President Johnson Toribiong told reporters that “we are hopeful that we sign something before the end of March.”
The president however said that the U.S. has yet to respond to Palau’s offer of alternative proposal. It is also not known whether a meeting will be held this month.
Palau has earlier turned down U.S. offer of $156 million direct assistance for the next 15 years.
The island nation has until October to seal the deal on the Compact.
Palau obtained one year extension for funding from the U.S. in the amount of $13 million. Palau can also withdraw $5 from the Compact Trust Fund which now amounts to $144 million.
Palau earlier asked for a one year extension as the economic provision of the 50-year Compact lapsed September 30, 2009.
Without the extension, Palau will have to withdraw $15 million from the Compact Trust Fund.
Under the new proposal of Palau , aside from direct economic assistance, Palau also request for funding to install a fiber optic cable from Guam to Palau for Internet connectivity and to repair deficiencies in the construction of the hospital built under the U.S. auspices in connection with the termination of its pre-Compact administration of Palau.
