fbpx 47320-001: Samoa Submarine Cable Project | Asian Development Bank

Samoa: Samoa Submarine Cable Project

Sovereign (Public) Project | 47320-001 Status: Active

The Asian Development Bank is working with Samoa to provide people fast and affordable internet access. The project is building a submarine cable that will link Samoa to Fiji’s international cable network.

Project Details

Project Officer
Sibesh Bhattacharya Pacific Department Request for information
Country
  • Samoa
Modality
  • Grant
Sector
  • Information and communication technology
 
Project Name Samoa Submarine Cable Project
Project Number 47320-001
Country Samoa
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0458-SAM: Samoa Submarine Cable Project
concessional ordinary capital resources lending / Asian Development Fund US$ 25.00 million
Grant: Samoa Submarine Cable Project
World Bank US$ 16.00 million
Government of Australia US$ 1.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Partnerships
Private sector development
Sector / Subsector

Health / Health system development

Information and communication technology / ICT infrastructure

Gender Equity and Mainstreaming Some gender elements
Description The proposed project will improve international broadband connectivity of Samoa. The proposed project focuses on building a submarine cable system (SCS) connecting Samoa to regional and global communications infrastructure.
Project Rationale and Linkage to Country/Regional Strategy

Samoa was one of the first Pacific countries to open telecommunications up to competition through the Telecommunications Act 2005. Following market liberalization, total customers for fixed and mobile lines increased from 12,500 in 2002 to 152,800 in 2008. As of end 2014, over 95% of the population was covered by mobile networks, while mobile penetration had reached 89% of network covered population. However, internet access is lagging significantly, due to high access costs relative to income levels. Broadband penetration was estimated at about 1% fixed and 27% mobile. Projected demand, if prices are lowered, is expected to grow from the current level of about 420 megabits per second to 6 gigabits (Gbps) per second by 2021, and to 30 Gbps by 2028.

Internet prices are driven by the high wholesale internet bandwidth costs. Samoa relies on a submarine cable and satellite service for its international internet connectivity. Samoa is connected to the American Samoa Hawaii cable system via the Samoa-American Samoa cable, which has a remaining useful life of 5 years. The current system capacity of 1 Gbps is above Samoa's current bandwidth demand, but is significantly below projected bandwidth demand. The proposed submarine cable system (SCS), with a minimum capacity of 1 terabits per second and a regulated bandwidth price below current price levels, can facilitate broader internet access and meet Samoa's growing demand. The current ICT service providers are interested in investing in the SCS as a long-term solution to their capacity needs. However, given the significant project cost, there is insufficient private sector interest to invest in such a cable. Therefore, the government is supporting the investment to bridge the gap between the economic and financial viability of the project. ADB supported similar projects in Tonga (also jointly financed with the World Bank) and the Solomon Islands.

The Office of the Regulator (OOTR) was established in 2006 to regulate telecommunications, and has functioned as a multi-sector regulator, including electricity services, since 2013. The proposed SCS aims to improve access to international connectivity; hence, the government requires support to strengthen the legal and regulatory environment, and capacity of the OOTR to regulate international connectivity services to protect the long term interests of consumers. Strong and robust regulation is essential to ensure the Samoa Submarine Cable Company (SSCC) does not engage in monopoly pricing or other anticompetitive behavior.

The ICT sector is recognized as an enabler of economic growth and development. Reliable and affordable ICT helps create new business opportunities and with it employment. The proposed project will cater to increased demand for high-bandwidth applications by businesses, households and individuals. In 2014, the government launched the Samoa National Broadband Highway, an internet ready fiber/mobile network linking all government offices, schools and hospitals. With affordable international connectivity, the proposed SCS will enhance the domestic network's delivery of improved public services.

The government has already adopted elements of e-education with the support of development partners and ADB also provided support for an online secured transactions registry and an online company registration. The government has now selected the health sector for implementation of an e-strategy to improve service delivery and reduce the reliance on overseas medical care. The Samoa Ministry of Health (MOH) is planning and designing investments to effectively implement its 5-year health information strategy and has undertaken an initial needs appraisal which identified a patient information system as a priority. The project will help the government implement an e-health patient information solution, and explore e/m-health initiatives utilizing improved ICT accessibility domestically through the national broadband highway and internationally through the SCS.

