%Pwt NW. 1U43-AP Pacific Islands Transport Sector Study (in Seven Volumes) Volume IV: Western Samoa -Transport Sector Survey March 1993 Infrastructure operations Division Country Department III East Asia and Pacific Region FOR OFFICIAL USE ONLY wj~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~7~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ This docufmet has a restricted distribution and may be used by recipients @t41in the *eefornance of their official duties. It contents may not otherivse be disckosed without %brld Bank authorization. ACRONYMS AND ABBREVIATIONS AIDAB - Australian International Development Assistance Bureau ICAO - International Civil Aviation Organization IDA - International Development Association IMO - International Maritime Organization JICA - Japanese International Cooperation Agency OECD - Organization for Economic Cooperation and Doveopment PMCs - Pacific Island Member Countries PITSS - Pacific Islands Transport Sector Study PWD - Public Works Department SPDC - Special Projects Development Corporation TCSP - Tourism Council of the South Pacific UNDP - United Nations Development Programme VFR - visiting friends and relatives WSAA - Western Samoa Airport Authority WSSC - Western Samoa Shipping Corporation VO oLnma uI ONLY PREFACE The Pacific Islands Transport Sector Study (PITSS) reviews the status of the transport sectors in the siX Pacific Island member countries (PMCs) of the World Bank. The PlTSS is reported in two volumes: Volume One - A Regional Perspective on Transport Issues - presents an analysis of transport issues across the region. Volume Two - Country Surveys - provides a detailed examination of the transport sector in each PMC. This survey of the transport sector in Western Samoa, is one in the series for the PMCs which, as a whole, represent Volume Two. Each sector survey presents an overview of transport, identifies areas of concem and sugests priorities for consideration by Government. Maintenance of transport infrastructure is identified as a common major problem area. Therefore, for this particular area, a separate Maintenance Annex is attached to the country sector survey. The PMCs share several areas of common concern with their transport sectors, including strategic planning, project evaluation, regulation, modal coordination, pricing and cost-recovery, commercialization, private sector participation, as well as the management of infrastructure and its maintenance. These areas are reviewed briefly in this survey and, on the basis of the surveys for all PMCs, subjected to comparative analysis in Volume One of this study. PITSS was undertaken by the World Bank with financial support for consultants from the Australian International Development Assistance Bureau (AIDAB) South Pacific Facility. The study was structured and managed by Colin Gannon (Senior Economist). Major contributions to the sector surveys were made by David Bray and Ian Gordon (consultants). The kind cooperation of the many government officials and industry representatives who assisted the mission is gratefully acknowledged. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization CONTENTS 1. INTRODUCTRON ..................................... 1 A. Review Context .................................... 1 B. Geogrorhy ....................................... 1 C. Demography and 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. ECONOMIC CONTEXT .......................... 7 A. Demandifor Transport Services ..................... 7 B. Country Development Strategy .. 8 4. TRANSPORT SUBSECTORS . . .11 A. Land Transport ..11 B. Maritime Transport ..16 C. Aviation ..22 5. TRANSPORT SECTOR 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: International Air Services MAP IBRD No. 24573 LisT OF TUnLES TABLE 2.1 Agency Responsibilities .............................. 4 TABLE 2.2 External Grants, 1985-1989 (US$'000) ..................... 6 TABLE 3.1 Exports by Major Commodity 1984-1989 ................... 8 TABLE 3.2 Import/Export Volumes (tonnes) ......................... 9 TABLE 3.3 Inward and Outward Cargo (freight tonnes) by Country of LoadinugDischarge 1989 ............................ 9 TABLE 3.4 Visitor Arrivals - Western Samoa ........................ 10 TABLE 3.5 Projections of GDP Growth 1990-1999 (%) .................. 10 TABLE 4.1 National Roads Network Oengths in kilometers) ............... 11 TABLE 4.2 Road Reconstruction Projects ........................... 12 TABLE 4.3 Registered Vehicles ................................. 15 TABLE 4.4 International Cargo and Shipping Traffic Apia ................ 16 TABLE 4.5 Current and Committed Major Maritime Projects Western Samoa ......... .......................... 18 TABLE 4.6 Port Dues and Charges (WS$) Western Samoa Sea Going Vessels Entering Port ......................... 20 TABLE 4.7 Projected Income & Expenditure Account 1989 ................ 21 TABLE 4.8 Ships Registered in Western Samoa ....................... 21 TABLE 4.9 International Air Traffic - Faleolo ........................ 23 TABLF. 4.10 Government Expenditure in Aviation ($) .25 TABLE 4.11 Preliminary Estimates Development of 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 Population Growth (1980-87) 0.6% per annum Population Density (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 Registered Vehicles (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 which are only 21 km apart. American Samoa b the nearest nighbor, about 100 Iam away. 1.1 Tha country survey presents an overview The total land ar is geerlly reported as of the transport sector in Western Samoa, 2,934 km2, Upolu being about 1,100 km2 and identifies areas of current and emerging concern, Savai'i 1,820 kmn2. Both islands are about 72 indicates priorities and suggests future strategies km from east to west, with Upolu being only 24 for the sector.1 km from north to south and Savai'i being 35 km. The islands have central volcanic peaks 1.2 To facilitate the present study, a desk (the highest being Mt. Mata'aga on Savai'i) and review2 of the transport sector was previously fertile narrow coastal plains. Upolu has a chain undertaken for each of the Pacific Member of mountains running the length of the country. Countries (PMCs) of the Bank.3 The review The country has an ample natural resource base. provided preliminary information on each 'ihe country has a sea area of about 73,000 km2. country, including Western Samoa, and working hypotheses on development needs in the transport sector. The present survey builds on C. DEMOGRAPHY AND this work to develop a current sector overview SOCIAL STRUCIURE so as to establish first, directions for the formulation of strategies and priorities for each 1.5 The population of Western Samoa is country, and second, the basis for selection of Polynesian. In 1781 a little over 70 percent of the specific issues addressed in Volume One of the population of 156,349 lived on the island of this Report. Upolu and the remainder on Savai'i. In 1988 the total population was 162,000 people, about 1.3 The preseilt survey is complemented with 35,000 (or 22 percent) of whom lived in the similar surveys for