Palau's efforts to ensure reliable, secure digital connectivity in the country are back on track.
Palau has secured a partnership with Australia, Japan and the United States to finance a second internet submarine cable to the island nation.
Outgoing Palau President Tommy Remengesau Junior said the Covid-19 pandemic had initially shelved the project valued at $US30 million.
Remengesau said reliable, low-cost, high-speed internet connectivity was critical for government services, business connections to global markets and community ties.
He said if the existing cable was damaged, Palau's capacity would plummet to 10 percent of its current demand.
"With all our development, we are one disaster away from losing so much progress," Remengesau said.
The outgoing leader, who has reached his term limit, said the country was fortunate to have friends like Australia, Japan and the United States.
"With their partnership, we will continue to maintain our development progress in the face of this unprecedented challenge."
The Palau spur cable is the first project under the Trilateral Partnership for Infrastructure Investment in the Indo-Pacific between Australia, Japan and the US.
In May, Australia announced it was providing $US561,000 for a marine survey that will support preparations for a second internet submarine cable into Palau.
Speaking at the launch, Australia's Foreign Minister Senator Marise Payne said this was a shared commitment to delivering sustainable, transparent, high-quality infrastructure projects in the region.
Payne said the spur cable would connect Palau to a new cable which would span the Indo-Pacific region from Singapore to the west coast of the US.
She paid tribute to the strong bilateral relationship Australia and Palau had.
"As part of Australia's Pacific Step-Up, Australia recently opened its first Embassy in Palau which bolsters Australia's diplomatic network - already the largest in the region of any country.
"We are very pleased to work alongside Japan and the United States to support Palau's vision to strengthen its global internet connectivity."
Payne said Australia had allocated $US10 million to the Palau cable project.
This, she said, included $US1.4m for a marine survey and branching unit, and a loan of $US9m from the Australian Infrastructure Financing Facility for the Pacific (AIFFP) to help finance the construction of the cable.
Payne said Japan, the US and Palau are also making significant contributions towards the project.
The new project builds on Australia's support to the Coral Sea Cable System, which consists of 4,700km of cable connecting Port Moresby, Honiara and Sydney, she said.
"Australia is also supporting the scoping of Timor-Leste's first undersea fibre optic cable, through the provision of financing for the Front End Engineering Design for this important telecommunications project, at the request of the Government of Timor-Leste."