%Pwt NW.1U43-AP Pacific Islands TransportSector Study Public Disclosure Authorized (in SevenVolumes) VolumeIV: WesternSamoa -Transport SectorSurvey March1993 Infrastructureoperations Division CountryDepartment III EastAsia and Pacific Region FOROFFICIAL USE ONLY
wj~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~7~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Thisdocufmet has a restricteddistribution and may be usedby recipients @t41inthe *eefornanceof their official duties. It contentsmay not otherivse be disckosedwithout %brld Bank authorization. ACRONYMS AND ABBREVIATIONS
AIDAB - Australian InternationalDevelopment Assistance Bureau ICAO - InternationalCivil AviationOrganization IDA - InternationalDevelopment Association IMO - InternationalMaritime Organization JICA - Japanese InternationalCooperation Agency OECD - Organizationfor Economic Cooperationand Doveopment PMCs - Pacific Island Member Countries PITSS - Pacific Islands Transport Sector Study PWD - Public Works Department SPDC - Special Projects DevelopmentCorporation TCSP - Tourism Council of the South Pacific UNDP - United Nations DevelopmentProgramme VFR - visiting friends and relatives WSAA - Western Samoa Airport Authority WSSC - Western Samoa Shipping Corporation VO oLnma uI ONLY
PREFACE
The PacificIslands Transport Sector Study(PITSS) reviews the status of the transport sectorsin the siXPacific Island member countries (PMCs) of the WorldBank. The PlTSSis reportedin twovolumes: Volume One -A RegionalPerspective on Transport Issues - presents an analysis of transport issues across the region. Volume Two - Country Surveys - providesa detailedexamination of the transportsector in each PMC. This survey of the transportsector in WesternSamoa, is one in the seriesfor the PMCs which, as a whole, representVolume Two. Each sector surveypresents an overviewof transport, identifiesareas of concemand sugests prioritiesfor considerationby Government. Maintenanceof transportinfrastructure is identifiedas a commonmajor problemarea. Therefore,for thisparticular area, a separateMaintenance Annex is attachedto the countrysector survey. The PMCs share severalareas of commonconcern with their transportsectors, including strategic planning, project evaluation,regulation, modal coordination,pricing and cost-recovery, commercialization,private sector participation,as well as the managementof infrastructureand its maintenance.These areas are reviewedbriefly in this surveyand, on the basis of the surveysfor all PMCs, subjectedto comparativeanalysis in VolumeOne of this study. PITSSwas undertakenby the WorldBank with financial support for consultantsfrom the AustralianInternational Development Assistance Bureau (AIDAB) South Pacific Facility. The studywas structuredand managedby ColinGannon (Senior Economist). Major contributions to the sectorsurveys weremade by DavidBray and Ian Gordon(consultants). The kind cooperationof the many governmentofficials and industryrepresentatives who assistedthe missionis gratefullyacknowledged.
Thisdocument has a restricteddistribution and may be usedby recipientsonly in the performance of their officialduties. Its contentsmay not otherwisebe disclosedwithout World Bankauthorization CONTENTS
1. INTRODUCTRON...... 1 A. Review Context ...... 1 B. Geogrorhy ...... 1 C. Demographyand Socal Structure ...... 1 D. Economy ...... 2
2. INSTTUTIONAL STRUCTURE ...... 3 A. Govenment Structure ...... 3 B. Agency Responsibilities ...... 3 C. PrivateSector ...... , D. PublicFinance ...... S E. Aid Environment ...... 5 F. Human Resources ...... 6 3. ECONOMICCONTEXT ...... 7 A. DemandiforTransport Services ...... 7 B. Country DevelopmentStrategy .. 8
4. TRANSPORTSUBSECTORS . . .11 A. Land Transport .. 11 B. Maritime Transport .. 16 C. Aviation .. 22
5. TRANSPORTSECTOR DEVELOPMENT NEEDS ... 26 A. Introduction .. 26 B. Institutional .. 26 C. General Transport Sector Issues .. 27 D. Land Transport Subsector .. 28 E. Maritime Subsetor .. 29 F. Aviation Subsector .. 29
BIBLIOGRAPHY ...... 31
CHART: InternationalAir Services
MAP IBRD No. 24573 LisT OF TUnLES
TABLE 2.1 Agency Responsibilities ...... 4
TABLE 2.2 External Grants, 1985-1989(US$'000) ...... 6
TABLE 3.1 Exports by Major Commodity 1984-1989 ...... 8
TABLE 3.2 Import/ExportVolumes (tonnes) ...... 9
TABLE 3.3 Inward and Outward Cargo (freight tonnes) by Country of LoadinugDischarge1989 ...... 9
TABLE 3.4 Visitor Arrivals - Western Samoa ...... 10
TABLE 3.5 Projections of GDP Growth 1990-1999(%) ...... 10
TABLE 4.1 National Roads Network Oengthsin kilometers) ...... 11
TABLE 4.2 Road ReconstructionProjects ...... 12
TABLE 4.3 Registered Vehicles ...... 15
TABLE 4.4 InternationalCargo and ShippingTraffic Apia ...... 16
TABLE 4.5 Current and CommittedMajor Maritime Projects Western Samoa ...... 18
TABLE 4.6 Port Dues and Charges (WS$) Western Samoa Sea Going Vessels Entering Port ...... 20
TABLE 4.7 Projected Income & ExpenditureAccount 1989 ...... 21
TABLE 4.8 Ships Registeredin Western Samoa ...... 21
TABLE 4.9 InternationalAir Traffic - Faleolo ...... 23
TABLF.4.10 GovernmentExpenditure in Aviation ($) .25
TABLE 4.11 Preliminary Estimates Developmentof Faleolo Airport ...... 25 Wf=EBRNSAMOA
Land Area 2,934 sq km Sea Area 73,000 sq km
hlation
Population(1987)1(1991) est. 162,000/160,000 PopulationGrowth (1980-87) 0.6% per annum PopulationDensity (1987) 55 persons per sq kn
Economic
GNP/Capita (1988)1(1991)est. US$580/US$930 Exchange Rates: 1980 Tala 0.92 = US$1.00 1985 Tala 2.24 = US$1.00 1989 (September) Tala 2.30 = US$1.00 1991 (March) Tala 2.30 = US$1.00
Ian5pQL
RegisteredVehicles (1991) 6,312 Vehicles/'000 Population(1991) 26 Length of Road (1991) 2,072 km Percent of Road Sealed (1991) 15% CHAPTER 1 INTRODUCTION
A. Rzvmw CoNTrr whichare only 21 km apart. AmericanSamoa b the nearest nighbor, about 100 Iamaway. 1.1 Tha countrysurvey presents an overview The total land ar is geerlly reported as 2 2 of the transport sector in Western Samoa, 2,934 km, Upolubeing about 1,100km and identifiesareas of currentand emerging concern, Savai'i 1,820kmn 2. Both islandsare about 72 indicatespriorities and suggestsfuture strategies km fromeast to west,with Upolu being only 24 for the sector.1 km from north to south and Savai'i being 35 km. The islandshave centralvolcanic peaks 1.2 To facilitatethe present study, a desk (thehighest being Mt. Mata'agaon Savai'i)and review2 of the transportsector was previously fertilenarrow coastal plains. Upoluhas a chain undertakenfor each of the Pacific Member of mountainsrunning the lengthof the country. Countries(PMCs) of the Bank.3 The review The countryhas an amplenatural resource base. provided preliminary information on each 'ihe countryhas a sea area of about73,000 km 2. country,including Western Samoa, and working hypotheses on development needs in the transportsector. The presentsurvey builds on C. DEMOGRAPHYAND this work to developa current sectoroverview SOCIALSTRUCIURE so as to establish first, directions for the formulationof strategiesand prioritiesfor each 1.5 The populationof Western Samoa is country,and second,the basis for selectionof Polynesian.In 1781a little over 70 percentof the specificissues addressed in VolumeOne of the populationof 156,349lived on the islandof this Report. Upolu and the remainderon Savai'i. In 1988 the totalpopulation was 162,000people, about 1.3 Thepreseilt survey is complementedwith 35,000 (or 22 percent) of whom lived in the similarsurveys for the other PMCs. A regional capital,Apia. Between1976 and 1984the crude overviewwhich compares and contrasts transport birth and deathrates were38 and 7 personsper sectorissues across all six r'MCs is presentedas thousand,respectively, equivalent to a cruderate Part I, VolumeOne of this study. of naturalincrease of approximately3 percent per annum. However,because of substantial emigration the actual rate of annual net B. GEOGRAPHY populationincrease averaged only 0.6 percentin the 1980s. In 198644 percentof the population 1.4 Western Samoa comprises two main was under 15 years of age. Most emigrantsgo islands, Upolu (where the capitri, Apia, is to NewZealand, Australia or the UnitedStates, located)and Savai'i, and a numbcrof smaller includingAmerican Samoa. It is estimatedthat islands(see Map). Savai'iis to the northwestof there are now at least 100,000Samoans (or 40 Upolu. A ferry links the two main islands percent of total Samoan nationality) living -2-
overseas. Net rigration for the 20-25year age Productdonof banans, which was traditionally group has been estimatedat 3,000 per annum a major export item, has virtually ceased since the late 1970s. Becauseemigration has because of arguable quality control concerns had such a major effectin reducingthe rate of imposedby majo: "mporters. populationincrease, Western Samoa's future population size is difficult to estimate. 1.9 The manu.fLiurlng sector is relatively However,emigration is expectedto continueIn small accountingfor less than 15 percent of the foreseeable future and the annual net GDP, and most productionis for the small populationincrease is likelyto remainsimilar to domesticmarket and based on importedinputs that experiencedduring the 1980s. The overall (for oxample,beer, cigarettes). Government ind;genouspopulation resident in Western Samoa administrationis the largest componentof the is expectedto rise onlymarginally over the next servicessector and accountsfor about15 percent decade,possibly reaching 185,000 by the year of GDP. 2000. 1.10 Thepublic sectorplays a dominantrole in Wester Samoa. The Goverment accounts D. ECONOMY4 for about80 percentof grossinvestment and 35 percent of total expenditure. D'vielopmental 1.6 Tbere are no official national account expenditureby Governmenthas veraged 25 estimates in Western Samoa and the percentof GDPduring the 1980s,of which75 measurementof the value of subsistence percentwas financed by developmentassistance, activitiesis difficult. Basedon IMF estimates, mostlygrant aid. per capita GNP was about US$580 in 1988 placingit in the lowerincome group. However, 1.11 In 1989recorded rcmdiances to Western basic needsare generallywell satisfiedthrough Samoa totalled US$38 million, significantly the extended family and by social services more than receipts from exports and aid providedby the Government.Adult literacy is combirted. almostuniversal, and mostchildren receive nine years of basiceducation including three yearsof 1.12 Western Samoa faced major macro 1 high schooleducation. imbalancesin the early - s due to a declinein terms of trade and a .dpid expansion of 1.7 Official development assistance for Governmentexpenditure. Actions taken during WesternSamoa totalled US$216 per capita in the period 1983-1986 increased revenue 1987(OECD), which is equivalentto about 35 dramaticallyand containedexpenditure levels. percentof GDP. Recordedflows in the balance Higher inflows of external grants, including of paymentsare substantiallylower, becauseof STABEXfunds, have helped to generate an the high levels of technical assistance and annualbudget surplus each year since 1986. overseas sourced training providedby donor countries. 1.13 Damage caused by Cyclone Ofa in February 1?90 resultedin an estimatedcost of 1.8 Agriculture is the mainstay of the damage to assets of WS$140 million. economyaccounting for about 50 percent of Fortunatelyloss of life was minimal,but effects GDP and 80 percentof export earnings. The on the transportsector were severe with one majorcash crops are coconut,taro and cocoa. inter-island ferry grounded, port facilities damagedand a quarter of the country'ssealed roadsdestroyed.' -3-
CHAPTER2 INSTITUTIONALSTRUCTURE
A. GovzLvWExr STaucrnz Transportis responsiblefor policy mae In relation to land transport, civil aviation, and 2.1 WesternSamoa became an independent marinetransport and for the operationof port nationin 1962 followinga period as a United and marinefacilities in WesternSamoa. The Nations trust territory administeredby New Public Works Department is responsible Zealand. (amongstother functions)for the construction and maintenanceof primary and secondary 2.2 Parliamentaryelections are held every roads. Third level roads (essentiallyplantation threeyears. Universalsuffrage was adopted for access)are the responsibilityof villagegroups. the first time in electionsheld in April 1991, A TransportControl Board was establishedin although the right to stand for Parliament May 1991with the responsibilityto set bus and remainsconfined to villagechiefs (matai)and taxi fares and to issue licensesfor bus and taxi registered voters outside of the traditional operations. There are also two Statutory system. Previously the right to vote was Authoritieswith transportresponsibilities. The confined to the matai and registeredvoters. WesternSamoa Shipping Corporation (WSSC) Thereare no regionalor nunicipalcouncils, but operatesferry serviceswithin Western Samoa, holders of matai titles, (the elected heads of and between Western Samoa and American extended families or aiga) have village Samoa. The Ministerof Transportis Chairman responsibilities including nearly complete of the Boardof the Corporation. The Western authorityover the use of customaryland, which SamoaAirport Authority (WSAA), established accountsfor about 75 percentof landholdings in in 1986, is responsiblefor the operationand WesternSamoa and 80 percentof agricultural maintenance of international and domestic land. airports. 2.4 Roads. The planning, design, B. AGENCYREspoNsIDxILTEs constructionand maintenanceof primary and secondaryroads are the responsibilityof the 2.3 Some changes occurred in Ministerial CivilEngineering Division of the PublicWorks portfoliosfollowing the April 1991 elections. Department(PWD). The total oad length, The Ministry of Transport and Works was excludingthird level roads, is estimatedat 822 reorganizedas two separate Ministries; the km (PWD, 1990). Major road construction Ministryof Transportand Agricultureand the works, which are financed under aid Ministryof Works which includesthe Public arrangements, are normally undertaken by Works Department, the Electric Power contract. Almost all maintenanceworks are Corporation and the Special Projects carriedout by the Department,with only some DevelopmentCorporation. The Ministry of minorworks contractedout. Villageshave no equipmentand little e periencein maintenance -4-
works and the Department is often directed to market ant must be returned to the Authority If undertake worcimon third level roads. no longer used by the licensee. A route service license is issued for buses. Taxis and buses are 2.5 Land transport operations are carried requIred to be submitted for a vehicle safety out by the Drivate sector. Buses and taxis are inspection at 6 monthly intervals aLi private privately ovned and generally on an individual vehicles (including trucks) at 12 monthly basis. Commercialfreight services are provided intervals. by privately owned trucks or village community owned vehicles. Responsibility for motor 2.6 Shipping. The Ministry of Transport is vehicle registration and vehicle inspection and responsible for shipping legislation and the the Transport Control Board, which is administration of marine matrs. Functions responsible for setting bus and taxi fares, have undertaken within the Ministry include marine boentraforred from the Ministryof Transport inspectionsand surveys, accident investigons, to the Police. Taxis are not ,netered although the provision and maintenance of navigation fares within the urban area of Apia tend to be facilitiesand the organizationof marine training. uniform. There is no area control limitationon taxis. Taxi plates are issued by the Licensing 2.7 Internal shipping servioes within Authority; plates cannot be sold on the open Western Samoa and ferry services between Apia
Table 2.1: WESIERNSAMOA-AGENCY RESPONSIBILITIES
Land Maritime Aviation Intermodal
Policy MOT MOT MOT
Planning PWD MOT WSAA MOT
Constructionand
Maintenance PWD MOT WSAA NA
Operation of: Infrastructure NA M't WSAA NA Services Private WSSC WSAA NA
Regulation Police MOT MOT NA TCB
MOW Ministry of Works MOT Ministry of Transport PWD Public Works Department, Ministry of Works WSAA Western Samoa Airports Authority WSSC Western Samoa ShippingCorporation TCB Transport Control Board. -s
(Wtern Samoa) and Pago Pago (American matters appears to be with the Department of Samoa) are operated by the Western Samoa Treasury. Shipping Corporation (WSSC), a company almost wholly owned by the Government of Western Samoa. A Tongan based shipping C. PRIVATESECrOR companyhas recently initiateda passenger ferry service between Apia and Pago Pago using a 2.12 The private sector's involvement in the Tongan registered vessel. transport sector, other than t . provision of taxi and bus services a.,d some freight services as 2.8 Ports. The Ministry of Trawiport is d".scribed in 2.5 and the recently introduced responsible for the provision and operation of ferry service to Pago Pago, is minimA and port facilities in Westem Samoa. These informal. All transport service instrumental.bies fmntlou wDl be taken over by the Western in the aviation an marine areas are owned by Samo Ports Authoritywhen it Is established. Governmect. The private sector suppies some services such as a limited road constructionand 2.9 Avladon. There is no Civil Aviation r:r.'0tenancecapacity and stevedoringservices in Div;ion as such, and an aviation consultant the marine area, but these are secondary rather advis the Government on civil aviation than primary levels of involvement. matters. The Now Zealand Director of Civil Aviation acts as the Civil AviationAuthority for Western Samoa in respect to civil aviation D. PWIIC FINANCE regulations related to technical and operational matters. The Western Samoa Airports 2.13 Over three-quarters of central Authority, which was created in 1986, is Government revenue is provided by taxes, of responsiblefor the operationand maintenanceof which approximately55 percent is derived from airports and airfields in Western Samoa. import duties add export levies on international trade. Public financehas improved substantially 2.10 Policy. Transport po!icy and general from 1982 when the budget deficit after grants objectives are set out in the Sixth Five Year was 16 percent of GDP, to a budgetary surplus Development Plan (1986-1990). The primary position from 1986 onwards. The Government objectives are to reduce vehicle operating costs has moved from a calendar year to fiscal year and to increase agriculturalproduction, with the budgetary cycle, commencing July 1991. The emphasis focussed on improved administration, budget, covering the 6 month period January- routine maintenance,and cyclic rehabilitationof June 1991, was an interim arrangement. the road network.