the other PMCs. A regional capital, Apia. Between 1976 and 1984 the crude overview which compares and contrasts transport birth and death rates were 38 and 7 persons per sector issues across all six r'MCs is presented as thousand, respectively, equivalent to a crude rate Part I, Volume One of this study. of natural increase of approximately 3 percent per annum. However, because of substantial emigration the actual rate of annual net B. GEOGRAPHY population increase averaged only 0.6 percent in the 1980s. In 1986 44 percent of the population 1.4 Western Samoa comprises two main was under 15 years of age. Most emigrants go islands, Upolu (where the capitri, Apia, is to New Zealand, Australia or the United States, located) and Savai'i, and a numbcr of smaller including American Samoa. It is estimated that islands (see Map). Savai'i is to the northwest of there are now at least 100,000 Samoans (or 40 Upolu. A ferry links the two main islands percent of total Samoan nationality) living -2- overseas. Net rigration for the 20-25 year age Productdon of banans, which was traditionally group has been estimated at 3,000 per annum a major export item, has virtually ceased since the late 1970s. Because emigration has because of arguable quality control concerns had such a major effect in reducing the rate of imposed by majo: "mporters. population increase, Western Samoa's future population size is difficult to estimate. 1.9 The manu.f Liurlng sector is relatively However, emigration is expected to continue In small accounting for less than 15 percent of the foreseeable future and the annual net GDP, and most production is for the small population increase is likely to remain similar to domestic market and based on imported inputs that experienced during the 1980s. The overall (for oxample, beer, cigarettes). Government ind;genous population resident in Western Samoa administration is the largest component of the is expected to rise only marginally over the next services sector and accounts for about 15 percent decade, possibly reaching 185,000 by the year of GDP. 2000. 1.10 The public sector plays a dominant role in Wester Samoa. The Goverment accounts D. ECONOMY4 for about 80 percent of gross investment and 35 percent of total expenditure. D'vielopmental 1.6 Tbere are no official national account expenditure by Government has veraged 25 estimates in Western Samoa and the percent of GDP during the 1980s, of which 75 measurement of the value of subsistence percent was financed by development assistance, activities is difficult. Based on IMF estimates, mostly grant aid. per capita GNP was about US$580 in 1988 placing it in the lower income group. However, 1.11 In 1989 recorded rcmdiances to Western basic needs are generally well satisfied through Samoa totalled US$38 million, significantly the extended family and by social services more than receipts from exports and aid provided by the Government. Adult literacy is combirted. almost universal, and most children receive nine years of basic education including three years of 1.12 Western Samoa faced major macro high school education. imbalances in the early - 1s due to a decline in terms of trade and a .dpid expansion of 1.7 Official development assistance for Government expenditure. Actions taken during Western Samoa totalled US$216 per capita in the period 1983-1986 increased revenue 1987 (OECD), which is equivalent to about 35 dramatically and contained expenditure levels. percent of GDP. Recorded flows in the balance Higher inflows of external grants, including of payments are substantially lower, because of STABEX funds, have helped to generate an the high levels of technical assistance and annual budget surplus each year since 1986. overseas sourced training provided by donor countries. 1.13 Damage caused by Cyclone Ofa in February 1?90 resulted in an estimated cost of 1.8 Agriculture is the mainstay of the damage to assets of WS$140 million. economy accounting for about 50 percent of Fortunately loss of life was minimal, but effects GDP and 80 percent of export earnings. The on the transport sector were severe with one major cash crops are coconut, taro and cocoa. inter-island ferry grounded, port facilities damaged and a quarter of the country's sealed roads destroyed.' -3- CHAPTER 2 INSTITUTIONAL STRUCTURE A. GovzLvWExr STaucrnz Transport is responsible for policy mae In relation to land transport, civil aviation, and 2.1 Western Samoa became an independent marine transport and for the operation of port nation in 1962 following a period as a United and marine facilities in Western Samoa. The Nations trust territory administered by New Public Works Department is responsible Zealand. (amongst other functions) for the construction and maintenance of primary and secondary 2.2 Parliamentary elections are held every roads. Third level roads (essentially plantation three years. Universal suffrage was adopted for access) are the responsibility of village groups. the first time in elections held in April 1991, A Transport Control Board was established in although the right to stand for Parliament May 1991 with the responsibility to set bus and remains confined to village chiefs (matai) and taxi fares and to issue licenses for bus and taxi registered voters outside of the traditional operations. There are also two Statutory system. Previously the right to vote was Authorities with transport responsibilities. The confined to the matai and registered voters. Western Samoa Shipping Corporation (WSSC) There are no regional or nunicipal councils, but operates ferry services within Western Samoa, holders of matai titles, (the elected heads of and between Western Samoa and American extended families or aiga) have village Samoa. The Minister of Transport is Chairman responsibilities including nearly complete of the Board of the Corporation. The Western authority over the use of customary land, which Samoa Airport Authority (WSAA), established accounts for about 75 percent of land holdings in in 1986, is responsible for the operation and Western Samoa and 80 percent of agricultural maintenance of international and domestic land. airports. 