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National Communications Corporation FINAL REPORT OF APT J3 PROJECT IN PALAU

Project Title: A Palau-Japan Collaborative Pilot Project for Palau’s First-Ever Rural Telecenter: A Model of ICT Applications for eLearning, eHealth, Disaster Management, Economic Development, and Cultural Preservation in Rural Communities 2012-2013

Project Supported by:

Asia-Pacific Telecommunity

ICT Development Programme for Supporting ICT Pilot Project in Rural Areas (J3)

PREFACE

Palau National Communications Corporation (PNCC) is pleased to present the final report of the Palau APT J3 Project, “A Palau-Japan Collaborative Pilot Project for Palau’s First-Ever Rural Telecenter: A Model of ICT Applications for eLearning, eHealth, Disaster Management, Economic Development, and Cultural Preservation in Rural Communities.” The primary goal of this pilot project was to develop a model for an appropriate solution to provide high-speed broadband Internet access to the “last mile” in Palau’s rural areas with affordable, sustainable wireless technology. We hope the successful example of this project helps and inspires other small isolated rural locations to find a way to bring affordable broadband access to their communities. The Palau National Communications Corporation (PNCC), on behalf of the APT J3 project partners and national stakeholders of the Republic of Palau, hereby wishes to extend sincere appreciation for the generous support provided by APT (J3) to fund this important pilot project. The expertise and financial support provided through the Asia-Pacific Telecommunity ICT Development Programme for Supporting ICT Pilot Project in Rural Areas (J3) has been a significant factor in contributing to the improvement of economic and social opportunities for the rural populations in Palau through ICT. The Japanese experts who agreed to partner with us in this special endeavor were Dr. Kader Hiroshi Pramanik, Special Advisor to the President, and Professor Kenji Saga, Senior Advisor, Japan Telecommunications Engineering and Consulting Service (JTEC). Together they provided valuable expertise to Palau in ICT telecommunications engineering and ICT policy development. Our gratitude also extends to the generosity and leadership demonstrated by our project partners in Palau, in particular Governor Wilson Ongos of State, and Mr. Thomas Taro, Vice President/Associate Director, Cooperative Extension and Research, Palau Community Collge. Finally, we wish to offer an especially warm thanks to the community of Ngeremlengui who welcomed us with open arms and embraced this opportunity to upgrade the Internet infrastructure in their rural state.

Thank you very much and Ke Kmal Mesulang!

Richard L. Misech General Manager Palau National Communications Corporation (PNCC)

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Table of Contents

Executive Summary………………………………………………………………………… 4

Palau Overview……………………………………………………………………………… 7

Status of ICT Development in Palau………………………………………………………… 11

Rural Community Selected for APT J3 Project……………………………………………… 19

Palau National Communications Corporation-Project Leader………………………………. 24

Project Partners and Stakeholders…………………………………………………………… 27

Objectives of the Project……………………………………………………………………… 35

Project Site: Ngeremelengui State…………………………………………………………… 36

System Configuration………..………………………………………………………………… 38

Project Implementation…………………………………………………………………..…… 41

Technical Phases………………………………………………………………………….. 46

Telecenter Implementation……………………………………………………………….. 50

Conclusion and Future Plans………………………………………………………………… 63

Project Team………………………………………………………………………………… 68

Final Accounting Report……………………………………………………………………. 73

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EXECUTIVE SUMMARY Through a partnership with Japan Telecommunications Engineering and Consulting Service (JTEC), Japan, and Palau Community College, and Palau National Communications Corporation (PNCC), this APT J3 Pilot Project has established Palau’s first-ever rural Telecenter in the state of Ngeremlengui. The pilot project has successful achieved its goal: to create a model for affordable, sustainable community-centered Internet capabilities that will support economic and social development, including:  Economic development opportunities through aquaculture and agriculture projects (PCC Cooperative Research & Extension’s Marine Hatchery, PCC Research & Development Station)  e-learning (Ministry of Education / Ngeremlengui Elementary School)  e-government, disaster management and tourism promotion (Ngeremlengui State Government/NEMO/Palau Visitors Authority)  e-health (Ministry of Health – Ngeremlengui Health Center)  Cultural preservation (Ministry of Community & Cultural Affairs/Ngeremlengui State Old Age Center) To accomplish its goals, the Palau-Japan APT J3 pilot project had these main objectives:  With assistance and advice from Japanese experts, establish Palau’s first-ever model community Telecenter to serve as an example of how to utilize broadband Internet access to achieve goals of economic and social development in rural communities;  Implement an eco-friendly and sustainable power source for the Telecenter using solar power;  Test the viability of using wireless technology as a cost-effective and sustainable way to bring high-speed broadband service to remote rural areas; and to  Ensure sustainable operations by providing Telecenter users with low-cost, affordable prepaid card access (scratch-off cards with UserID & PIN) to secure sustainable operation. Palau’s APT J3 Pilot Project was designed to contribute to implementation of the Bali Statement and Plan of Action of the Asia-Pacific Ministers (2009), as well as the Republic of Palau’s National ICT Policy 2011-2014. Bali Statement of the Asia-Pacific Ministers (selected objectives): Objective A. Widen broadband connectivity Key Strategy 2: Ensure that broadband networks and services are reasonably available with the greatest practical national coverage and use. Key Strategy 3: Ensure that provisions are made for people with special needs so that they can use broadband services to improve their quality of life Key Strategy 4: Provide community facilities for those who cannot afford individual service. Key Strategy 5: Promote the use of broadband services and increase awareness and knowledge to use ICT for the betterment of lives.

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Key Strategy 6: Take better advantage of wireless technologies to speed up delivery of broadband services. Objective B. Provide a secure, safe and sustainable environment through ICT initiatives Key strategy 5 - Enhance national and regional efforts in improving the infrastructure and use of ICT for public safety and disaster management including disaster preparedness, relief and recovery efforts. Republic of Palau National ICT Policy 2011-2014 – Guiding Principles Guiding Principal 1: Human Resource Development Guiding Principle 2: Support Access to Affordable ICT Infrastructure Guiding Principle 3: Enhance Economic Growth and Sustainable Development through ICT Utilization by Public and Private Sector Guiding Principle 4: Establish Appropriate ICT Policies and Regulatory Framework Ngeremlengui State was selected as the pilot project site due to the proximity of existing critical community services:  a rural community health dispensary  an elementary school  the Marine Hatchery / Research & Development Station of Palau Community College  the Ngeremlengui State Government Office (which handles public safety functions since the closest police substation is far away on the northern side of the island). Our survey of community members and leaders during the grant application process identified several needs in the community to be addressed by this project, including lack of educational and job opportunities, lack of adequate health care, needs for economic development and research (e.g. by PCC), and improved public safety.

Key milestones in the completion of the APT J3 project included installation of broadband access to the two targeted areas in Ngeremlengui State including 5 key community centers: main Village with Telecenter at PCC Hatchery, School, and State Office; plus inland area of Ngermeskang with Ministry of Health Dispensary (Community Health Center) and PCC R&D Station. This was achieved with expert consulation from our Japanese partners, JTEC: 1st Mission of Japanese Experts/JTEC July 1-7, 2012 o Site Visit to planned Telecenter location, key community centers, and distant cell tower locations to be used for wireless solution to remote inland area o Meetings with APT J3 Project Team (JTEC, PNCC, PCC, Ngeremlengui State Governor) and National Stakeholders o Telecenter Groundbreaking Ceremony 2nd Mission of Japanese Experts/JTEC February 20-March 9, 2013 o Site Visit to Completed Telecenter and community centers (progress review by Japanese experts) o Meetings with APT J3 Project Team (PNCC, PCC, Ngeremlengui State Governor) o Telecenter Training for Key Community Personnel (by JTEC) o Telecenter Ribbon-cutting Ceremony o Project Assessment Meeting with Project Partners and National Stakeholders

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Photos Top to Bottom:

Ngeremlengui Telecenter – Students attending JTEC Internet Training Program funded by APT J3

Ribbon cutting ceremony of the new ICT Resource Center/Telecenter at Ngeremlengui State, officiated by Republic of Palau Vice President

APT J3 Trainees who completed the Internet Training Program at the new Telecenter, conducted by Japanese experts Dr. Pramanik and Professor Saga of JTEC

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PALAU OVERVIEW Location and Geographic Profile

Palau is Micronesia's westernmost island chain, located between Guam, the Philippines and Papua New Guinea. Palau is an archipelago of more than 300 islands that extends over 400 miles (about 600 kilometers). See maps below and on next page.

Palau is a popular diving destination with a UNESCO World Heritage site (Rock Islands Southern Lagoon) and the world’s first Shark Sanctuary.

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Palau’s hosts one of the UNESCO World Heritage Sites, the Rock Islands Southern Lagoon (also known as 70 Islands)

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Population:. The Republic of Palau includes 16 states, two of which contain the urban core population ( & Airai with a total of 3,898 households) and 14 others with small rural populations of 14 - 152 households.

Map Source: Community Consultations on Marine and Terrestrial Resource Uses submitted by Palau Conservation Society as information for Palau's National Biodiversity Strategy and Action Plan, March 2003

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Palau’s economy is based on tourism, subsistence agriculture and fishing. According to the Human Development Index (HDI) of the United Nations, Palau is ranked among the second tier of countries called “High Human Development” (out of four tiers ranked from Very High to Low). [HDI is a comparative measure of life expectancy, literacy, education, standards of living, and quality of life for countries worldwide and used to identify if the country is a developed, a developing or an underdeveloped country].

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Status of ICT Development in Palau Most rural areas of Palau have telephone and cellular communications but no high-speed Internet access (only dial-up service, which is available nationwide through the fixed line infrastructure). See PNCC cellular and telecommunications core infrastructure maps on pages 16-17. Key Telecom Indicators Today, PNCC has one of the highest telephone penetration rates in the Pacific region and offers a full array of basic and advanced telecommunications services. A World Bank report on Telecommunications in the Pacific (2006) identified Palau as having the highest teledensity among the Pacific islands and estimated 25% of the population are Internet users. (see table below.)

Source: Telecommunications in the Pacific: Background Paper for Pacific Economic Survey 2008. prepared by World Bank, Jakarta, Indonesia

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ICT History in Palau: The Palau National Communications Corporation (PNCC) is the Republic of Palau’s national carrier for local and international telecommunications services. Beginning with about 200 telephone customers in 1982, PNCC has extended services nationwide for 100% universal service through vast system and operating improvements. Digital switching and fiber optic technologies have been implemented. PNCC has the highest teledensity rates in the Pacific islands region (World Bank 2008) and offers a full array of basic and advanced telecommunications services, including local and long distance telephony, Internet, digital television, and GSM mobile, nationwide. Two active competitors in mobile and Internet only serve the urban areas. 1997 On March 17, PNCC launched PalauNet dial-up service, introducing international Internet and e-mail access to Palau.