2.11 Planning. The Departmentof Economic E. AID ENVRONMENT Development has been responsible for the preparation of previous five year plans, liaison 2.14 The Governmenthas been able to finance with other Departments and development of its budget a-*. the balance of payments through projects. This Department has been abolished relatively high levels of grants and aid o, and a NationalPlanning Officeestablished under concessionalterms. About 75 percent of gross the Prime Minister. However, the desired disbursements are in the form of grants; the improvements to planning and budgetary major donors are Australia, New Zealaund,Japan procedures are yet to be developedas staffing of and the EEC (Stabex funds) (see Table 2.2). the office has recently been initiated. At present The balance is primarily soft loans from multi- much of the coordination on budgetary and aid lateral agencies. Significant inflows of aid occurred following Cyclone Ofa in February -6 -
Table 2.2: W rN SAmOA-ENYrNALGRAM, 1985-1989 (US$million)
1985 1986 1987 1988 1989
Project grants 11.7 12.1 13.8 15.2 13.9 NewZealand 3.4 1.4 2.4 2.7 2.2 Australia 4.1 1.2 4.2 5.2 3.7 EDF 0.7 0.0 0.6 0.1 0.4 Germany,Red. Rep. 0.4 1.2 1.5 1.3 1.2 Jpn 1.8 8.1 4.2 4.2 4.5 Netherlands 0.2 0.0 0.0 0.0 0.0 UNDP 0.8 0.1 0.6 0.5 0.8 Other 0.4 0.1 0.4 1.3 1.2 Cash & CommodityGrants 0.1 4.0 3.9 2.5 2.2 EEC (Stabox) 0.1 3.9 3.9 2.3 2.1 Other 0.0 0.0 0.0 0.2 0.1 TotalGrants 11.8 16.1 17.7 17.7 16.0 Of which: ExpenditureAbroad 1.6 1.7 2.3 2.1 1.8
Source: CentralBankl of Samoa.
1990 *ncludingUS$14.0 millionIDA funding skills transfer to counterpartstaff does not for emergencyroad rehabilitation. appearto have been successful. The need for technical assistance, skills transfer and managementdevelopment appears to have F. HUMANRESOURCES increasedrather than diminishedir professional engineering disciplines and in related 2.15 Western Samoa is fortunate in having subprofessionaland technicalareas over the 29 experiencedindigenous officials in the senior yearssince independence. positionswithin the publicservice. However, there is a shortageof localstaff with appropriate 2.17 Considerable nunmbers of Vtrestern technicaland managementskills. Within the Samoanshave takenadvantage of opportunities transportsector these positionshave been filled for studiesin other countries,ranging from short by expatriatestaff under conitract,and supplied courses to tertiary studies, including post through technical assistance programs graduatework. The extent to which relevant predominantlyby Australiaand NewZealand. skillsare beingretained within the publicservice and,especially within the country,are mattersof 2.16 Given the extendedperiod of technical concern. assistancein the transportsector the extentof -7-
CHAPTER 3 ECONOMIC CONTEXT
growth was stagnantbetween 1986 and 1988 A. DEMAN FORTRANSPORT SzRvicss (see Table 3.4). Western Samoa's principal source markets are America Samoa, New 3.1 Demandfor transportservices in Western Zealandand Australia,accounting in 1989 for Samoaderives primarilyfrom activitiesin the 35 percent, 24 percent and 14 percent, agriculturaland services sectors. Export of respectively,of visitors. The 1987 Western primaryproducts has shownlittle growthover SamoaVisitor Survey found that 28 percentof the latter half of the 1980s(see Table3.1) due total visitortraffic was for visitingfriends and to the volatility of copra prices, declining relatives(VFR). In particular more than 53 demand for coconutoil and importer quality percent of AmericanSamoans, 25 percent of controlwith bananas. The exportof timberalso New Zealandersand 14 percentof Americans declined substantially from a high point travellingto Samoawere VFR. (2,627,000board feet) in 1982. Thore were 3.4 There are inadequatedata to enable minorexports of manufacturedgoods, beer and esTinate data tosenge cigarettes.Cyclone Ofa cut the volumeof major aestimatesof domestic freight and passenger export crops by about one quarter in 1990. rawldemandto be prepared. Traffi volumes Exports of tree crop products were severely were measured as part of the 1981 affected, and surplus food production was nrnnsportationStudy and estimatesprepared for divertedfrom exportto domesticmarkets. This annual daily traffic. Some counts have been situationis reflectedin the customsi,gures for m nadein 1988 but sinc daily,e weekly and exportsin 1990. Conversely,import volumes seasonal variation factors are unmeasured, increased sharply due to post cyclone establishingtask estimates is difficult. No rehabilitationrequirements. This trend is origin-destinationor vehicleloading studies are rehidtain the Import/Exportreturns by valueset availablefrom which to measuretravel demand. evidentable 3.2. In essence,demand for landtransport is highon out in Table3.2. Upolu,specifically in the corridorfrom Apia to 3.2 The volume of imports has tended to Muliftnua.The region surrounding this corridor increasewhile exports have tended to decline,so (ApiaUrban, Northwest Upolu) houses some 47 that in 1989 the volume of importsexceeded percentof the totalpopulation of WesternSamoa exportsby six times(Table 3.2). The effectof and containsthe most productiveland in the this imbalance,and of the differencesbetween country. In addition, all land transport exportdestinations and imports origins, is shown movementbetween Savai'i and Apia (including in Table3.3. the Port of Apia)moves along this corridor. On Savai'i,the greaterproportion of the population 3.3 Irnatlonal visitorarrivals incresed at resides on the southern side of the islaklid an avenageannual rate of 6.3 percent,although betweenSalelologa and Asau. Tbis distribution of populationand the good conditionof the -8-
Table 3.1: WEmRN SAMOA-EXPORTSBY MAJORCOMMODrY, 1984 - 1989 La
1984 1985 1986 1987 1988 1989 1990
Copra Volume - 2,796 3,350 570 3,282 5,944 2,400 Value - 425 469 31 948 1,427 479
Copra meal Volume 4,290 5,926 6,152 5,170 5,281 3,058 900 Value 322 250 294 357 447 288 66
Coconut Oil Volume 10,651 10,926 12,552 11,527 10,330 6,292 5,646 Value 1,276 6,963 2,927 4,117 5,622 3,086 1,754
Cocoa Volume 662 590 898 852 474 605 218 Value 1,229 1,050 1,425 1,237 606 945 219
Taro Volume Lb 137 220 188 224 191 264 112 Value 1,498 2,279 1,939 2,394 2,2502 2,578 1,506
Timber VolumeLa 1,724 1,277 612 309 955 112 13 Value 684 364 265 187 521 60 10
La Values are in US dollars (thousands)and volumes in metric tonnes except where shown otherwise. lI Volume in thousand cases (70 lb). L/ Volume in thousandboard feet.
Source: Central Bank of Samoa and World Bank (199la), CustomsDepartment (1990 figures).
road, generates travel demands on the South 1991) are shown in Table 3.5. The effects of Coast Road but minimaldemand elsewhere. Cyclone Val (and Cyclone Ofa) will dominate the short term. Agricultural output is expected to decline because of crop damage and B. COuNRY DEVEoPMENT STRATEGY manufacturing production will be affected by cyclone-relatedpower cuts. Althoughthere will 3.5 Medium term economic growth be offsetting increases in constructionand some projections in Western Samoa (World Bank, service activities, overall real GDP is estimated .9 .
Table 3.2: WESTRN SAMOA-IMPORTSAND ExPORTS, 1985- 1990
1985 1986 1987 1988 1989LA 1990
(a) Value (Tala '000) Imports 116,655 110,412 133,624 159,121 151,762 188,340 Exports 61,838 25,350 24,969 29,731 27,643 20,502
(b) Volume (tonnes) Imports 105,857 127,189 118,320 178,272 130,742 Exports 41,444 36,736 39,540 36,767 22,171
Total 147,301 163,985 1S7,980 215,039 1S2,913 Ratio Inports-Exports 2.55 3.46 2.99 4.84 5.89
Source: Departmentof Statistics and Departmentof Customs.
La Provisional figures for volume. to have fallen by 6 percent in 1990 (and 3.6 The key to growth will be rehabilitation 4.5 percent per year during 1990-92). By late and re-establishmentof sound performancefrom 1991 the economy was recovering, however the agricultural sector (based on policies to Cyclone Val has reversed the situation. support agricultural development announced in
Table 3.3: WESTERNSAMOA-INWARD AND OUTWARD CARGO (FREIGHT TONNES) BY COUNTRYOF LOADING/DISCHARGE,1989
Inward Outward
Australia and New Zealand 51,636 6,306 Other Oceania La 40,002 8,165 Asia 17,399 73 America 15,232 661 Europe 6,473 6,966
Total 130,742 22,171
Source: Department of Statisticsand Ministry of Transport.
L&Fiji accounted for 36,375 tonnes of inward cargo. - 10-
Table 3.4: WESTERNSAMOA-VISITOR AivAs, 1984 *1989
Market Avengo Share Annual Market Area 1984 1985 1986 1987 1988 1989 1989 Growth Rate () (%)La
New Zealand 8,174 10,114 11,730 13,694 13,557 13,299 24.2 10.2 Austmlia 5,589 5,004 4,608 4,591 4,668 7,573 13.8 6.9 AmericanSamoa 15,529 17,399 20,371 16,530 16,839 19,067 34.7 4.2 Other Pacific 2,930 3,250 3,720 4,069 4,271 4,620 8.4 4.2 West Genmny 937 734 985 1,125 1,367 1,358 2.5 7.7 United Kingdom 428 292 312 318 408 471 0.9 1.9 Other Europe 1,030 1,161 997 1,162 1,243 1,784 3.2 11.6 USA 3,989 4,299 5,468 5,673 5,124 5,015 9.1 4.7 Canada 338 249 386 356 362 455 0.8 6.1 Otder Countries 1,496 1,417 1,133 1,147 1,249 1,318 2.4 -2.5
Total 40,440 43,919 49,710 48,CCS 49,088 54,960 100.0 6.3
Source: Western Samoa Visitors Bureau.
La For period 1984-1989. the 1990 budget statement). Opportunitiesfor most likely increase transport demands in the growth outside the agricultural sector are north-westregion of Upolu, and possibly in the expectedto be limited with the best prospectsin southern region of Savai'i - a reinforcementof tourist-relatedservices. Thisscenario would past growthtrends.
Table 3.5: WESTERNSAMOA-PROJECTIONS OF GDP GROWTH, 1990 - 1999 (%)
Estimated Projections 1985-1989 1990-1994 1995-1999
Subsistence 0.8 1.0 1.0 Agriculture 0.5 1.9 3.0 Manufacturing 2.5 4.4 5.0 Other 3.2 3.9 4.5
Total 1.9 2.8 3.S - 11-
CHAPTER4 TRANSPORT SUBSECTORS
A. LAND TRANSPORT 4.2 The Public Works Department (PWD) has boon responsible for Government finded road construction works following the abolition 4.1 Road Infrastructure. There are an of the Government and Special Projects estimated 822 km of primary and secondary DevelopmentCorporation (SPDC). Aid funded roads in Western Samoa. No recent figures are projects, including those currently in place to availablefor the length of village and plantation restore the road system after Cyclones Ofa and access roads (Table 4.1). No formal road Val, have been normally undertaken on a inventoryor road informationsystem is kept and managingagent or externally appointed project thus there is no systematic information on road management basis, in which PWD has had condition nor an investment and maintenance limited participation. (rhe role of the Roads history for road sections. The last systematic Section has not been clearly defined (see inventory of the road system appears to have paragraph 4.7 below).) been undertaken in 1981 (Pak-Poy and Kneebone, 1981). The compositionof the main rural highway network is as follows:
Table 4.1: WEsTERNSAMOA-NATIONAL ROADS NETWORK, 1970 - 1990 (lengths in kilometers)
Classification 1970 1980 1990
Apia Town Roads 32 69 75 Primary Roads 378 396 407 Secondary Roads 129 334 340 Plantation/VillageAccess Roads 282 1,234 La
Total 821 2,042 Of which Paved 120 209 224
Source: Public Works Department and Pak Poy and Kneebone (1981). la Estimated at 1,500 km. - 12 -
4.3 Road Investment during the Sixth time. The total cost of this section, if tlllly DevelopmentPlan 1986-1990 (DP-6), was reconstructed,is estimatedat WS$25million. forecast to be WSS14.1 million, of which Thereare longstretches of lava desertbush and WS$12.1 million was to be funded by aid forestarea carryingsmall volumes of trafficand donors. Prioritywas to havebeen given to rural upgrading/full reconstruction may not be roadreconstruction and rehabilitation which was justified. projected to absorb WSS12.5 million (89 percent)of the total budgetedexpenditure. Of 4.4 In addition,AIDAB in associationwith the three rural projects nominatedunder the the Governmentof WesternSamoa is funding plan-reconstructionof the Le MafaPas Road, the resealand rehabilitationof selectedsections reconstructionof the RichardsonTrack Road and of the rural road system and training a Road resealof the UpoluWest CoastRoad-only the MaintenanceUnit within the Public Works first has been commenced,with ADB funding. Departnentto performthe works. The project Thedamae to roadsrowlting from Cyclone Ofa commencedin 1990and wasto haverequired a in February 1990, and a previouscommitment commitmentof A$6.5million over 3 years. The by AIDABto fund an extensivereseal program programhas been reviewedrecently because of becauseof the continueddeterioration of the lack of progressin meetingproject objectives. sealedroad system, has substantially changed the A numberof problemareas have been identified: levelof fundingfor road investment.The Bank institutional, financial, technical and is currentlyfunding reconstruction projects to a environmental. A central issue has been the levelof US$14.0million through IDA credits. inabilityof Public Works Departmentto meet The roadconstruction projects commenced or in the laborand equipmentallocation requirements the course of documentationand tender are set resultingfrom organizationaldifficulties within out in Table4.2. The remainingsections of the the Department,and reallocationof resourcesto northcoast road on Savai'ibetween Saleaula and other activities. A decisionhas been takento Asau are not scheduledfor constructionat this concentrateon the training objectivesof the
Table 4.2: WESTERNSAMOA-ROAD RECONSTRUCTION PROJECTS
Length EstimatedCost Funding Location (klm) WS$ million Source
Upolu Le MafaPass Road- Falevaoto Samusu 20 4.10 ADB EastCoast Road - Moataato Saluafata 19 11.57 WB Saval'i NorthCoast Road- Salelologato Puapua 21 10.16 WB North Coast Road - Sataua to Asau 9 3.39 WB NorthCoast Road - Puapuato Saleaula 24 5.50 GWS
Total 93 34.72
Source: PWD. - 13 -
programand to undertakethe rehabilitationand beeninhibited along many sections, resulting in resealingworks at a rate determined by resource ineffective drainage and premature pavement availability. A second AIDAB assistance failure. This effect is magnifiedby the desire project, which is complementaryto the road by communitiesto plant roadsidedecoration maintenanceprogram, comprises the upgrading along the edge of the seal in village areas. of the plant and vehicle workshops, the supply Secondly, t control of vehicle overloading has and servicingof equipmentand the trainingof not been enforced, which when coupledwith personnel. Progress has been hamperedby saturated road formation conditions, adds equipmentsupply problems and the difficultyin substantiallyto the damagepotential. (Resource retainingtrained staff because of the high labor limitations,including lack of a weighbridgeor demandand highwage rates being offered in the portablescales, pose enforcementconstraints). private sector as a result of the heavy road reconstructionprogram.' (MheAIDAB project 4.7 Attemptsare being madeto addressthe has been modified to address emerging problemsat the institutionallevld,for example, institutionalstrengthening needs.) throughthe roadmaintenance training program. However,there are somekey issueswhich need 4.5 Under funding In road maintenance to be resolved. Firstly, the role of the Roads and the lack of an appropriatemaintenance Sectionof the PublicWorks Departmentneeds systemhave been commented on in a numberof to be clearly defined and agreed betweenthe studies coveringa period of years. Pak-Poy Governmentand the Department. At present, (1972, 1981)set out the deficienciesfrom both while Public Works Departmnentsees its road a systemand financialperspective. The 1981 functionas that of maintenanceof the asset,the studyestimated that an annual commnitmentof view of Governmentis that it should also WS$2,000 per kilometer was required to includeconstruction. The present resources and maintainthe road networkin an as-constructed skillsof the Departmentare insufficientto cope condition,whereas available funding averaged withboth supervisionof new constructionand halfof this level. Subsequentinvestigations and maintenance. Secondly,when the role of the reportssupport this position. DP-6 also states Department is agreed, the necessary thatmaintenance funding has been lessthan half organizationalstructure needs to be developed of requirement. ADB (1987) calculate a and staffresources provided and trainedto carry requirementof WS$2.5million per annumfor out the functioneffectively. At present, the maintenanceand resealworks compared with a Department cannot train and/or retain budget provision of WS$1.13 million. All appropriatestaff. At the professionallevels reports (NZRFA 1988, AIDAB 1989, World emigrationaffects the PublicWorks Department, Bank 1989)note the lack of maintenanceeffort, as it does other organizations.At the technical unavailabilityor unserviceabilityof plant, skillslevels, competition from private enterprise, ineffectivemaintenance programming, costing in the presentlabor marketsituation has eroded and cost controlas factorswhich exacerbate the the Department'sresources. Whilst overseas under-fundingfor maintenance.Recent budget technicalassistance programs have attemptedto allocationscontinue to be insufficient(WS$l.39 relieve the situation at the professionaland million1989 and WS$1.82million 1990) and the senior technicallevels, the results have been systemproblems remain to be addressed. variable and at the best temporary. Lack of counterpart staff, continuous turnover of 4.6 The situationhas been exacerbatedby personnelin key positionsand variabilityin the two further factors. Because of land access number and quality of personnel supplied under constraints(which are affectedby the socialand technicalassistance, constrains the development cultural values placed on land ownership), of a cohesiveand motivatedorganization. Some dischargeof water from the road reservehas of the constraints could be amelioratedby - 14 - making increaseduse of contractorsfor both work contractsand heavytrucks importedfor constructionand maintenanceworks and by the work on projects, requires approval by the more even schedulingof capitalwork. Ministerfor Police. Vehicles brought in by expatriatesmust be reexportedon leavingthe 4.8 Thirdly, the development and countrybut the heavyvehicles can be retainedin implementationof appropriate systems for the countryfor furtheruse. The totalnumber of identificationof priorities,programming, cost registered vehicles increased from 4,552 to allocation,resourcing, and qualitycontrol of the 6,312 in the four year period 1987to 1990. A worksis required3f there is to be effectiveand marked increase in new vehicles registered efficientmanagement of the road assets. At occurred in 1990/91. The reasons for these present,programming of worksis ineffective,in increasesin new registrationsof cars, pick-ups part because of redirectionof Departmental and taxis are not clear, particularlyin the taxi resources due to social or emergency categorywhere the total number of registered requirements. As a result, cost allocationsdo taxis (715) is well in excess of the 450 taxi not ensuredependable results. licenseson issue. There are inconsistencies betweenannual changes in the numberof newly 4.9 Roadplanning has received considerable registeredvehicles and total registeredvehicles aention in WesternSamoa, with a majorroad whichsuggest under-reporting of totalregistered investmentstudy in 1972 and a multi-modal vehiclesin 1988/89. The data indicate that study in 1981. Further detailedstudies have about 14 percentof the vehiclefleet is not re- been undertakenfor road reconstructionand registered each year. This apparent high rehabilitationneeds, but the 1981study has been scrappagerate is a functionof the importationof used as a referencedocument in subsequent a large numberof secondhandvehicles. Road DevelopmentPlans. Emphasisin DP-6on land transportannual revenue collection from vehicle transport improvementhas been focussed on registrationfees and charges for licenseshas improvedadministration, routine maintenance increased in proportion to the increases in and cyclicrehabilitation of the road network. vehicle registration (from WS$797,549 to Thisis the priorityarea as strategicextension of WS$1,074,470)in the period 1987to 1990. the systemis not a majorissue. 4.12 Road safety was identified in the 4.10 Designstandards for road construction TransportationStudy (1981) as a matter of havebeen developed, but projectsupervision for concern. Therewere 670 recordedaccidents in adherenceto standardsand quality control of 1980, 78 percent of which occurredbetween road construction,has been a problemwhere Apiaand Faleoloairport. Almost1 in 5 of all recognizedinternational contractors have not accidents involved pedestrians. Pedestrians been used. Design standards need to be accountedfor all of the 16 deaths in road consideredin the context of the total local accidents. Over the period to 1989 there has environment: construction,maintenance and beena generaltrend downwards in the deathand user costs; scarce recurrent budgetresources; the injury rate per 1,000 registeredvehicles. inadequatecost recovery;limited supervision However, the number of deaths and injuries skills and quality control; donor support of remains high and the AccidentCompensation rehabilitation; lack of a systematic road Boardhas recommendeda numberof measures, managementsystem. whichare consideredrelevant in reducingroad accidents: 4.11 VehicleRegistration. Roadvehicles are required to be registeredand to be licensed * road wideningand pedestrian facilities annually. Importof right hand drive vehicles, (footpaths)on selectedroads; includingvehicles brought in by expatriateson - 15-
Table 4.3: WESrERNSAMOA-REGISED VEICLES, 1987 - 1991
1987/88 1988/89 1989/90 1990/91
Newlyregistered vehides Motorcycles 47 36 34 27 Privatecars 219 269 232 302 Pickups 277 311 269 414 Trucks 51 21 27 61 Taxis 83 74 130 210 Buses 32 14 27 9 Oder 17 10 21 16
Total 726 735 740 1,039
Total registred vehicles Motorcycles 149 150 185 150 Privatecars 1,473 1,531 1,898 1,950 Pickups 1,925 1,936 2,451 2,775 Trucks 391 346 349 436 Taxis 363 411 616 715 Buses 212 196 248 227 Other 39 72 58 59
Total 4,S52 4,642 S,805 6,312
Source: RoadTransport Division, Ministry of Transport.