2.4 Roads. The planning, design, B. AGENCY REspoNsIDxILTEs construction and maintenance of primary and secondary roads are the responsibility of the 2.3 Some changes occurred in Ministerial Civil Engineering Division of the Public Works portfolios following the April 1991 elections. Department (PWD). The total oad length, The Ministry of Transport and Works was excluding third level roads, is estimated at 822 reorganized as two separate Ministries; the km (PWD, 1990). Major road construction Ministry of Transport and Agriculture and the works, which are financed under aid Ministry of Works which includes the Public arrangements, are normally undertaken by Works Department, the Electric Power contract. Almost all maintenance works are Corporation and the Special Projects carried out by the Department, with only some Development Corporation. The Ministry of minor works contracted out. Villages have no equipment and little e perience in maintenance -4- works and the Department is often directed to market ant must be returned to the Authority If undertake worcim on 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. Commercial freight 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 boen traforred from the Ministry of Transport inspections and 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 facilities and the organization of marine training. uniform. There is no area control limitation on 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: WESIERN SAMOA-AGENCY RESPONSIBILITIES Land Maritime Aviation Intermodal Policy MOT MOT MOT Planning PWD MOT WSAA MOT Construction and 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 Shipping Corporation 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. PRIVATE SECrOR company has recently initiated a 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 Authority when it Is established. Governmect. The private sector suppies some services such as a limited road construction and 2.9 Avladon. There is no Civil Aviation r:r.'0tenance capacity and stevedoring services 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 Aviation Authority 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 responsible for the operation and maintenance of which approximately 55 percent is derived from airports and airfields in Western Samoa. import duties add export levies on international trade. Public finance has 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 agricultural production, with the budgetary cycle, commencing July 1991. The emphasis focussed on improved administration, budget, covering the 6 month period January- routine maintenance, and cyclic rehabilitation of June 1991, was an interim arrangement. the road network. 2.11 Planning. The Department of Economic E. AID ENVRONMENT Development has been responsible for the preparation of previous five year plans, liaison 2.14 The Government has 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 National Planning Office established under concessional terms. 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 developed as 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-ENYrNAL GRAM, 1985-1989 (US$ million) 1985 1986 1987 1988 1989 Project grants 11.7 12.1 13.8 15.2 13.9 New Zealand 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 & Commodity Grants 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 Total Grants 11.8 16.1 17.7 17.7 16.0 Of which: Expenditure Abroad 1.6 1.7 2.3 2.1 1.8 Source: Central Bankl of Samoa. 1990 *ncluding US$14.0 million IDA funding skills transfer to counterpart staff does not for emergency road rehabilitation. appear to have been successful. The need for technical assistance, skills transfer and management development appears to have F. HUMAN RESOURCES increased rather than diminished ir professional engineering disciplines and in related 2.15 Western Samoa is fortunate in having subprofessional and technical areas over the 29 experienced indigenous officials in the senior years since independence. positions within the public service. However, there is a shortage of local staff with appropriate 2.17 Considerable nunmbers of Vtrestern technical and management skills. Within the Samoans have taken advantage of opportunities transport sector these positions have been filled for studies in other countries, ranging from short by expatriate staff under conitract, and supplied courses to tertiary studies, including post through technical assistance programs graduate work. The extent to which relevant predominantly by Australia and New Zealand. skills are being retained within the public service and, especially within the country, are matters of 2.16 Given the extended period of technical concern. assistance in the transport sector the extent of -7- CHAPTER 3 ECONOMIC CONTEXT growth was stagnant between 1986 and 1988 A. DEMAN FOR TRANSPORT SzRvicss (see Table 3.4). Western Samoa's principal source markets are America Samoa, New 3.1 Demand for transport services in Western Zealand and Australia, accounting in 1989 for Samoa derives primarily from activities in the 35 percent, 24 percent and 14 percent, agricultural and services sectors. Export of respectively, of visitors. The 1987 Western primary products has shown little growth over Samoa Visitor Survey found that 28 percent of the latter half of the 1980s (see Table 3.1) due total visitor traffic was for visiting friends and to the volatility of copra prices, declining relatives (VFR). In particular more than 53 demand for coconut oil and importer quality percent of American Samoans, 25 percent of control with bananas. The export of timber also New Zealanders and 14 percent of Americans declined substantially from a high point travelling to Samoa were VFR. (2,627,000 board feet) in 1982. Thore were 3.4 There are inadequate data to enable minor exports of manufactured goods, beer and esTinate data tosenge cigarettes. Cyclone Ofa cut the volume of major aestimates of 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 nrnnsportation Study and estimates prepared for diverted from export to domestic markets. This annual daily traffic. Some counts have been situation is reflected in the customs i,gures for m nade in 1988 but sinc e daily, weekly and exports in 1990. Conversely, import volumes seasonal variation factors are unmeasured, increased sharply due to post cyclone establishing task estimates is difficult. No rehabilitation requirements. This trend is origin-destination or vehicle loading studies are rehidtain the Import/Export returns by value set available from which to measure travel demand. evident able 3.2. In essence, demand for land transport is high on out in Table 3.2. Upolu, specifically in the corridor from Apia to 3.2 The volume of imports has tended to Muliftnua. The region surrounding this corridor increase while exports have tended to decline, so (Apia Urban, Northwest Upolu) houses some 47 that in 1989 the volume of imports exceeded percent of the total population of Western Samoa exports by six times (Table 3.2). The effect of and contains the most productive land in the this imbalance, and of the differences between country. In addition, all land transport export destinations and imports origins, is shown movement between Savai'i and Apia (including in Table 3.3. the Port of Apia) moves along this corridor. On Savai'i, the greater proportion of the population 3.3 Irnatlonal visitor arrivals incresed at resides on the southern side of the islaklid an avenage annual rate of 6.3 percent, although between Salelologa and Asau. Tbis distribution of population and the good condition of the -8- Table 3.1: WEmRN SAMOA-EXPORTS BY MAJOR COMMODrY, 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 Volume La 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 thousand board feet. Source: Central Bank of Samoa and World Bank (199la), Customs Department (1990 figures). road, generates travel demands on the South 1991) are shown in Table 3.5. The effects of Coast Road but minimal demand 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-related power cuts. Although there will 3.5 Medium term economic growth