Completion Report Project Number: 38183-013 Loan Numbers: 2368 and 8232 Grant Numbers: 0087 and 0101 November 2019 Samoa: Power Sector Expansion Project This document is being disclosed to the public in accordance to ADB’s Access to Information Policy. CURRENCY EQUIVALENTS Currency unit – tala (ST) At Appraisal At Project Completion (9 October 2007) (31 August 2018) ST1.00 = $0.391 $0.387 $1.00 = ST2.558 ST2.585 $1.00 = A$1.119 A$1.377 $1.00 = ¥117.41 ¥110.99 A$1.00 = $0.893 $0.726 ¥1.00 = $0.009 $0.009 ABBREVIATIONS ADB – Asian Development Bank ADF – Asian Development Fund APFS − audited project financial statement CDM – clean development mechanism CEF – Clean Energy Fund DMF – design and monitoring framework DNA – designated national authority DSM – demand-side management EARF – environmental assessment and review framework ENPV – economic net present value EIRR – economic internal rate of return EMMP – environmental monitoring and management plan EPC – Electric Power Corporation ESU – environment and social unit FIRR – financial internal rate of return FNPV – financial net present value GDP – gross domestic product IEE – initial environmental examination IMF – International Monetary Fund JBIC – Japan Bank for International Cooperation JICA – Japan International Cooperation Agency LARF – land acquisition and resettlement framework LARP – land acquisition and resettlement plan LBD − loan buy-down MOF – Ministry of Finance OAI – Office of Anticorruption and Integrity OOTR – Office of the Regulator PEAR – preliminary environmental assessment report PMU – project management unit PPRR – project procurement-related review PSEP – Power Sector Expansion Project REDPSRP – Renewable Energy Development and Power Sector Rehabilitation Project RFMA – resident financial management advisor RRP − report and recommendation to the President SAIDI – System Average Interruption Duration Index SAIFI – System Average Interruption Frequency Index SCADA – supervisory control and data acquisition TA – technical assistance US − United States WACC – weighted average cost of capital WEIGHTS AND MEASURES GWh – gigawatt-hour (one million kWh) kV – kilovolt (one thousand volts) kW – kilowatt (unit of electrical power; one thousand wats) kWh – kilowatt-hour (unit of electrical energy; one thousand watt-hours) kWh/mo – kilowatt-hour per month MW – megawatt (electric power; one million watts) NOTES (i) The fiscal year (FY) of the Government of Samoa and the Electric Power Corporation ends on 30 June. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2018 ends on 30 June 2018. (ii) In this report, “$” refers to United States unless otherwise stated. Vice-President Ahmed M. Saeed, Operations 2 Director General Ma. Carmela A. Locsin, Pacific Department (PARD) Regional Director Masayuki Tachiiri, Pacific Subregional Office, PARD Team leader Grace King, Senior Project Officer (Financial Management), PARD Team members Taniela Faletau, Safeguards Specialist, PARD David Fay, Unit Head (Project Administration), PARD Faga Kotoitubou, Senior Operations Assistant, PARD Mairi MacRae, Social Development Specialist (Gender and Development), PARD Anthony Maxwell, Senior Energy Specialist, PARD Maria Melei, Senior Country Coordination Officer, PARD Lavenia Uruvaru, Associate Project Analyst, PARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA i I. PROJECT DESCRIPTION 1 II. DESIGN AND IMPLEMENTATION 1 A. Project Design and Formulation 1 B. Project Outputs 2 C. Project Costs and Financing 4 D. Disbursements 5 E. Project Schedule 6 F. Implementation Arrangements 6 G. Technical Assistance 7 H. Consultant Recruitment and Procurement 7 I. Gender Equity 9 J. Safeguards 9 K. Monitoring and Reporting 10 III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Effectiveness 11 C. Efficiency 11 D. Sustainability 12 E. Development Impact 13 F. Performance of the Borrower and the Executing Agency 14 G. Performance of Cofinanciers 14 H. Performance of the Asian Development Bank 14 I. Overall Assessment 14 IV. ISSUES, LESSONS, AND RECOMMENDATIONS 15 A. Issues and Lessons 15 B. Recommendations 15 APPENDIXES 1. Design and Monitoring Framework 16 2. Project Cost at Appraisal and Actual 20 3. Project Cost by Financier 21 4. Disbursement of ADB Loan, ADB Grant, JICA Loan and GOA Grant Proceeds 23 5. Contract Awards of ADB Loan, ADB Grant, JICA Loan and GOA Grant Proceeds 24 6. Summary of Contracts Funded by the Project 25 7. Chronology of Main Events 31 8. Status of Compliance with Project Covenants 33 9. Technical Assistance Completion Report 45 10. Safeguards Compliance Review 47 11. Economic Analysis 52 12. Financial Analysis 58 13. Rapid Gender Review Article 70 BASIC DATA A. Loan and Grant Identification 1. Country Independent State of Samoa 2. Loan and Grant number and L2368, Concessional OCR financing source L8232, Japan International Cooperation Agency G0087, Asian Development Fund G0101, Government of Australia 3. Project title Power Sector