Samoa: Power Sector Expansion Project

Sovereign Project | 38183-013

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

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Procurement Notices

See also: Operational Procurement

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Procurement Documents

Title Document Date
Proposed Loan Oct 2007

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Project Name Power Sector Expansion Project
Project Number 38183-013
Country Samoa
Project Status Approved
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
Australian Grant 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
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

Of the core projects under the loan:

1.Hospital Feeder Upgrade Stage 1 and 2 is 100% complete.

2.Single and three phase Prepay metering - project goal of 75% of total number of active meters on prepayment meters have been achieved (currently 98%).

3.Project management consulting services are ongoing.

A total of 8 candidate subprojects are in various stages of implementation and preparation.

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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)

1. Financial performance shows improvement e.g. government debt (of total debt) is 25.46%, percentage of government sales (of total sales) is 8.47%; debt/sales ratio is 15.43%; and customer arrears are at 47.4 days.

2. Operational efficiency improves, that is, quality of supply indices estimated SAIFI and SAIDI indicate improvement; and estimated system losses is 14.58%.

3. Investment plan is regularly updated to address sector needs.

4. The legal and regulatory framework is still ongoing. In 2010 the Electricity Act 2010 became effective including the provisions for the Regulator. However, the EPC Act 1980 has yet to be amended.

5. Demand side management has improved with the installation of 98% of pre-paid meters and on-going awareness raising.

6. The Clean Energy Fund and the operational framework has been established by the Ministry of Finance.

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 ADB Officer Grace King
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of FinanceHinauri Petanahinauri.petana@mof.gov.wsCentral 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 19 Mar 2015

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 13.15 0.00 85%
Counterpart 38.61 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2007 12.73 0.00 83%

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 7.94 99%
Counterpart 92.00 Cumulative Disbursements
Cofinancing 8.00 21 Nov 2007 0.00 7.64 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 25.36 0.00 97%
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2007 24.80 0.00 94%

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 38.07 79%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 38.00 04 Oct 2007 0.00 36.97 76%

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
0.00 350,000.00 335,000.00 0.00 0.00 0.00 685,000.00 21 Nov 2007 1,425,002.77

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
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 Planning Documents Apr 2012
Power Sector Expansion Project: Resettlement Plan for Vaiaata Power Station Subproject Resettlement Planning Documents 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

No documents found.


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