1999 PNCC introduced domestic broadband applications including the use of ISDN and HDSL technologies. These high-speed two-way transmission technologies can provide remote schools and medical clinics with distance learning and telemedicine capabilities.

2000 A rate reduction for Internet dial-up plans was implemented; the rate for an additional hour of Internet use (over plan hours) was cut from $14.40 to $5.00.

2001 PNCC introduced LocalNet, a low-cost Internet access service to websites within Palau, in order to encourage the growth of the national Internet network. Internet time charges do not apply on calls into the LocalNet number, also effectively providing unlimited international e- mail access.

PNCC introduced audio-streaming service to Palau by streaming local radio station WWFM to the World Wide Web.

Resale of Internet service via Internet cafes was introduced to promote public access.

2003 PNCC developed a live local cablecast solution via IP technology (DSL), and introduced it to televise the President’s State of the Republic address.

Effective hourly rates for dial-up Internet customers were reduced by 50%, by doubling the number of hours on all plans and cutting the additional hourly rate from $5.00 to $2.50.

Palau’s first-ever international videoconferencing solution, using IP technology, was tested successfully at a Communications Satellite Workshop hosted jointly by PNCC, PEACESAT (Pan Pacific Education and Communication Experiments by Satellite), and CITAG (Republic of Palau Communications Information Technology Advisory Group).

2004 PNCC introduced broadband Wide Area Network (WAN) service using DSL technology to link the Ministry of Education and public schools.

2005 In December 2005, PNCC introduced an Unlimited dial-up Internet access plan for the first time ever and lowered broadband DSL rates by up to 50% or more, thanks to successful renegotiations of international satellite costs. Dial-up rates are now as low as 14¢ per hour.

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2007 PNCC’s website, www.palaunet.com, was redesigned with some new interactive features, including an online TV guide and password-protected access to customer billing details.

2009 PNCC Wi-Fi Hotspots were introduced in public areas to provide high-speed Internet access. DSL and Prepaid Internet rates were reduced 50%. Internet infrastructure was deployed to remote Southwest Islands using a VSAT solution, to achieve 100% universal service for Palau’s 16 states.

2010 PNCC introduced live video streaming of events in Palau to the world via the Internet with the 2010 Micro Games.

2011 “HomeNet” package combines residential phone line and prepaid xDSL Internet access using Debusch prepaid cards.

2012-2013 Over 100 PNCC Wi-Fi Hotspots now available. Palau’s first-ever rural telecenter is established in partnership with Palau Community College and Ngeremlengui State through an Asia-Pacific Telecommunity (APT J3) grant.

Republic of Palau National ICT Plan. Recognizing the key role that access to high-speed Internet has in stimulating economic and social development, the Republic of Palau National ICT Policy has established a comprehensive strategic plan for 2011-2014 (updated from the first national ICT plan created in 2003) with input from key stakeholders from the public and private sectors.

The Government of the Republic of Palau recognizes that it is essential to create an Information Communication Technology (ICT) enabling environment for the socio-economic development of Palau. There are many driving forces of change relating to ICT, society, economy and government. Change is inevitable however it is the intent of Palau’s National Information Communication Technology (ICT) Policy (NICT) to provide direction and present a broad vision and strategy to integrate, coordinate and harmonize ICT policies and plans of the public and private sectors with the intention to move forward in one direction in order to achieve our collective ICT Vision for the Republic of Palau.

In 2002, through an UNDP/UNOPS e-Pacifika project, a wide range of Palau government, private sector and community stakeholders identified the common ICT goals and values that serve as the basis of the ICT-2003 Plan. The 2011-2014 Palau National ICT Policy builds upon and updates these goals, values and guiding principles.

Palau’s ICT Vision

“All citizens in the Republic of Palau shall have equitable and affordable access to ICT to improve quality of life through socio-economic development.”

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Communication Information Technical Advisory Group (CITAG): Presidential Executive Order No. 193 established CITAG in 2001. The CITAG membership consisted of key members of the government and business community. CITAG was tasked to develop the first comprehensive five year ICT plan (NICT 2003), and to initiate programs to promote the increased use of ICT technology with the objective of: o Furthering economic development of Palau o Improving the delivery of government services o Improving health care o Improving education o Improving and expanding Internet service and access Ten years ago the following trends affecting the achievement of further ICT development in Palau were identified: o High cost international connection o Training o Small market for ICT o Lack of vision Although there has been significant ICT progress in Palau since then, these trends continue to be a challenge, particularly when it comes to narrowing the digital divide within Palau between urban and rural areas. One of the main “guiding principles” first identified in 2003 when Palau’s National ICT Plan was developed by stakeholders from government, private sector and NGO’s, is to extend high- speed Internet infrastructure to rural areas. As of 2012 this goal has only been partly accomplished due to the unsustainable small market size in the rural states to support initial capital investments, and the lack of any national policy for universal service. PNCC is the only telecom provider serving high-cost areas by law, while there is no funding mechanism to support the cost of extending infrastructure to such areas. As of 2011 when PNCC applied for the APT J3 grant, only two of Palau’s rural states had broadband access ( and ). See Palau Broadband Map 2011, page 20. The Table of Telecommunications Providers in Palau on page 15 shows that only PNCC covers the high-cost rural areas, since it is mandated by law to serve the nation; without a universal service regulation framework. In August 2013, Executive Order No. 344 was issued by the Palau President, “To Order the creation of a High-speed Broadband Internet Task Force (The HBI Task Force). The HBI Task Force was tasked to develop a road map and financing plan for improving the bandwidth available to the Republic (e.g. through an international fiber optic cable in the long term) and to evaluate Palau’s current legal framework to encourage the development of a robust telecommunications private sector.

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Telecommunications Providers in Palau: Services Offered and Service Areas Fixed Line Broadband Cellular Company Local & Long Digital TV (system type) (system type) Distance Palau National Yes Yes – Yes – GSM-900 Yes - Communications Nationwide nationwide nationwide 1) DSL- Koror, Airai, Corporation Local fixed line service Melekeok, Peleliu Long distance (postpaid and 2) Private Lines via fixed line prepaid) 3) Wi-Fi Hotspots IDDD and also (Over 100 public via prepaid & locations) charge cards 4) WAN/VLAN 5) Internet access via VSAT for remote SW Islands (2 states) 6) Internet dial-up service offered nationwide (fixed line service area) Palau Telecoms Yes – wireless No No (granted No (granted Internet, Koror only license but not license but not yet in service) yet in service) Palau Mobile No GSM – No 3G Mobile services in Koror/Airai Koror and Airai only coverage area only; Offers mobile international long distance (roaming) & 3G

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Palau’s Telecommunications Infrastructure consists of the following core systems:

• 100% Domestic Connectivity

• Fiber-optic cable to most areas of Palau, 70%

• Microwave to islands outside reef

• Redundant Earth Stations ( & Airai)

• Digital Cellular System (GSM 900)

• Digital Television System (DTV)

• Pacific Rural Internet Connectivity System in the Southwest Islands

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Therefore the APT J3 pilot project was designed to provide a prototype model of how ICT applications can be promoted through high-speed Internet in rural communities, with the goal to implement economic and social development goals, including eHealth, eLearning, eGovernment/economic development, public safety/disaster management, and cultural preservation.

Ngeremlengui State, on the western coast of , Palau’s largest island (and the second largest island in the Micronesian region after Guam), was selected due to the proximity of existing critical community services:  a rural community health dispensary  an elementary school  the Marine Hatchery / Research & Development Station of Palau Community College  the Ngeremlengui State Government Office (which handles public safety functions since the closest police substation is far away on the northern side of the island). According to our survey of community members and leaders, there are several needs in the community that will be addressed by this project, including lack of educational and job opportunities, lack of adequate health care, needs for economic development and research (e.g. by PCC), and improved public safety.

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Description of the Rural Community Selected for the APT J3 Pilot Project Ngeremlengui, Babeldaob Island, Republic of Palau According to Palauan legend, after the islands were created in ancient times, a beautiful woman named Milad (part human, part spirit), gave birth to four children. Her four children established the four villages of Ngeremlengui, Melekeok, Koror, and , which became the four pillars or “corner posts” of Palauan society. The state of Ngeremlengui (also spelled Ngaremlengui) is located on the west coast of the big island of Babeldaob. More than 300 people live in 82 households (Republic of Palau, 2009 Household Income Survey). The Median Household Income in Ngeremlengui was about 25% lower than urban MHI (Koror).

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2011

Before the APT J3 pilot project, only the main urban center Koror and Airai, plus two rural states (Melekeok on the east coast of the big island and Peleliu in the south) had broadband access (blue outlines).

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Economic Development and Employment. The availability of arable agricultural land has long been a factor in Ngeremlengui’s economic development. During the time of Japanese occupation (1914 to World War II), the South Seas Experimental Station planted a variety of agricultural crops, and by 1939 there were large pineapple plantations in Ngeremlengui run by more than 400 Japanese families. The pioneering Palau Organic Farm (co-owned by a Japanese benefactor) is located here. The area is also well-known for its sea cucumber (cheremrum), valued as a delicacy by Palauans (as well as Asians). Most of the paid employment in Ngeremlengui is in the public sector at the school, government offices, Community Health Center, and Palau Community College R&D Station & CRE; subsistence agriculture and fishing are also important to some families, while others commute to work in Koror. Very little private sector employment or business ownership exists in the village, except for some small retail stores. (The photo shows the Ngeremlengui Fishing Cooperative, which sells gasoline and ice, and where local fishermen come to sell their catch). Population. The dominant age groups in the village are children of elementary school age or younger, plus older adults and retirees. With the recent construction of the Compact Road in 2007 that circles the big island of Babeldaob and connects Ngeremlengui to the urban center, more working adults have been able to stay in Ngeremlengui and commute to Koror. However due to the escalating price of fuel many opt to maintain a home in Koror while the grandparents stay in the village and take care of the children. Young people of high school and college age usually move to Koror to stay with relatives and or go abroad to the United States, since Palau’s only public high school and community college are located in Koror, although there are two small private high schools in Babeldaob Island not far from Ngeremlengui. Government Organization. The traditional governing organization of Palau is divided into villages and clans; each village has ruling chiefs who are selected by the clan matriarchs. This governing structure continues today throughout the villages, side by side with Palau’s modern democratic system of states and governors and a presidential system with a national congress which is modeled after the United States (since the U.S. administered Palau as a United Nations Trust Territory from the end of World War II until Palau’s independence in 1994 in free association with the U.S.). Ngeremlengui State Government. Since Ngeremlengui is organized politically as a “state” following the U.S. model, the local government includes an elected governor, Wilson Ongos, and a legislature with 11 elected members plus a Public Land Authority that handles legal matters related to public land use in Ngeremlengui. A planning commission has been established by law. The Ngeremlengui State Tourism Representative is an employee of the Governor’s Office, who meets with the Palau Visitors Authority