* stricterenforcement of drivingstandards Board, which covers both employeesduring and better testingof applicantsfor heavy working hours and road accident victims vehiclelicenses; generally. AcciW.ntsat work are coveredby a 1 percentlevy on payrolland road accidentsby * enforcementin relation to overloading, a levy of 5 cents/gallonon all fuel used for specificallyoverloading of passengersin transportpurposes. Payoutsare in the form of trucksand pick-ups;and lumpsum (deathand permanentincapacity) plus a further compensationfor up to four years e bettervehicle standards. related to weekly earnings, with a maximum limit of WSS200per week. The payoutsfor In addition, the Police undertake public motor vehicle accidents (including ongoing educationprograms involving school and radio liabilities)have been in excessof the fuellevy. broadcasts. 4.13 A no-faultaccident compensation scheme is administeredby the AccidentCompensation - 16-
B. MARMMETRNSPORT Governmentof Western Samoa banning the exportof timber. With the exceptionof some Port and Marine Facilities fuel suppliesfor the westernend of Savai'i,for which there is alternativeroad/ferry access, 4.14 The Port of Apiais the principalport for there havebeen no shippingmovements through the handlingof import and exportcargoes and Asausince Cyclone Ofa. Thefuture of the Port for the operationof ferry services between of Asau remainsto be resolvedas there have Western Samoa and Pago Pago in American been difficultieswith safe entrancefor larger Samoa. vesselssince its inceptiondue to the channel configuration.The channel markers and beacons 4.15 Milledtimber products have been shipped whichwere destroyedin CycloneOfa have not from the Port of Asau in smallvolumes which beenreplaced. Channel widening or realignment had been decliningsince 1986 when exports would incur very heavy costs becauseof the amountedto approximately5,000 tonnes. The hard coralfloor. The impactof CycloneVal in destructionof forestryareas causedby Cyclone December1991 exacerbated these conditions. Ofa in February 1990 has resulted in the
Table 4.4: WESTERNSAMOA-IWrERNATIONAL CARGO AND SHU'?ING TRAzC, APIA /a 1985- 1989
Year 1985 1986 1987 1988 1989La
Cargo (tonnes) Imports 105,857 127,169 118,320 178,272 130,742 Exports 41,444 36,736 39,540 36,767 22,171
Ratio Imports/Exports 2.55 3.46 2.99 4.85 5.90
Total 147,301 163,905 157,860 215,039 152,913
Vessels (No.) Generalcargo 87 84 79 62 50 Container 37 42 49 33 41 RORO 45 35 25 44 44 Tanker 16 21 6 15 9 Cruise liner 7 - - - Other 3 3 1 - -
Total 195 185 160 154 144
La Includesall productimports. a Provisionalfigure. Source: Departmentof Statistics,Government of WesternSamoa. - 17 -
4.16 All internationalmaritime traffic is now until both the wharf and channelare repaired; handledthrough the Port of Apia. With the this ferry prosently operates from Apia to exception of 1990, when imports increased Salelologa. Constructionof the approach substantially because of post cyclone channeland wharf at Asau took place in the reconstruction,annual cargo throughputat the early 1970s. A wharfat Aleipata(at the eastern port has remained static at 150,000-160,000 end of Upolu)was constructedin 1980but has metrictonnes since 1985. The ratio of imports neverbeen used as a ferry terminalfor services to exports has tended to increase. Total proposedto Pago Pago,because of the shallow shippingmovements have also tendedto decline approaches. Moreover, road access to the over the period, the major reductionbeing in Aleipata wharf from the more intensively generalcargo vessels. populatedareas of Upolu(and from Savai'i) is long and very rough. Giventhe high costsof 4.17 Extensive port construction works infrastructureimprovement and the relative essentialyhave been completedat the Port of remotenessof the wharflocation, the case for its Apia; these involveboth planneddevelopment developmentis very unlikelyto be warranted. and reconstructionand replacementof facilities affectedby CycloneOfa. The works comprise 4.19 The Ministryof Transportis presently extensionof the mainwharf, provision of paved responsiblefor the port facilities and ferry containerstacking areas, and the constructionof terminals in Western Samoa and for the a breakwaterto reducesurge conditionsat the operationsat the Ports of Apiaand Asau. The wharf. In addition,a new ferryterminal for the Marine Division of the Ministry provides Apia-PagoPago service is now in operation. mooring gangs and shore side services. The constructionof the port facilitiesis being Stevedoringat the Port of Apia is providedby providedfrom bothJapanese and ADBfunding nrivatesector. Four stevedoringcompanies are sources. Total current commitmentsto port availableand tenderfor work throughthe Ships developmentand rehabilitationtotalling WSS45 Agent. The companies provide their own millionare set out in Table4.5. Outstanding equipmentor cross hire major items between items which are as yet unfunded include them. structuralrepair and weatherproofing of cargo sheds, securityfencing and dredgingalong the 4.20 A Billto establisha WesternSamoa Ports wharf face to remove debris depositedby the Authority is in final draft form. When recent cyclones. The present developmentof established the Port Authority will take Port of Apiawhen fully completed,is expected responsibilityfor allport and ferryfacilities and to meet cargo requirements and vessel for marinenavigation aids in WesternSamoa. configurationneeds into the next century. The Authoritywill be subject to the general policyof Cabinetin the exerciseof its functionLs 4.18 Investmentin port facilitiesoutside of and will be requiredto obtainapproval for fees Apiahas been limitedto the provisionof ferry and chargesto be levied. Revenueraised by the terminals at Mulifanua (on Upolu) and Authority is to be applied to payment of Salelologa(on Savai'i). Terminalfacilities at operatingcosts, interest and loar.repayments and both locationswere upgradedin 1985through creationof depreciationand generalreserves. Japaneseaid funding(Y 433 million).Extensive damageto the wharfface and somefilling of the 4.21 Port charges were last revisedin 1986. approachchannel occurred at Mulifanuaas a The scheduleof chargesis set out in Table4.6. result of CyclonesOfa and Val. Dredgingof Commercialaccounting practice is not used in the channelhas now commencedbut part of the costingport operations. Expenditureitems are wharf area remains inoperable. The largest provided through budget appropriationand ferry (LadySamoa II) cannotuse the terminal revenues returned to general revenue. - 18-
Table 4.5: WmrERN SUmOA-CUNT AD COMmITD MANORMARm PROQjECSLa
Financial Financial Type La Form of Year Year (R/D/ Project Project Name Commenced Completed RD) Cost /c EvisluationLa
Port Development Project Stage I 1987 1990 RD WS$11.5M CBAL4 Phase I
Tort Development roject Stop I 1987 1991* D WS$15.2M CBA Phase II
ADB Multi-ProjectI Container Park 1986 1991* R WS$4.297M CBA Project
Rehabilitationof Cyclone Damaged 1990 1992* R WSS15M CM Ports
Port Management 1989 1991 D US$100,000 0 Training
* Initial planned completiondate.
La Projects in excess of US$100,000currently being undertaken or scheduled with committed financing. Lk R = rehabilitation D = developmentof new infrastructure RD = combinationof rehabilitationand development. L/ In estimated 1991 prices. Ll CBA = cost/benefit analysis CM = cost minimization 0 = other type of evaluation.
Depreciationcosts are not included. A study of for annual repairs and maintenance. Similar the establishmentof a port authority in Western levels of allocationhave been made available in Samoa (IMO, 1988) estimates port revenues at other years. The report notes that insufficientor WS$1,112,800 and recurrent expenditures at delayed allocation of funds for repairs and WS$428,700 for 1987, implying a surplus of maintenanceresulted in the Port of Apia (and to WS$685,100. However, a total of only a lesser degree the Port of Asau) falling into a WS$7,490 is included in the expenditure items serious state of disrepair and neglect. A set of -19 -
financialprojections for the year 1989Indicated three vessels owned by Government and that a Port Authoritycould operate successfully paymentsare madeto the Ministryof Transport on commerciallines (Table4.7). Useof current for the use of the ferry terminals. Those cost accountingand inclusionof depreciation/ paymentsare basedon a fixedannual fee plus a replacementcosts for the new works would levy of WS$0.10/passenger carried. A draft reducethe forecastsurplus. new Shipping Act has been prepared for legislativeconsideration. 4.22 Comprehensivepla'nning studies have beenprepared for port developmentin Western 4.25 The WSSCleases three vesselsfrom the Samoa. The TransportationStudy (1981) Governmentand twoare ownedby the company assessedthe developmentrequirements for ports (Foto-O-Samoa,Tausala HRPP). Of the five and ferry terminalsin relationto the projected vessels on register, two are passenger/vehicle demandfor transport. A MasterPlan for Port ferries, two landingbarges with passengerand Dvelopmeut(JICA 1987) assed demandsfor vehicle capability,and one a passnr ferry port facilitiesto the year 2005 and proposed (Table4.8). One passenger/vehicleferty (the development works at Apia, Mulifanua, QueenSalamasina with a capacityof 12 vehicles Salelologaand Asau totallingWSS109.6 million and 300 passengers)is dedicatedto the Apia- (at 1987 prices) over the plan period. First Pago service. Vessel capacity between stage developmentrequirements at the Port of Mulifanuaand Salelologaamounts to 40 vehicles Apia were estimatedat WS$22.7million, and and 650 passengers. The passenger-onlyferry are being undertakenthrough JapaneseGrant (TausalaHRPP) was obtained after Cyclone Ofa Aid (PhaseI and II of StageI; see Table4.5). to augmentthe Mulifanuato Salelologaservice, because of cyclone damage to the Queen International Shipping Salamasina(since refitted) and withdrawalof the LadySamoa II fromservice. The restorationof 4.23 Internationalshipping calls to Western the ferry terminaland channelat Mulifanuais Samoa have declined over recent years regarded by the Governmentas an urgent (Table4.4), the greatestreduction being in calls priority to allow the Lady Samoa II to be made by general container vessels. returned to the Mulifanua-Salelologaservice. Nevertheless,Western Samoa is reasonablywell The present round vovage time from Apia to servedby internationalshipping, with services to Salelologa(approximately 6 hours, compared Australiaand NewZealand, Asia, the USAand with2 hours betweenMulifanua and Salelologa) Europe. (Seealso Part 111,Volume One of this precludesef.ective utilization of the vessel. The presentstudy.) present one way fare betweenSalelologa and Mulifanuais WS$6.00(8 nauticalmiles), and DomesticShipping Services between Apia and SalelologaWS$8.00 (20 nauticalmiles). The fare from Apia has been 4.24 Internalshipping services within Western heldbelow the full cost of providingthe service Samoaand the ferry betweenApia and Pago (estimated at WS$10.00) at Government Pago (AmericanSamoa) are operated by the direction. A comparativebus/ferry fare to Apia WesternSamoa Shipping Corporation (WSSC), is WS$7.00. a company almost wholly owned by the Governmentof Western Samoa. The WSSC does not have a monopolyon domesticshipping servicesthough its establishedposition and the small marketdiscourage entry of competition. The WSSC operates on a commercialbasis. Leasepayments are madeto Governmentfor the - 20 -
Table 4.6: WESRN SAMOA-PORTDUES AND CHARGES, 1991 SEA GOING VESSLESENTERING PORT
Pawticulars Rate per Ton or Part Therdof IA (WS$)
* Light Dues - OverseasVessel $40.00?pervisit - Home Trade Veol $200.00per anum * Pilotao 0.10 per ORT * PortDues - Ovsea Vssl 0.05 per ORT or part threof - HomoTrade Vesas 5.00 per ORTor part threof pr annum * Cao Dues 0.10 per ORT * Whurfw -Imprort Cago $2.00 per ton ExportCar $1S.S0per ton bnmportBull Petroleum $1.00 per ton TTinhipment Crgo $1.00per ton * DockWg -Over""u Vossol SO.OSper GRT per dayor part theoof -Home Trad Vaude $50.00per annuma * Berthage - Vesselsup to 1,50 ORT $40.00 per operation - Vessls exceeding1,500 GRT $60.00 per operation Cleanig Wharf after Departure Vessel - Dischargingtallow, cement or bitumenor like commodity $100.00 each visit - Any other vessel $50.00 each visit
* Supplyof Fresh Water $0.03 per gallon or part thereof * Hire of Work Boats - U to 200 HP $30.00per hr or part thereof - 21 to 400 HP S40.00 per hr or part thereof - 401 to 600 HP $60.00 per hr or part therwof - 601 to 800 HP $80.00 per hr or part thereof - 801 to 1,300 HP $130.00 per hr or part thereof - Up to 1,600 HP $500.00 per hr or part thereof - (a) SteamingRate Full rate per hr or part thereof (b) StandbyRate Half rate per hr or part thereof * Hire of Ministry Staff for Cost to the Ministry plus 20 percent Overtimeand SpecialDuties of such cost. Fee for Connectionof Telephoneto Ship $30.00 per telephoneline plus cost of labor for connection
Source: Ministry of Transport, Marine Division. /a Charges as last revised in 1986. - 21 -
Table 4.7: WESTERNSAMOA-PORT ANDFERRv TERMNAL FACLArnES PROJCCEDINCOME AND EXPENDITURE ACCOUNT, 1989
Expenditure WS$ Income WS$
Salaries and Wages 401,050 Postage and Light Dues 78,000 OperationalExnenses 47,200 Port Dues 160,000 Repairs and Maintenance 150,000 Wharfage 290,000 DepreciationLi 246,000 Storage 430,000 Dockage/Berthiage 57,000 Subtotal 844,550 Sundry 130,000 EstimatedExcess of Income over Expenditure 300,450 Total 1,145,000 1,145,000
Source: IMO 1988. LaBased on a nominal valuationof fixed assets at all ports of WS$4.0 million and current plant and equipment assets of WS$0.9 million. Valuationswere prior to present works and do not include the new tug.
