38183-013: Power Sector Expansion Project | Asian Development Bank

Samoa: Power Sector Expansion Project

Sovereign (Public) Project | 38183-013 Status: Active

The Project supports the Government's overarching objective of providing sustainable and reliable electricity services to all consumers at cost-efficient prices. The Project will improve the capacity of the power sector to meet growing electricity demand and improve quality, reliability, and cost-effectiveness of power supply by (i) improving the financial performance of EPC, (ii) supporting EPC's investment plan to meet growing demand, (iii) improving the operational efficiency of EPC, and (iv) establishing effective regulation of the power sector.

Project Details

Project Officer
King, Grace Pacific Department Request for information
Country
  • Samoa
Modality
  • Grant
  • Loan
  • Technical Assistance
Sector
  • Energy
 
Project Name Power Sector Expansion Project
Project Number 38183-013
Country Samoa
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0087-SAM: Power Sector Expansion Project
concessional ordinary capital resources lending / Asian Development Fund US$ 15.39 million
Grant 0101-SAM: Power Sector Expansion Project (Funded by the Government of Australia)
Government of Australia US$ 8.00 million
Loan 2368-SAM: Power Sector Expansion Project
concessional ordinary capital resources lending / Asian Development Fund US$ 26.61 million
Loan 8232-SAM: Power Sector Expansion Project
Japan Bank for International Cooperation US$ 38.00 million
TA 4994-SAM: Implementing the Samoa National Energy Policy
Government of Australia US$ 900,000.00
Finland (w/ LoA) US$ 350,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming No gender elements
Description The Project supports the Government's overarching objective of providing sustainable and reliable electricity services to all consumers at cost-efficient prices. The Project will improve the capacity of the power sector to meet growing electricity demand and improve quality, reliability, and cost-effectiveness of power supply by (i) improving the financial performance of EPC, (ii) supporting EPC's investment plan to meet growing demand, (iii) improving the operational efficiency of EPC, and (iv) establishing effective regulation of the power sector.
Project Rationale and Linkage to Country/Regional Strategy

Reliable power supply is essential for enhancing the quality of life of all Samoans. Good performance of the power sector and reliable electricity services are vital for promoting private sector investments to diversify the economy and achieve sustainable economic growth. The performance of the power sector is increasingly becoming a hindrance to economic growth. High system losses and voltage drops have resulted in poor reliability and quality of electricity supply. As a consequence, consumers are resorting to more expensive self-generation.

With peak demand growing at about 3% annually in the medium term, EPC's challenge is to improve its operational efficiency and financial performance while ensuring sufficient generation and transmission capacity is available to provide a reliable and high quality electricity supply.

EPC's investment plan 2008-2015 is driven by (i) the need to improve EPC's collection performance, (ii) the need to remove transmission bottlenecks to improve reliability and quality of supply, and (iii) capacity requirements to meet growing peak demands. In the longer term, the objective is to reduce Samoa's reliance on imported fuels by promoting clean, indigenous, and renewable energy resources.

Although Samoa's debt situation has significantly improved, the economy remains import-dependent and vulnerable to climatic and global price shocks. The Asian Development Fund (ADF) grant to the Government will ease the macroeconomic impact of the large financing requirements in the power sector.

Impact Access to sustainable and reliable electricity services at affordable prices.
Project Outcome
Description of Outcome Improved quality, reliability, and cost-effectiveness of power supply.
Progress Toward Outcome The project has progressed satisfactorily and at July 2017, overall implementation was 90.5%. EPC's original investment plan comprised: (i) 4 generation projects; (ii) 11 transmission projects; (iii) single- and three-phase prepayment metering project; (iv) a system for control and data acquisition (SCADA); and (v) portable equipment for measuring voltage and current stream-flow gauging, with an estimated completion date of 30 June 2016. To date, 11 generation projects and 25 transmission projects have been completed and the single- and three-phased prepayment metering, SCADA and portable equipment for measuring voltage and current stream-flow gauging, have been procured. Contracts have been signed for additional current transformers, 33KV tieline upgrade from Taelefaga hydropower station and battery energy storage systems. Project management consulting services are ongoing.
Implementation Progress
Description of Project Outputs

The financial performance of EPC improves.

Operational efficiency of EPC improves

EPC's investment plan meets demand requirements.

Effective regulation of the power sector is established.

Energy demand-side management

Development of clean energy.

EPC's investment plan meets demand requirements

Status of Implementation Progress (Outputs, Activities, and Issues)

EPC's disconnection policy reviewed in August 2008 and revised procedures implemented. Fuel audits at Upolu and Savaii generation stations, introduced May 2008, conducted monthly and results reported to the Board. EPC regularly submits adjustments to tariff rates to the Regulator for approval, before implementation. 90% of all customers use prepayment meters and as of 30 June 2016, accounts receivables was 1.51 months of sales, self-financing ratio was 156.4%, and debt-service ratio was 2.03.

Baseline figures of Total System losses established on a 12-month moving average in September 2008 are: Upolu 15.7%, Savaii 18.2% and EPC 15.9%. Updated 12 month moving average of total system losses now reported monthly to the Board.

EPC investment plan meets estimated demand and is regularly updated to address needs.

The Electricity Act 2010 was passed into law in 2010. A review of the current EPC Act 1980 and the developing of Regulations has commenced and is scheduled for completion in January 2018. The Office of the Regulator of Telecommunication Sector, which was established in 2006, was also appointed as the Power Sector Regulator in 2010.

Public awareness activities for energy conservation and demand-side management is ongoing.