21 Palau APT J3 Final Report – October 2013 every two months regarding tourism development issues in Ngeremlengui. The Governor’s office also includes one police officerwho handles all public safety matters for the community in coordination with the Palau Ministry of Justice Bureau of Public Safety (the nearest Police Substation is in the northern part of the island). Topography/Environment. Palau is a tropical Pacific area with high bio-diversity and a national commitment to environmental preservation (constantly subject to the pressures of modern development). Ngeremlengui is 25 square miles, and reflects the national biodiversity with a wide range of topography including deep ocean waters, reef and lagoon areas, coastal mangrove swamps, agricultural lands and rainforest areas plus hilly central highlands. It contains Palau's longest river (Ngermeskang). Several protected conservation zones are located here, including Ngermeduu Bay, a breeding area for marine life, Ngermeskang Nature Reserve with wetlands and forest in the highlands; and the Bkulabeluu Conservation Area along the central channel of the western lagoon. Tourism Development. Despite the abundance of these conservation areas and several historical sites such as Japanese cannons from World War II and Imeungs traditional village (an archaeological site with ancient stone paths and platforms), Ngeremlengui has not yet experienced much tourism-related development, but great potential exists. The Tourism Action Plan created by Palau Visitors Authority (PVA), Palau Chamber of Commerce (PCOC), and Belau Tourism Assocation (BTA) identifies as an issue and goal the development of tourism (and eco-tourism) in Babeldaob island, where Ngeremlengui is located on the West Coast. The State Tourism Representative is an employee in the State Governor’s office who coordinates with Palau Visitors Authority on challenges and plans for Ngeremlengui tourism development, meeting every two months with PVA representatives. According to PVA, there are many natural and historical attractions in Ngeremlengui that could be developed to attract visitors, but the major challenge is lack of budget to improve and maintain the sites. For instance there is a waterfall about one hour’s hike into the mountains; the neighboring community of which also has a waterfall attraction has been successful in generating tourism income by improving their site. In Ngeremlengui, there is a new eco-tourism private company offering kayak tours on the river through the mangroves, and also a bird-watching tour in the central highlands area of Ngeremlengui. Cultural Preservation. Palau has experienced several generations of outside influence by explorers, traders, soldiers, and administrations from foreign nations including Germany, Spain, Japan, and the United States. Nevertheless, Palauans have protected and maintained their language and their unique cultural traditions. The main groups influencing these cultural

22 Palau APT J3 Final Report – October 2013 preservation efforts in each state also serve as key stakeholders for the high-speed access projects: women’s groups, traditional leaders (chiefs), elected leaders (state government), students and teachers, and the men’s associations. Globalization provides a challenge and an opportunity for cultural preservation. Palauans have been quick to embrace modern communications technology, but in the rural areas have lacked the infrastructure to utilize it fully. With the assistance from the APT J3 program, the expansion of high-speed Internet access to Ngeremlengui State, including the ICT training for key community members held in March 2013 by the Japanese experts, has opened the door for the traditional village groups to develop innovative ways to preserve and promote Palauan culture.

Ngeremlengui State Old Age Center, now within range of the Telecenter’s Wi-Fi Hotspot.

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Palau National Communications Corporation – Project Leader

Palau National Communications Corporation The Palau National Communications Corporation is a public corporation established in 1982 with the goal of modernizing and expanding Palau’s national communications network at a time when only 200 customers in Koror had basic telephone service. Today PNCC serves over 31,000 subscriptions nationwide for fixed line telephone (local and long distance), GSM cellular, digital television, and Internet/data services. PNCC Corporate Mission: As the national communications corporation of the Republic, our mission is to understand, anticipate, and meet Palau’s communications needs, including universal service, through leadership in quality, value and technology, for the benefit of our customers, our employees, and our nation.

PNCC was established as a public corporation in 1982 by RPPL 1-40 to expand and modernize communications services. Beginning with just 200 telephone customers in the urban center, today PNCC serves over 31,000 subscriptions nationwide for local and long distance telephone, Internet, GSM mobile wireless, and digital TV. Completed projects include:

1982: Local & Long Distance Telephone 1992: Island Cable TV (50% ownership)‏ 1994: National Fiber Optic Network installed with digital switch enabling modern telephone services, with microwave links to serve the northernmost and southern islands (See PNCC Core Network Infrastructure Map on page 16) 1997: Internet service introduced 2000: Mobile Telephone introduced (analog system) 2000: 100% ownership of Island Cable TV & expansion nationwide 2004: Conversion to GSM-900 Mobile Wireless Network 2007: Conversion to Digital TV system nationwide 2009: GSM Mobile Network Expansion, including international roaming service 2009: Introduction of Wi-Fi Hotspots for high-speed Internet access

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2011: Introduction of prepaid Home DSL service to provide affordable broadband access 2012 APT J3 Pilot Project to Establish Palau’s First Rural Telecenter

Today, PNCC’s core infrastructure reaches nationwide, including:  Fiber-optic cable to most areas of Palau, 70%  Fiber-optic cable also carries CATV and connects cellular sites.  Microwave to islands that are outside of fiber reach (, )  VSAT to distant islands (southwest states of & )  One Standard A Earth Station, plus two VSAT class Earth Stations (4.2m and 4.6m) for redundancy  Digital Cellular Service (GSM 900) also covering over 70% of Palau  Commercial Power available in all population centers, with solar power required for many remote sites.

PNCC Subscribers May 2013 GSM Wireless 17,789 Internet 2,306 Dial-up 1,095 DSL 1,107 Others (Wi-Fi, etc.) 104 Fixed Line Telephone 7,690 Standard Digital TV (Basic) 3,702 TOTAL 31,487

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While PNCC is the major provider of telecommunications services in Palau, it is not protected by law from competition. Since 2000, stimulated by the international trends of growth in telecommunications and ICT technologies, Palau’s telecommunications market has diversified to include competition in the most popular services in the urban centers, i.e. mobile telephone and Internet.

However, due to the unprofitability of extending service to rural and remote areas, and the lack of Universal Service support, no private companies have ventured outside of Koror and Airai. Financially, this situation of unregulated competition with no universal service mechanism has made it difficult for PNCC to fund further capital improvements, as its main source of funding has come from the popular services in the urban center.

Expert studies of the telecommunications sector in Palau, such as the recent privatization study by the Asian Development Bank (2008 Facility for Economic and Infrastructure Management Project), Working Paper 1: Privatization and Corporatization Options for Palau National Communications Corporation, have identified the need for universal service policy to support service to rural areas and enable PNCC to become financially viable with the potential for eventual privatization.

PNCC has 93 employees organized functionally to serve all lines of business as efficiently as possible. While the number of subscriptions has grown tremendously since PNCC was established in 1982 with just 200 telephone customers in the main urban area of Koror, improved work processes and functional consolidation have enabled PNCC to serve the customer base without increasing the total number of employees since 1995. PNCC had 90 employees serving 2,944 subscriptions in 1995, as compared to 93 employees serving over 31,000 subscriptions today.

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Project Partners and National Stakeholders

PROJECT PARTNERS: JTEC, PCC, NGEREMLENGUI STATE

Japanese Experts Japan Telecommunications Engineering and Consulting Service (JTEC) Since its foundation in 1978, JTEC has been involved in International Cooperation in activities on communications and broadcasting. Nippon Telegraph and Telephone Corporation (NTT) together with the Japanese telecommunications industries took the lead to establish JTEC. JTEC is the only organization in Japan for international cooperation in the field of information and communication technology (ICT). JTEC supports developing nations through technical and advisory assistance promoting new initiatives. JTEC experts Dr. Kader Hiroshi Pramanik and Professor Kenji Saga have extensive and distinguished industry experience in telecommunications engineering and policy, and have successfully served as advisors for ICT projects in the Pacific area, including Fiji and Federated States of Micronesia. http://www.jtec.or.jp/en/index_en.html

Project Partners PNCC, JTEC, PCC and Ngeremlengui State. From left to right: PNCC CTO Brenda Tarimel, PCC VP Thomas Taro, Prof. Saga of JTEC, Dr. Pramanik of JTEC, PNCC GM Richard L. Misech.

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Palau Partners Palau Community College (PCC) PCC is a major partner with PNCC for this project, with a commitment to construct and operate the Telecenter at one of its Cooperative Research and Extension (CRE) facilities in Ngeremlengui, the Multi-species Hatchery Center which focuses on fisheries development with commercial potential. Together with the PCC Research and Development Station in upland Ngeremlengui (Ngermeskang area), these research groups operate under the direction of PCC Vice President for Research and Development, Thomas Taro, who is a team member of the proposed Palau- Japan Telecenter Pilot Project, and also the Speaker of the Ngeremlengui State Legislature. PCC established its R&D facilities in 1999 in Ngeremlengui due to its central location in Babeldaob, history of agricultural development beginning with the Japanese era, and a cooperative arrangement with the Ngeremlengui government for public land use. The Cooperative Research and Extension (CRE) Department is one of the three departments at Palau Community College. The department focuses on research and extension programs that that bring research-based information and technology directly to the people of Palau. There are several important agricultural issues facing Palau that CRE is addressing with research and demonstration projects at the PCC Research and Development Station in Ngermeskang, Ngeremlengui in the heart of Babeldaob.

The R&D Station conducts numerous research and experimental projects in agriculture, aquaculture, and environment use practices that are both sustainable and environmentally sound. With a total land area of 25 acres, the R&D Station is composed of multipurpose laboratories, green houses, rearing sheds, and a large experimental area to conduct various research projects. The R&D Station also serves as a demonstration site for farmers, students, and other people interested in farming. Current projects focus on tropical root crops like taro, cassava, and sweet potatoes.

CRE hopes to expand the R&D Station from research on production to processing and marketing inside and outside of Palau. High-speed Internet access is seen as vital to this endeavor.