Table 4.8: WESrERNSAMOA-SIlPS REGisTEREDIN WESTERNSAMOA, 1991
Vessel Type Lengh Beam GRT Built (m) (m) (tonnes)
Western Samoa shipping Corporation Lady Samoa ItO RO-ROPassenger/ 38.93 1.50 867 1988 Vehicular Ferry Queen Salamasina RO-RO Passenger/ 40.54 10.36 714 1977 VehicularFerry Fotu-0-Samoa Landing Barge 36.0 9.0 272 1979 Tausala Salafai Landing Barge/ 27.3 10.4 122 pre 1975 Vehicles ana&Passengers Tausala HRPP Passenger Ferry 29.0 6.1 170 1975 Government of Western Samoa Tafola Tug 25.9 6.8 130 1989 Paulele Tug 18.3 5.3 59 1972 Nafanua Patrol Boat 31.5 8.2 197 1987 Sua Shipping Services RORO Container Vessel Forum Samoa 118.7 19.2 3,838 1979
Source: Ministry of Transport, Marine Division. - 22 -
annum. Domesticservices are operatedby one C. AvIAION Twin Otter and one Brittan-NormanIslander, withthe Twin Otter also used on the serviceto Air Routes PagoPago. As a result of the destructionof the Asau airstrip during CycloneOfa, a modified 4.26 Internationalair services to Western route'network" has beenrequired. Servicesare Samoa are provided by the national carrier, providedfrom Fagalii airstrip (near Apia) to PolynesianAirlines, and four foreignairlines; Maota airstrip (near Salelologa)in the early Air Pacific, Hawaiian Airlines, Air New morningand late afternoonto serve privateand Zealand and Samoan Air. Connectionsare publicsector business travel. An hourly shuttle provided to gateway points of Auckland, type (no reservation)service operatesat other Sydney,Honolulu, Nadi, Nuku'alofa, Raratonga times betweenFaleolo and Maota. Air traffic and Pago Pago. PolynesianAirlines had been betweenSavai'i and Upoluhas doubled(7,000 managedby AnsettAirlines of Australiaunder betweenJuly 1989 and March 1990, 14,600 a 10 year management contract which between July 1990 and March 1991) since commencedin May 1987. Underthe terms of Cyclone Ofa. A s.gnificant market of the contract50 percentof declaredprofits were passengersappear willing to pay for the shorter paid to Ansett as a managementfee and any (25 minute)and more costly(WSS25) flight to operationallosses accrued to Ansett. Underthis avoid the longer journey time (2 hours) but contract, Polynesianoperated a B727 (200 cheaper(WSS7) journey over water. (Notethat series) aircraft owned by Ansett. The Ansett for such passengers,other things being equal, contractwas cancelled on April 19, 1992.' the impliedvalue of time is at least WS$11.40 per hour.) 4.27 Polynesianis now under direct local management. A clearer airline corporate Airport Traffic strategyis beingdeveloped, and cost controland services strengthened. Allianceswith other 4.29 Internationalairport traffic at Faleolo carriers (ANZ, QF and UTA) are being Airport is summarizedin Table 4.9. The developed. Financialand traffic performance number of aircraft movementshave declined appears to have improved. Polynesiannow over the period, although there has been a operatesa leased B737-300and a leasedB727 continuousincrease in passengermovements. aircraft. Polynesian Airline services are Residentmovements, which have grownfrom a concentrated at present on the Australian lower base than visitor movements,accounted gateway of Sydney and Auckland in New for 50 percentof totalmovements in 1988. The Zealand. The businessand holidaymarket is increasein the number of visitors to Western predominantlyAustralian while the VFRmarket Samoa has been modest, with little growth is dominatedby New Zealand,because of the experiencedin the period 1986 to 1988. The large residentWestern Samoan population. 1987 Western Samoa Visitor Survey (TCSP, 1987) showed that the visiting friends or 4.28 Domesticservices have been operated by relativestraffic (VFR) category accounted for 28 Polynesian Airlines as part of the Ansett percentof total visitortraffic. The relatively agreementwith the Governmentof Western high proportionof VFR travel is the result of Samoa. The airline has a monopoly and large Samoancommunities in AmericanSamoa, providesall charteras well as route servicesin New Zealand,Hawaii and the west coastof the the country. Fares on domesticservices are USA. These countries plus Australia are controlledand are insufficientto cover full historicallythe strongmarket areas for travelto operating costs. Recent losses on domestic WesternSamoa. servicesare of the order of WSS2S0,000per - 23 -
Table 4.9: WEsrEaN SAMOA-INTERNATIONALAIR TAmc-FALEOLO AIRORT, 1984- 1988
Year 1984 1985 1986 1987 1988
Aircraft Movements 6,490 6,332 5,378 5,318 Visitor Movements 71,400 78,602 91,134 92,286 92,682 Resident Movements 54,275 49,898 54,366 86,614 93,718
Total Passenger Movements /a 12S,675 128,500 145,S00 178,900 186,400
Source: Departmentof Statistics, WSVB.
LaFigures of passenger movementsproduced by the Western Samoa Airport Authority are up to 10 percent higher.
Airport Facilities and Investments completed in 1987, a new Instrument Landing System and two new fire tenders. The terminal 4.30 The principal airport in Western Samoa was planned to accommodate projected is FaleoloInternational Airport which is located passenger numbers for the next 10 to 15 years. about 32 kilometers west of Apia. The airport New Zealand has provided assistancein fencing, has a 2,700 meter runway and can accommodate lighting and telecommunications. Germany has unrestricted operations for most aircraft to funded reconditioned fire fighting rescue potential destinations in the Pacific basin area. vehicles. DP-7 has proposed that an Airport Some restrictions exist for maximum weight Maintenance Section capable of undertaking operationsby the larger long range aircraft. The routine maintenance for airport facilities at B767 is the largest aircraft to use the airport on Faleolo InternationalAirport is necessary given a scheduledbasis, but B747 aircraft are operated the size of the developed airport, and outlined between Auckland and Faleolo over the investmentin a workshopand equipment. Other Christmasperiod to meet the VFR demand. The proposed expenditure in DP-6 was oriented to Govermmenthas indicateda desire to extend the the developmentof a Civil Aviation Department. runway at Faleolo to permit unrestricted B747 An aviation needs assessment survey operations. Bearing in mind the total lifetime (UJNDP/ICAO1986) made 24 recommendations costs and expected traffic levels, the economic covering a range of operational improvements justification of such an investment is not at all for air operations in Western Samoa. Of these clear. 22 have been implementedcovering provisionof flre and rescue equipment, security equipment, 4.31 Considerable investment was made in maintenance and repair equipment and the Faleolo Airport during the 1980s. AIDAB recruitmentand training of traffic controllers. assisted in the upgrading of the runway and apron area to enable the airport to accommodate 4.32 In 1989 there were three other domestic wide-bodied aircraft (at a cost of WS$22 arports in Western Samoa; Fagalii (near Apia), million). Japan funded a new passenger (at a Maota (near Salelologa)on Savaii and Asau at cost of WSSl million) terminal which was the western end of Savai'i. The runway at Asau - 24 -
was destroyedby CycloneOfa and has not been operationsand maintenance. The Authorityis of rebuilt. Both Fagalii and Maota have an the viewthat any upgradingof Maotaor Fagalii unsealedsurface; Fagalii is a grassed runway or reconstructionof the airport at Asau should and Maotaa gravelsurface. Thereare problems be fundedseparately by the Government. in the furtherextension or upgradingof facilities at both airportsdue to topographicaland land 4.35 Planning. A Masterplanfor Faleolo ownershipconstraints. It is intended,however, InternationalAirport was prepared in 1990 that Maota be relocated and that Fagalii be (WSAA,1990) to provideguidelines for future upgraded to fully accommodateTwin Otter developmentof facilities to the Year 2010. aircraft. Replacement/financingof the airstripat Growthin aviationdemand is likely to depend Asau is somewhat problematic given the heavilyon tourismdevelopment, which in turn vulnerabilityof the previoussite to weatherand will be shaped by the increase in its role as a second airstrip on Savaii. A accommodation,other tourist infrastructure, and locationaland economicfeasibility study has not evolvingrelative attractiveness. A key factorin yet been undertaken. the considerationof developmentoptions at Faleolo is the desire to provide a 300 meter Operationsand Administration wide runway strip to comnplywith ICAO specificationsfor precision approach. The 4.33 As notedabove, there is no civilaviation present runwaystrip is 150 meters wide and a organizationas such, in WesternSamoa, and decisionto provide a 300 meter wide runway reliancehas been placedon an aviationadvisor strip to complywith ICAO specificationsfor to assist the Governmenton civil aviation precisionapproach. Thepresent runway strip is matters. The New Zealand Directorof Civil 150meters wide and a decisionto providea 300 Aviationacts as the civil aviationauthority in meter width, and meet obstacle clearance respect to civil aviation regulationsrelated to standards, would require considerable technical and operationalmatters. A Civil earthworksand the relocationof many airport AviationDepartment to be establishedhowever, facilities. The lowest cost developmentwhich staffinglimitations pose difficulties. would leave the runway strip at 150 meter width, and acceptother operationalconstraints, 4.34 The WesternSamoa Airports Authority is estimatedto cost WS$219.7M(1990 prices). (WSAA),which was establishedin 1986, is The recommendedalternative in the study, responsiblefor the operationsand maintenance which would satisfy ICAO requirements,is of airports in Western Samoa. All airport estimated to cost WS$33.OM. The major facilitiesare vested in the Authority(although variationsin StageII are the costsof earthworks PolynesianAirlines has a direct involvementin for the runwaystrip and approachsurface, and Fagalii). The authorityis expectedto be self- for a new passengerterminal and apron. The financing,however, to date this objectivehas recommended alternative would require not been met. The Authorityhas met recurrent demolitionof part of the existingterminal to outlays from fees and charges raised from make room for extensionto the apron. The airport operations(see Tabie 4.10) with aid expectedlevel of trafficthrough Faleolo Airport funded support for specialist personnel, but would not appearto supportthe recommended depreciation/replacementcosts for aid funded levelof development. capital investment is not included. The Authority has recently expanded airport concessionsand restructuredthe duty-freeshops to enhance non-aeronauticalrevenues. The revenue recovered from charges at the two operationallocal airportsdo not cover costs of - 25-
Table 4.10: WEsTERNSAMOA-GovERNmENT ExPENDrruRE IN AvIATION,1986 - 1991 (WS$)
1986 1987 1988 19S9 1990 /a 1991La
1. Capital Expenditure * Total Expenditure 40,511 8,828.887 374,585 8,259,389 219,014 194,789 * Source of Funds -Domestic 40,611 510,336 374,585 1,724,759 219,014 194,789 - Bilateral 8,318,550 6,534,632 2. Recurrent * Total Expenditure 867,115 1,428,615 1,715,400 2,165,599 2,211,678 2,377,046 * Source of Funds - Domestic 986,461 1,957,936 2,136,765 2,036,539 2,034,489 2,101,494 - Bilateral 385,570 158,963 253,929 102,545 109,339 48,291 3. Source of Revenue * Total Revenue 1,357,201 2,117,395 2,390,692 2,268,145 2,321,017 2,425,338 • Source of Funds - Donmetic Lauding few 225,426 914,547 987,738 890,417 925,861 1,084,502 Departure tax 603,537 716,930 714,110 807,569 789,098 776,751 Concessions 110,924 73,968 139,020 127,257 129,328 196,391 Vehicleparkdng 9,559 25,856 27,916 31,928 36,197 32,557 Uroundhandling 0 160,542 194,637 192,486 184,415 201,773 Miscelanoous 13,407 7,028 27,678 62,998 109,425 39,099 Aircraft Parking 0 10,892 11,460 13,140 11,244 10,254 Fuel levy 23,608 48,669 34,204 39,804 26,078 35,717 - Bilateral Aid Funded Personnel 370,740 158,963 253,929 102,545 109,339 48,291 lA Unaudited Annual Accounts. Source: Western Samoa Airport AuthorityAnnual Accounts.
Table 4.11: WESTERN SAmOA-DEVELOPMENT PROPOSALS FOR FALEOLO AIRPORT La (WS$000)
Least Cost Alternative Recommended Alternative
Stage I (1990-1995) 3,344 3,364 Stage 11 (1995-2000) 12,749 26,040 Stage III (2000-2010) 3,588 3,632 Total 19,681 33,036
La Preliminary estimates. Source: WSAA (1990). -26 -
CHAPTER 5 TRANSPORTSECTOR DEVELOPMENTNEEDS
indicateda continuedempbsis on increased A. LNTRDUCnON productivity from agricultural land already accessible and on developmentof a forest 5.1 WestemSamoa has beenan independent industry. Thepercentage of plannedinvestment nationsince 1962. Duringthe late 1960sand in the transport sector (11 percent) in DP-4 the 1970sconsiderable work wasundertaken in (1980-1984)reflected a changein emphasisfrom developingthe nation's transportsystem. .'he transport infrastructure development to main wharfat the Port of Apiawas openedin investmentin agriculture,forestry and fisheries. 1966, the entrance channel and wharf (Actualexpenditure on transportwas higher). In constructedto openAsau Harbor for shippingin the main, the emphasisduring the 1980s(and the early 1970s, and berthing facDlities beyond) needed to be placed on the efctive constructed for vehicular ferry operations administration,routine maintenance and cyclic between Mulifanuaand Salelologa. Faleolo rehabilitationof the nation's transport assets Airport was reconstructedin 1972 from an (GWS, Plan 1981). The thrust of the land unsealed strip to a sealed runway to handle transport sector plan in DP-6 (1986-1990) mediumsized jet aircraftup to BAC111 size and continuedthe emphasison the maintenanceand a new terminaland parkingfacilities built. cyclic rehabilitationof the transport system. Ihe greatestsingle need in 1991still remains the 5.2 Developmentof the transportsector has effectiveadministration and maintenanceof the long receivedattention -n WesternSamoa with nation'stransport assets. a majorroad investmentstudy (GWS, 1972),a multi-:nodaltransportation study (GWS, 1981), and master planning studies for port B. INSTITUTIONAL development (JICA, 1987) and airport development(WSAA; 1987, 1990). These 5.4 Investment Justirication. The studieshave provideda basis for developmental development of transport infrastructure in activitiesand have been effectivein obtaining WesternSamoa has been seen as a basicelement supportfrom donors. in economic growth. Investment in land transportinfrastructure, in particular,has been 5.3 During the 1970s the main highway justifiedby the presumedincrease in agricultural systemon Upolu was substantiallycompleted, productionresulting from increasedaccessibility with someexceptions. The SouthCoast Road to landand greaterreturn as a resultof reduced on Savai'i was constructedin the early 1980s transportcosts. The full effectivenessof this and constructionor upgradingof some1,200 km role has not been established. of feeder roads serving 175 villages was completed. The long-termeconomic scenario 5.5 Government Accountabllity. Departmentsand organizations of Governmentin -27 -
Western Samoa are not required to prepare Australia and Now Zealand have been the annual reports setting out the performance of principal aid donors and have also been the their functions and responsibilities. Thus, there significant contributors to the development of is no formal accountability to the Oovernment transport infrastructure. and to the public and no full exposureof policies or the need to defend publicly the effectiveness and efficiencyof operations. The review of C. GENEALTRANSPoRT SECOR ISSUES growth prospects in Western Samoa (World Bank, 1991) notes the extensiveinvolvement by 5.9 ProJect Selection and Appraisal. The Stateowned enterprises in virtually all sectorsof completionof the present assistance projects to the economy, many of which have shown less Western Samoa will result in the rehabilitation than satisfactory performance. The result has and restorationof much of the nation's transport been a drain on budgetary resources and infrastructure (see Tables 4.2 and 4.5). The undemind incentives for private sector need for now major construction projects is developments. difficult to envisage in the short to medium term.' 5.6 Transport Responsibilties. A number of changes are proceeding in the institutional 5.10 Regulation and Cost Recovery. There arrangements in the transport sector. The is a need to articulate policies on user charges, creation of a Western Samoa Ports Authority cost-recoveryand regulation which will promote and a Land Transport Board are both actions economic efficiency and generate funds for which should lead to better administration, operation and maintenance in the transport greater efficiency and higher levels of cost sector. Such policies will influence future recovery in the relevant areas. project selection. Considerationshould be given to extending the intended functions of the 5.7 Human Resource Development. Transport Control Board (which is now under Western Samoa has given a high priority to the Ministryof Police) to includematters of cost educationand training of its citizens. The public recovery policy and user charges in the land sector has a strong cadre of senior officials, but transport subsector. The Western Samoa Ports remains dependent on expatriates for much of Authority, which is to be created, will have the professional and specialized technical powers under the draft Act to set rates and requirements, particularly in line Departments. charges for services based on commercial There continuesto be a need for training, which requirements. Airport charges, with the because of budgetary and staff constraints needs exception of carparking and concession rents, to be undertaken in the most effective manner. are set by the Government. Training needs should be evaluated against skill deficiencies in the public sector. On-the-job 5.11 Maintenance is the single most important training will, in many instances, be a more transport issue. The need for adequate effective approach to upgrading technical skills. maintenanceof the nation's transport assets has been reiterated during the past decade. Recent 5.8 Aid Environment. External grants to aid assistance through AIDAB for the Western Samoa during the 1980s were rehabilitationof the rural sealed road system and commonlyof the order of USS16-17million per the development of effective administrationof annum. Aid has been dominated by bilateral both a Roads Maintenance Unit and the Plant assistance (some 75 percent of the total), ManagementSystem is directed towards the need although there has been substantialmulti-lateral to improve asset management. The agreement assistance (for example, IDA) for rehabilitation for IDA provision of US$14.0 million for road works following Cyclone Ofa in 1990. Japan, rehabilitation after Cyclone Ofa requires the - 28 -
Government to provide adequate budgetary constructionwhich is the desire of Govermnent. allocations for routine road maintenance. The It is clear that the present resources and skills budgetary implications of the operations and are insufficientto cover both roles. maintenance requirements of future infrastructure development projects needs to S.15 Human Resource Development. The become a formal part of project appraisal, with organizationstructure and staffing resources can donor assistance geared to ensuring that this be satisfactorilydetermined only when the role requirement is met. of the Roads Section is firmly established. At present the Department cannot plan its staff resources effectively and is further constrained D. LANDTRNSPORT SUBsCrOR by loss of professionaland technical skills, either through emigration or by competition 5.12 Managem t System. The need to from private enterprise. The Department is establish a road maintenancemangement system reliant on professional and specialist technical has been identified in a number of studies. The resourcesthrough technicalassistance programs, lack of such a system weakens the ability to mainly Australia and New Zealand. However, obtain the funding levels necessary to meet the the general lack of counterpart staff and the road maintenancerequirement and to apply the continuousturnover of expatriate staff (and the resources effectively. Considerationneeds to be variabilityin competenceand attitude)constrains given to road infrastructurelife cycle costs and the development of a cohesive and motivated total road transport system costs in relation to organization. road standards. The potential to modify standardsto simplifyor reduce the requirements 5.16 Private Sector Involvement. The local of road maintenance should be examined. private sector is involved in construction Increasedplant serviceabilityand improvedplant projects, but mainly as subcontractors to managementwould require lower plant holdings international organizations on major projects. and reduce overall costs. The use of fully Developmentof the skills and capacity of the recovered plant hire rates and the proper local industry will require a clear Government allocation of costs would aid the costing and policy on the roles of the public and private control of maintenanceprograms. sector and a financial program which provides some certaintyand evennessin the availabilityof 5.13 Road Reservations. The need for the future work. preservation of adequate road reservations has been the subject of comment since a road 5.17 Road Safety and TraMc Operations. investment study in 1972. Encroachment Road safety has been an emerging issue over the through road side planting by village past decade as traffic volumes have increasedin communitiesup to the edges of carriageways the areas near Apia and along the north west further exacerbates the problem of providing coast of Upolu. Conflict between pedestrians adequate collectionand discharge of water from and vehiclesis a problem of increasingpotential. the road formations. This adds to problems of It will be necessary for the Public Works road maintenance. Departmentto develop better traffic management and engineeringcapabilities and to consider the 5.14 IstItutional ResponsIbIlIties. The role provision of separate footpaths through village of the Road Section of the Public Works areas along well trafficked roads. Department needs to be clearly defined and agreed. At present the Department sees its functionand capabilityof the maintenanceof the road system, and not extended to road - 29 -
E. MAmw Suuscro 5.21 Infrastructure. Themajorinfrastructure issue,in the short to mediumterm, concernsthe 5.18 Strategyand Polcieo. Thedevelopment possiblereestablishment of an airstrip at Asau. strategy for marine infrastructurein Western With the loss of Asau airstrip, air traffic has Samoawas completedin 1987. The ADBhas increasedand cost recoveryon domesticaviation financedworks at the Port of Apia consistent serviceshas improved.User reaction, therefore, with the study findings. The identified wouldnot appearto supportreinstatement of the requirementfor moreeffective management and Asaustrip; an acceptableeconomic return from greater self-financing capacity of port the investmentappears doubtful. Moreover, any infrastructureis being addressedthrough the investmentshould be linked, technical and creationof a WesternSamoa Ports Authority. financially,to supportfor specificdevelopment projects,including tourist ventures. 5.19 DomesticShipping. Formal domestic shippingsrvices ae adequateat presnt and 5.22 AirportsOperations and Mainitnae. improvementin vesselutilization and reduction At present levels of traffic and user charges, in costswill occur whenthe Mulifanuaterminal insufficientrevenues are generated to cover is restored to full capability. The market is depreciation/restructuringof airport concessions contestable,but the establishedposition of the but significantimprovement in cost recovery WesternSamoa Shipping Corporation and the wouldappear to be dependenton trafficgrowth. smallmarket size deterscompetitive entry. 5.23 ArllneOperations. Polynesian Airlines has been innovativein exploringmarkets and F. AvILnoN SUBSEc R internationalservices to WesternSamoa appear adequate to meet present demands. 5.20 Strate and Policies. The strategyfor Establishmentof new arrangementsfor the the futuredevelopment of aviationinfrastructure managementof Polynesian Airlines should has beenreviewed recently. Existing airport and endeavor to draw on cooperationwith other airstrip infrastructureis adequatefor current carriers." servicesand futureneeds are tied primarilyto growth in long-haulinternational tourist traffic in the late 1990sand beyond. A necessary,but not sufficientcondition for such growth is the developmentand marketingof complementary tourist facilities, especially quality resort accommodation. - 30 -
Endnotes
1. This transport sector survey is based upon a missionto Western Samoa March 19-27, 1991. The mission members were Colin Gannon (Senior Economist and mission leader), and Ian Gordon (consultant). A draft of this report was discussed with the Governmentof Western Samoa June 23-26, 1992.
