Palau Cable 2 (PC2) is a subsea cable of approximately 110km to connect the Palau Repblic with a large-capacity submarine optical cable that connects Southeast Asia and the U.S. mainland (Echo subsea cable system).

PC2 adopts the latest optical wavelength multiplexing transmission system of 100Gbps.

Palau Cable 2 is invested and owned by the National Submarine Cable Utility Belau Submarine Cable Corporation (BSCC) of the Palau Republic, costs about US$30 million.

Japan, the United States and Australia provide joint financing support for the Palau Cable 2 project, which marks the first project to be delivered under the Trilateral Partnership for Infrastructure Investment in the Indo-Pacific between the United States, Australia and Japan.

The Japan Bank for International Cooperation (JBIC) and Sumitomo Mitsui Banking Corporation (SMBC) signed a buyer’s credit (export finance) loan agreement with BSCC. The loan portion from SMBC is insured by Nippon Export and Investment Insurance (NEXI).

Australia, through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), provides a financing package which includes a loan of AUD12.6 million and a grant of AUD2.1 million, with a further AUD0.8 million contributed by the Australian Government via a bilateral grant.

Additional financing is from Palau’s CRA CIP funds with the approval of the United States.

The Palau Republic provides sovereign guarantees against the loans by Japan and Australia.

NEC is the supplier for the Palau Cable 2 project as well as the Echo subsea cable system to which the Palau Cable 2 will be connected. 

NEC supplied the first optical submarine cable connecting the Palau Repblic in 2017, the Palau Cable 1 (PC 1).

Palau Cable 2 and Palau Cable 1 will ensure the redundancy of Palau's network, realizes highly reliable communications, and responds to the increasing demand for communications, thereby contributing to further economic development in Palau.