Palau Community College. Palau Community College has been accredited by the U.S. Accrediting Commission for Community and Junior Colleges (ACCJC) – Western Association of Schools and Colleges (WASC) for thirty-six years. Palau’s landmark and only tertiary education institution, the Palau Community College (PCC), was founded in 1969 as a two-year post-secondary vocational/technical institution called Micronesian Occupational Center. It originated as trade school in 1927 during the Japanese administration prior to World War II. In

28 Palau APT J3 Final Report – October 2013

May 1978, Micronesian Occupational Center officially became Micronesian Occupational College, a distinct and complementary part of the College of Micronesia. Palau’s Higher Education Act of 1993 established Palau Community College as an independent college with its own governing board.

PCC has been a leader in developing online distance learning programs to provide more degree options to Palau’s students. It is currently possible to earn Bachelor’s and Master’s degrees in several fields without leaving Palau, through PCC’s cooperative agreements with San Diego State University and the Unversity of Maine-Augusta. PNCC has supported PCC’s distance learning development as the institution’s broadband service provider, and more recently with the installation of several high-speed Wi-Fi Hotspots on campus.

Although the main PCC campus in Koror has high-speed Internet access, the college’s remote rural research and development station in Ngeremlengui State on the big island of Babeldaob only has dial-up service, which has limited its access to the campus WAN.

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PROJECT PARTNERS, cont’d

Ngeremlengui State, Republic of Palau (Office of the Governor) The local government of Ngeremlengui State includes an elected governor and a legislature with 11 elected members and a planning commission. The Ngeremlengui State Office includes a Tourism Representative who coordinates with the national office of the Palau Visitors Authority for tourism development. Appointed by the Governor, the State Tourism Rep works closely with PVA to improve tourist attraction sites within the State. There is one police officer stationed at the State Office who handles all public safety matters for the community under the Palau Ministry of Justice Bureau of Public Safety (the nearest Police Substation is in the northern part of the island). Ngeremlengui State has various projects underway to promote economic and rural development, for example, a partnership with Palau Community College that enables state public land use for two R&D stations; a ceramic arts center funded by a grant from Republic of China (Taiwan), and private sector efforts including an eco-tourism company and organic farming of local agricultural products. The Governor of Ngeremlengui State was a key leader in the development and implementation of the APT J3 Telecenter Project. Governor Ongos, together with Thomas Taro of PCC (who is also the Speaker of the Ngeremelengui State Legislature), worked diligently to communicate about the project with key community groups in order to ensure its success.

Photo on left: PCC VP Thomas Taro (also Speaker, Ngeremlengui State Legislature) and Governor Wilson Ongos, watching JTEC presentation during first Mission of the Japanese Experts. Photo on right: Ngeremlengui State Government Office.

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NATIONAL STAKEHOLDERS

Ministry of Education, Republic of Palau (MOE) As part of its goal to improve instruction, Palau’s Ministry of Education (MOE) has plans in place to develop ICT and eLearning capabilities in all schools. Schools in the urban areas of Koror and Airai are already connected with a Wide Area Network and moving ahead with eLearning activities. The provision of broadband access in Ngeremlengui through this APT J3 Pilot Project has enabled MOE to begin to implement its plans to offer eLearning applications in rural schools. The Ministry of Education (MOE) is under the Executive Branch of the Republic of Palau and its minister is appointed by the President. MOE has oversight of all public education and schools nationwide through the secondary school level.

Every child (boy and girl, citizen and non-citizen) resident in Palau has access to twelve years of free public education. The focus locally is on improving quality of instruction and enhancing efficiency by consolidating very small schools while continuing to reduce drop-out and repetition rates.

As part of the goal to improve instruction, the Ministry of Education (MOE) has plans in place to develop ICT and eLearning capabilities at all schools nationwide. To assist the MOE with this goal, in 2004 PNCC introduced Broadband Wide Area Network (WAN) (now called VLAN) service using DSL to link the Ministry of Education and the public schools. The first phase is complete with schools in Koror and Airai already utilizing the VLAN. All schools have networked computer labs but the rural schools only have access to the server at the MOE headquarters via dial-up service. Since 2011, MOE is focusing on “i-Classroom” applications which will cache Internet curriculum content at the MOE server and push it over to the school networks via the VLAN, thereby conserving international Internet usage. The goal to link rural schools outside of Koror and Airai will be feasible once PNCC has completed the extension high-speed Internet capabilities to rural areas. Currently only the national capital area in the state of Melekeok has DSL access. Now thanks to the APT J3 Project, a second rural school has been connected. Ngeremlengui Public Elementary School. Ngeremlengui is one of 18 public elementary schools in Palau, covering first through eighth grades. Total enrollment in 2011 when the APT J3 project was intiated was 56 students. Students who complete the

31 Palau APT J3 Final Report – October 2013 eighth grade attend the public high school in Koror or one of four private high schools (two in Koror, and two in the north/east of Babeldaob Island).

Ministry of Health, Republic of Palau (MOH) Due to Palau’s remote location, small population, and low per capita income, Palau faces many difficulties in providing health care. These challenges include the lack of medical specialists, high cost of diagnostic equipment and a scarcity of medical supplies and medicines. These problems are exacerbated when it comes to providing primary and preventive health care in Palau’s rural communities. The broadband access that has been made possible at the Western Community Health Center in Ngeremlengui State through the APT J3 project will help address some major problems faced by the national health system which can be mitigated with telemedicine solutions. Such issues include the limitation of care available through the rural dispensaries since medical personnel resources are insufficient to enable full-time staffing in remote areas. Therefore, MOH is seeking to implement telemedicine capabilities nationally to the rural areas, as well as internationally. Ngeremlengui Community Health Center (“Super Dispensary”). Palau's Division of Primary and Preventive Health under the Ministry of Health has four community health centers (CHCs) to serve rural areas outside of Koror where the national hospital is located: the Northern CHC in , the Eastern CHC in Melekeok, the Western CHC in Ngeremlengui, and the Southern CHC in Peleliu, as well as four satellite dispensaries. NCHC operates under direction of administrative and medical staff based in Koror who oversee all the Super Dispensaries. There is one nurse practitioner, who can dispense medicine and one support staff; and occasional physician visits from the Belau National Hospital. The main task of the NCHC is to provide a limited range of primary and emergency health care to residents of Ngeremlengui and surrounding communities. The Ministry of Health (MOH) is under the Executive Branch of the Republic of Palau and reports to the President. MOH has oversight of all national health matters and includes the Bureau of Hospital and Clinical Services and the Bureau of Public Health Services.

Palau’s compact geography, progressively improving transportation and communications infrastructure, high level of health expenditure, and well-developed primary health care system combine to make essential health services accessible to virtually the entire population. Public health services, including prenatal, postnatal, well-child, and immunization services, are provided either free of charge or at highly subsidized rates.

The main medical facility, operated by the Ministry of Health, is the Belau National Hospital in the main town of Koror. Rural and outer island populations are served by community health centers, called dispensaries, which are located in Airai, Melekeok, Ngeremlengui and

32 Palau APT J3 Final Report – October 2013

Ngarchelong on the big island of Babeldaob, plus one each in the outer islands of Angaur, Peleliu, and Kayangel. Currently only the national hospital has broadband Internet access.

The main challenge to the national health system is the high cost of treating severe and specialized conditions which usually require off-island referrals to medical centers in the Philippines or the United States. The access of rural patients to the national hospital is also an issue which is partially solved by the rural dispensaries.

However, MOH is actively exploring ways to implement telemedicine solutions both nationally to the rural health centers, as well as internationally to off-island specialists with the goal of reducing reliance upon off-island referrals as well as providing more immediate treatments.

MOH is the lead response agency for emergency Medical, Health and Sanitation under the national disaster management plan.

Ministry of Cultural and Community Affairs, Republic of Palau (MCCA) The Ministry of Cultural and Community Affairs (MCCA) has a mission to enhance the well-being of the community and to preserve and maintain Palau's cultural and traditional heritage. In particular through the Bureau of Aging and Gender and the Bureau of Arts and Culture, MCCA has many projects to achieve the goal of cultural preservation. Some related projects include oral history collection, workshops on safeguarding intangible cultural heritage, Palauan language for children (in cooperation with the Ministry of Education), publications of booklets on cultural traditions, and the Olechotel Belau Fair/Festival (OBF), an annual cultural event of arts and crafts, and agricultural products. In 2012, MCCA established a Ceramic Arts Center in Ngeremlengui State to revitalize the traditional art which used to be widely practiced in Palau during historic times.

National Emergency Management Office (NEMO) The National Emergency Management Office (NEMO) has the responsibility for Palau’s disaster management plan including the National Emergency Council (NEC), which is convened to deal with disaster threats. The NEC membership includes the state governors as well as PNCC and a current goal of the NEMO and NEC is to implement better advance warning systems using the Internet as a resource and tool. The National Emergency Management Office of the Republic of Palau has recently updated the national disaster management plan as “National Disaster Risk Management Framework 2010” with the Vision of “Safe, Resilient and Prepared Communities in Palau.” Fast, effective communications are absolutely essential to disaster prevention, such as the cost-effective

33 Palau APT J3 Final Report – October 2013 broadband access to rural areas in Palau that will be made possible through the Palau-Japan Telecenter Pilot Project. The National Emergency Management Office (NEMO) is involved in all aspects of disaster management. It acts with the counsel of and in concert with the National Emergency Committee (NEC). NEMO also performs the day-to-day operations associated with disaster management and submits reports to the Vice President. NEMO’s responsibilities include, but are not limited to the following:

Maintaining and testing the National Disaster Plan; Providing assistance to national and state agencies in the development of Agency Support Plans; Coordinating the development of public education programs regarding disaster planning; Coordinating and assisting in the training of specific disaster related skills; Providing logistical support to the Emergency Operation Center; Coordinating state and national disaster management planning; Periodically reviewing state and national legislation and regulations to insure that all are in compliance and coordination with this Plan; Performing other tasks as prescribed by law, executive order, and regulations or as required by the CLT or the NEC.

In 2010 the national disaster plan was updated through Executive Order #166-99 “National Disaster Risk Management Framework 2010.” The plan’s Vision is “Safe, Resilient and Prepared Communities in Palau.” Palau is considered to be vulnerable to coastal flooding, moderate cyclones, tsunamis and droughts and rise in sea level.

Palau National Communications Corporation is a member of the National Emergency Committee (NEC) and the lead agency for national emergency communications.

Ministry of Justice, Republic of Palau (MOJ) The Ministry of Justice of the Republic of Palau is responsible for the operation of public safety services, including rural police and fire substations. For many years, there was only one police/fire substation serving the big island of Babeldaob, centrally located next to the National Capitol in Melekeok, across the island from the state of Ngaremelengui. A second substation has recently opened in the State of Ngardmau to better serve the northern states in Babeldaob. In the state of Ngeremlengui, which is the site of the pilot project, there is one police officer stationed at the State Government Office. The Ministry of Justice (MOJ) is in the Executive Branch of the Republic of Palau and its minister reports to the President. MOJ includes the Office of the Attorney General, the Bureau of Immigration, and the Bureau of Public Safety.

