Samoa: Power Sector Expansion Project

Sovereign Project | 38183-013 Status: Active

Summary

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.

Latest Project Documents

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

Procurement Documents

Title Date
Proposed Loan Oct 2007

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.

 
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
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
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

Project Outcome

Description of Outcome Improved quality, reliability, and cost-effectiveness of power supply.
Progress Toward Outcome

1. Hospital Feeder Upgrading Project - Stages 1 and 2 have been completed.

2. Single- and Three-Phase Prepayment Metering Project - project goal of 75% of total number of customers on prepayment meters has been achieved (currently 98%). Additional smart remote reading metering will be procured and installed in 2016.

3. Candidate subprojects - project goal of 4 generation and 11 transmission subprojects has been achieved, as well as an additional 7 generation and 1 transmission subprojects. 1 generation subproject on Upolu is ongoing and 6 subprojects are at the planning stage.

4. 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)

Procedures reviewed in August 2008 and revised procedures implemented.

Fuel audits at both Upolu and Savaii generation stations introduced 1 May 2008 and are now conducted monthly, with results reported to Board.

In response to changes in costs, EPC regularly submits adjustments to the tariff rates to the Regulator for approval, before implementation.

98% of all customers are using prepayment meters.

As of 30 June 2015, accounts receivables was 1.22 months of sales; self-financing ratio was 17.70%; and debt-service ratio was 1.21.

Baseline figures of Total System losses established on a 12-month moving average at Sep 2008 are: Upolu: 15.7%; Savaii: 18.2%; EPC: 15.9%

Updated 12 month moving average of total system losses now reported monthly to the Board. End of Dec 2008 are: Upolu: 171%; Savaii 18.2%; EPC: 17.2%

Not possible to calculate technical losses due to lack of metering and dedicated resources.

Not possible to calculate non-technical losses - this can only be calculated as "total system loss - technical loss"

Technical loss is established to be 13.5% from studies by the Japanese volunteer and PMU in 4th Qtr 2008.

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

A review of the current EPC Act 1980 and developing of Regulations commenced in September 2015 - EPC is self-funding this work.

The Office of the Regulator of Telecommunication Sector, which was established in 2006, was also appointed as the Power Sector Regulator in 2010.

The Electricity Act 2010 was passed into law in 2010.

Not within scope of this Project but undertaken under a separate funded project by others.

Not within scope of this Project.

Not within scope of this Project.

Not within scope of this Project.

Geographical Location Independent State of Samoa

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, as well as the semi-annual safeguards reporting.
Involuntary Resettlement
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 Staff

Responsible ADB Officer Grace King
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of Finance
Hinauri Petana
hinauri.petana@mof.gov.ws
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 30 Mar 2016

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 - -
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 13.11 0.00 85%
Counterpart 38.61 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2007 12.99 0.00 84%

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 - -
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 7.87 98%
Counterpart 92.00 Cumulative Disbursements
Cofinancing 8.00 21 Nov 2007 0.00 7.67 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 - -
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 25.15 0.00 96%
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2007 25.12 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 37.79 75%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 38.00 04 Oct 2007 0.00 37.74 75%

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

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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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.