2. See World Bank (1989).
3. The five other South Pacific island countries which were members of the World Bank at the time of this study were Fiji, Kiribati, SolomonIslands, Tonga and Vanuatu.
4. The World Bank country study of the Pacific Island Economies (World Bank, 1991a) presoe a more detailed review of the Western Samoa economy and its developmentprojects.
5. More recently (December6-9, 1991), and less than two years after Cyclone Ofa, Western Samoa was severely damagedby Cyclone Val, the most destructive cycloneto hit Western Samoa in 100 years. A comprehensiveassessment of damage, includingto transport infrastructure, was still being undertaken (as of March 1992). An assessment of infrastructure rehabilitation needs is reported in Governmentof Western Samoa (1992). Officialtotal damage is estimatedat WS$713 million. Of this total, within the transport sector estimateddamages are WS$34 million for roads and bridges WSS19million by ports and maritimeand WSS6 million for coastalprotection works.
6. These training projects raise the question of whether plant workshops and road maintenance activitiesmight be more appropriatelydeveloped in the private sector.
7. For further discussionsee Part IV in Volume One of this Report.
8. Extension damage from Cyclone Val in early December 1991 has had a major impact on reconstructionneeds; these were still being assessed as of March 1992.
9. See Part IV, Volume One of this Study. - 31 -
BIBLIOGRAPHY
Asian DevelopmentBank (1987), Road MaintenanceReport, prepared by Beca Worley International, 1987.
Australian International Development AssistanceBureau (1989), Resealing of Main Rural Highways, prepared by Cardno & Davies Pty. Ltd.
Government of Western Samoa (1987), Western Samoa's Sixth Development Plan 1988-1993, Ap:, Western Samoa. Governmentof WesternSamoa (1992), CycloneVal InrastructureRehabilitation Needs Assessment Report (Prepared by the World Bank with the assistanceof ADB and AIDAB), June 1, 1992.
InternationalMaritime Organization(1988), Study of the Establishmentof a Ports Authority in Western Samoa, Mission Report.
Japanese International CooperationAgency (1987), lhe Study on Development of the Ports in Western Samoa.
New Zealand Ministry of Foreign Affairs (1988), Road Maintenancein Western Samoa, prepared by TGB Armitage.
Tourism Council of the South Pacific (1990), TourismSector Report, WesternSamoa.
Transport and Road Research Laboratory (1982), The 7RRL Road Investment Model for Developing Countries(RTIM2), TRRL Laboratory Report 1057.
Western SamoaAirport Authority(1990), MasterPlan UpdateforFaleololnternatlonalAirport,prepared by Henry Fan (SingaporeAirport Authority).
Western Samoa AccidentCompensation Board (1990), A Study of Accidents.
WorldBank, (1989),South Pacific Islands Transport Sector Review.
WorldBank, (1990),Western Samoa Emergency Road Rehabilitation Project.
WorldBank, (1991a),Towards Higher Growth in PacificIsland Economies: Lessonsfrom the 1980s, Report No. 9059-ASIA, January 18. - 32 -
WesternSamoa
Hondiiiu
NZ Air NowZeakid FJ Al(Pedle MAHvvian AJk%\ PH P drm mum TS Sno*Ain
-4--4- On.. ws dy a.M. -E A-A ALcr*R INTW^TIONAL MR SIVSO P& d_w0y h In eac dhdiron - 33 -
WESTERN SAMOA
TRANSPORTSECTOR SURVEY
ANNEX 1 -34- ANNEX 1
CONTENTS
1 INTRODUCTION 36 A. Context 36 B. MaintenanceManagement Framework .36
2 NATURE OF THE MAINTENANCEISSUE ...... 39 A. Transport InfrastructureInventory ...... 39 D. Assesed Maintenance ...... 41 C. Maintenanc Practices ... A4...... 4 D. Implicationsof Inadequate Maintenance ...... 50 E. MaintenanceFunding ...... 52 F. SituationSummary ...... 56
3 EQUIVALENTANNUAL VALUE FOR TRANSPORTINFRASTRUCTURE 58
4 ROAD VEHICLE OPERATINGCOSTS .60 - 35 - ANNEX 1
LISTOF TABLES
Table No. 1 WesternSamoa-Management Information Inventory Roads .37 2 WesternSamoa-Management Information Inventory Ports .37 3 WesternSamoa-Management Information Inventory Airports .38 4 WesternSamoa-Estimated Road Length, 1991 .39 5 WesternSamoa-Road Construction Costs .40 6 WesternSamoa-Estimated Replacement Cost Government MarineFacilities .41 7 WesternSamoa-Estimated Replacement Cost Government AviationFacilities .42 8 Westen Samoa-AverageAnnual Maintenance Costs of Roads, 1991.42 9 WesternSamoa-Annual Average Maintenance Cost as a Percentageof ReplacamentCost for MarineFacilities .44 10 WestemSamoa-Average Annual Maintenance Cost Goverment MarineFacilities .44 11 WesternSamoa-Annual Average Maintenance Cost GovernmentAviation Facilities. 45 12 WestemSamoa-Recurrent Expenditure Public Works DepartmentCivil Section .46 13 WesternSamoa-Road Maintenance 1991-1992 Allocation by Activity 46 14 WesternSamoa-Recurrent Income and Expenditurefor Ministry of Transport - Marine Division .48 15 Westen Samoa-EstimatedBudget Allocation to PrincipalActivity Areas Marine Division 1991/92 .48 16 WesternSamoa-Recurrent Income and Expenditurefor WesternSamoa Aviation Authority .49 17 WesternSamoa-Annual Maintenance Costs Western Samoa AirportAuthority, 1988-1991 .51 18 WesternSamoa-Summary of Infrastructureand Maintenance Costs, !991 .51 19 WesternSamoa-Income from Import Duty and ExciseTax, 1990.55 20 WesternSamoa-Summary of Cost Recovery,1991 .57 21 WesternSamoa-Summary of InfrastructureValue and MaintenanceCosts, 1991.58 22 RoadRoughness and Condition.60 23 WesternSamoa-Vehicle Operating Parameters .62 24 WesternSamoa-Vehicle Operating Costs, 1991.63
LISTOF BOXES
Box No. 2.1 VehicleOperating Costs ...... 53 4.1 Trafficvolumes. 6 -36 - ANNEX 1
CEAPTER1 INTRODUCTION
A. CoNmXT twicethat of budgetedmaintenance expenditure are requiredto adequatelymaintain existing road 1.1 This annexprovides nof a aets. The urdeprovision for repairs and surveyof the maintenancesituation in Western maintenancefor the port facilitiesat Apia and Samoa.' This survey, along with similar Asau were also noted in a study of a Port surveys for other PMCs represents the Authorityin WesternSamoa (IMO, 1988). backgroundfor the regionalanalysis of transport nfrastucture maintenancefor the five PMCs presentedin VolumeOne (Part II) of this report. B. MA1I'NANCE MANAGEMEr FAMWORK 1.2 At present, governmentpolicy does not incorporate a systematic approach to the 1.4 Tables I to 3 indicate the extent of assessmentof maintenanceneeds and priorities managementinformation available for each to assistrecurrent budget planning. Substantial transportsub-sector, based on a classification rehabilitationand reconstructionof Western systemoutlined in the Part II Overview. The Samoa's road assets is currently being notionalclassifications used in the marineand undertaken with AIDAB, ADB and IDA aviation sub-sectors are subject to further assistance.In part, the programis the resultof refinement. damageto the road systemcaused by Cyclone Ofa but some WSS91million (1989 prices)of 1.5 The tablesillustrate the almostcomplete rehabilitationneeds were identifiedprior to the lack of informationavailable below the sectoral occurrenceof the cyclone.2 level which would assist in the development, operation and maintenanceof the transport 1.3 At present,there are no assetinventories system. WesternSamoa has a more systematic held by the responsibledepartments which approachto the collectionand analysisof road contain informationon asset conditions,or traffic volume informationthan most other historicaldata (otherthan an estinate of the total Pacific Island Countries but there are length of road in the country). Evidenceof deficiencies in other areas of the road insufficientmaintenance is circumstantialand information system. Some additional generallyconsists of descriptiveobservations of informationis availablein the aviationsub-sector the present poor conditionof infrastructure. directed mainly to meeting international Some analysishas been undertakenof the need operationaland air safety requirements. The for cost efective maintenancein the road majordeficiencies relate to informationuseful to subsctor. The relevant reports noted in the the development of adequate maintenance CountrySurvey generally indicates that outlays managementstrategies and systems. .37 ANNEXI
Table 1: Westen Samoa-ManagementInformatdon Inventory Roads
i~~ TecuIr~~~~~ /______Levd Roa Pawmut Stnicltre Trafic 1e AcivY Rh _e9c ___vmtor_y Sectorsi Ov.rsl budptcry U U U A P P P
infornation Network TraMc dmand U U U P U U U andphysical charsotoriaicsby ______link _ _ _ _ _ Project Specificdata related to - Not Aesd- cotnction, betrma sad
Opations Maiatecof U U U U U U U the qyne to prvde *Ibeivo
Rematch Ued for wific U U U U U U U inveatiationsof IandDevelop- devlopmentof nug dt ayfy_i or hs L ~~~~~ficincy_ _(l) Sespa1.1.7. - apabbl basic informationavailable P - eall bask ifution available U - infmation unvilable Scum: .ietorevew.
Table 2: WESTERNSAMOA-MANAGEMENT INFORMATION INVENTORY PORTS
______~~TeebiaI w ar L _aetl Pftrpe. T 14Y01 Stretructires Civil kildLap tiat & Traffic PIase Resources | lorke I I -t II11
socteral OUer:PAbugetary A p A _ _for-mation ___ _ I_I _I_I_I_I Network Traffic demandand P 1 P PP P T U cbrataiaic by locatlo- Project spte ii data - nt ASsessd..
O"retiem lXt eeaot t l | D | * g t a heeerea l7Btera t rltte 1 B T B 1 B g
See Para Q.17 =-ltabeic itermetion availeble tmemaveileblU SoArce. Niacin review. -38- ANNEX 1
Tabk 3: WEIFTRNSAMOA-MANAGEmT IFMAmTioN INvENOy AIRPORTS
Twhlc Grospl is IAYd Civi Baias Hog & Lo.me. Taf ruma* Ras.ca Wors Eqpimm eadm Stoul Oveai sud p p p A A p P lefoiutloa
Netwoek Taffic dmd p U U A A U U andphyds cgcFtuis by
____ lecabon _ _
Puee Specificdat NotAseed - Opfat_om Malabmacofth U u u A A U U "ySo to pmovi ______olbctotv service
Reseac Uad fuueciflc U U U U A U U aNW investigadons Develop-
I& Seepara1.1.7. A acceptablebamic nometio available P -patal basc informtionavaiable U infonntio uavaihablb.
Source: Mision review. -39. ANNEX1
CHAPTER 2 NATURE OF THE MANTENANCE ISSUE
A. TRANORT INFRASIRUCI.RE Road Inventory INVENTORY 2.3 The Public Wors Dpwuut does to 2.1 Little data are available on transport maintaina formalroad inventory.As st out in infrastructure in Western Samoa. Such Table 1, there is little or no data whichwould informationwhich exists is presentedbelow.' assist with the strtegic plnning, work programming, project development or 2.2 The value of major transportassets in operationalcontrol of the road system. Road Western Samoa has been establishedusing link are listed by location an classifiedby estimatesof the replacementcost of identified constructionclass and surface width. Thelength assets. Where projectshave been completed of each link is given and generalcomment is recently,the replacementcost is assumedequal availableon the conditionof runningsurfacs. to the constructioncost, adjustedto present No registeris providedfor bridgesand culvert. prices. For older assetsthe replacementcosts have been calculatedby comparisonwith the 2.4 The estinwed lengths of road by recordedvalue of similar recent assets. By constructionclass are set out in Table 4. using a 'replacement'value for the asset, no Plantationand access road lenh is a general considerationhas beengiven to the conditionof estimateand could be as much as 1,500 km. the asset. In most casesthe actualvalue of the The widths of sealed road surfacesvary from asset would be considerablylower than the 4.0 m to 6.5 m. replacementcost, due to age and lack of maintenance.
Table 4: WEsTERNSAMOA-RoAD LENGTH, 1991 (km) Earth Forned Surfaced Sealed Total Road Road Road TownRoads 25 50 75 PrimaryRoads 167 240 407 SecondaryRoads 330 10 340 Plantation/AccessRoads 1,250 . - 1,250 Total 1,250 522 300 2,072
Source: WesternSamoa Public Works Department, ADB (1987), IDA (1989). 40- ANNEX1
2.5 The replacementcost of the road assets is Marine Infrastructure Inventory estimated on the basis of recent contracts for World Bank (IDA) and ADB road construction 2.7 The Ministry of Transport does not works. These contracts are for constructionor maintain an inventory of marine assets, use an reconstruction of sealed roads designed to asset depreciation system or prepare engineered standards with pavement widths commerciallyoriented financial accounts. Port generally of 6 m. Replacementcosts of sealed and marine infrastructure comprises the wharf, roads of lower widths have been estimated on a container area, ferry terminal, cargo sheds and pro rata basis. The lengths of sealed road by ancillary structures at the main port at Apia; pavement width have been est mated from ferry terminals at Salelologa and Mufinau; and available data. Replacementcosts of unsealed approach channels and wharves at Asau and (surfaced) roads have been estimated from Aleipata. The wharf at Asau has not been used, Departnenta data for contract works rather than with minor exceptions, since Cyclone Ofa in Department force account estimates which do 1990 and the facilities at Aleipata have never not reflect the full commercial costs of plant been used for the proposed ferry service to usage. The estimated value of village/plantation American Samoa since its constructionin 1980. roads is based on full commercial costs, although in most cases these roads are built 2.8 Extensive port construction works are using unpaid village assistance. being undertaken at Apia. These works involve both planned developmentand reconstructionor 2.6 Based on the estimates in Table 5 the replacement of facilities affected by Cyclone calculated replacement cost of road assets is Ofa. Reconstructionworks are also required to WSS218 million (1991 prices). This estimate the ferry terminal and approach channel at does not include the costs of bridges or major Mulifanua. Realignment of the approach drainage structures. If these assets are assessed channel is required at the Port of Asau for safe as 15 percent of the road costs, the total entry of vessels under poor weather conditions. replacementcosts of public road assets is some However, timber milling for export at Asau has WS$250 million (1991 prices). ceased and is unlikely to be re-established because of destruction of forestry areas caused by Cyclone Ofa. The need for reconstruction and future operationof Asau appears unlikely.