The Bureau of Public Safety in the Ministry of Justice is the lead response agency for Emergency Law Enforcement/Fire and Search & Rescue in the national disaster management plan.

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Objectives of the Project

The ultimate goal of this pilot project was to develop a model for economic and social development in rural Palau through ICT applications enabled by high-speed Internet connectivity, based on partnerships among key agencies building on synergies to achieve more using ICT. The project objectives were: o With assistance and advice from Japanese experts, establish Palau’s first-ever model community Telecenter to serve as an example of how to utilize improved Internet access to achieve goals of economic and social development in low-income rural communities; o Implement an eco-friendly and sustainable power source for the Telecenter using solar power; and o Test the viability of using wireless technology as a cost-effective and sustainable way to bring high-speed broadband service to remote rural areas; and o Ensure sustainable operation by providing Telecenter users with low-cost, affordable prepaid card access (scratch-off cards with UserID & PIN).

35 Palau APT J3 Final Report – October 2013

Project Site: Ngeremlengui State Summary of Technical Soluation to Bring Broadband Access to Ngeremlengui State The Japan-Palau Pilot Project is based in Ngeremlengui State, a rural area of the big island of Babeldaob with no high-speed Internet access. In order to bring access to all the key community centers in Ngeremlengui State, there are two areas that were connected. The Ngeremlengui village area was connected via wired access since it is located close to the national submarine fiber optic ring that circles the big island. The broadband service area now covers most of the village, including key community sites, i.e. the new Telecenter (hosted at the PCC Hatchery) and adjacent Old Age Center, plus Ngeremlengui Elementary School and the Ngeremlengui State Office. Due to its distance from the coastal area that is reachable via Palau’s submarine fiber optic ring, the inland area of Ngermeskang where the community health center and Palau Community College Research & Development station are located has been connected via wireless technology (see System configuration diagram, page x). To enable a wireless solution, the broadband access has to be extended about 40 miles via Palau’s submarine domestic fiber optic ring up the west coast of Babeldaob Island to the cable landing in Palau’s northernmost state, Ngcharchelong, and passed through PNCC’s cellular system from the Ngarchelong tower to another cellular tower in Ngardmau state (next to Ngeremlengui state). The Ngardmau tower has line of sight about seven miles away to the Ngermeskang area where the Community Health Center and PCC R&D Station are located.

36 Palau APT J3 Final Report – October 2013

Top Left to Right: Telecenter Site (PCC Hatchery); Ngeremlengui elementary students (computer lab) and school. Bottom Left to Right: Old Age Center across from Telecenter; Community Health Center; PCC Research & Development Station.

37 Palau APT J3 Final Report – October 2013

System Configuration The information technologies that were used to implement the project are both wired and wireless IP access platforms, connected to the existing domestic submarine fiber optic network that circles the big island of Babeldaob. Figure 1 and Figure 2 depict the system configuration and topology based on site surveys completed May 2012 by PNCC technical staff and in July 2012 together with the JTEC expert.

Figure 1. Overview of the Japan-Palau Pilot Project

38 Palau APT J3 Final Report – October 2013

Based on the site surveys, the planned topology was revised as follows. (see Figure 2 and Figure 3)

Figure 2: Japan-Palau Telecenter & Community Access Topology – West Side  West Side: Wired connections in the Ngeremlengui village area (Telecenter, school and state office).

39 Palau APT J3 Final Report – October 2013

Figure 3: Japan-Palau Telecenter & Community Access Topology – East Side

 East Side: The path of the wireless connection to the Ngermeskang area from the Ngardmau cell site was changed to connect first to the Community Health Center, which has a better line of site with the Ngardmau antenna, then via the Health Center to the Palau Community College Research & Development station. This is supported by a Memorandum of Understanding between PNCC and the Ministry of Health to enable use of their facilities for the necessary equipment to be located on their site.

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PROJECT IMPLEMENTATION

Introduction There were two types of project milestones identified for the Palau APT J3 Pilot Project: 1. Technical Project Implementation 2. Telecenter Project Implementation The project milestones remained the same as proposed in the grant application, with some changes to the dates in the proposed timeline after the grant was awarded in May 2012, primarily due to infrastructure damages caused by Typhoon Bopha which hit Palau in December 2012. Typhoon Bopha caused widespread damage to Palau’s telecommunications infrastructure. This natural disaster required PNCC to divert technical labor and management resources from the APT J3 project to focus on urgent repairs of subscriber service outages as well as system damages. This resulted in an alteration of the planned APT J3 project timetable by about two months, with the majority of technical work completed during February-March 2013 rather than December 2012-January 2013 as expected.

PROJECT IMPLEMENTATION PHASES - SUMMARY

Phase 1: Technical Planning, Design & Procurement: April 2012-July 2012

 Consultation with Stakeholders & Telecenter Groundbreaking o Ad Hoc Implementation Committee established (JTEC, PNCC, PCC, Ngeremlengui State Governor), teleconferences with Japanese experts/JTEC o Project Stakeholders notified, consultations with stakeholders by PNCC

 Site Surveys and preparation for technical implementation by PNCC o Technical Site Survey by PNCC Networks o Revision of system configuration based on site surveys o Equipment procurement

 1st Mission of Japanese Experts to Palau o Meetings with stakeholders and Japanese experts o Site surveys by Japanese experts o Telecenter groundbreaking ceremony, PNCC Press release to the national media to inform the public of the project

41 Palau APT J3 Final Report – October 2013

Phase 2: Technical Implementation by Palau (PNCC): August 2012-October 2013

Wireless broadband system to Village Area (West side of Ngeremlengui State) o Solar power system for Telecenter o Wiring and Provisioning of the telecenter with 10 computers and internet connectivity via WAP/ PNCC WiFi Hotspot o Donation of computers for community centers (school, state office)

Wireless broadband system to Ngermeskang Area (East Side of Ngeremenlengui State) o Installation of Single Connectivity Broadband System via Domestic Fiber Optic Cable to Ngerchelong and wireless backhaul through Ngerchelong and Ngardmau Cellular Towers o Installation of Wi-Fi Hotspots at Community Health Center and PCC R&D Station o Donation of computers to CHC and PCC R&D o Upgrade of Wireless Solution to Multiple Connection Capabilities

Phase 3: Implementation of the Telecenter Model: February-March 2013

2nd Mission of Japanese Experts o Site surveys, confirmation of implementation o Network parameters confirmation o Data check ups and verification o Telecenter Applications User training o Telecenter ribbon-cutting o Assessment meeting - Japanese experts with national stakeholders o PNCC Press release to the national media to inform the public of the results of the project

42 Palau APT J3 Final Report – October 2013

43 Palau APT J3 Final Report – October 2013

PLANNED IMPLEMENTATION PHASES FOR THE TWO BROADBAND SYSTEMS

WIRELESS BROADBAND SYSTEM for Ngeremlengui Telecenter & Village Area (PCC Hatchery, School, State Government Office)

Phase 1 – one month (estimated) • Planning and Design • Procuring Equipment • Acquiring Clearance and Easements

Phase 2 – one month (estimated) • Installation of DSL equipment • Cabling & Grounding • Antenna installation

Phase 3 – one month (estimated) • System configuration • Testing & Acceptance • Service deployment

WIRELESS BROADBAND SYSTEM TO NGERMESKANG For PCC Research Center and Community Health Center

Phase 1 – one month (estimated) • Planning and Design • Procuring Equipment

Phase 2 – one month (estimated) • Fiber Audit & identifying optical path • Installation of Exchange equipment

Phase 3 – one month (estimated) • Site preparation • Cabling & Grounding • Installation of wireless equipment at sites

Phase 4 – one month (estimated) • System configuration • Testing & Acceptance • Service deployment

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TECHNICAL PROJECT IMPLEMENTATION – MILESTONES COMPLETED

1. WIRELESS BROADBAND SYSTEM (WISP) for Ngeremlengui Telecenter & Village Area Completion Date: March 2013 After the first site survey in May 2012, it was determined that the Telecenter, school and State Office could be cost-effectively served via wired rather than wireless access, and the system configuration was revised accordingly. WiFi hotspots and computer equipment at all stakeholder locations (Telecenter, School, and State Office) have been successfully installed and are operational, plus full-service DSL connectivity that has enabled DSL, HomeNet (prepaid home DSL), and VLAN subscriptions.

2. WIRELESS BROADBAND SYSTEM TO NGERMESKANG (Western Community Health Center & PCC Research Center) Completion Date: Single-connectivity solution completed March 2013; multi-connectivity solution completion Fall 2013. Due to the remote location of the inland sites on the east side, the plan was to extend broadband capabilities via PNCC’s submarine fiber optic ring to the northernmost state of Babeldaob, then back south to Ngeremlengui State via PNCC’s cellular antennas. After the site survey in May 2012, it was determined that the best line of site for the wireless connection from the Ngardmau cellular antenna is to the Health Center rather than the PCC R&D station, so the topology was changed accordingly. Equipment was sourced to provide the backhaul and a single service connectivity for WiFi hotspots only was installed during March 2013. The final step has required procurement of a multiple connectivity solution to expand the single access to achieve the project goal of providing full-service broadband options for stakeholders, including multiple DSL and VLAN capabilities.

45 Palau APT J3 Final Report – October 2013

TECHNICAL PHASES - IMPLEMENTATION REPORT Palau’s villages have traditionally been located on coastal areas due to the inaccessibility of the inland jungle terrain. Village economies are based on fishing (reserved for men) and gardening especially of taro and tapioca, considered a female activity. Women also conduct seafood gathering in the shallow waters of the shorelines and mangroves; for example sea cucumbers. In keeping with this tradition, Ngeremlengui’s main inhabited area is in a valley next to the ocean, and up until recently the only way to reach other states was by boat. Ngermeskang, the inland site for the PCC R&D Station and the Community Health Center, has only within the past few years become easily accessible, due to the construction of a new highway that circles the big island of Babeldaob, called the “Compact Road”. Due to their respective locations, the solution to bring broadband to the village area was much easier to accomplish than bringing it to the highlands of Ngermeskang. Palau’s domestic submarine fiber optic ring circles the big island of Babeldaob with landings at the main village in every state. Originally designed to bring telephone service to the rural areas, the fiber optic ring has subsequently been used to expand digital TV and cellular service to the rural states. Due to the inaccessibility and hilly jungle terrain of the island’s interior, many of the inland areas are difficult to connect even for basic telephone service. So the ability to extend DSL through the copper plant is limited in the inland areas and a wireless solution is more cost-effective. Two areas of the state were targeted to be served with the new broadband infrastructure: the main village located on in the west of the state on the coastal zone, and the inland less-inhabited

46 Palau APT J3 Final Report – October 2013 area called Ngermeskang in the east of the state, next to Palau’s new circle-island highway (“Compact Road”). The rural Telecenter, as well as the school and the State Office, are all located in the main village and population center. The inland area is the site of the Community Health Center and the Palau Community College Research & Development Station, both located in the jungle highlands adjacent to the Compact Road.