be offsetting increases in construction and some projections in Western Samoa (World Bank, service activities, overall real GDP is estimated .9 . Table 3.2: WESTRN SAMOA-IMPORTS AND 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: Department of Statistics and Department of 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-establishment of sound performance from 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: WESTERN SAMOA-INWARD AND OUTWARD CARGO (FREIGHT TONNES) BY COUNTRY OF 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 Statistics and Ministry of Transport. L& Fiji accounted for 36,375 tonnes of inward cargo. - 10- Table 3.4: WESTERN SAMOA-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 American Samoa 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). Opportunities for most likely increase transport demands in the growth outside the agricultural sector are north-west region of Upolu, and possibly in the expected to be limited with the best prospects in southern region of Savai'i - a reinforcement of tourist-related services. This scenario would past growth trends. Table 3.5: WESTERN SAMOA-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 - CHAPTER 4 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 Development Corporation (SPDC). Aid funded roads in Western Samoa. No recent figures are projects, including those currently in place to available for 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 inventory or road information system is kept and managing agent 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 composition of the main rural highway network is as follows: Table 4.1: WEsTERN SAMOA-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/Village Access 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 Development Plan 1986-1990 (DP-6), was reconstructed, is estimated at WS$25 million. forecast to be WSS14. 1 million, of which There are long stretches of lava desert bush and WS$12.1 million was to be funded by aid forest area carrying small volumes of traffic and donors. Priority was to have been given to rural upgrading/full reconstruction may not be road reconstruction and rehabilitation which was justified. projected to absorb WSS12.5 million (89 percent) of the total budgeted expenditure. Of 4.4 In addition, AIDAB in association with the three rural projects nominated under the the Government of Western Samoa is funding plan-reconstruction of the Le Mafa Pas Road, the reseal and rehabilitation of selected sections reconstruction of the Richardson Track Road and of the rural road system and training a Road reseal of the Upolu West Coast Road-only the Maintenance Unit within the Public Works first has been commenced, with ADB funding. Departnent to perform the works. The project The damae to roads rowlting from Cyclone Ofa commenced in 1990 and was to have required a in February 1990, and a previous commitment commitment of A$6.5 million over 3 years. The by AIDAB to fund an extensive reseal program program has been reviewed recently because of because of the continued deterioration of the lack of progress in meeting project objectives. sealed road system, has substantially changed the A number of problem areas have been identified: level of funding for road investment. The Bank institutional, financial, technical and is currently funding reconstruction projects to a environmental. A central issue has been the level of US$14.0 million through IDA credits. inability of Public Works Department to meet The road construction projects commenced or in the labor and equipment allocation requirements the course of documentation and tender are set resulting from organizational difficulties within out in Table 4.2. The remaining sections of the the Department, and reallocation of resources to north coast road on Savai'i between Saleaula and other activities. A decision has been taken to Asau are not scheduled for construction at this concentrate on the training objectives of the Table 4.2: WESTERN SAMOA-ROAD RECONSTRUCTION PROJECTS Length Estimated Cost Funding Location (klm) WS$ million Source Upolu Le Mafa Pass Road - Falevao to Samusu 20 4.10 ADB East Coast Road - Moataa to Saluafata 19 11.57 WB Saval'i North Coast Road - Salelologa to Puapua 21 10.16 WB North Coast Road - Sataua to Asau 9 3.39 WB North Coast Road - Puapua to Saleaula 24 5.50 GWS Total 93 34.72 Source: PWD. - 13 - program and to undertake the rehabilitation and been inhibited along many sections, resulting in resealing works at a rate determined by resource ineffective drainage and premature pavement availability. A second AIDAB assistance failure. This effect is magnified by the desire project, which is complementary to the road by communities to plant roadside decoration maintenance program, 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 servicing of equipment and the training of not been enforced, which when coupled with personnel. Progress has been hampered by saturated road formation conditions, adds equipment supply problems and the difficulty in substantially to the damage potential. (Resource retaining trained staff because of the high labor limitations, including lack of a weighbridge or demand and high wage rates being offered in the portable scales, pose enforcement constraints). private sector as a result of the heavy road reconstruction program.' (Mhe AIDAB project 4.7 Attempts are being made to address the has been modified to address emerging problems at the institutionallevld, for example, institutional strengthening needs.) through the road maintenance training program. However, there are some key issues which need 4.5 Under funding In road maintenance to be resolved. Firstly, the role of the Roads and the lack of an appropriate maintenance Section of the Public Works Department needs system have been commented on in a number of to be clearly defined and agreed between the studies covering a period of years. Pak-Poy Government and the Department. At present, (1972, 1981) set out the deficiencies from both while Public Works Departmnent sees its road a system and financial perspective. The 1981 function as that of maintenance of the asset, the study estimated that an annual commnitment of view of Government is that it should also WS$2,000 per kilometer was required to include construction. The present resources and maintain the road network in an as-constructed skills of the Department are insufficient to cope condition, whereas available funding averaged with both supervision of new construction and half of this level. Subsequent investigations and maintenance. Secondly, when the role of the reports support this position. DP-6 also states Department is agreed, the necessary that maintenance funding has been less than half organizational structure needs to be developed of requirement. ADB (1987) calculate a and staff resources provided and trained to carry requirement of WS$2.5 million per annum for out the function effectively. At present, the maintenance and reseal works compared with a Department cannot train and/or retain budget provision of WS$1.13 million. All appropriate staff. At the