The proposed project is consistent with ADB's Pacific Interim Approach 2015 and Samoa's country operations business plan 2015 2017. It also aligns with a key outcome of the Strategy for the Development of Samoa 2012 2016 to facilitate _universal access to reliable and affordable ICT services._

Impact Universal access to reliable and affordable ICT services (Strategy for the Development of Samoa 2012-2014)
Project Outcome
Description of Outcome Quality broadband services available at an affordable price and used for enhancing e-health.
Progress Toward Outcome The SCS (Tui Samoa Cable) was officially launched on 9 February 2018. One of the operators, Digicel Samoa, has signed on and gone live and customers are already experiencing improved internet connection and reduced prices (more data for same price). Plans are underway to construct backhaul to allow other smaller operators to be connected as well as key institutions and the Samoa broadband highway. This will enhance connection for e-health once that component is completed.
Implementation Progress
Description of Project Outputs

1. Special purpose vehicle-the SSCC-to operate and manage the SCS established

2. SCS established and efficiently operated

3. Legal and regulatory environment improved

4. Investments in e-health solutions

Project Management Activities

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

1. SSCC is established, the Board of Directors appointed and CEO recruited. SSCC now fully manages the SCS.

2. The Tui Samoa Cable was officially launched in February 2018 and is now operational.

3. Ongoing.

4. Ongoing.

Project is on-track.

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects During construction and installation of the cable, the environmental impacts as expected were site-specific and limited to the cable route, landing sites and landward cable routes. The environmental management plan was updated during marine route survey and detailed design. The government and subsequently SSCC has adequate institutional capacity to manage the environmental risk.
Involuntary Resettlement The cable landing sites and stations are on government land and the cable route to the cable stations follow existing road corridors. No impact on livelihoods or physical displacement was needed.
Indigenous Peoples The project areas comprise Samoa's mainstream population. The project did not impact any distinct and vulnerable indigenous people.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were held with relevant stakeholders in particular residents of project areas as well as key organizations like NGOs and private sector particularly on environment and social safeguards. These were well documented and contributed to the IEE and safeguards reports.
During Project Implementation The site for the cable station on Upolu was changed; hence, another round of consultations were held particularly with residents around the new site.
Business Opportunities
Consulting Services A consulting firm for Technical Support Team to assist the Health Sector in Managing and Operating the eHealth Project has been engaged in August 2018 to support the implementation of eHealth policy area and strategies.
Procurement

A consulting firm has been engaged in November 2016 to design, manufacture, test, deliver, install, complete and commission Facilities, viz Samoa Submarine Cable System Extended Configuration.

Activities under the package is nearing completion.

Responsible ADB Officer Sibesh Bhattacharya
Responsible ADB Department Pacific Department
Responsible ADB Division PATC
Executing Agencies
Ministry of Finance
[email protected]
Ministry of Finance
Government of Samoa
Private Bag, Apia, Samoa
Timetable
Concept Clearance 15 Apr 2015
Fact Finding 15 Apr 2015 to 24 Apr 2015
MRM 07 Sep 2015
Approval 23 Nov 2015
Last Review Mission -
Last PDS Update 28 Sep 2018

Grant 0458-SAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Nov 2015 03 Dec 2015 09 Feb 2016 30 Jun 2020 30 Jun 2021 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 57.41 Cumulative Contract Awards
ADB 25.00 20 Nov 2015 14.04 0.00 56%
Counterpart 14.91 Cumulative Disbursements
Cofinancing 17.50 20 Nov 2015 13.60 0.00 54%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - 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.

Title Document Type Document Date
Submarine Cable Project: Indigenous Peoples Due Diligence Report Safeguards Due Diligence Reports Jul 2015
Submarine Cable Project: Involuntary Resettlement Due Diligence Report Safeguards Due Diligence Reports Jul 2015
Submarine Cable Project: Initial Environmental Examination Initial Environmental Examination Jul 2015

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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.

Tenders

Tender Title Type Status Posting Date Deadline
47320-SAM: Samoa Submarine Cable Project Advance Notice Archived 07 Jul 2015

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Samoa Submarine Cable Project: Procurement Plan Procurement Plans Jul 2019