Ngeremlengui State Office Technical Site Visits May 15 and July 2, 2012 - PNCC Team Assessing Line of Sight at State Government Office

Several technical site surveys were conducted to determine the best, most cost-effective way to bring broadband access to these areas. The first site surveys were conducted in December 2011 and proposed system configuration designs were created when PNCC was developing the grant application to APT J3. After the grant award, follow-up site visits were made by PNCC technicians in May and the system designs were revisited and adjusted as needed, to begin the equipment procurement process as quickly as possible. Follow up site surveys were made when the Japanese experts visited in July 2012, to validate the system designs. The provision of broadband access to the Western village area turned out to be the most cost- effective, due to its location closer to the domestic submarine fiber optic ring that circles the big island of Babeldaob. The fiber optic signal was extended through installation of fiber extender equipment from the PNCC Network Operations Center in Meyuns in the main town of Koror, up through the domestic submarine fiber ring along the west coast to Ngeremlengui landing point, a distance of about 20 miles. Since the key community centers in the village - the Telecenter, the school, and the State Office - are less than two miles from the landing point (a PNCC remote central office), it was found to be more cost-effective to extend wired DSL rather than mount a WISP solution as originally planned. Once the DSL connection was established at each of the three centers, a Wireless Access Point was installed to create a Wi-Fi Hotspot. Each hotspot has a range of about 200 feet.

47 Palau APT J3 Final Report – October 2013

PNCC technicians also wired the Telecenter for the computer network and installed the computers and peripherals (multi-function printer, projector) and then all the Telecenter equipment was formally turned over to PCC to own and manage. As part of the APT J3 project partnership agreement, PCC is responsible for the ongoing operational costs of the Telecenter, i.e. maintenance of the computers and peripherals, power, air conditioning and Telecenter staff. Bringing broadband connectivity to the more remote inland area proved to be more costly. First the fiber optic cable had to be prepared, including a fiber audit, identification of the optical path, and installation of exchange equipment. To reach Ngermeskang, the broadband access had to be carried through the fiber cable ring up the entire west coast of Babeldaob (about 40 miles) to a landing at the northernmost state of Ngcharchelong, which is the closest location adjacent to a cellular tower, and connected to the PNCC Cellular system through the Ngerchelong cell site; then sent via wireless backhaul to the next cell tower in the state of Ngardmau, which fortunately has a line of site to the Western Community Health Center in Ngermeskang – a distance of roughly 7 miles.

Originally we expected to also connect the PCC R&D Center through line of site to Ngardmau cell site, but PNCC technical crew found that the PCC R&D site was too low to get a strong enough signal. At that point the configuration plan for Ngermeskang was redesigned to reach PCC via the Health Center (Dispensary), which required a Memorandum of Understanding (MOU) with the Ministry of Health to allow hosting of PNCC equipment to serve PCC. See revised Wireless Point to Point (PtP) – Ministry of Health Dispensary(CHC) to PCC.

Delays for the Ngermeskang phase of the project were primarily created by the widespread destruction to Palau’s telecommunications infrastructure caused by Typhoon Bophy which passed through Palau in December 2012. The Ngardmau antenna was damaged by the storm and out of service for 3 months due to the major repairs required to put it back in service.

We also had difficulty sourcing equipment that would provide a multiple-connectivity backhaul between the two cellular sites (Ngarchelong and Ngardmau), which resulted in some delay in the timetable to bring broadband to the Ngermeskang area. In order to bring connectivity to the two sites in the upland area (health center and PCC), temporary solution was installed using Carlson TDM Wireless Solution equipment to provide single connectivity, so each location has a working Wi-Fi Hotspot.

However to achieve the project goal of multiple connectivity for customers in this area, another kind of equipment had to be sourced. Fortunately we were able to source an appropriate solution for installation to provide the needed broadband service options (AT Communications Microwave Link for the backhaul between the two towers; while Ubiquiti Wireless equipment is

48 Palau APT J3 Final Report – October 2013 being used to extend the connection from Ngardmau tower to CHC and PCC sites, plus any other customers in the coverage area who subscribe for DSL, VLAN or WiFi hotspots).

Wireless Point to Point (PtP) – Ministry of Health Dispensary(CHC) to PCC R&D

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TELECENTER IMPLEMENTATION REPORT

TELECENTER PROJECT IMPLEMENTATION – MILESTONES COMPLETED Phase 1: Consultation with Stakeholders & Telecenter Groundbreaking Ad Hoc Implementation Committee. At the beginning of the project, an APT J3 Pilot Project implementation committee was established during April-May 2012 composed of representatives from the project partners (JTEC, PNCC, PCC) plus the Ngeremlengui State Governor. This committee met periodically as needed to review and track the project milestones for the Telecenter implementation, including communications with the Ngeremlengui community (regarding social and economic goals of the project). At this time, formal notification letters were sent to the Project Stakeholders informing them of the APT J3 project award and asking them to appoint a representative / key contact for the project. Letters were sent to: o Minister of Health o Minister of Education o National Emergency Management Office Coordinator o Minister of Justice/Palau Vice President o Minister of Community and Cultural Affairs / Bureau of Arts & Culture o Minister of Public Infrastructure, Industries and Commerce In July 2012, Phase 1 of the Telecenter Implementation Plan was successfully completed during the first visit to Palau by the Japanese experts, Dr. Hiroshi Kader Pramanik and Professor Kenji Saga of JTEC (Japan Telecommunications and Engineering Consulting Service). First the Japanese experts met with the Ad Hoc Implementation Committee (JTEC, PCC, PNCC, and Ngeremlengui State Governor), for introductions, technical status review, and planning of the Telecenter Groundbreaking Ceremony. Together with PNCC technical staff, Dr Pramanik and Professor Saga conducted site surveys of all the Pilot Project locations and other rural areas, to familiarize themselves with the local community and to conduct technical review and validation of the project design plans. Next a meeting was held between JTEC and PNCC on July 5 to develop the training concept for the telecenter (training to be conducted during 2nd Mission of the Japanese experts to Palau). It was decided that a “training the trainers” concept would be used to select the trainees, to encourage community leadership in the Telecenter, and would include key staff from Ngeremlengui school, PCC, the State Office, MOH/Community Health Center, and NEMO to attend. The Training Curriculum would be developed/recommended by JTEC experts based on the site visits and meetings with key stakeholders. The Training would be conducted at the Ngeremlengui Telecenter. Consultations between the Japanese experts and the Palau Pilot Project partners and stakeholders were held from July 2-5, 2012 with: Palau Community College, Ngeremlengui State Governor’s Office, National Emergency Management Office, Ministry of Health, Ministry of Education, Ministry of Cultural and Community Affairs/Bureau of Arts & Culture, and the Palau Visitors Authority. Professor Saga presented an overview of ICT Policy Development and Trends, and

50 Palau APT J3 Final Report – October 2013 the and ideas were shared with the Japanese experts about the stakeholders plans for ICT applications in their missions. The Telecenter Groundbreaking Ceremony was also held in Ngeremlengui State during the First Mission of the Japanese experts in July 2012, on July 6, 2012. Representatives participating in the ceremony included leaders from Ngeremlengui State, Dr. Kader Pramanik of JTEC-Japan, the Embassy of Japan, Palau Community College, PNCC, Ministry of State, Ministry of Public Infrastructure, Industries and Commerce, Ministry of Cultural and Community Affairs, Ministry of Education, National Emergency Planning Office, and the Ministry of Justice.

PCC Hatchery/CRE, site of Telecenter Above: Front of Telecenter building. Below: Back of Telecenter (Groundbreaking Ceremony)

Telecenter Groundbreaking Ceremony July 6, 2012. Left to Right: PNCC GM Misech, PCC President Tellei, Minister of Education Emesiochl, Ngeremlengui Elementary Principal Franz, PCC Board of Trustees Student Member, Dr. Pramanik (JTEC), Second Secretary Matsumura (Embassy of Japan), Ngeremlengui Traditional Chief Malsol, Minister of State Dr. Yano, PNCC Board of Directors Chairperson Espangel

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First Visit of the JTEC Experts – Consultations with Stakeholders

First Visit of JTEC Experts July 2012: Consultations with Stakeholders and Rural Site Visits

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Phase 2 Provisioning of the Telecenter

The Internet connectivity to the Telecenter location was completed in October 2012, and installation of the solar power system at the Telecenter was completed in November 2012. The telecenter solar power system would be turned over to PCC for operation and maintenance upon the completion of the pilot project. The cabling/wiring of the Telecenter, installation of the Wirless Access Point for the Wi-Fi Hotspot, and setup of the ten computers and peripherals which as originally scheduled for completion by December 2012 were all delayed by Typhoon Bopha which hit Palau in December 2012. Due to the widespread damages on Palau’s national and customer infrastructure caused by Typhoon Bopha, PNCC technical staff resources were reallocated and dedicated primarily to these major service restoration tasks for up to 3 months. The Telecenter set-up was delayed but able to be completed January-February 2013 in time for the Second Mission of the Japanese experts on February 20 to March 9, 2013. PNCC’s APT J3 Project partner, Palau Community College, meanwhile focused on renovating PCC Hatchery/CRE facilities to host the Telecenter. Power wiring, repainting, and A/C mounting were completed September 2012. Construction of the computer desks was completed in January-February 2013, to enable the installation of the ten Telecenter computers by PNCC before the 2nd Mission of the Japanese experts. Telecenter ribbon-cutting was first planned for January 2013, when the computers would be turned over to PCC for operation and maintenance. After the Telecenter training program by the Japanese experts and the grand opening/ribbon- cutting ceremony, PCC assumed responsibility for hosting and operating the Telecenter for public use, including staffing.

