In a response to a February 29, 2009, request letter from the Vice President / Minister of Finance to the World Bank for the extension, Mr. Nigel Roberts, of the World Bank Pacific Department replied with an official acceptance letter of March 24, 2009. He wrote that “on behalf of the International Bank for Reconstruction and Development, (“the World Bank”) acting as administrator of Grant Funds provided by the Government of Australia and the Government of the Farao Islands through the Palau Petroleum Multi-Donor Trust Fund TF 057527”, we are pleased to inform you that the World Bank concurs with the request to extend the closing date and consequently makes amendments to the Agreement.
The amendments to the Agreement would extend assistance with the development of a draft comprehensive legislative and regulatory framework for the petroleum sector comprising of the following elements:Elements Target Completion Dates (Subject to Change)• Hydrocarbon Code and Model Agreement – 9/30/2009• Petroleum Operations Regulations – 9/30/2009• Environmental Regulations – 9/30/2009• Hydrocarbon Tax regulations – 9/30/2009The Vice President in his request letter to the World Bank stressed that “once a comprehensive legislation has been put in place, the people of Palau can be assured that developing the Republic’s petroleum sector will be carried out in strict conformity with internationally accepted standards, guidelines and practices elsewhere in the world. The people and the government, national and state alike will feel confident that the natural beauty, the bountiful and fragile marine and terrestrial ecosystem and the environment of this tiny island Republic of Palau will be adequately protected in the process.”It was indeed an opportune time to sign the agreement for extension during last week’s visit by the World Bank representative. The Vice President extends his most sincere appreciation to Mr. Nigel Roberts, Country Director, Timor-Leste, Papua New Guinea and Pacific Islands.
