Palau fears grow over $500m US military port plan

US military plans for a $500 million port project in Palau have raised local fears about war risk and environmental damage in the Pacific archipelago.

The project would expand a crumbling wharf built by Japan during World War II so it can berth US Navy ships, and would dredge the harbour deeper. Palau is set to become the US military's top overseas construction location next year.

Palau, home to about 17,000 people and located about 500 miles west of the South China Sea, is also earmarked to hold a crisis-ready stockpile for US Marines, tender documents show. Land is being cleared for a military radar, and a remote airfield is being widened for heavy aircraft.

A petition signed by 2,000 people and sent last month to Palau's congress sought assurances from Washington that residents would be safe if war reached the islands.

Palau receives significant US funding under a compact of free association, and its citizens can work and study in the United States visa-free. In return, Palau gives the US military territorial access.

President Surangel Whipps said the old port was “about to collapse” and that he was grateful for the upgrade. He said the port could be jointly used for public benefit while ensuring defence and security.

The US military's Joint Taskforce-Micronesia told AFP the port would expand Palau's capacity for commercial shipping and larger vessels while enhancing US military logistical options for regional defence. A spokeswoman said a 10,000-square-foot restricted-access warehouse at the port would hold equipment for the US Navy.

The plans have also raised environmental concerns around Koror, where UNESCO-listed marine lakes lie about two kilometres from the construction area. An environmental impact assessment found that dredging in nearby Malakal Harbour, expected to start this year, would cause the loss of 4.26 hectares of coral and affect endangered turtles, fish and dugong.

Koror's state government has asked for a larger fund to address possible damage and for independent environmental monitoring, according to filings seen by AFP.