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By Rolynda Jonathan
The Republic of Palau is on the verge of merging two major utilities corporation – the newly established Palau Water and Sewer Corporation, and the Palau Public Utilities Corporation.
Although President Remengesau agrees with the Asian Development Bank (or ADB) consultant on the current status of the water and sewer, and electricity operations as “being in less than perfect shape financially and technically”.
He believes that these shortcomings should not delay the merger of both corporations. The administration believes the merger should occur sooner rather than later.
The ADB report submitted to the Olbiil Era Kelulau (Congress) on the issue, states that a 20% savings could be achieved through shared services such as shared offices, one board of directors, unification of billing documents, and sharing of customer service staff.
The report further states that the merger is the “most cost efficient option”, which the administration supports.