued by the Japan International Cooperation Agency (JICA) which provides for the funding of the project.

Under the law, Palau’s president is authorized to negotiate and execute an agreement with contractor for the expansion and renovation of the international airport. The law, however, clarified that this authority is limited only to the scope of this particular project.

It also justified that permitting the president to enter into agreements and issue tax exemption for the project allow the country to “accomplish the goal on favorable terms”.

“I hope that the excitement of this bold new step is not unnoticed by Palauans, wherever they may be,” Remengesau said in the same letter. (Rhealyn C. Pojas)