Table 5: WESTERN SAMOA-ROADCONSTRUCTION COSTS, 1991 (WS$ million, 1991 prices)
Length Average Construction Road Type (km) Cost (per km) Cost Sealed Roads: 5.5 m - 6.5 m pavement 145 0.45 65.25 4.5 m - 5.5 m pavement 155 0.30 46.50 Surfaced roads 522 0.20 100.44 Plantation/AccessRoads 1.250 0.05 6.25 Total: Road ReplacementCost 218.44
Source: PWD and Mission estimates. - 41- ANNEX 1
2.9 Replacement costs for the port facilities Cyclone Ofa. The total replacement cost of at Apia have been based on the costs of the new government aviation assets is estimated at and reconstruction works. Values have been WSS75.8 million (1991 prices) (see Table 7). calculated for the existing wharf and sheds. Replacementcosts for the facilitiesat Mulifanua ard Salelologaare based on known construction B. ASSSE M^ArEnANCE costs in 1985 inflated to 1991 values. No value has been placed on the inf.astructure at Asau Roads and Aleipata, since their future use is unlikely. The estimated replacement costs of marine 2.11 The average annual road maintenance facilities is estimated at WS$64 million (1991 costs are based on estimates prepared for the prices) (see Table 6). Road Maintenance Report (ADB, 1987), the Resealing of Main Rural Highways (AIDAB, Aviatio Infrastructure Invenory 1989) and estimates provided by the Western Samoan Public Works Department. The earlier 2.10 The Westeta Samoa Aviation Authority estimates have been adjusted to 1991 values. has not developed an asset inventory in a form Estimates based on contracts for maintenance which provides the basis for an asset workcshave been preferred to day-labor works as managementsystem. Genera data is available the Department does not filly cost plant and in the facilities at each airport (for example, equipment to force account operations. The runway lengths, building arom). The Authority estimates include periodic reseal and regravel has provided a list of major assets and their costs reduced to an equivalent average annual estimatedreplacement cost and these figures are cost. A provisional estimate is included for used in this report. The facilities operated by plantation/accessroads. The estimatedcosts are the Authority comprise the Faleolo international set out in Table 8. airport and two domestic airfields at Fagalii and Maota. No value of replacementcost is put on 2.12 The estimatedannual maintenancecost of the airfield at Asau which was destroyed in WS$7.1 million (1991 prices) assumes the road
Table 6: WsTEmRNSAMOA-GOVERNMENT MARINE FACILITIES REPLACEMENT COST, 1991 (WS$ million, 1991 prices)
Location Facility Replacement Cost Apia * Breakwater 8.5 * Wharves/Terminals 27.0 * Container Yard/Roadways 12.0 * Sheds, Buildings 2.0 * Tugs, Workboats 2.5
Subtotal 52.0
Mulifanua and Salelologa * Ferry terminals 12.0 Total Marine InfrastructureReplacement Cost 64.0
Source: Ministry of Transport and Mission Estimates. -42 - ANNEXI
Table 7: WESwRNSAMOA-GovERNMNT AvATION FAcLmES RELACEMENTCosr, 1991 (WS$million, 1991 prices) Facility Plant and Location Cost Content Cost Total Cost Faleolo Runway,Taxiway, Apron 33.0 33.0 Terminal 15.0 1.0 16.0 OtherBuildings 18.0 3.5LI 21.5 OtherPlant 1.5 1.5 Subtotal 72.0
Fagaii and Maota 3.8 3.8 TotalAviation Jnfrastructure Replacement Cost 75.8
La Includesallowance for radio and communicationequipment. Source: WesternSamoa Aviation Authority and missionestimates.
system is in good maintainablecondition and workare the resultof damageto the roadsystem thatmaintenance is directedto preservingdesign from CycloneOfa, the remainderresults from standards. This is not the case and extensive under expenditure on routine and periodic rehabilitationand reconstructionworks are now maintenance. in progresson the main road networkfinanced by IDA, ADBand AIDAB. Someparts of this
Table 8: WESTERNSAMOA-AVERAGE ANNUAL MAINTENANCE CoSmsOF RoADs, 1991 (WS$, 1991 priCeS) Cost/km Length T Total Cost Road Type WS$ (kin) WS$ millions SealedRoads * main roads 10,000 240 2.40 * secondaryroads 8,500 60 0.51 SurfacedRoads * main roads 8,500 167 1.42 * secondaryroads 6,000 355 2.13 PlantationRoads 500 1,250 0.62 Total 7.08
Source: MissionEstimates. .43 - ANNEX 1
2.13 Prior to the cyclone, an IDA rather than individually detailed, general identification mission for the Western Samoa percentages have been used (see Table 9). On Road Development Program (November 1989) the basis of these data, the estimated average established the need for a major rehabilitation annual maintenancecost is WS$710,000 (1991 and specific maintenance program. The prices) for facilitiesat the main port of Apia and Resealing of Main Rural Highways (AIDAB WS$120,000 (1991 prices) for Mulifanua and 1989) had similarly identified the need for a Salelologa (see Table 10). This represents a major reseal program covering the 224 km of total annual maintenance requirement of the sealed main road system. The proposed IDA WS$830,000 (1991 prices). rehabilitation program (now under implementation), excluding specific road 2.16 It is not possible to separate the backlog improvements, training programs and of maintenanceand rehabilitationneeds resulting institutional strengthening totalled some from past underfunding of maintenance WSS90.7 million (1989 prices) made up of: requirements from the damage caused to port facilities during Cyclone Ofa. The extensive WS$ million port construction works nearing completion at Major Rehabilitation the Port of Apia are the result of both planned * sealed main rural roads 1.6 development and reconstruction or replacement * unsealed main rural roads 72.7 of facilitiesaffected by the cyclone. Outstanding * secondary rural roads 5.2 items include structural repair and 3 Apia Roads 2.5 weatherproofing of the cargo sheds, the Bridge/CulvertReconstruction 8.7 provisionof security fencing and dredging along the wharf face. Similarly, extensive damage to 90.7 the wharf face and partial filling of the approach channel occurred at Mulifanua as a result of the The rehabilitation program did not include cyclone. periodic and routine maintenance. The estimate of WS$90.7 million (1989 prices) provides an Aviation Infrastructure assessmentof the backlogof rehabilitationworks at that time. 2.17 Annualmaintenance costs for the aviation sub-sectoralso have been calculatedby applying 2.14 Works in progress or being prepared for percentage factors to the estimated replacement tender following Cyclone Ofa, total some cost of facilities. No specific source document WS$45 million and appear to include some has been ident.fied which provides indicative WS$34 million of rehabilitationneeds identified values, as is the case for marine infrastructure. in 1989. These figures indicate a present Percentage values have been based on general backlog of rehabilitation needs totalling some figures for building maintenance, buildingplant WS$64 million (1991 prices). maintenanceand civil works maintenancein the case of major airports. For regional airports the Marine Infrastructure annual costs of maintaining the runway and general cleared area have been estimated as a 2.15 Annual averagemaintenance costs for the lump sum amount. These figures include marine sub-sector have been calculated by periodic as well as routine maintenance (see applying industry wide guideline percentage Table 11). The estimated average annual factors to the estimated replacement costs of maintenance requirement for aviation marine structures and equipment. Because infrastructure at Faleolo is WS$1.02 million costings of replacement value are aggregated, (1991 prices) and for the two regional airstrips - 44- ANNEX 1
Table 9: WESTERNSAMOA-MANE FACILITIESANNUAL AVERAGE MAINTENANCECOST AS A PERCENTAGEOF REPLACEMENTCOSr
Fadlity Percent of Capital Cost * Quay, wharf structures - reinforced concrete deck with steel piles 1.0 - hardwood deck and steel or reinforced concrete piles - mass concrete 1.5 * Buildings, offices, sheds 0.15 * MObil equipmentand boats 1.5 10.0
Source: Ports Authority of Fiji and UNDP.
WS$0.04 million(1991 prices). The total for all Airport during the 1980s and most of the facilities is WSS1.06 million (1991 prices). infrastructureis relativelynew.
2.18 No major rehabilitation needs resulting from under maintenancehave been identifiedby C. MAINENANCEPRACTCES the Western Samoa Aviation Authority. The possible replacement of the airfield at Asau is Roads the result of cyclone damage and the potential upgradingof Fagalii and the relocationof Mlaota 2.19 Readily available data pertaining to the result from land ownership problems and Public Works Department provide separate topographical restraints. Considerable budgets for each of its functions. The Civil development work has occurred at Faleolo Section budget includes the allocation for road
Table 10: WESTERNSAMOA-GOVERNmENT MARINE FACILITIES AVERAGEANNUAL MAINTENANCE CoSn, 1991 (WS$, 1991 prices)
Item Value Factor Average Annual (WS$ million) Percentage Maintenance WS$ Apia * Breakwater 8.5 0.5 42,500 * Wharves and Terminals 27.0 1.0 270,000 * Container Facilities 12.0 1.0 120,000 * Sheds, Buildings 2.0 1.5 30,000 * Tugs, Workboats 2.5 10.0 250,000 Salelologa, Mulifanua * Wharves and Terminals 12.0 1.0 120,000 Total 64.0 832,500
Source: Mission Estimates. -45 - ANNEX I
Table 11: WESTERNSAMOA-GoVmEN AviATIONFACILITIES ANNUALAVERAGE MAINTENANCE COST, 1991 (WS$, 1991 prices)
Value Average Annual Facility WS$ Factor Maintenance millions Percentage (WS$)
* Terminal and other buildings 33.0 1.0 330,000 * Terminal and other buildingplant 2.5 3.0 75,000 * Runway/aprons/taxiways 33.0 1.5 495,000 * Navigation, radio equipment 2.0 2.0 40,000 * Fire tenders, mobile equipment 1.5 5.0 75,000 Region Airfieldsl * Lump sum estimate __ _ 44,000 Total 1,059,000
Source: WSAA and Mission estimates. maintenanceas a specific line item. The road maintenanceappropriation includes the costs of 2.20 For 1991/92the salary, wages and other purchased materials, plant and equipmeat usage costs in the Civil Section and the proportion of and funding for contract maintenance. Salaries, Administration and Quarry Section costs wages and other costs attributable to road allocatableto Road Maintenanceare estimatedat maintenance are contained in separate approximatelyWS$1.0 million. The allocation allocations. Some portion of allocations to, or for bridge, seawall and ford maintenance in costs of, other functions (General Table 12 (WS$500,000) is also attributable to Administration,Quarry Section) would also be road maintenance. Of the activities included in attributable to road maintenance but a more the road maintenancefunction (Table 13), Beach detailed examination is required to fully Road duplication could be considered a delineate the relevant costs. Table 12 sets out bettermentproject. Urban drainage allocations the direct allocationsto road maintenancefor the for Upolu and Savaii are possiblyonly partially period 1988 to 1991, and the full allocationto a road maintenance function. In summary the the Civil Section for the financial year 1991- portion of budget allocations which can be 1992. A further allocationof WS$3.3 million is attributed to maintenanceof the road system is contained in the 1991-1992Development Budget of the order of WS$3.5 million. The direct for the AIDAB funded Road ResealingProject. allocationto road maintenancehas increased in This allocationis for rehabilitationof the sealed real terms in the period since 1988 and main road system and is considered a particularly since 1990. Nevertheless, current contribution to overcoming the backlog of 1991 allocations to road maintenance funding rehabilitation needs resulting from previous (WSS3.5 million)remain insufficientto mee, the under maintenance of the road system, rather long term average annual costs of maintenance than a contributionto present routine and period which are estimated at WS$7.08 million (1991 maintenancerequirements. prices). -46- ANNEXI
Table 12: WEmN SAMOA-RECURRETEXPENDITURE PUBLICWORKS DEPARTmENT CML SECr1ON,1988-1991/92 (WS$,current prices)
1988La 1989 1990 1991 1991/92 SalariosandOvertime 308,960 Wagesand Overtime 337,263 LocalTravel 44,000 OperatingSupplies 32,000 Plant ged Vehiclo 70,000 Operaions RoadMainteance 1,231,526 1,428,337 1,810,435 2,383,293 2,720,500 8ridgs, Sawallu and Fords 500,000 Stoe Recoverable 42,670 Total $4,055,393
L 1988to 1990ar 12 mouthcalendar yoara (Jan-Dec) 1991is 6 monthsJan 1991 - June 1991. Source:Treasury Department.
Table 13: WEsTERNSAMOA- 2.21 The maintenance of the road system is ROADMAINTENANCE generally undertaken by the Department of ALLoCATIONBY AcTvw, 191-192 Public Works. The Department is responsible for the maintenance of the primary and Activity WS$ secondary roads, which excludes village access Upolu Resealing 888,550 and plantation roads. The village communities Upolu Sealed Maintenance 472,640 are responsible for the remainder, although in Upolu UnSealedMaintenance32,850 practice the Department is often directed to Upolu Unsealed 393,850 undertake work on the third level roads. Maintenance 473,900 Upolu Urban Drainage 19,000 2.22 Almostall maintenanceworks are carried Upolu General 157,540 out by the Department with only some minor Savaii Resealing 47,260 works contracted out to the private sector. At Savaii Sealed Maintenance 31,510 present, AIDAB in association with the Savaii Unsealed 3,150 Government of Western Samoa, is training a Maintenance 12,600 Road MaintenanceUnit within the Public Works Savaii Urban Drainage 220,500 Departmentas part of a reseal and rehabilitation Savaii General program for selected sections of the road Beach Road Duplication _ system.
Total $2,720,500 2.23 The present system of budget allocation and cost reporting does not provide information Source: P.W.D. and mission estimates. on a program or project cost basis and the actual expenditures attributable to road maintenance cannot be defined. In addition, the plant hire -47- ANNEXI rates for maintenanceworks have been set This subdivisionof the Divisionallocation is set historicallyat levels well below real operating out in Table 15. On this basis the actual costs. A plant workshopupgrading program is allocationto maintenance,including dry docking being carried out by AIDAB which is of the tug (Talofa)is considerablyin excess of complementaryto the RoadMaintenance project. the apparent appropriationfor maintenunce The plant projectincludes the developmentof a (Table 14). Detailed assessmentswould be plantcosting system. Planthire rateshave been required to obtain the real appropriationsin reassessed for 1991 based on Australian previousyears for maintenancefunctions. experienceas there are no useablerecords of plant costs within the Departmentat present. 2.27 The allocatedfunding for maintenance, The calculatedrates for governmentworks do even taking the revised figures presented in not include the ownership capital costs Table 15, is well below the assessedaverage (depreciationand interest charges). and are annual requirement of WSS832,S00 (1991 about42 percentof the hire rate of plant which prices). The major discrepancy is in the the Departmentcharges to privatecontractors. provisionfor the maintenanceof wharves,jetties and terminals. The current new construction Ports and rehabilitationworks at Apia have rectified much of the work arising from previously 2.24 The Ministryof Transportis responsible deferredor inadequatemaintenance. Adequate for the maintenanceof port facilitiesat Apia, provisionneeds to be madeto avoid repetition Asau, Salelologaand Mulifanua. Funds for and to maintainthe facilitiesat Salelologaand maintenanceare appropriatedto the Ministry. Mulifanua. The Public Works Department undertakes maintenanceof fixed facilitieson requestfrom Aviation the Ministry of Transport. Other general maintenanceworks are carriedout by Ministry 2.28 The WesternSamoa Aviation Authority personnel. (WSAA)is responsiblefor the operationand maintenanceof Faleolo airport and the two 2.25 The budget allocationto the Ministry domesticairfields at Fagaliiand Maota. Routine providesseparate appropriations for HeadOffice maintenanceof generalfacilities is carried out and to the functionaldivisions Marine, Aviation, by authoritypersonnel. Periodic maintenance of Fire Servicesand the TransportControl Board. civil worksand buildingsare undertakenby the Therecurrent expenditure appropriations and the PublicWorks Department or by contractslet by incomefor the years 1988to 1990and for the the Authority. Maintenanceof navigationaids, financialyear 1991/92for the MarineDivision communications equipment and electrical are set out in Table 14. The figuresindicate a services are carried out in-houseor by using surplus of income over expenditurefor the privateenterprise resources. period. 2.26 A distribution of the Head Office 2.29 The Authority is expectedto be self allocation has been made to each of the financing,using airporttaxes, landingfees and functionalareas for 1991/92based on estimates other charges as the income source. The of work performedfor each Division. The Authority collects and retains passenger Marine Division allocationhas been further departuretaxes as part of its revenuesource. subdividedto the three principalactivity areas of However, the right to retention is under the Division - Regulationand Safety, Port challengeas it is consideredby the Treasury Operationsand Port Repair and Maintenance. Departmentas a governmenttax and not an - 48- ANNEX 1
Table 14: WESTeRNSAMOA-RECURRENT INCOME AND ExpENDITURE FOR MINISTRYOF TRANSPORT- MARINE DISION, 1988-1991/92 (WS$, current prices)
1988 1989 1990 Budget 1991/92 Income: * Light Dues & Pilotage 90,750 117,138 104,756 115,500 * Port Dues 107,950 131,557 121,045 131,250 * WharfageFees 271,133 278,168 332,496 351,750 * Storage Fees 538,396 371,055 375,592 449,400 * Berthage Fees 68,785 85,359 72,653 84,000 ' Levies 115,697 165,813 29,039 94,500 * MiscellaneousCharges 62,257 75,520 232,082 420,000 Total 1,254,968 1,224,610 1,267,663 1,646,400 Expenditure: * Salaries & Overtime 278,571 * Wages & Overtime 108,609 * Beacons & Buoys 15,000 * Travel 39,526 * Office 67,100 * Electricity 66,000 :* 1perations 450,000 __ Maintenance 18,485 _6,321 A,789 40,000 Total _ __ _ 1,064,806 Source: Western Samoa Treasury Department.