professional levels reports (NZRFA 1988, AIDAB 1989, World emigration affects the Public Works Department, Bank 1989) note the lack of maintenance effort, as it does other organizations. At the technical unavailability or unserviceability of plant, skills levels, competition from private enterprise, ineffective maintenance programming, costing in the present labor market situation has eroded and cost control as factors which exacerbate the the Department's resources. Whilst overseas under-funding for maintenance. Recent budget technical assistance programs have attempted to allocations continue to be insufficient (WS$l.39 relieve the situation at the professional and million 1989 and WS$1.82 million 1990) and the senior technical levels, the results have been system problems remain to be addressed. variable and at the best temporary. Lack of counterpart staff, continuous turnover of 4.6 The situation has been exacerbated by personnel in key positions and variability in the two further factors. Because of land access number and quality of personnel supplied under constraints (which are affected by the social and technical assistance, constrains the development cultural values placed on land ownership), of a cohesive and motivated organization. Some discharge of water from the road reserve has of the constraints could be ameliorated by - 14 - making increased use of contractors for both work contracts and heavy trucks imported for construction and maintenance works and by the work on projects, requires approval by the more even scheduling of capital work. Minister for Police. Vehicles brought in by expatriates must be reexported on leaving the 4.8 Thirdly, the development and country but the heavy vehicles can be retained in implementation of appropriate systems for the country for further use. The total number of identification of priorities, programming, cost registered vehicles increased from 4,552 to allocation, resourcing, and quality control of the 6,312 in the four year period 1987 to 1990. A works is required 3f there is to be effective and marked increase in new vehicles registered efficient management of the road assets. At occurred in 1990/91. The reasons for these present, programming of works is ineffective, in increases in new registrations of cars, pick-ups part because of redirection of Departmental and taxis are not clear, particularly in the taxi resources due to social or emergency category where the total number of registered requirements. As a result, cost allocations do taxis (715) is well in excess of the 450 taxi not ensure dependable results. licenses on issue. There are inconsistencies between annual changes in the number of newly 4.9 Road planning has received considerable registered vehicles and total registered vehicles aention in Western Samoa, with a major road which suggest under-reporting of total registered investment study in 1972 and a multi-modal vehicles in 1988/89. The data indicate that study in 1981. Further detailed studies have about 14 percent of the vehicle fleet is not re- been undertaken for road reconstruction and registered each year. This apparent high rehabilitation needs, but the 1981 study has been scrappage rate is a function of the importation of used as a reference document in subsequent a large number of secondhand vehicles. Road Development Plans. Emphasis in DP-6 on land transport annual revenue collection from vehicle transport improvement has been focussed on registration fees and charges for licenses has improved administration, routine maintenance increased in proportion to the increases in and cyclic rehabilitation of the road network. vehicle registration (from WS$797,549 to This is the priority area as strategic extension of WS$1,074,470) in the period 1987 to 1990. the system is not a major issue. 4.12 Road safety was identified in the 4.10 Design standards for road construction Transportation Study (1981) as a matter of have been developed, but project supervision for concern. There were 670 recorded accidents in adherence to standards and quality control of 1980, 78 percent of which occurred between road construction, has been a problem where Apia and Faleolo airport. Almost 1 in 5 of all recognized international contractors have not accidents involved pedestrians. Pedestrians been used. Design standards need to be accounted for all of the 16 deaths in road considered in the context of the total local accidents. Over the period to 1989 there has environment: construction, maintenance and been a general trend downwards in the death and user costs; scarce recurrent budget resources; the injury rate per 1,000 registered vehicles. inadequate cost recovery; limited supervision However, the number of deaths and injuries skills and quality control; donor support of remains high and the Accident Compensation rehabilitation; lack of a systematic road Board has recommended a number of measures, management system. which are considered relevant in reducing road accidents: 4.11 Vehicle Registration. Road vehicles are required to be registered and to be licensed * road widening and pedestrian facilities annually. Import of right hand drive vehicles, (footpaths) on selected roads; including vehicles brought in by expatriates on - 15 - Table 4.3: WESrERN SAMOA-REGISED VEICLES, 1987 - 1991 1987/88 1988/89 1989/90 1990/91 Newly registered vehides Motor cycles 47 36 34 27 Private cars 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 Motor cycles 149 150 185 150 Private cars 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: Road Transport Division, Ministry of Transport. * stricter enforcement of driving standards Board, which covers both employees during and better testing of applicants for heavy working hours and road accident victims vehicle licenses; generally. AcciW.nts at work are covered by a 1 percent levy on payroll and road accidents by * enforcement in relation to overloading, a levy of 5 cents/gallon on all fuel used for specifically overloading of passengers in transport purposes. Payouts are in the form of trucks and pick-ups; and lump sum (death and permanent incapacity) plus a further compensation for up to four years e better vehicle standards. related to weekly earnings, with a maximum limit of WSS200 per week. The payouts for In addition, the Police undertake public motor vehicle accidents (including ongoing education programs involving school and radio liabilities) have been in excess of the fuel levy. broadcasts. 