US$1m from the Clean Energy Fund will fund part of the rehabilitation of 3 and construction of 2 new hydropower stations under another ADB project - Renewable Energy Development and Power Sector Rehabilitation Project. Rehabilitation works will be completed in 2017 and construction of the new hydropower stations are scheduled for completion in 2018.

Geographical Location Apia, Mulinu'u Point, Saleufi, Tanugamanono, Togafuafua, Tuamasaga, Upolu, Vaimauga West
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects IEE and associated construction environmental management plans are routinely monitored. EPC have prepared environmental compliance reporting and have been reporting semi-annually on safeguards with the recent reporting period of January-June 2017. The required due diligence for the new candidate subprojects have been cleared.
Involuntary Resettlement The required due diligence for the new candidate subprojects have been cleared.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consulting services will be required for (i) project management, (ii) preparation of candidate subprojects, (iii) construction supervision, and (iv) contract management. Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Firms carrying out project implementation consulting services will be selected through international competition using quality-and cost-based selection method. The project manager will be recruited internationally as an individual for an initial period of 36 months. Consultants mobilized.
Procurement

The equipment, materials, and works financed by the proceeds of the ADB and JBIC loans will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). ADB's standard bid documents will be used for procuring ADB and JBIC financed goods and services. The requirements of any environmental monitoring and management plans will be reflected in all civil works bidding and contract documents.

International competitive bidding will apply to core subprojects. Procurement comprise a plant design, supply and install contract for Component A, and a supply and install contract for Component B.

Responsible ADB Officer King, Grace
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of Finance
Hinauri Petana
[email protected]
Central Bank Building, Matafele, Apia, Samoa
Timetable
Concept Clearance 03 Sep 2006
Fact Finding 23 Apr 2007 to 11 May 2007
MRM 19 Jun 2007
Approval 21 Nov 2007
Last Review Mission -
PDS Creation Date 27 Jan 2008
Last PDS Update 06 Sep 2017

Grant 0087-SAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2007 11 Dec 2007 19 Jun 2008 31 Dec 2016 31 Aug 2018 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 54.00 Cumulative Contract Awards
ADB 15.39 21 Nov 2007 13.44 0.00 87%
Counterpart 38.61 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2007 13.31 0.00 86%

Grant 0101-SAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2007 18 Dec 2007 19 Jun 2008 31 Dec 2016 31 Aug 2018 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 0.00 21 Nov 2007 0.00 7.99 100%
Counterpart 92.00 Cumulative Disbursements
Cofinancing 8.00 21 Nov 2007 0.00 7.70 96%

Loan 2368-SAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2007 11 Dec 2007 19 Jun 2008 31 Dec 2016 31 Aug 2018 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 38.61 Cumulative Contract Awards
ADB 26.61 21 Nov 2007 25.40 0.00 97%
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2007 25.21 0.00 96%

Loan 8232-SAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Oct 2007 10 Dec 2007 14 May 2008 14 Nov 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 38.00 Cumulative Contract Awards
ADB 0.00 04 Oct 2007 0.00 46.90 95%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 38.00 04 Oct 2007 0.00 44.75 91%

TA 4994-SAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2007 05 Dec 2007 05 Dec 2007 14 Feb 2010 30 Jun 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,250,000.00 335,000.00 0.00 0.00 0.00 1,585,000.00 21 Nov 2007 1,425,002.77

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Power Sector Expansion Project: Environmental and Social Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Jul 2017
Power Sector Expansion Project: Environmental and Social Monitoring Report (July-December 2016) Environmental and Social Monitoring Reports Jan 2017
Power Sector Expansion Project: Environmental and Social Monitoring Report (January-June 2016) Environmental and Social Monitoring Reports Jul 2016
Power Sector Expansion Project: Environmental and Social Monitoring Report (July-December 2015) Environmental and Social Monitoring Reports Jan 2016
Power Sector Expansion Project: Environmental and Social Monitoring Report (January-June 2015) Environmental and Social Monitoring Reports Jul 2015
Power Sector Expansion Project: Environmental and Social Monitoring Report (July-December 2014) Environmental and Social Monitoring Reports Dec 2014
Power Sector Expansion Project: Environmental and Social Monitoring Report (January-June 2014) Environmental and Social Monitoring Reports Jun 2014
Power Sector Expansion Project: Environmental and Social Monitoring Report (June-December 2013) Environmental and Social Monitoring Reports Dec 2013
Power Sector Expansion Project: Environmental Monitoring Report (August 2013) Environmental Monitoring Reports Aug 2013
Power Sector Expansion Project: Resettlement Plan for Vaiaata Power Station Subproject Resettlement Plans Apr 2012
Power Sector Expansion Project Environmental Assessment and Measures Jul 2007
Power Sector Expansion Project Environmental Assessment and Review Framework May 2007

Evaluation Documents See also: Independent Evaluation

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Project Manager - Fonoti Perelini S. Perelini (Note: Account Name Is A Joint Fonoti & Malia) Grant 0087 28 Apr 2017 Mr. Fonoti Perelini Perelini Sogi Apia Samoa Ministry of Finance; Electric Power Corporation Project Manager - Fonoti Perelini S. Perelini (Note: Account Name Is A Joint Fonoti & Malia) 137750
Design, Install and Commission 2 X 10Mva Transformers Loan 2368 20 Mar 2017 North Power Ltd. Whangarei Auckland New Zealand Ministry of Finance Supply of Goods 577866.38 178087.093
The Design, Supply and Installation of CT's, Cabinets and Associated Hardware Systems for Lot B Loan 2368 20 Feb 2017 Intracor Commodity Exports Ltd. Ellerslie Auckland New Zealand Ministry of Finance Supply of Goods 230993.84 69328.226

Procurement Plan

Title Document Type Document Date
Proposed Loan Procurement Plans Oct 2007