Table 15: WESTERNSAMOA-EsTIMATFD BUDGET ALLOCATION TO PRINciPALACTIVITY AREAS MARINE DIVISION, 1991/92 (WS$, 1991 prices)
Budget Regulation and Port Port Facility Line Marine Safety Operations Maintenance * Salaries 46,779 219,100 12,692 * Wages 108,609 * Beaconsand Buoys 15,000 * Travel 2,566 36,960 * Office 18,000 44,100 5,000 * Electricity 66,000 perations 250,000 200,000 La Maintenance 40,000 * Distributionof Head Office 14,244 179,955 3,864 costs Total 94,023 870,330 298,516 La Includes WS$180,000 for dry docking costs of tug - Talofa. Source: Western Samoa Treasurv Department and mission estimates. -49 - ANNEX 1
Table 16: WErN SAMoA-REcuRENTiNCOM AND ExPNDruRE FORWElRN SAMOAAVIATION AUTHORIYY, 1988-1991 (WS$, current pica)
1988 1989 1990 1991 ______~~~~~~ ~~(budget) 1. CapitalExpcditure * Total Expenditur 374,585 8,259,389 188,857 54,000 * Source of Funds - Domestic 374,585 1,724,757 188,857 54,000 - Bilateral 6,534,632 2. Recurrenat * Total Expenditure 1,715,400 2,003,059 2,174,883 1,844,204 * Sowree of Funds - Domestic 2,136,765 2,160,763 2,079,187 1,844,204 - Bilaterl 253,929 102,545 95,696 - 3. Source of Revenue * Total Revenue 2,390,692 2,263,486 2,241,826 2,572,519 * Source of Funds - Domestic Landing Fees 987,738 890,417 926,482 1,127,344 Departure Tax 714,110 807,569 789,028 798,000 Concessions 139,020 128,753 134,273 249,296 Veticle Parking 27,916 31,928 36,047 36,000 Ground Handling 194,637 192,486 184,445 172,479 Miscellaneous 27,678 60,421 34,880 142,400 Aircraft Paring 11,460 13,139 11,244 10,000 Fuel Levy 34,204 36,228 29,767 37,000 - Bilateral Aid Funded Personnel 253,929 102,545 95,696 -
Source: WSAA AnnualAccounts. airport charge. The Authority is able to meet from an increase of 25 percent in charges (from recurrent outlays from fees and charges with aid WS$9.50 per tonne to WS$12.50 per tonne) in funded support for specialist personnel but the 1991 year. depreciation costs or replacement reserves for aid funded capital invesment is not included(see 2.31 The annual maintenance expenditures Able 16). cannot be derived from Table 16, but have been provided by the Aviation Authority. The figures 2.30 About 77 percent of income collectedby do not include salaries, wages and materials the Authority is derived from airport departure costs related to maintenance. A separate taxes and landing fees. In the period from 1988 estimate of wages costs has been made and to 1990 this income has remained static at included in Table 17, but would still around WSS1.7 million. The 1991 budget underestimatethe actual costs of maintenance. estimates an increase in landing fees, resulting The average annual cost over the period 1988- -50- ANNEX 1
1991 is WSS266,000which is considerably and aviation infrastructure. This level of below the estimated long term average expenditureis used as an approximationof the requirementof WSS1.06million (1991prices). amountassessed as beingnecessary for optimal maintenance(maintenance expenditure which 2.32 Estimatesof requiredannual maintenance resultsin a minimumlife cyclecost for the asset expenditureprepared by the WSAA,indicate an at a given design standard). Assessed annual cost of WSS860,000(1991 prices) for maintenancedoes not implythat it is warranted; buildings and civil works at Faleolo and this requiresa beneflt-costanalysis of individual domestic airports. This estimate excludes assets. The optimal level of maintenance navigationand communicationequipment and expenditurecannot be established. Current mobile equipment. This level of cost is maintenanceexpenditure is derivedfrom budget comparable to the assessed maintenanc3 data. requirements of the relevant items (WS$948,0C0)in Table 11. 2.34 The replacementvalue of Government transport infrastructure is estimated at Summary WSS2,400/capita. The infrastructure has, however,deteriorated considerably, and road 2.33 The estimated replacement value of rehabiitationneeds are equal to 25 percentof transportinfrastructure, maintenance overhang, the total replacementvalue of the road system. assessed maintenance needs and actual Currentmaintenance expenditure on all transport maintenanceexpenditure derived in this and infrastructure is only 45 percent of that precedingsections are summarizedin Table 18. estimatedas being required. If there was no Dataon replacementcost are drawnfrom Tables accrued maintenanceliability for the current 5, 6 and 7, data on assessed maintenance infrastructure,an additionalWS$4.9 million is requirementsfrom Tables S, 10 and 11 and estimated to achieve the assessed annual maintenanceoverhang from para 2.14. The maintenanceof the infrastructure.The current stimate are derived from a very limited maintenanceoverhang may require expenditure database. The objectiveof the estimatesis to greaterthan the assessedmaintenance of WS$9.O providean indicativequantified perspective of million per year if the average conditionof the present situation for the pu;rpose of infrastructureis to be improved. illustratingthe natureand scale of the transport infrastructuremaintenance issue. The current 2.35 Inadequatemaintenance results in more replacementvalue of transportinfrastructure has rapiddeterioration of infrastructurethan need be beenbased on data assembledon the quantityof the case. An estimateof the increase in the infrastructureand unit constructioncosts. The equivalentannual cost of infrastructureresulting maintenance overhang (i.e. rehabilitation from poor maintenanceis also presented in requirementsresulting from past inadequate Table 18. This item is discussedin the next maintenance)is derivedfrom past studieswhich section. have identified infrastructure rehabilitation needs;however, none of theseis comprehensive or up-to-date, and rehabilitation needs are D. IMnLcAnoNS OF INADEQUATE greater than presented in Table 18. The M.R.NCE expenditurerequired to adequatelymaintain current infrastructure,suitably rehabilitated so 2.36 Reducedexpenditure on maintenanceis that it is mainainable,is estimatedon the basis offset by more rapid deterioration of of unit maintenancecosts for roads and a infrastructurethan would be tie case with proportionof the replacementvalue of marine optimalmaintenance. Lnicative estimates of the -51 - ANNEX 1
Table 17: WESTERNSAMOA-ANNUAL MAINTENANCE COrS WESTERNSAMOA AIRPoRT AutHoRrrY, 1988-1991 (WS$, current prices)
Year Fadlity 1988 1989 1990 1991 Aerodromes 22,196 32,467 18,138 28,300 Buildings 79,948 82,285 29,018 36,200 Equipment 83,879 100,774 35,724 73,600 Labor La 110,000 110,000 110,000 110,000 Total 296,023 325,526 192,880 248,100
La Additionalestimated amount.
Source: WSAA. Table 18: WESuRN SAMOA-SUmmARYOF INFRAsTRucruRE ANDMAINTENANCE COSMS, 1991 (WS$ million, 1991 prices)
Road Marine Aviation Total ReplacementCost 251.2 64.0 75.8 391.0
Maintenance Overhang La 64.0 - k - 64.0 Assessed Average Annual Maintenance 7.1 0.8 1.1 9.0 Requirements /c l Estimated Current Annual Maintenance 3.5 0.3 0.3 4.1 Expenditure (as percentage of assessed requirement) (49) (36) (27) (45) AdditionalExpenditure to Achieve Optimal 3.6 0.5 0.8 4.9 Maintenance Ld AdditionalAnnual Capital Expenditure arising 11.2 1.4 3.0 15.6 from InadequateMaintenance Lt -, -, - La Cost required to rehabilitate infrastructureto a sound standard, i.e. the standard through time which would have been the case with assessed maintenanceand for which the assessed annual maintenance expenditureis sufficient to adequately maintain the infrastructure. Lk No informationavailable. L, Expenditurerequired for assessed maintenance. La Difference between current annual expenditure on maintenanceand equivalent annual expenditure assessed us being optimal. Lt Differencebetween equivalent annual capital cost for replacementof assets with optimal and current maintenance- see Annex I. Source: Mission estimates. - 52 - ANNEX 1
equivalent annual capital cost of inf*astructure development is sustainable. Development of with current and optimal maintenance are local transport links will increase producer derived below. The increase in the cost is surplus and may have a significant effect on the summarized in Table 18. The (equivalent propensity to produce. However, the reduction annual) cost of more rapid deterioration of in the total cost of delivery of agriculturaloutput transport infri-tructure is three times higher than overseas is likely to be small, unless there are the cost of improved maintenance(i.e. WS$15.6 avoidable constraints elsewhere in the transport million compared with WS$4.9 million). system, and may not secure significantlygreater sales. 2.37 In addition to the higher costs which accrue to the Government from inadequate maintenance,users of the transportsystem incur E. M^AImENANCEFuNDING higher costs. For road users, this includes increased vehicle operating costs; these in turn 2.39 There is no hypothecationof revenut to may result in further decline in economic maintenanceof road or aviation inifrastructurein efficiency through reduced accessibility and Western Samoa. Nor is there a formal policy on increased spoilage of products, and suppressed cost-recoveryin the road sector where specific foregone productive economic activity, if the fees for use of the road system are not imposed. increased costs make a potential industry unviable. The current poor road conditions Roads increase road user costs by around 16 percent through increased fiuel and tire use and 2.40 There are no specific charges for use of additional wear and tear on vehicles (see the road system in Western Samoa which are Box 2.1 on Vehicle Operating Costs). directed to development, maintenance and Similarly, increases in port costs which result operation of the system. Road users contribute from inadequatelymaintained port infrastructure to the cost of developing and maintaining the will add to the cost of imported goods and make road system indirectly through: (a) annual road exports, most of which pass through sea ports licensepaid for each vehicle; (b) driving license less competitiveon international markets. For fees; (c) a fuel levy which acts as a short-term example, inadequate maintenance of wharves price stabilizationfund as well as a source of and jetties may result in reduced safe working loads for forklifts and vehicles and consequent increases in the costs of handling cargo. Tourism could be severely affected if deficient maintenanceresults in unreliability and delay of services due to closure of airports-deterioration of the airport terminal could also have an adverse effect on user perceptionand marketing credibility.
2.38 There are opportunities for agricultural development in Western Samoa, primarily in root crops, fruit and other vegetables. However, the connectionbetween improvement of transport links to improve accessibility and economic development needs to be better understood to ensure that agricultural -53- ANNEX 1
Box 2.1: VEBCLE OPERATINGCOSTs Vehicleoperating costs rise rapidly as roads deteriorate, more so on gravel than sealed roads as shown below: Road Condition Gravel Road Sealed Road Good 0.579 0.545I/ Fair 0.642 (11%)2/ 0.562 (3%) Poor 0.750 (30%) 0.639 (17%) There is an almost completeabsence of data on traffic volume by road type and condition. Thorefore, it is not possibleto estime, withany measureof accuracy,the total costof operatingvehicles over the road networkin its current conditionand the cost withroads in goodcondition. However,woring assumptions, basedon judgment,have beenmade to providean indicativeestimate of suchvehicle opoeting costs. Based an 6,312 rgsterod vehicle. travellingan averag, of 14,000km p yerkr (sy, two-tirds of which is on seae roads) and with may third of the roads h in poor, far m od codto to ifil _camomc vehicleoperating costs will boNWSS53.6 million. Theequivalent cost if roa e in goodcondition is WSS49.2 million,i.e. curret voeicl operatingcosts ar 9 Prcent higherthan would be the cmn if road were in good condition.Forign costs ccount for78 pOrcentofthdse cos. The WS$4.4million diffoerce btowen vehicle operatingcoas on good andpoor roadsthus reproments an incrementalimport bill of WSS3.4millon per year (equalto 2 percentof currentimports).
I/ Averageeconomic vehicle operating costs in WSSlAa(see below). Financialvebicle operating coas are 48 percent terM. 2/ 1ncrem comped with tho cost on a road in good condition.
revenue; and (d) import duty and, for cars, for which the rate is 20 percent. Excise tax is trucks and vans, an excise tax. applied to all vehicles except buses, with rates ranging from 8 percent for trucks of less than 2 2.41 Revenuefrom the vehicleregistration and tonnes to between50 to 70 percent for cars. license fees and driving license fees was Importduty for petrol and diesel is 50 percent WS$1.10million in 1990. Basedon data from and 35 percent respectively. On average, other countries,it is estimatedthat collection vehiclesand fuel are subjectto an averagerate costs are about 10 percentof this sum leaving of import duty and excise of 54 percent, the revenueof WS$1.0million. The petroleum comparedwith 23 percentfor other imports(see levy is imposedto generatesurplus funds which Table 19). The fiscal efficiencyof imposinga canbe used to subsidizethe price of fuel in the higherrate of theseduties in the transportsector eventof suddenincreases. However, the levy is is an open matter. Imposingtax "mark-ups" also used as a source of generalrevenue. The where price elasticities are relatively low rate of the levy changesperiodically. ("Ramsey"pricing) might justify highertariffh for the road transportsubsector, with higher 2.42 The Government of Western Samoa tariffsfor roadtransport resources being a fiscal obtains about 42 percent of its incomefrom measure, and not treated as cost-recovery. importduties. The chargesare imposedon all Alternatively,all income from duties can be imports,though the Treasurymeets the cost of, consideredas contributingto cost-recovery,to for example, duty and excise for vehicles the extentthat the dutiesare imposedon road importedfor aid projects. The rate of import transportusers, and revenuefrom the duties is duty is 50 percentfor all vehiclesexcept buses less than that required for full cost-recovery. -54 - ANNEX1
The analysispresented in this Annexi basedon 2.44 Even leaving open the question of only that revenue from the duty on road whethersome attribution of importduty revenue transportresources in excessof the averagerate should be reviewed as an indirect road use of duty for all other importsas contributingto charge, total revenuefrom the sector is only cost-recovery.(The regional analysis presented one-thirdof the totallong term costof sustaining in VolumeOne of this studypresents the effect the present road system. In the long term the of all revenuefrom dutiesbeing attributableto Governmentwill need to further increase its cost-recovery.)The revenuefrom these duties revenueor continueto secureaid fundingto be in excessof the averagerate for otherimports is able to adequatelysustain the present road viewedhere as a specificlevy on road users. network. Increasedroad user chargesneed to be An importduty/excise tax of 23 percentof the carefully considered as a significant fiscal value of vehicles and fuel would produce burden alreadyfalls on road users and raises revenueof WS$6.39million in 1990(assuming transportcosts. dasticity of demand equal to zero). The 54 percentimport duty/excise tax utus resultsin an 2.45 Two key equlty issues relate to cost additional levy on road users of WSS8.63 recoveryin the landtransport sub-sector: (a) the millionin that year. There is no incremental geographicaldistribution of sourcesof receipts cost associatedwith collection of the higherrate and disbursementsof expenditure;and (b) the of tax applied to vehicles and fuel, and the apportionmentof costs and revenueby vehicle amountof WSS8.63million can be considered category. Given the distributionof economic an additionalcharge to road users to meet the activityand road infrastructurebetween Upolu cost of developmentand maintenanceof public and Savaii,it is likelythat there is cross-subsidy roads and as a fiscal/generalrevenue raising from Upoluto Savaii. This may be warranted measure. on socialgrounds and the close links between the two islands, but should be monitoredto 2.43 If the incrementalimport duty/service tax ensure its sustainabUity.A majorproportion of is assumedto contributeto cost recovery,costs the road networkinvolves low traffic volumes and revenueassociated with developmentand (less than 100 vehiclesper day). Such roads, maintenanceof the roadsystem are estimatedfor typically gravel and earth formed, provide 19914 at: accessibilityas a socialservice. Fixedcosts for maintaining these roads are high-over WS$million 75 percent. In such circumstances,a lower Net Revenue: share of revenuefor cost recoverywill derive * RegistrationFees and Driving fromspecific vehicle-related fees; a highershare Licenses 1.08 will needto be supportedby more indirectand * PetroleumLevy 0.76 generaltaxes. 5 Thesecond equity issue pertains * 'Excss' ImportDuties and Excise 9.15 to the allocationof cost and revenueto vehicle Total 10.99 types. Truckscause considerable damage to the roadsystem, disproportionately more than their Expenditure: share of total vehicle kilometersby all road * CurrentMaintenance 3.50 vehicles, and road user charges should be * IncrementalMaintenance designedto reflectthis incrementalcost to the Requirement 3.58 system. To the contrary,the averagerate of * AnnualCapital Charge 23.80 importduty for trucksis two-thirdsthat for cars Total 30.88 (see Table 19). Registrationfees for trucksare higherthan for cars, but, for exampleare less than doublein the case of a three tonne truck -55- ANNEX1
Table 19: WESTUNSAMOA-INCOME FROM IMPORT DUTY ANDEXCISE TAx, 1990
Avewe Rate of CIF Valueof Imports hnport Duty and Excise Duty and Tax (WSSmillion) Tax (WS$million) La (%) Vehicles *Cars 3.45 3.39 98 * Trucks 7.70 4.91 64 * OtherVehicles and Parts 2.24 0.78 35 Fuel * Petrol 6.04 3.02 S0 * Distillate 7.49 2.62 35 * Other 0.87 0.31 35 Total 27.79 15.02 54 TotalImports * IncludingVehicle. and Fuel 188.54 52.74 28 * ExcludingVehicles and Fuel 160.75 37.72 23
/a Derivedon the basisof ratesof dutyand excise applicable to vehicl typesand totalrevenue from all duty and exciseof WSS52.74million. No allowanceis madefor itemsfor whichno dutyis payable;WS$10.64 million of the duty and excisefor all importsis attributableto theseunspecified items. Source: CustomsDepartment for CIF valuesand missionestimates for dutyand excisepayable.