Expansion Project 4. Borrower Independent State of Samoa 5. Executing agency Ministry of Finance 6. Amount of loan and grant SDR17.151 million (L2368) $38.00 million (L8232) $15.39 million (G0087) $8.00 million (G0101) 7. Financing modality Sector Project B. Loan and Grant Data 1. Appraisal – Date started 23 April 2007 (L2368, L8232, G0087, G0101) – Date completed 11 May 2007 (L2369, L8232, G0087, G0101) 2. Loan and grant negotiations – Date started 9 October 2007 (L2368, G0087, G0101) Not available (L8232) – Date completed 9 October 2007 (L2368, G0087, G0101) Not available (L8232) 3. Date of Board approval 21 November 2007 (L2368, G0087, G0101) 4 October 2007 (L8232) 4. Date of loan and grant 11 December 2007(L2368, G0087) agreement 10 December 2007 (L8232) 18 December 2007 (G0101) 5. Date of loan and grant Effectiveness – In loan and grant agreement 10 March 2008 (L2368, G0087, G0101) Not available (L8232) – Actual 19 June 2008 (L2368, G0087, G0101) 14 May 2008 (L8232) – Number of extensions 1 (L2368, G0087, G0101) None (L8232) 6. Project completion date – Appraisal 31 July 2016 (L2368, G0087, G0101) 14 June 2016 (L8232) – Actual 28 February 2018 (L2368, G0087, G0101) 14 Jun 2017 (L8232) ii 7. Loan and grant closing date – In loan and grant agreement 31 December 2016 (L2368, G0087, G1010) 14 November 2017 (L8232) – Actual 31 August 2018 (L2368, G0087, G0101) 14 November 2017 (L8232) – Number of extensions 2 (L2368, G0087, G0101) None (L8232) 8. Financial closing date – Actual 28 December 2018 (L2368, G0087, G0101) 14 November 2017 (L8232) 9. Terms of loan – Interest rate 1% per annum during the grace period and 1.5% thereafter (L2368) 0.45% (L8232) – Maturity (number of years) 32 years (L2368) 30 years (L8232) – Grace period 8 years (L2368) (number of years) 10 years (L8232) 10. Terms of relending – Interest rate Amended from 6.5% to 2.0% (L2368) Not applicable (L8232) – Maturity (number of years) 25 years for the first tranche and 28 years for the second tranche (L2368) Not applicable (L8232) – Grace period (number of 5 years for the first tranche and 8 years for the years) second tranche (L2368) Not applicable (L8232) iii 11. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval L2368 15 January 2009 24 December 2018 119.29 months L8232 26 February 2009 10 November 2017 104.75 months G0087 6 August 2008 15 October 2018 122.48 months G0101 15 January 2009 15 October 2018 117 months Effective Date Actual Closing Date Time Interval L2368 19 June 2008 31 August 2018 122.37 months L8232 14 May 2008 14 November 2017 114.02 months G0087 19 June 2008 31 August 2018 122.37 months G0101 19 June 2008 31 August 2018 122.37 months b. Amount Increased Cancelled Last Original Amount Undisbursed Category during during Revised Allocation Disbursed Balance Implementation Implementation Allocation L2368 (SDR) 01 Works 2.24 (1.78) 0 0.46 0.46 0 02 Equipment Supply and 12.24 3.77 0 16.01 16.01 0 Installation 02a Equipment Supply and 0.69 0 0.69 0.27 0.42 Installation 03 Unallocated 2.68 (2.68) 0 Total 17.16 0 0 17.16 16.73 0.42a L8232 (¥) 01 Works 374 (297) 0 77 55 22 02 Equipment Supply and 3,507 3 0 3,510 3,232 278 Installation 02a Equipment Supply and 1,011 0 1,011 796 215 Installation 03 Unallocated 717 (717) 0 Total 4,598 0 0 4,598 4,083 515a a An undisbursed loan amount of SDR419,126.52 (equivalent $581,483.57) cancelled on 28 December 2018 (L2368). a An undisbursed loan amount of ¥515,389,129 (equivalent $4,826,644.77) was cancelled on 14 November 2017 (L8232). iv c. Amount ($ million) Increased Cancelled Last Original Amount Undisbursed Category during during Revised Allocation Disbursed Balance Implementation Implementation Allocation L2368 01 Works 3.47 (2.76) 0 0.71 0.71 0 02 Equipment 18.99 5.62 0 24.61 24.61 0 Supply and Installation 02a Equipment 0.95 0 0.95 0.37 0.58 Supply and Installation 04 Unallocated 4.15 (4.15) 0 Total 26.61 (0.34) 0 26.27 25.69 0.58a L8232 01 Civil Works 3.09 (2.26) 0 0.83 0.62 0.21 02 Equipment 28.98 10.80 0 39.78 37.18 2.60 Supply and Installation 02a Equipment 8.97 0 8.97 6.95 2.02 Supply and Installation 03 Unallocated 5.93 (5.93) 0 0 Total 38.00 11.58 0 49.58 44.75 4.83a G0087 1 Equipment 8.42 (4.80) 0 3.62 3.62 0 Supply and Installation 2 Equipment 6.02 0 6.02 6.02 0 Supply and Installation 3 Equipment 0.24 0 0.24 0.24 0 Supply and Installation 4 Equipment 1.78 0 1.78 1.78 0 Supply and Installation 5 Consultant 4.57 (0.84) 0 3.73 3.73 0 Services 6 Unallocated 2.40 (2.40) 0 0 Total 15.39 0 0 15.39 15.39 0a G0101 1 Land 1.53 (1.53) 0 0 0 0 Acquisition and Resettlement 2 Equipment 5.22 2.53 0 7.75 7.75 0 Supply and Installation 2a Equipment 0.02 0 0.02 0.02 0 Supply and Installation 3 Miscellaneous 0.23 0 0.23 0 0.23 Grant Admin and Support Costs (ADB) 4 Unallocated 1.25 (1.25) 0 0 0 0 Total 8.00 0 0 8.00 7.77 0.23a Total 88.00 11.24 0 99.24 93.60 5.64 a An undisbursed loan amount of SDR419,126.52 (equivalent $581,483.57) cancelled on 28 December 2018 (L2368).