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Samoa: Power Sector Expansion Project

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

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 Name Power Sector Expansion Project
Project Number 38183-013
Country Samoa
Project Status Closed
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
Finland (w/ LoA) US$ 350,000.00
Government of Australia US$ 900,000.00
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 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. The project closing date was extended to 31 August 2018 and 13 generation projects and 26 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.
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) Procedures reviewed in August 2008 and revised procedures implemented. Fuel audits at both Upolu and Savaii generation stations introduced 1 May 2008 and now routinely conducted monthly. Results reported monthly to the Board. EPC calculates Energy Charge and submits it to the Regulator for approval before it is applied for tariff to customers. Energy Charge is adjusted every month and Debt and Usage Charges are revised and adjusted annually.

As at 30 June 2013, Account Receivables was 0.89 months of sales; as at 30 June 2014, 1.44 months; as at 30 June 2015, 1.22 months; as at 30 June 2016 1.51 months; and as at 30 June 2017, 3.09 months.

As at 30 Dec 2014, Govt share of EPC's accounts receivables was 14.56%.

As of 31 December 2012, 80%; as at 31 October 2016, 90% or 33,000 prepayment meters installed of total 36,000 electricity customers.

As of 30 June 2018, there are 40,088 customers - 37,150 are using prepayment meters and 2,938 are using readable meters.

As at 30 June 2013, self-financing ratio was 11.6%, as at 30 June 2014, 7.5%; as at 30 June 2015, 17.7%; as at 30 June 2016, 156.4%; and as at 30 June 2017, 43.8%.

As at 30 June 2013, debt-service ratio was 2.25; as at 30 June 2014, 1.33; as at 30 June 2015, 1.21; as at 30 June 2016, 1.51; and as at 30 June 2017, 1.58.

2) 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%

Technical loss is established to be 13.5% from study by a Japanese volunteer and PMU in 4th Qtr 2008. Technical loss at 30 June 2015 and 31 October 2016 7%.

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

As at end of financial year 30 Jun 2015 the non-technical losses is 4% and as at 30 Jun 2016, 3%.

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

4) The Electricity Act 2010 was passed into law in 2010.

A review of EPC Act commenced in September 2015 but was put on hold, pending a decision as to whether EPC is to be registered under the Companies Act. The review resumed in May 2016 and EPC received OAG's report in June 2017. EPC will seek Cabinet's advice before they can start the process to register as Company, after which the EPC Act can be finalized and submitted for Cabinet and Parliament consideration.

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

5) Public awareness activities by EPC are ongoing. EPC works with MNRE on demand side management. Related project to conserve electricity is installation of energy efficient street lights to replace old high consumption lines.

6) No projects are financed by the CEF under the PSEP.

MOF have not pursued implementation of the CDM.

Baseline was determined before Cyclone Evan hit Samoa in December 2012 which damaged Samasoni and Fale o le fee hydros and the main water intake and headrace at Alaoa hydro which reduced energy generation from Alaoa hydro.

As of 30 June 2015, electricity produced by clean energy is 34 GWh and as at 30 June 2016, it was 37 GWh.

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 July-December 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 20 Sep 2018

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 28 Dec 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 15.39 0.00 100%
Counterpart 38.61 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2007 15.39 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - Satisfactory - Satisfactory

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 28 Dec 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 7.77 97%
Counterpart 92.00 Cumulative Disbursements
Cofinancing 8.00 21 Nov 2007 0.00 7.77 97%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - Satisfactory - Satisfactory

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 28 Dec 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 25.69 0.00 100%
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 21 Nov 2007 25.69 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - Satisfactory - Satisfactory

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 - 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 44.75 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 38.00 04 Oct 2007 0.00 44.75 100%

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
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Unsatisfactory - Satisfactory - Satisfactory

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 Access to Information Policy (AIP) 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.

Title Document Type Document Date
Power Sector Expansion Project: Completion Report Project/Program Completion Reports Nov 2019
Power Sector Expansion Project: Audited Project Financial Statements (30 June 2018 - 31 March 2019) Audited Project Financial Statements Jun 2019
Power Sector Expansion Project: Audited Project Financial Statements (30 June 2017-30 June 2018) Audited Project Financial Statements Dec 2018
Power Sector Expansion Project: Audited Project Financial Statements (For Year Ended 30 June 2017) Audited Project Financial Statements Jan 2018
Power Sector Expansion Project: Audited Project Financial Statements (For Year Ended 30 June 2016) Audited Project Financial Statements Dec 2016
Power Sector Expansion Project: Audited Project Financial Statements (For Year Ended 30 June 2015) Audited Project Financial Statements Jan 2016
Power Sector Expansion Project: Project Procurement-Related Review - Follow-up Review Report Proactive Integrity Reviews (PIR, formerly known as PPRR) Jun 2015
Power Sector Expansion Project: Audited Project Financial Statements (For Year Ended 30 June 2014) Audited Project Financial Statements Dec 2014
Power Sector Expansion Project: Audited Project Financial Statements (For Year Ended 30 June 2013) Audited Project Financial Statements Jan 2014
Implementing the Samoa National Energy Policy TA Completion Reports Sep 2012
Power Sector Expansion Project Proactive Integrity Reviews (PIR, formerly known as PPRR) Jun 2012
Implementing the Samoa National Energy Policy (Component 3) Consultants' Reports Jun 2011
Financing Agreement for Power Sector Expansion Project between Independent State of Samoa and Asian Development Bank dated 11 December 2007 Financing Agreement Dec 2007
Project Agreement for Power Sector Expansion Project between Asian Development Bank and Electric Power Corporation dated 11 December 2007 Project/Program Agreements Dec 2007
Power Sector Expansion Project Reports and Recommendations of the President Oct 2007
Technical Assistance Cluster for Implementing the Samoa National Energy Policy (Financed by the Government of Australia Technical Assistance Reports Oct 2007
Proposed Loan Procurement Plans Oct 2007
Power Sector Expansion Project Project/Program Administration Manual Oct 2007
Power Sector Expansion Project Design and Monitoring Frameworks Jun 2007

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-August 2018) Environmental and Social Monitoring Reports Aug 2018
Power Sector Expansion Project: Environmental and Social Monitoring Report (July-December 2017) Environmental and Social Monitoring Reports Jan 2018
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

Title Document Type Document Date
Samoa: Power Sector Expansion Project Validations of Project Completion Reports Jun 2020

The Access to Information Policy (AIP) 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$) Contract Amount Financed by ADB (US$)
MODELLING, DESIGN, BUILDING, INSTALLATION, TESTING COMMISSIONING & INTEGRATION OF BATTERY ENERGY STORAGE SYSTEMS & CONTROLLERS IN UPOLU Loan 2368 25 Jan 2018 SOLAR CITY CORPORATION SAN MATEO, CA 9440 UNITED STATES OF AMERICA UNITED STATES Ministry of Finance SUPPLY OF GOODS 8,844,818.00 325,102.00
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) 137,750.00
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 577,866.38 178,087.09
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 230,993.84 69,328.23

Procurement Plan

Title Document Type Document Date
Proposed Loan Procurement Plans Oct 2007