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A plane on a runway at Palau International Airport The front of the Palau International Airport terminal building

23 April 2019

Loan agreement signed for redevelopment and management of Palau International Airport

The Japan International Cooperation Agency (JICA) has signed a loan agreement with the Palau International Airport Corporation1 for the renovation, expansion and management of Palau International Airport for a period of 20 years. Mott MacDonald supported JICA in advance of the signing by providing technical due diligence services.

The rise of inbound tourism to Palau is providing a vital contribution to the local economy and requires the airport to be upgraded to accommodate the growth of visitors to the country. The existing airport terminal is currently short of capacity as a result of continued passenger growth.

The project is Palau’s first-ever major public-private partnership (PPP) for infrastructure development and is expected to serve as a model for other projects. It involves constructing an extension to the existing terminal building of 3,700 square metres as well as the construction of support buildings. In addition, the existing terminal will be renovated to expand processing and commercial facilities.

Mott MacDonald drew on its international expertise across Japan, Australia, Singapore and Hong Kong to bring international best practice in project finance and airport development to the project. Going forward, the consultancy will continue to support the project by providing construction monitoring services to JICA.

Ian Guy, Mott MacDonald’s aviation practice leader for Asia Pacific, said: “We are thrilled to have been part of the first PPP in Palau and to have delivered using our regional aviation and PPP expertise. We hope that this project enables more people to experience Palau and allow economic growth for the nation.”


1. Palau International Airport Corporation is a special purpose company formed through a joint venture between the Government of Palau and Japan Airport Management Partners Company Limited (JAMP) represented by Sojitz, Japan Airport Terminal Co., Ltd. and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development.

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