PISR increases Palau’s profit shares in a new agreement
The government and the Palau International Ship Registry (PISR) signed on Friday night a new agreement increasing Palau’s revenue share and adding a “green fee” from Palau-flagged registered vessels.
The new agreement increases Palau shares of profit to 40 percent and will further rise to 50 percent after two years. The added feature of the contract is a new green fee, which will be imposed on vessels registering with PISR. The green fee, according to PISR CEO Panos Kimidis, will be directly contributed to the Palau National Marine Sanctuary (PNMS).
“During the last few months we have worked together with this new agreement to provide us with a win-win situation for both PISR and the government of Palau,” Kimidis said.
Kimidis also said the collection of a green fee is to ensure that vessels they register adhere to international environmental laws.
He said Palau is “PISR’s global partner as a guardian to the environment.”
President Tommy Remengesau Jr. who was present during the signing said he is happy with the outcome of the negotiations.
There are two major issues about the renewed agreement that were addressed, protecting the name of the country in the international maritime arena and bringing in more revenues for Palau.
“This is something that we have envisioned for the long haul and sustainability of resource revenue that will be a part of our nation-building. I am happy to announce that we have struck a situation that is fair for both sides,” Remengesau said.
Before the new agreement, the government gets 30 percent share of the revenues, with PISR retaining the 70 percent.
The government has earlier expressed concern about Palau flags misuse under the registry, which resulted in public “black-listings” under the international state Port Control MOU’s, international sanctions regime violations and the registration of dangerous and unseaworthy vessels.
The new agreement also promised a stricter vetting system, Kimidis told reporters during the signing of the agreement.
Kimidis also said Palau will be regularly updated on the work of PISR to ensure that they are following international standards.
Palau’s share in 2017 amounted to at least $1 million in revenues. (Bernadette H. Carreon/Contributor)