Leadership in Isolation: An Insight into Running a Water Utility in the Northwest Pacific

In the face of geographical seclusion and unique challenges, running a utility on a remote island demands a distinct blend of leadership, resilience, and innovation. One leader exemplifying these qualities is Frank Kyota, the Chief Executive of Palau Public Utilities Corporation (PPUC). In a recent episode of the Exec Exchange podcast, hosted by Piers Clark, Frank Kyota shared remarkable insights into managing a water utility in Palau, located in the Northwest Pacific. 

An Unconventional Journey to Leadership

Frank Kyota’s journey into the realm of public utilities is far from conventional. Graduating with a major in criminal justice in 1985, he initially ventured into academia, teaching community college courses. His transition into the utilities sector began in 1987 with Palau Petroleum Products, evolving from a small family business to a Shell agent. “It’s a really interesting story,” Piers Clark noted, highlighting Frank’s journey from corporate roles to public service and eventually to a leadership role at PPUC. After serving in Palau’s House of Delegates and the Senate, Frank embraced new challenges by applying for the CEO position at PPUC in 2021.

Geographic Context and Demographic Diversity

Palau, with a population ranging between 17,000 and 20,000, is located on the Westernmost Island of the North Pacific. “We are a multi-ethnic society,” Frank highlighted, noting significant communities from Filipino, Japanese, Bangladeshi, Korean, Chinese, and Taiwanese descents. This demographic diversity adds both complexity and richness to Palau’s societal fabric, influencing public utility operations and customer engagement.

Addressing Infrastructure Challenges with Strategic Partnerships

A noteworthy topic of discussion was Palau’s infrastructure upgrades facilitated by the Asian Development Bank (ADB). Key projects included improving the non-revenue water program and enhancing water treatment facilities. With ADB’s policy-based loans, PPUC tackled issues like outdated pumps and inefficient meters, pivotal in curtailing financial losses and enhancing operational efficiency. Frank shared that the aging asbestos cement pipes, replaced through a Japanese grant in 2016, had been a significant challenge. Subsequent improvements were made to pumps and meters to ensure accurate billing and reduce non-revenue water from 56% to 40%.

Workforce Retention: Challenges and Solutions

The remoteness of Palau presents unique workforce retention challenges, compounded by migration to the United States for better opportunities. Frank emphasized the importance of retaining local talent: “We need to stay home… to help build this nation.” Efforts to enhance local employment include emphasizing benefits like health insurance and pension plans, alongside international recruitment collaborations with countries like the Philippines.

Reflection and Gratitude

The discussion concluded with Frank reflecting on the profound impact of his parents’ guidance. “Where would I be without them?” he pondered, expressing gratitude for the discipline and encouragement that have shaped his career and leadership philosophy.

The insights shared by Frank Kyota underscore the tenacity and adaptability required to run a utility in isolated regions. Palau’s story is a testament to the power of strategic partnerships, community-focused leadership, and the relentless pursuit of innovation in overcoming geographic and infrastructural challenges.

For more stories of leadership and innovation in the water sector, tune in to the Exec Exchange podcast with host Piers Clark.