53 Palau APT J3 Final Report – October 2013

54 Palau APT J3 Final Report – October 2013

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Phase 3: Implementation of the Rural Telecenter Model

The implementation of the Telecenter model for Palau was accomplished through the second visit of Japanese experts to Palau from February 20 to March 9, 2013, when there was a training program for key community members and a ribbon-cutting event to celebrate the inauguration of the Telecenter. Internet Training sessions for the on-site stakeholders in Ngeremlengui were conducted by the Japanese experts at the Telecenter from February 25 to March 8, 2013, with participants from PCC, PNCC, Ngeremlengui Elementary School, the Rural Health Center, National Emergency Management Office and the State Government, to develop local human resources and understanding of ICT/Internet capabilities and benefits, as well as practical user applications. Trainers: Japan Telecommunications Engineering & Consulting Service (JTEC) o Dr. Kader Hiroshi Pramanik, Special Advisor to the President o Professor Kenji Saga, Senior Advisor The curriculum included a comprehensive overview of Internet and ICT: • History and structure of the Internet, Ethics, Networks & cloud computing etc. • Applications for Education • eGovernment • Cultural Preservation • Eco-Tourism • Disaster Management (special session with Palau’s National Emergency Management and State Government Disaster Coordinators) • Webpage design, photo and video editing for the web (see Internet Training Schedule on pages 57-58.) On Wednesday, March 6, a special workshop was conducted by Dr. Pramanik on ICT applications for disaster management, with participation by the National Emergency Management Office and the disaster management staff of Palau’s state governors. A wrap-up meeting was held March 7, 2013 with the Japanese experts, PCC and PNCC, and key administration and IT staff at the ministries to plan for ongoing Telecenter development, monitoring and evaluation. A graduation ceremony was held for the traininees together with the Ribbon-cutting for the grand opening of the Telecenter to the public, on March 8, 2013. The ceremony was well attended by national leaders from the stakeholder ministries and agencies, state elected and traditional leaders, and Ngeremelengui community groups. The ceremony concluded with a plentiful lunch hosted by Ngeremelengui state in keeping with Palauan hospitality (all special occasions are honored with abundant food).

56 Palau APT J3 Final Report – October 2013

A number of guests brought their tablets, smartphones and laptops and enjoyed the new High- speed Internet access that is now provided conveniently via prepaid Internet cards to the community at the Ngeremlengui Telecenter. The availability of PNCC’s high-speed internet access service subscriptions to the community was also announced at the Telecenter Ribbon Cutting Ceremony. Services offered include prepaid home DSL (HomeNet), public Wi-Fi hotspots, and corporate DSL including VLAN. After the opening of the Telecenter, PNCC proceeded to complete the donation of one computer each to the key community centers in Ngeremlengui State - PCC R&D, Ngeremelengui State Government, Elementary School, and Community Health Center (whose key staff had attended the APT J3 Internet Training Program). This equipment donation was generously funded by the APT J3 Pilot Project.

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58 Palau APT J3 Final Report – October 2013

59 Palau APT J3 Final Report – October 2013

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CONCLUSION AND FUTURE PLANS

The Palau APT J3 Project has been successful in meeting its goals and objectives. The Ngeremlengui Telecenter serves as a winning model for the implementation of ICT development goals for Palau’s rural communities to benefit from national initiatives to promote e-Health, e- Learning, e-Government, disaster management, and cultural preservation. Since the Telecenter’s Internet connectivity has been provisioned as a Wi-Fi Hotspot for use with affordable prepaid Internet cards, the high-speed access reaches beyond the ten computers in the center to enable the use of many WiFi-enabled devices in the other public areas next to the Telecenter, including a conference room, a summer house (waiting area), and the nearby Senior Citizen’s Center. Project Results: • All citizens of Ngaremlengui State now have access to high-speed Internet using Prepaid Internet Cards at the Telecenter and surroundings (including Old Age Center, dock area) through a WiFi Hotspot o The Telecenter operations are self-sustaining with solar power and prepaid Internet access. Telecenter hosting and operations have been turned over to Palau Community College and Ngermelengui State. o Public has been informed that the Telecenter is now open and available to the public and daily usage is high, both at the Telecenter and the surrounding areas. The Telecenter is a great benefit for the community since home ownership of personal computers is not common, especially in Palau’s rural areas. • Four key community centers (PCC, school, health center, and state government) each have a new computer donated by the APT J3 grant with WiFi hotspots at their locations, and the capability to subscribe to broadband access (PNCC DSL tariff) with high- speed, affordable VLAN connectivity to national networks. • Key personnel of the four community centers have been trained in Internet applications. • Businesses/offices that before the APT J3 project could only get dial-up services are now able to subscribe to high-speed DSL. • Residential customers are subscribing to HomeNet (prepaid DSL). • The establishment of more public Wi-Fi Hotspots has begun with two of the village stores (Bigman’s Store and Tayil Store). There are now seven Wi Fi Hotspots in the state.

63 Palau APT J3 Final Report – October 2013

Palau Community College R&D staff are now filing their reports via email rather than driving with a flash drive to PCC main campus in Koror. Acquaculture projects undertaken in 2013 at the PCC Hatchery next to the Telecenter include seed production of Mangrove Crabs and Rabbit Fish, Stocking of hatchery-produced mangrove crabs in grow-out pens, release of crablets in conservation areas, and technical assistance to mangrove farmers. PCC Adult High School is using the Telecenter for its classes in Ngeremlengui. Of 321 population 25 years and older in Ngeremlengui (2005), 220 had no high school diploma; while 73% of those aged 16-19 were not enrolled in school and not high school graduates.

Therefore PCC has targeted Ngeremlengui for a project to conduct an Adult High School program in their state and graduate 15 students by 2014. This program, which is free of charge to participants, enables adult students to further develop their primary skills while engaging in activities that will help them obtain a high school diploma thereby increasing their chances to either: 1) pursue a degree in post-secondary education, or 2) find a job with entry-level skills. The PCC Adult High School program combines academic, life-skills instruction, and occupational skills instruction. The Ngeremelengui students are meeting in the new Telecenter and the availability of affordable, high speed Internet access has helped support the success of the students.

A key lesson learned through the implementation of the Palau APT J3 Project in Ngeremlengui State was the importance of champions in the local community. Such champions take the lead to present the benefits of the project to the key community groups and inspire them to envision ways to utilize the new capabilities. The two most influential champions in the community for this project were project partners Mr. Thomas Taro of PCC and Governor Wilson Ongos. Another success factor for long-term sustainability is the prepaid model for Internet access. PNCC’s prepaid internet cards give the Telecenter users affordable Internet access through prepaid cards (as a PNCC Wi-Fi Hotspot), and removes the burden of ongoing operational costs for DSL subscriptions from the Telecenter hosting institution, which often cannot be sustained when project funding ends. This project was also designed for operational sustainability through the installation of a solar power system which minimizes power costs for the hosting institution. The new Telecenter has achieved the Palau APT J3 project goal to encourage the development of human capacity and an awareness of the benefits of Internet applications for both personal and community growth. In conclusion, the way the project was designed and implemented, with community involvement and stakeholder partnerships, has successful provided a model for expansion of high-speed broadband access throughout the rural areas of Palau.

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65 Palau APT J3 Final Report – October 2013

Future Plans Based on the successful model for affordable rural broadband access that was initiated by the Palau APT J3 Pilot Project, PNCC is moving forward with plans to expand broadband access into more of Palau’s rural states, using the same mix of Wi-Fi Hotspots through wired DSL, with long-range wireless access technology where required to reach the key community centers in each state, i.e. the school, the state office and the community health center. PNCC is also continuing the collaborative relationships with national stakeholders that were enhanced through the Palau APT J3 Project, to assist them with their plans for development of more applications made possible through broadband access. Each stakeholder is a key player in the National ICT Strategic Plan, and many projects have been identified for development and are underway. PNCC, as the national telecommunications provider, will continue to support these national plans and projects in its role as the nation’s technical resource.  Ministry of Health – telemedicine applications both domestically and internationally  National Emergency Management Office and Ministry of Justice/Bureau of Public Safety – national disaster network via ICT  Ministry of Education – national network for eLearning (in process through VLAN connectivity to the central hub); provision of tablets for wireless Internet access to all students (2014)  Palau Community College – distance learning projects through partnerships with institutions of higher learning abroad; research and development projects to support Palau’s economic development  Ministry of Cultural and Community Affairs, Palau Visitors Authority – cultural preservation and tourism development applications  State and national government offices – eGovernment, national networking applications

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Thanks to the APT J3 Project, Ngeremlengui State now has seven Wi-Fi Hotpots for affordable prepaid broadband access.

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Project Team

Through their extensive skills and experience in telecommunications project management, community leadership and education, Palau’s APT J3 pilot project team ensured the success of this pilot project, based on a partnership between Japan’s JTEC and two leading Palau organizations, PNCC and PCC. Japan Telecommunications Engineering and Consulting Service (JTEC) project partners Dr. Kader Hiroshi Pramanik and Professor Kenji Saga have extensive and distinguished industry experience in telecommunications engineering and policy, and have successfully served as advisors for ICT projects in the Pacific area, including Fiji and Federated States of Micronesia. http://www.jtec.or.jp/en/index_en.html Palau National Communications Corporation (PNCC) has 30 years of experience in leading major infrastructure projects to success as well as overseeing the challenges of daily operations for a full-service telecommunications company in a remote Pacific island area. www.palaunet.com Palau Community College (PCC) is a leader in developing distance learning programs for the Republic of Palau as well as research and development programs to support national economic growth. www.palau.edu

Japan-Palau APT J3 Ad Hoc Implementation Committee Meeting July 4, 2012

Left to Right: PNCC CTO Brenda Tarimel, PCC VP Thomas Taro, Prof. Kenji Saga (JTEC), Governor Wilson Ongos (Ngeremlengui State), Dr. Hiroshi Pramanik (JTEC), Richard L. Misech (PNCC General Manager)

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JTEC Advisors – APT J3

JTEC ADVISOR – APT J3 Telecommunications Engineering Family name: PRAMANIK First name: Dr. Kader Hiroshi Nationality Japanese Title Special Advisor to the President, JTEC Areas of Education: Tohoku University, Japan, Ph.D., 1977 (Major) Electrical and Communication Engineering expertise  2008-Present : Special Advisor to the President at JTEC  2010-(2013) : JICA expert in Satellite Communication Systems, and Curriculum Advisor Computing at USP in the project USP-JICA“ICT for Human Development and Human Security “ , Fiji.  2008: APT-J3: Pilot Installation of Telecenter for remote education and health care in Rural Areas and Isolated Islands in Micronesia (FSM)  2006: APT-J2: Joint Research on ICT Project Formation for Creating Development Models of Tele-Center in FSM  2004-2005: JICA Expert, in Distance Education and Satellite Applications, in the Project “ICT Capacity Building at the University of the South Pacific” a grant aid project under Japanese Govt.  1988-2004: Recruit Company Ltd, Tokyo Japan; Executive Engineer, Information & Network Department; General Manager, Information & Networks Department; and others.  1981-1988 : ITU Technical Cooperation Dept (Now ITU-D)., Geneva Switzerland  1977-1981: OKI Electric Industry co.ltd, Tokyo Japan; Engineer in Design & Production, Telecommunication Division.  1964-1970: University of Rajshahi, Bangladesh: Assistant Professor.