4.13 A no-fault accident compensation scheme is administered by the Accident Compensation - 16 - B. MARMME TRNSPORT Government of Western Samoa banning the export of timber. With the exception of some Port and Marine Facilities fuel supplies for the western end of Savai'i, for which there is alternative road/ferry access, 4.14 The Port of Apia is the principal port for there have been no shipping movements through the handling of import and export cargoes and Asau since Cyclone Ofa. The future of the Port for the operation of ferry services between of Asau remains to be resolved as there have Western Samoa and Pago Pago in American been difficulties with safe entrance for larger Samoa. vessels since its inception due to the channel configuration. The channel markers and beacons 4.15 Milled timber products have been shipped which were destroyed in Cyclone Ofa have not from the Port of Asau in small volumes which been replaced. Channel widening or realignment had been declining since 1986 when exports would incur very heavy costs because of the amounted to approximately 5,000 tonnes. The hard coral floor. The impact of Cyclone Val in destruction of forestry areas caused by Cyclone December 1991 exacerbated these conditions. Ofa in February 1990 has resulted in the Table 4.4: WESTERN SAMOA-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.) General cargo 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 Includes all product imports. a Provisional figure. Source: Department of Statistics, Government of Western Samoa. - 17 - 4.16 All international maritime traffic is now until both the wharf and channel are repaired; handled through the Port of Apia. With the this ferry prosently operates from Apia to exception of 1990, when imports increased Salelologa. Construction of the approach substantially because of post cyclone channel and wharf at Asau took place in the reconstruction, annual cargo throughput at the early 1970s. A wharf at Aleipata (at the eastern port has remained static at 150,000-160,000 end of Upolu) was constructed in 1980 but has metric tonnes since 1985. The ratio of imports never been used as a ferry terminal for services to exports has tended to increase. Total proposed to Pago Pago, because of the shallow shipping movements have also tended to decline approaches. Moreover, road access to the over the period, the major reduction being in Aleipata wharf from the more intensively general cargo vessels. populated areas of Upolu (and from Savai'i) is long and very rough. Given the high costs of 4.17 Extensive port construction works infrastructure improvement and the relative essentialy have been completed at the Port of remoteness of the wharf location, the case for its Apia; these involve both planned development development is very unlikely to be warranted. and reconstruction and replacement of facilities affected by Cyclone Ofa. The works comprise 4.19 The Ministry of Transport is presently extension of the main wharf, provision of paved responsible for the port facilities and ferry container stacking areas, and the construction of terminals in Western Samoa and for the a breakwater to reduce surge conditions at the operations at the Ports of Apia and Asau. The wharf. In addition, a new ferry terminal for the Marine Division of the Ministry provides Apia-Pago Pago service is now in operation. mooring gangs and shore side services. The construction of the port facilities is being Stevedoring at the Port of Apia is provided by provided from both Japanese and ADB funding nrivate sector. Four stevedoring companies are sources. Total current commitments to port available and tender for work through the Ships development and rehabilitation totalling WSS45 Agent. The companies provide their own million are set out in Table 4.5. Outstanding equipment or cross hire major items between items which are as yet unfunded include them. structural repair and weather proofing of cargo sheds, security fencing and dredging along the 4.20 A Bill to establish a Western Samoa Ports wharf face to remove debris deposited by the Authority is in final draft form. When recent cyclones. The present development of established the Port Authority will take Port of Apia when fully completed, is expected responsibility for all port and ferry facilities and to meet cargo requirements and vessel for marine navigation aids in Western Samoa. configuration needs into the next century. The Authority will be subject to the general policy of Cabinet in the exercise of its functionLs 4.18 Investment in port facilities outside of and will be required to obtain approval for fees Apia has been limited to the provision of ferry and charges to be levied. Revenue raised by the terminals at Mulifanua (on Upolu) and Authority is to be applied to payment of Salelologa (on Savai'i). Terminal facilities at operating costs, interest and loar. repayments and both locations were upgraded in 1985 through creation of depreciation and general reserves. Japanese aid funding (Y 433 million). Extensive damage to the wharf face and some filling of the 4.21 Port charges were last revised in 1986. approach channel occurred at Mulifanua as a The schedule of charges is set out in Table 4.6. result of Cyclones Ofa and Val. Dredging of Commercial accounting practice is not used in the channel has now commenced but part of the costing port operations. Expenditure items are wharf area remains inoperable. The largest provided through budget appropriation and ferry (Lady Samoa II) cannot use the terminal revenues returned to general revenue. - 18- Table 4.5: WmrERN SUmOA-CUNT AD COMmITD MANOR MARm PROQjECS La Financial Financial Type La Form of Year Year (R/D/ Project Project Name Commenced Completed RD) Cost /c Evisluation La Port Development Project Stage I 1987 1990 RD WS$11.5M CBA L4 Phase I Tort Development roject Stop I 1987 1991* D WS$15.2M CBA Phase II ADB Multi-Project I Container Park 1986 1991* R WS$4.297M CBA Project Rehabilitation of Cyclone Damaged 1990 1992* R WSS15M CM Ports Port Management 1989 1991 D US$100,000 0 Training * Initial planned completion date. La Projects in excess of US$100,000 currently being undertaken or scheduled with committed financing. Lk R = rehabilitation D = development of new infrastructure RD = combination of rehabilitation and development. L/ In estimated 1991 prices. Ll CBA = cost/benefit analysis CM = cost minimization 0 = other type of evaluation. Depreciation costs are not included. A study of for annual repairs and maintenance. Similar the establishment of a port authority in Western levels of allocation have been made available in Samoa (IMO, 1988) estimates port revenues at other years. The report notes that insufficient or WS$1,112,800 and recurrent expenditures at delayed allocation of funds for repairs and WS$428,700 for 1987, implying a surplus of maintenance resulted 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 - financial projections for the year 1989 Indicated three vessels owned by Government and that a Port Authority could operate successfully payments are made to the Ministry of Transport on commercial lines (Table 4.7). Use of current for the use of the ferry terminals. Those cost accounting and inclusion of depreciation/ payments are based on a fixed annual fee plus a replacement costs for the new works would levy of WS$0. 10/passenger carried. A draft reduce the forecast surplus. new Shipping Act has been prepared for legislative consideration. 