(WS$174 for the truck and WS$110 for a mid- WS$ Million size car); this makes only a minor contribution Income 1.65 to the greater damage imposed on the road Operating Expenditure system by the larger vehicle. The immediately * With Current Maintenance 1.06 urgency of this issue is lessened by the small * IncrementalMaintenance Needs 0.53 number of large vehicles in use in Western Operating Surplus (Loss) 0.06 Samoa at present - trucks and buses make up Less: Annual Capital Charge 4.80 only 11 percent of the vehicle fleet, and many of Net Surplus (Loss) (4.74) them are small in size (3 tonne trucks and mini- buses). 2.47 The Ports Division generates sufficient revenue to increase expenditure on maintenance Ports to an adequate level and still achieve an operating surplus. Current revenue would need 2.46 Data in Tables 14 and 18 indicate to be increasedsubstantially to provide sufficient estimate costs and revenue associated with revenue to provide for capital replacement. development, operations and maintenanceof the ports and other activitiesof the Ports Divisionof the Ministry of Transport in 1991 to be about: -56- ANNEX 1
Airports 2.51 The replacement value of Western Samoa's transport infrastructure (excluding the 2.48 Data in Tables 16 and 18 indicate vehicles, vessels and aircraft which use the estimated costs and revenue associated with system) is estimated to be close to WS$391 development, operations and maintenance of million (US$168 million) (1991 prices). The airports by the Western Samoa Aviation average equivalent annual assessed maintenance Authority in 1991 to be about: for the transport system is estimated conservatively at WS$9.0 million (US$3.9 WS$ Million million) (1991 prices). The annual assessed Income 2.57 maintenance is on average equal to some 2 Operating Expenditure percent of the replacement value of the assets; * With Current Maintenancc 1.84 this ranges from 3 percent for the road systemto * Incremental MaintenanceNeeds 0.81 1.2-1.3 percent for the marine and aviation Operating Surplus (Loss) (0.08) infrastructure. Less: Annual Capital Charge 7.20 Net Surplus (Loss) (7.28) 2.52 The estimatedannual outlays required for asset maintenancepresume that the system has been well maintained in the past and that 2.49 The Authority is budgeting for an rehabilitation or reconstruction requirements operating surplus of WS$0.73 million in 1991. should only relate to the general ageing of the This is insufficientto meet the cost of adequate system. This is not the present situation in maintenance and provision for capital Western Samoa. replacement. The Authority's revenue would need to be increased substantially to generate 2.53 Much of the infrastructurehas been built sufficient revenue to cover the cost of in the last 10 years or is now being developing, maintaining and operating airport reconstructed and possibly little remains of infrastructure. Revenue of the Authority original investments made more than say 30 declined marginally in nominal terms between years ago, which can be taken as the average life 1988 and 1989 (see Table 16). Given average of transport infrastructure. The expected value annuai inflationof 6.5 percent in 1988 and 1989 of one year's replacement of assets would be there should thus be scope for increasedrevenue about WS$13 million (1991 prices), if the further to the 15 percent increase budgeted for construction of the assets had been spread 1991. uniformly over the past 30 years. By comparison, the present estimated rehabilitation and replacement needs are valued at more than F. SITUATIONSUMMARY WS$64 million (1991 prices). It needs to be reiteratedthat this estimate is based on imprecise 2.50 The previous sections of this survey data; neverthelessit is indicative of the backlog indicate the problems facing the Western Samoa in restoration needs. To clear the backlog in Government in providing for the maintenance reconstruction or rehabilitation in say the next and rehabilitation of the nation's infrastructnre. five years, whilst meeting annual maintenance The analysis reflects the rudimentary nature of needs, would require in the order of WS$22 the informationwhich is availableto assess asset million per year (1991 prices). managementneeds, even from the most general perspective. 2.54 The historic levels of actual maintenance expenditureare difficultto establish and hence to assess. Departmental budget allocations and -57- ANNEX 1
Table 20: W ERNSAMOA-SUmmY OF CosT RwOVERY,1991 (WS$mIllon, 1991prices)
Roads Marine Aviation Income * Direct 1.08 1.65 2.57 * indirect 9.91La - Total 10.99 1.65 2.57 OperatingExpenditure * With CurrentMaintenance 3.50 1.06 1.84 * IncrementalMaintenance Needs 3.58 0.53 0.81 Operatn Surplus(Lou) 3.91 0.06 (0.08) Less: AnnualCapital Charge 23.80 4.80 7.20 Net Surplus(Loss) (19.89) (4.74) (7.28)
/a Shareof importduty in excessof averagerate of dutyfor all imports. Source: Missionestimates. costingprocedures are not designedto provide 2.56 An indication of cost recovery with informationon a program/functionalbasis (e.g. assessedmaintenance for each transportmode maintenancetask). The lack of functionbased presented in Table 20 indicates substantial financialdata is a constraintto understanding underrecoveryof costs for road, marine sad and managingmaintenance. An apportionment aviationtransport. Use of currentmaintenance of recurrentDepartmental expenditures for all expenditureand the equivalent,higher annual transport modes indicatesthat some WS$4.1 capitalcharges would result in a lower levelof millionwas spent on maintenancein 1991;this cost recovery. is estimatedto represent only 45 percent of assessed average annual maintenance 2.57 Assessmentof existing Infrastructure requirements warranted for the existing and determination of what assets warrant infrastructureassets. maintenance (and at what standard) is needed. So too is attentionto maintenance 2.55 At present, virtuallyall maintenanceis prioritiesand highercost recoverythrough user undertakenby GovernmentDepartments using charges. Each of these actions should be force account labor and Government-owned weighed against the costs of their equipment.This approach fails to givesufficient implementation. considerationto he separationof management and technical activities, and has resulted in almrostexclusive emphasis on the latter. The approach also places heavy demandson the limitednumber of qualifiedstaff in Departments, and fails to take advantage of the greater flexibilityavailable in privatecompanies and the community. -58 - ANNEXI
CHAPTER3 EQUIVALENTANNUAL VALUE FOR TRANSPORTINFRASTRUCTURE
3.1 Inhcducon. Inadequat ntonce example,poor maintnanceof a road mayresult results in moro rapid deteroat of rport in inadequate drainge and pot-holing. Water infrastructurethan would be the case with canthen penetratethe base structureof the road optimummaintence. ThisAnnex estimates the and result in deteriorationof this elementof the extentof this effect. fixed component. The lives of the fixed componentsof infrastructureadopted for the 3.2 Infrasbtcte Value. The value of current assesment are presentedin Table 21. urrent infrastructureestimated in SectionA of Typicallives of the renewablecomponents of Chapter2 Is summarizedin Table21. The cost infrastructurewith current maintenanceand of this infrastructurecomprises two parts; a optimum maintenanceare also presented in fixed componentand a renewablecomponent. Table21. The formerincludes, for example,clearing and constructionof the basefor a road. 3.5 Equivalent Capital Cost. The equivalentannual capitalcost of infrastructure 3.3 The renewable component of with current maintenancepatterns and with infrastructureis that part which periodically optimummaintenance are shown in Table 21. requiresreconstruction, for examplethe surface An opportunitycost of capital of 7 percentis of a road. The approximateproportion of the used. The data illustrate that the current total cost of infrastructurewhich is fixed and equivalant annual capital cost with current renewable is described in Table 21. The maintenancepatterns is about44 percentgreater estimate are drawn from constructioncost than wouldbe the caseof optimummaintenance estimatesfor typicalconstruction projects. was undertaken (i.e., WSS51.4 million comparedwith WS$35.8 million). The dataalso 3.4 Economic Life. With optimum showsthe importanceof adequatemaintenance maintenance, the fixed component of of engineered, unsealed roads, with the infrastructureshould have a life of at least 50 incrementalcapital cost of this item alone years. By definition,all elementsof the fixed accounting for over 50 percent of the componentof infrastructureshould not be incrementalcapital cost for all infrastructure. affectedby the levelof maintenance.This is not necessarilythe case, however,in practice. For Table 21: WEsTERN SAMOA-SUMMARY oF INFRASrRucTuiE VALUE AND MAINTENANCE COs, 1991 (WS$ millions, 1991 prices)
Rond& muie Aviatie
1ti Eni What. Equp. Equip. TOTAL Sealed -eered E Toal & Yads Bdp. & TOl R _Ma 11dgs. & TeW
Ant ReplacementValue 128.5 115.5 7.2 251.2 59.5 2.0 2.5 64.0 36.1 33.0 6.0 75.S 391.0 MaintenaceOvedhang /a ...... 64.0 ...... 64.0 Ased Am_l Maintese h/b 2.9 3.6 0.6 7.1 0.6 0.0 0.3 0.3 0.5 0.3 0.2 1.1 9.0 Cuuei MaiatenmceExpeaditume ...... 3.5 ...... 0.3 ...... 0.3 4.1 S of Aueaed Maintensnce ...... 49% ...... 36% 27% 45% Ec e.mentalMainteace Expenditure ...... 3.6 ...... 0.5 ...... 0.R 4.9 for OptimalMainveaace /c EquivalentAnnual Capital Coa: /d 10.1 12.3 0.7 23.3 4.3 0.2 0.4 4.1 3.6 2.7 0.9 7.2 35.1 Wtb OptimmMaintenance 13.1 20.2 1.0 35.0 5.4 0.2 0.6 6.2 5.S 3.6 1.1 10.2 51.4 WilhCurent Meintenance 3.0 7.9 0.3 11.2 1.1 0.1 0.3 1.4 1.9 0.9 0.2 3.0 15.6 Increal CapitalCost
Ptapostiooof CapitalCost: Faed Component 65%X 0% 100% 20% 100% 0% 20% 100% 0% Re_wableComponent 35% 20% 0% S0% 0% 100% 80% 0% 100% EconomicLife: (yean) FixedConpor Wdh Optiuam Maintenance 50 S0 20 S0 30 0 50 30 Wth Curent Maintenance 40 30 10 40 IS 0 40 15 RenwableComponent WithOptimum Maintenance 16 5 - 50 10 16 10 Wih Current Maintenance S 2.0 . 20 5 8 7
/a Cost requiredto rehbilitateinf uctureto a ml standard,i.e. the standardthiough timewhicb old have been tke case wid opial maintnace andfor whichthe assesed _mmlnminteace expenditureis sufficientto adequatelymaintain the infrastructure. k Expenditurerequired for optimalmaintance. /c Differencebetween curmrnt anual eenditu on maintenanceand the equivales annualexpenditure assd asbeing optimal. Td Baed on oppottunity coatof capitel of 7 percentand parametersdewcribed in the lower pair of the table. -60 - ANNEX 1
CHAPTER4 ROAD VEHICLE OPERATING COSTS
4.1 Introduction. Vehicle operating costs average annual cost over the economic have been establishedusing the RTIM2 model,6 life of vehicles. with two exceptions: 4.2 Vehice Features. Representativevehicle (a) The model to determine road roughness types for the most commonly found types of (based on, for example, the number of vehicles in use in Western Samoa are: vehicle passes since the last grading on unpaved roads) has not been used as * Car (Toyota Corolla) traffic volumes are commonlyvery low, * Light Utility (Mitsubishi1 Tonne Pickup) and the rate of road deteriorationwill be * Four Wheel Drive (Toyota Hilux) heavily affected by environmental * Light Truck (3 tonne Toyota) conditions in addition to traffic activity. Moreover, no systematic data are Most other vehicle will have operating costs available on the present condition of similar to these vehicles. Features of these roads. For indicative purposes three vehicles which influence operating costs are road conditions have been adopted, as presented in Table 23. The data has been shown in Table 22. obtained from investigations in Wester Samoa. The share of each vehicle type is based on the Table 22: ROADROUGHNESS share of registered vehicles and the annual ANDCONDMTION distancetravelled by each vehicle category. The number of vehicles registered in 1990/91was: Road Road Roughness Condition (mm/km) Cars 2,665 Gravel Sealed Pickups 2,775 l Gravel Sealed Trucks 436 l______Road Road Buses 227 Good 3,000 2,000 Other 209 Fair 5,000 3,000 Total 6,312 Poor 8,000 5,000 Some of these vehicles span the four vehicle
Source: Mission estimates. categories for which operating costs have been derived. Specific data to disaggregate the vehicle types is not available, but it is estimated (b) Data on the age profile of vehicles in that 15 percent of cars are 4 WD, half of public Western Samoa and scrappage rates are service vehicles each have operating not available, and the cost of capital and characteristics similar to trucks and 4 WD depreciation have been based on the vehicles respectively, and two-thirds of goods vehiclesare similarto pickupsand the remainder -61 - .ANNEXI
of trucks. This results in the distribution of vehicles types as shown in Table 23; the Box 4.1: TRAMC VOLUMES distributionis similarto that in other Pacific countries currently being reviewed. Vehicle Th diibution teroad network is highlyof traffic inkewvolum Traffic over resourceconsumption for travel on goodsealed vol on theWet CoastRd of Upolulinkin roads derived from the RTIM model is also the airportto Apiaar of the order of 2,0 presentedin Table23. vehicles per day. Elewhoe on the seled presee in T 3 s volumesvay from 1,000 vehicles per day to the main urban areas to as lov 4.3 Vehicle Operating Costs. Total vehicle a 100 vehiclesper day. Indicationsare tht operatingcosts, in WS$ per kilometer(1991 roadvolumesnetwork on theand noeon the stionssecondary ofroads the primmare of prices), for travel on sealed roads in good theorder of SOto 100vehicls pr day. conditionare deseribedin Table24. (Notethat economic operaing costs are two-thirds of financialcosts.) Thbs figr are used s a datum from which vehicleoperating costs are estimatedfor sealed roads in fair and poor conditionand unsealedroads (in each of the three conditions) using road roughness as describedin Table 22, and relationshipsin the RTIM model.' Traffic volumesare low (see Box 4.1) and representivevolumes have been used in estimatingtotal vehicleoperating cost savings. The principalitems with a substantial importedcomponent are fuel, oil, tires, spare parts for maintenancecapital charges. Abouta quarterof these costscan be attributedto local distribution and retailing; however, there is an import componentto these latter costs. This componentis estimatedas 40 percent,the share of net imports in GDP in Western Samoa.' Applyingthis proportion to othercomponents of vehicleoperating costs, the foreigncomponent of financialvehicle operating costs is estimated to be 78 percent.9 -62 - ANNEX 1
Table 23: Wzn3N SAMOA-VzcLE OrRATINGPARAMEFS: SLE RoADs IN GOODCoNDmoN, 1991 Car Light 4WD Light Utility Truck PhysicalData Free Speed 60 S0 60 45 Power-WeightRatio (BHP/t) - - 25 Gron VehicleWeight (t) 1.0 1.0 1.5 3.0 Annual Use: Distance(km) 12,500 14,750 12,500 17,000 Time(bours) 500 600 500 680 EffectvoLife (years) 10 10 10 10 Avage VehicleAge (yas) 4 4 5 5 VehicleCrew: Driver 0 1 1 1 Other 0 1 1 1 TrafficComposition 40% 37% 10% 13% Unit Price Data (1991prices) (i) FinancialPrices Vehicle 50,000 33,000 46,000 U,000 Tire 211 187 334 266 Fuel 0.89 0.89 0.8? 0.83 Oil 12.50 12.50 12.50 12.50 Driver Time (Ihr) 3.33 3.33 3.33 3.33 CrewTime (/hr) 1.00 1.00 1.00 1.00 MaintenanceLabor (/hr) 3.33 3.33 3.33 3.33 Insurance 1,000 1,300 1,400 2,100 AnnualRegistration 110 110 120 174 Real InterestRate 7% 7% 7% 7% (ii) EconomicPrices La Vehicle 25,000 21,600 30,100 36,100 Tire 140 130 230 180 Fuel 0.66 0.66 0.66 0.66 Oil 9.91 9.91 9.91 9.91 DerivedData lk AverageSpeed (kph) 58 48 59 44 Fuel Consumption0/'000 km) 72 67 113 134 Oil Consumption(1/'000 kIm) 1.2 1.8 1.8 4.0 Tires (Consumed/'000km) 0.139 0.139 0.139 0.331 SpareParts (%/'000 kIm) 0.001 0.001 0.001 0.001 MaintenanceLabor (hrs/km) 0.001 0.001 0.001 0.001 la Excludestaxes and duties. Lb Derivedfrom RTIMfor sealedroads with roughness of 2,000mm/klm. Source: Missionestimates. -63- ANNEX 1
Table 24: WESTERNSAMOA-VECLE OPRATING Comr oN PAVEDRoAS IN GOODCoNDmON, 91 La (WS$/km. 1991 prices)
Car Light 4WD Light Average Utility l Truck Financial Cost Fuel 0.064 0.060 0.094 0.111 O0)72 Oil 0.015 0.023 0.023 0.050 0.023 Tires 0.029 0.026 0.046 0.088 0.038 Maintenance 0.061 0.048 0.070 0.072 0.059 Interest and Depreciation 0.57*0 0.319 0.524 0.469 0.460 Licenses and Insurance 0.089 0.096 0.122 0.134 0.101 Driver and Crew 0.000 0.090 0.074 0.098 0.054 Total 0.827 0.660 0.952 1.022 0.805 EconomicCost Fuel 0.047 0.044 0.074 0.088 0.054 Oil 0.012 0.018 0.018 0.040 0.018 Tires 0.019 0.018 0.032 0.060 0.026 Maintenance 0.032 0.033 0.047 0.047 0.036 Interest and Depreciatiwi 0.285 0.208 0.343 0.302 0.265 Insurance 0.080 0.088 0.112 0.124 0.092 Driver and Crew 0.000 0.090 0.074 0.098 0.054 Total 0.475 0.499 0.700 0.750 0.545
La Vehicleoperating costs for paved roads in good condition(roughness index 2,000 mm/kn) are used as the datum, against which vehicle operatingcosts for other road types (unsealed and earth) and road conditions(fair and poor) are estimated. The total annual cost of owning and operating vehicles is expressedin WS$/km; variationsin operating costs with road conditionare tested only for fuel, oil, tires and maintenance.
Source: Mission estimates. -64- ANNEXs
Endnotes
1. The surveyof the maintenancesituation presented here is basedupon a WorldBank mission visit to the WesternSamoa September 15-22, 1991. 2. WesternSamoa was struckby anothercyclone-Cyclone Val-on December6-9, 1991. Damage to the nation'sinfrastructure was still being assessedas of March 1992. 3. The informationis derivedfrom two sources. A questionnairesettin out the data requiredwas circulatedprior to the missionvisit and used as the referencefor discussionswith the relevant Ministriesand Departments. In additionto the informationfrom thC imiission,data have been drawnfrom sectoraland subsectoralreports on transportin WesternSaroa. 4. The GDP deflatorin 1988and 1989was an averageof 6.5 percentper annum. S. The structureof road user chargesand other fees/taxesfor road cost recoveryis more complex in suchsituations. This issue of providingreliable access to small,often remote, communities also arises in mariimeand aviationwith small wharves and airfields. 6. Transportand RoadResearch Laboratory (1982). 7. The vehicleoperating costs are summarizedin Box2.1 in VolumeOne of this report. 8. Basedon data for 1989 whenimports, exports and GDP were WSS195million, WSS94 million and WSS248million respectively. 9. Averagevehicle operating costs on gravel and sealedroads in the three conditionsdescribed in Table 22 are presentedin Box 2.1 of VolumeOne of this presentreport. WESTERN SAMOA PACIFIC ISLANDS TRANSPORTSECTOR REPORT
MAJORROADS INTERNATIONALAIRPORT - MINOR ROADS , AIRFIELDS
- PLAM OTAtONROADS HIGHLANDSOVER 1,000 FEET
SELECTEDTOWNS AND VILLAGESR \ipipi S NATIONALCAPITAL MAJORPORT RIVERS
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