JTEC ADVISOR – APT J3 International Telecommunications & Information Policy

Family name: SAGA First name: Professor Kenji Nationality Japanese Title Senior Advisor, JTEC

Areas of Academic Career expertise  1990-2002: Professor, International Telecommunications and Information Policy Faculty of International Relations, Asia University  1993-1997: Vice President for International Affairs  1997-1998: Visiting Fellow at Victoria University of Wellington, New Zealand  2002-2004: Research Fellow, Communications Research Laboratory (CRL)  2004-2010: Research Fellow, National Institute of Information and Communications Technology (NICT)

Palau Community College – APT J3

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PCC TEAM LEADER – APT J3

Family name: TARO First name: Thomas Nationality Palauan Title Vice President/ Associate Director, Cooperative Research & Extension Areas of Education: San Diego State University (SDSU) Master of Arts May 2004 Major: Education expertise Employment Record  2002 - Present Vice President/Associate Director, Cooperative Research & Extension, Palau Community College; Responsibilities: Oversee the implementation of activities for agriculture/aquaculture research and extension  1997 - 2002 Director, Research & Development Station, Palau Community College  1995 – 1997 Project Coordinator/Administrative Assistant Bureau of Curriculum & Instruction, Ministry of Education  1989 – 1994 Math Instructor, Project Beacon, Palau Community College  1985 – 1989 Classroom Teacher at Belau Modekngei School  1983 – 1985 Accountant at Palau Modekngei Company Inc.

Palau National Communications Corporation (PNCC) Project Team – APT J3  Richard L. Misech, General Manager  Brenda Tarimel, Chief Technical Officer  Leo Ben Teriong, Chief Financial Officer  Marveen Salud, Network Systems Engineer/Acting Information Systems Manager  Richard Ruluked, Transmission Operations Manager  Stalin Bai, Plant Operations Manager

PNCC TEAM LEADER – APT J3

Family name: MISECH First name: Richard L. Nationality Palauan Title PNCC General Manager Areas of Manages, directs and oversees the overall operations of PNCC. Establishes current and long-term expertise objectives, plans and policies, subject to the approval of the Board of Directors; and represents the company with its major customers and the general public. Served 2000-2008 as PNCC Chief Technical Officer, managing the Network Services to include all engineering and technical services operations involved in planning, developing, coordinating, and implementing or building new and/or improved telecommunications infrastructure. From 1994 to 2000 he was PNCC’s Telecom Transmission Engineer, overseeing the international and domestic core infrastructure capacities to include Earth station Terminal, OC3 Sonet optical system and Microwave systems. Mr. Misech has over 30 years of service and expertise in the telecommunications industry, beginning with Comsat in the early 1980’s managing international satellite operations.

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TECHNICAL TEAM LEADER – APT J3

Family name: TARIMEL First name: Brenda Nationality Palauan Title PNCC Chief Technical Officer Areas of expertise Bachelor’s Degree in Business Administration, minored in History and Computer Science (Saint Mary College 1987) PNCC Chief Technical Officer since 2008, managing the Network Services to include all engineering and technical services operations involved in planning, developing, coordinating, and implementing or building new and/or improved telecommunications infrastructure (digital TV, telephony, GSM cellular, and Internet). Her prior positions at PNCC include Information Systems Manager. 25 years in IT Management (including 19 years at PNCC). Windows platform servers and systems; Unix, Linux, and open source platforms; SQL Server, Query; Excel and Office software; Network Security; Network Configuration and Troubleshooting; TCP/IP; Switches; Routers, Wi-FI Networks; Wireless LAN; VoIP

ACCOUNTING COORDINATOR – APT J3

Family name: TERIONG First name: Leo Ben Nationality Palauan Title PNCC Chief Financial Officer Areas of Graduated from the University of Guam in 1987 with a BBA (Bachelor’s of Business Administration) expertise and from Armstrong University in Berkeley, California in 1989 with an MBA. Since 2004, manages the Finance and Accounting Department to include financial planning, revenue collection, budgeting, accounting, and related PNCC programs. Establishes and implements guidelines and procedures for internal controls and reporting systems, including audit requirements. Manages the reporting and payment requirements of PNCC’s Rural Utilities Service Telephone Loan [borrower designation PW 0501]. Before joining PNCC he was employed for 15 years at Palau Community College, including Vice President for Administration and Finance.

INFORMATION SYSTEMS COORDINATOR – APT J3

Family name: SALUD First name: Marveen Nationality Filipino Title PNCC Network Systems Engineer/Acting Information Systems Manager

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Areas of Bachelor of Science in Computer Science, 1998, Data Center College of the Philippines expertise Research, planning, identification, and selection of the latest competing and appropriate technologies for cost-effective Internet Service and PNCC Corporate Network solutions for the near term while planning for rapid future expansion. Installs, configures, maintains, protects and troubleshoots Internet networks and PNCC Corporate networks and associated system components. Over ten years work experience in IT operations and management, including 5 years at PNCC. LAN Technology, Web Page Creation, Linux System Administration, Cellphone Repair, CISCO 1- Networking Basics, CISCO 2-Routers and Routing, CISCO 3-Switching Basics, CISCO 4-WAN Technology, Macromedia Flash, Wi-Fi/Wimax Certification, Windows Server & Operating Systems, DNS, Mail Servers, FTP Servers, Web Servers, LAN/WAN setup, network designs & implementations (wired or wireless), VLAN, Cisco Router configuration, T1/E1 & TDM over Ethernet, Network Monitoring Systems, SMS & MMS server for GSM.

OUTSIDE PLANT COORDINATOR – APT J3 Family name: BAI First name: Stalin Nationality Palauan Title PNCC Plant Operations Manager Areas of Responsible for the Management and Operation of the overall Network Services Outside Plant, which expertise includes, but not limited to the Telecom OSP; Plant Engineering/Documentation; Technical Digital TV Core Network; Business Systems and the general supervision of all personnel/staff. PNCC years of experience: 17. Areas of expertise: Construction, replacement, removal and maintenance of aerial and buried cables (including fiber optic), and related core plant facilities.

TRANSMISSION & SOLAR POWER COORDINATOR – APT J3 Family name: RULUKED First name: Richard

Nationality Palauan

Title PNCC Transmission Operations Manager Areas of Performs engineering duties related to the installation, operation and maintenance of expertise telecommunications network transmission and related systems. Provides expert engineering support services in the design, implementation and maintenance of all telecommunications network transmission and related systems and ancillary equipment. Coordinates and administers all transmission engineering projects according to established policies for cable, wireless, broadband, carrier, and satellite technologies. Earth Stations(Ground Equipment); Transmission Equipment (wireless, Cable & Fiber); Multiplexers. PNCC Years of Service: 23

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FINAL ACCOUNTING REPORT

Summary of the Financial Statement PNCC was awarded a total of USD $137,527.31 for the APT J3 Japan-Palau Rural Telecenter Pilot Project.

Sixty-three percent (63%) of the budget was allocated for equipment procurement and 13% for shipping costs, 15% for the business trips of the Japanese experts, while 9% was identified for miscellaneous expenses. Upon notification of the award, PNCC requested, and the APT Secretariat granted, a 60% drawdown to get started. A total of USD $82,516.00 was received by PNCC in May 2012 and the equipment procurement process was started in consultation with the Japanese experts (via teleconference). The equipment budget covered wireless access equipment, computers, software and peripherals needed to set up the telecenter with ten user stations, and a solar power system for the Telecenter sustainability, and for upgrading the telecommunications infrastructure to the rural state of Ngeremlengui to enable PNCC to provide broadband access services (including Wi-Fi hotspots, fixed line DSL subscriptions, and VLAN services). The building assessment conducted after the solar panels were received concluded that it was strong enough to bear the weight of the panels on its roof, so no additional concrete structure was needed (as proposed in the grant request for Miscellaneous funding). The construction costs to set up the Telecenter were borne by project partners Ngeremlengui State and PCC. PCC allocated two rooms in its Hatchery center. The building used for the Telecenter is located on Ngeremlengui State public land, and both the land and the building are provided free of charge by the State. PCC staff built the computer desks and renovated the rooms to accommodate the Telecenter, including installation airconditioning and security bars on the windows to protect the computer equipment. A back-up generator for the Telecenter and Hatchery buildings is provided at PCC’s cost. The battery room adjacent to the computer room

73 Palau APT J3 Final Report – October 2013 holds the battery banks for the new solar power system (supported by APT J3). PCC’s estimated construction costs to redesign and upgrade the building for the Telecenter are about $10,000. All the labor costs for the wiring, computer setup, and broadband equipment installation were borne by PNCC at an estimated total cost of $25,000 (500 technician labor hours @ USD $50 per hour). The budget for the business trips supported two visits to Palau by the Japanese experts. The first mission was at the beginning of the project for site surveys and design consultations, as well as meetings with stakeholders. The second mission was scheduled when the Telecenter was completed, and brought back the Japanese experts to train a key group of community members, hold follow up meetings with stakeholders, and conduct a workshop on disaster management through ICT. The second mission concluded with a graduation ceremony for the training program, and a ribbon-cutting ceremony to officially open the Telecenter to the public. The costs for the groundbreaking ceremony held July 2012 and the Telecenter Grand Opening Ceremony held March 2013 were shared by PCC, PNCC, and Ngeremlengui State. The Summary of the Financial Statement presented here reports how the grant award has been expended in accordance with the approved budget categories. See Section 2.2 for details of the expenditures.

Palau APT J3FINANCIAL STATEMENT - SUMMARY

Budget Category Budgeted Expended as of Balance October 31, 2013 Remaining (Award) of Total Award

1. Planning and -0- -0- -0- Investigation

2. Equipment procurement US$ 86,963.88 US$ 79,780.56 US$ 7,183.32

3. Shipping fee US$ 17,855.33 US$ 8,136.80 US$ 9,718.53

4. Business trips US$ 19,890.00 US$ 18,075.21 US$ 1,814.79

5. Miscellaneous US$ 12,818.10 US$ 363.68 US$ 12,454.42

Total Expenses: US$ 137,527.31 US$ 106,356.25 US$ 31,171.06

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Detailed Accounting Report

For the descriptions of all expenditures through October 2013, please see attached detailed accounting report.

www.palaunet.com

75 Palau APT J3 Final Report – October 2013