4.22 Comprehensive pla'nning studies have been prepared for port development in Western 4.25 The WSSC leases three vessels from the Samoa. The Transportation Study (1981) Government and two are owned by the company assessed the development requirements for ports (Foto-O-Samoa, Tausala HRPP). Of the five and ferry terminals in relation to the projected vessels on register, two are passenger/vehicle demand for transport. A Master Plan for Port ferries, two landing barges with passenger and Dvelopmeut (JICA 1987) assed demands for vehicle capability, and one a passnr ferry port facilities to the year 2005 and proposed (Table 4.8). One passenger/vehicle ferty (the development works at Apia, Mulifanua, Queen Salamasina with a capacity of 12 vehicles Salelologa and Asau totalling WSS109.6 million and 300 passengers) is dedicated to the Apia- (at 1987 prices) over the plan period. First Pago service. Vessel capacity between stage development requirements at the Port of Mulifanua and Salelologa amounts to 40 vehicles Apia were estimated at WS$22.7 million, and and 650 passengers. The passenger-only ferry are being undertaken through Japanese Grant (Tausala HRPP) was obtained after Cyclone Ofa Aid (Phase I and II of Stage I; see Table 4.5). to augment the Mulifanua to Salelologa service, because of cyclone damage to the Queen International Shipping Salamasina (since refitted) and withdrawal of the Lady Samoa II from service. The restoration of 4.23 International shipping calls to Western the ferry terminal and channel at Mulifanua is Samoa have declined over recent years regarded by the Government as an urgent (Table 4.4), the greatest reduction being in calls priority to allow the Lady Samoa II to be made by general container vessels. returned to the Mulifanua-Salelologa service. Nevertheless, Western Samoa is reasonably well The present round vovage time from Apia to served by international shipping, with services to Salelologa (approximately 6 hours, compared Australia and New Zealand, Asia, the USA and with 2 hours between Mulifanua and Salelologa) Europe. (See also Part 111, Volume One of this precludes ef.ective utilization of the vessel. The present study.) present one way fare between Salelologa and Mulifanua is WS$6.00 (8 nautical miles), and Domestic Shipping Services between Apia and Salelologa WS$8.00 (20 nautical miles). The fare from Apia has been 4.24 Internal shipping services within Western held below the full cost of providing the service Samoa and the ferry between Apia and Pago (estimated at WS$10.00) at Government Pago (American Samoa) are operated by the direction. A comparative bus/ferry fare to Apia Western Samoa Shipping Corporation (WSSC), is WS$7.00. a company almost wholly owned by the Government of Western Samoa. The WSSC does not have a monopoly on domestic shipping services though its established position and the small market discourage entry of competition. The WSSC operates on a commercial basis. Lease payments are made to Government for the - 20 - Table 4.6: WESRN SAMOA-PORT DUES AND CHARGES, 1991 SEA GOING VESSLES ENTERING PORT Pawticulars Rate per Ton or Part Therdof IA (WS$) * Light Dues - Overseas Vessel $40.00?per visit - Home Trade Veol $200.00 per anum * Pilotao 0.10 per ORT * Port Dues - Ovsea Vssl 0.05 per ORT or part threof - Homo Trade Vesas 5.00 per ORT or part threof pr annum * Cao Dues 0.10 per ORT * Whurfw -Imprort Cago $2.00 per ton Export Car $1S.S0 per ton bnmport Bull Petroleum $1.00 per ton T Tinhipment Crgo $1.00 per ton * DockWg -Over""u Vossol SO.OS per GRT per day or part theoof -Home Trad Vaude $50.00 per annuma * Berthage - Vessels up to 1,50 ORT $40.00 per operation - Vessls exceeding 1,500 GRT $60.00 per operation Cleanig Wharf after Departure Vessel - Discharging tallow, cement or bitumen or like commodity $100.00 each visit - Any other vessel $50.00 each visit * Supply of Fresh Water $0.03 per gallon or part thereof * Hire of Work Boats - U to 200 HP $30.00 per 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) Steaming Rate Full rate per hr or part thereof (b) Standby Rate Half rate per hr or part thereof * Hire of Ministry Staff for Cost to the Ministry plus 20 percent Overtime and Special Duties of such cost. Fee for Connection of Telephone to Ship $30.00 per telephone line plus cost of labor for connection Source: Ministry of Transport, Marine Division. /a Charges as last revised in 1986. - 21 - Table 4.7: WESTERN SAMOA-PORT AND FERRv TERMNAL FACLArnES PROJCCED INCOME AND EXPENDITURE ACCOUNT, 1989 Expenditure WS$ Income WS$ Salaries and Wages 401,050 Postage and Light Dues 78,000 Operational Exnenses 47,200 Port Dues 160,000 Repairs and Maintenance 150,000 Wharfage 290,000 Depreciation Li 246,000 Storage 430,000 Dockage/Berthiage 57,000 Subtotal 844,550 Sundry 130,000 Estimated Excess of Income over Expenditure 300,450 Total 1,145,000 1,145,000 Source: IMO 1988. La Based on a nominal valuation of fixed assets at all ports of WS$4.0 million and current plant and equipment assets of WS$0.9 million. Valuations were prior to present works and do not include the new tug. Table 4.8: WESrERN SAMOA-SIlPS REGisTERED IN WESTERN SAMOA, 1991 Vessel Type Lengh Beam GRT Built (m) (m) (tonnes) Western Samoa shipping Corporation Lady Samoa ItO RO-RO Passenger/ 38.93 1.50 867 1988 Vehicular Ferry Queen Salamasina RO-RO Passenger/ 40.54 10.36 714 1977 Vehicular Ferry 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. Domestic services are operated by one C. AvIAION Twin Otter and one Brittan-Norman Islander, with the Twin Otter also used on the service to Air Routes Pago Pago. As a result of the destruction of the Asau airstrip during Cyclone Ofa, a modified 4.26 International air services to Western route 'network" has been required. Services are Samoa are provided by the national carrier, provided from Fagalii airstrip (near Apia) to Polynesian Airlines, and four foreign airlines; Maota airstrip (near Salelologa) in the early Air Pacific, Hawaiian Airlines, Air New morning and late afternoon to serve private and Zealand and Samoan Air. Connections are public sector business travel. An hourly shuttle provided to gateway points of Auckland, type (no reservation) service operates at other Sydney, Honolulu, Nadi, Nuku'alofa, Raratonga times between Faleolo and Maota. Air traffic and Pago Pago. Polynesian Airlines had been between Savai'i and Upolu has doubled (7,000 managed by Ansett Airlines of Australia under between July 1989 and March 1990, 14,600 a 10 year management contract which between July 1990 and March 1991) since commenced in May 1987. Under the terms of Cyclone Ofa. A s.gnificant market of the contract 50 percent of declared profits were passengers appear willing to pay for the shorter paid to Ansett as a management fee and any (25 minute) and more costly (WSS25) flight to operational losses accrued to Ansett. Under this avoid the longer journey time (2 hours) but contract, Polynesian operated a B727 (200 cheaper (WSS7) journey over water. (Note that series) aircraft owned by Ansett. The Ansett for such passengers, other things being equal, contract was cancelled on April 19, 1992.' the implied value of time is at least WS$11.40 per hour.) 4.27 Polynesian is now under direct local management. A clearer airline corporate Airport Traffic strategy is being developed, and cost control and services strengthened. Alliances with other 4.29 International airport traffic at Faleolo carriers (ANZ, QF and UTA) are being Airport is summarized in Table 4.9. The developed. Financial and traffic performance number of aircraft movements have declined appears to have improved. Polynesian now over the period, although there has been a operates a leased B737-300 and a leased B727 continuous increase in passenger movements. aircraft. Polynesian Airline services are Resident movements, which have grown from a concentrated at present on the Australian lower base than visitor movements, accounted gateway of Sydney and Auckland in New for 50 percent of total movements in 1988. The Zealand. The business and holiday market is increase in the number of visitors to Western predominantly Australian while the VFR market Samoa has been modest, with little growth is dominated by New Zealand, because of the experienced in the period 1986 to 1988. The large resident Western Samoan population. 