Samoa: Power Sector Expansion Project
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
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Project Officer
King, Grace
Pacific Department
Request for information -
Country/Economy
Samoa -
Sector
- Energy
Related Projects
Project Name | Power Sector Expansion Project | ||||||||||||||||||||||
Project Number | 38183-013 | ||||||||||||||||||||||
Country / Economy | Samoa |
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Project Status | Closed | ||||||||||||||||||||||
Project Type / Modality of Assistance | Grant Loan Technical Assistance |
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Source of Funding / Amount |
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Strategic Agendas | Inclusive economic growth |
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Drivers of Change | Governance and capacity development |
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Sector / Subsector | Energy / Energy sector development and institutional reform |
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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. |
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Impact | Access to sustainable and reliable electricity services at affordable prices. |
Project Outcome | |
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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 | |
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Environment | B |
Involuntary Resettlement | B |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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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 | |
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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 | |
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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 | |||||
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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 | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 54.00 | Cumulative Contract Awards | |||
ADB | 15.39 | 17 Jun 2022 | 15.39 | 0.00 | 100% |
Counterpart | 38.61 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 17 Jun 2022 | 15.39 | 0.00 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | - | Satisfactory | - | Satisfactory |
Grant 0101-SAM
Milestones | |||||
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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 | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 100.00 | Cumulative Contract Awards | |||
ADB | 0.00 | 17 Jun 2022 | 0.00 | 7.77 | 97% |
Counterpart | 92.00 | Cumulative Disbursements | |||
Cofinancing | 8.00 | 17 Jun 2022 | 0.00 | 7.77 | 97% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | - | Satisfactory | - | Satisfactory |
Loan 2368-SAM
Milestones | |||||
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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 | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 38.61 | Cumulative Contract Awards | |||
ADB | 26.61 | 17 Jun 2022 | 25.69 | 0.00 | 100% |
Counterpart | 12.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 17 Jun 2022 | 25.69 | 0.00 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | - | Satisfactory | - | Satisfactory |
Loan 8232-SAM
Milestones | |||||
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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 | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 38.00 | Cumulative Contract Awards | |||
ADB | 0.00 | 17 Jun 2022 | 0.00 | 44.75 | 100% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 38.00 | 17 Jun 2022 | 0.00 | 44.75 | 100% |
TA 4994-SAM
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
21 Nov 2007 | 05 Dec 2007 | 05 Dec 2007 | 14 Feb 2010 | 30 Jun 2011 | 31 Oct 2011 |
Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
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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 | 17 Jun 2022 | 1,425,002.77 |
Status of Covenants | ||||||
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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.
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
Title | Document Type | Document Date |
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Samoa: Power Sector Expansion Project | Validations of Project Completion Reports | Jun 2020 |
Related Publications
Title | Document Type | Document Date |
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Samoa: Fiaga Diesel Power Plant - Pacific Project Brief | Papers and Briefs | Dec 2016 |
Samoa: Alaoa Hydropower Refurbishment - Pacific Project Brief | Papers and Briefs | Dec 2016 |
Samoa: Prepayment Meter Rollout - Pacific Project Brief | Papers and Briefs | Dec 2016 |
Samoa: Transmission and Distribution Upgrade - Pacific Project Brief | Papers and Briefs | Dec 2016 |
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.
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Saving Lives with Reliable Electricity in Samoa
An expanded and improved power supply has increased investment and improved public services. -
Power to Samoa
The Taelefaga power station is one of a number of hydroelectric power plants in Samoa helping to boost the reliability of electricity for local businesses and families.
Tenders
Tender Title | Type | Status | Posting Date | Deadline |
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Project Manager - Power Sector Expansion Project | Individual - Consulting | Closed | 03 Dec 2017 | 12 Dec 2017 |
Loan 2368, Grant ADB 0087, Grant AUS 0101, JICA Loan 8232/SAM-P1-SAM: Power Sector Expansion Project [SAM-PSEP-TAEL/03A-2017] | Invitation for Bids | Closed | 01 Jun 2017 | 17 Jul 2017 |
Loan 2368, Grant ADB 0087, Grant AUS 0101, JICA Loan 8232/SAM-P1-SAM: Power Sector Expansion Project[SAM-PSEP-SAM/01-2017-Supply and Installation of AMI Smart Meters and AMI Solution and Replacement of Vending System of STS Prepayment Meters] | Invitation for Bids | Closed | 27 Mar 2017 | 08 May 2017 |
Contracts Awarded
Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
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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 | 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 | 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 | 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 | 230,993.84 | 69,328.23 |
Procurement Plan
Title | Document Type | Document Date |
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Proposed Loan | Procurement Plans | Oct 2007 |