President Johnson Toribiong in his letter to Minister of Public Infrastructure, Industries and Commerce Jackson Ngiraingas said that the requirements of the Taiwan grant makes it difficult for Palau to follow the existing procurement laws.
The Taiwan grant requires that all the projects to be funded by the grant be completed and paid for by no later than the end of the calendar year.
In the grant condition, the Taiwan government also specified that only Taiwanese companies are eligible to participate in offering bids, which does not run consistent with Palau’s procurement laws which opens up bids to all companies.
“I want to emphasize how critical it is that all the projects be undertaken and completed as required by the terms of the ROC grant. The republic needs the jobs and the stimulus to its economy that these grants fund provides. The republic cannot allow the grant funds to lapse for any reason,” the president said in his letter.
The president said Taiwan has been providing economic development for Palau for year.
Taiwan continues to be Palau’s generous economic partner saying that development in the states in the form of new roads, new buildings and a solar panel to be installed at the Ministry of Education are part of the funding from the nation.
Taiwan has also provided grants to build the National Capitol, the Cultural Center and Belau National Museum and helped to construct essential elements of basic infrastructure.
Toribiong however gave Ngiraingas discretion to reject any bid or proposals he deems to have the inability to complete or undertake the project under the ROC grant requirements.