1987 Western Samoa Visitor Survey (TCSP, 1987) showed that the visiting friends or 4.28 Domestic services have been operated by relatives traffic (VFR) category accounted for 28 Polynesian Airlines as part of the Ansett percent of total visitor traffic. The relatively agreement with the Government of Western high proportion of VFR travel is the result of Samoa. The airline has a monopoly and large Samoan communities in American Samoa, provides all charter as well as route services in New Zealand, Hawaii and the west coast of the the country. Fares on domestic services are USA. These countries plus Australia are controlled and are insufficient to cover full historically the strong market areas for travel to operating costs. Recent losses on domestic Western Samoa. services are of the order of WSS2S0,000 per - 23 - Table 4.9: WEsrEaN SAMOA-INTERNATIONAL AIR 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: Department of Statistics, WSVB. La Figures of passenger movements produced 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 Faleolo International 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 assistance in 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 operations by the larger long range aircraft. The routine maintenance for airport facilities at B767 is the largest aircraft to use the airport on Faleolo International Airport is necessary given a scheduled basis, but B747 aircraft are operated the size of the developed airport, and outlined between Auckland and Faleolo over the investment in a workshop and equipment. Other Christmas period to meet the VFR demand. The proposed expenditure in DP-6 was oriented to Govermment has indicated a desire to extend the the development of a Civil Aviation Department. runway at Faleolo to permit unrestricted B747 An aviation needs assessment survey operations. Bearing in mind the total lifetime (UJNDP/ICAO 1986) 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 implemented covering provision of 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 recruitment and 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 destroyed by Cyclone Ofa and has not been operations and maintenance. The Authority is of rebuilt. Both Fagalii and Maota have an the view that any upgrading of Maota or Fagalii unsealed surface; Fagalii is a grassed runway or reconstruction of the airport at Asau should and Maota a gravel surface. There are problems be funded separately by the Government. in the further extension or upgrading of facilities at both airports due to topographical and land 4.35 Planning. A Masterplan for Faleolo ownership constraints. It is intended, however, International Airport was prepared in 1990 that Maota be relocated and that Fagalii be (WSAA, 1990) to provide guidelines for future upgraded to fully accommodate Twin Otter development of facilities to the Year 2010. aircraft. Replacement/financing of the airstrip at Growth in aviation demand is likely to depend Asau is somewhat problematic given the heavily on tourism development, which in turn vulnerability of the previous site to weather and will be shaped by the increase in its role as a second airstrip on Savaii. A accommodation, other tourist infrastructure, and locational and economic feasibility study has not evolving relative attractiveness. A key factor in yet been undertaken. the consideration of development options at Faleolo is the desire to provide a 300 meter Operations and Administration wide runway strip to comnply with ICAO specifications for precision approach. The 4.33 As noted above, there is no civil aviation present runway strip is 150 meters wide and a organization as such, in Western Samoa, and decision to provide a 300 meter wide runway reliance has been placed on an aviation advisor strip to comply with ICAO specifications for to assist the Government on civil aviation precision approach. The present runway strip is matters. The New Zealand Director of Civil 150 meters wide and a decision to provide a 300 Aviation acts as the civil aviation authority in meter width, and meet obstacle clearance respect to civil aviation regulations related to standards, would require considerable technical and operational matters. A Civil earthworks and the relocation of many airport Aviation Department to be established however, facilities. The lowest cost development which staffing limitations pose difficulties. would leave the runway strip at 150 meter width, and accept other operational constraints, 4.34 The Western Samoa Airports Authority is estimated to cost WS$219.7M (1990 prices). (WSAA), which was established in 1986, is The recommended alternative in the study, responsible for the operations and maintenance which would satisfy ICAO requirements, is of airports in Western Samoa. All airport estimated to cost WS$33.OM. The major facilities are vested in the Authority (although variations in Stage II are the costs of earthworks Polynesian Airlines has a direct involvement in for the runway strip and approach surface, and Fagalii). The authority is expected to be self- for a new passenger terminal and apron. The financing, however, to date this objective has recommended alternative would require not been met. The Authority has met recurrent demolition of part of the existing terminal to outlays from fees and charges raised from make room for extension to the apron. The airport operations (see Tabie 4.10) with aid expected level of traffic through Faleolo Airport funded support for specialist personnel, but would not appear to support the recommended depreciation/replacement costs for aid funded level of development. capital investment is not included. The Authority has recently expanded airport concessions and restructured the duty-free shops to enhance non-aeronautical revenues. The revenue recovered from charges at the two operational local airports do not cover costs of - 25- Table 4.10: WEsTERN SAMOA-GovERNmENT ExPENDrruRE IN AvIATION, 1986 - 1991 (WS$) 1986 1987 1988 19S9 1990 /a 1991 La 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 Vehicle parkdng 9,559 25,856 27,916 31,928 36,197 32,557 Uround handling 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 Authority Annual 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 TRANSPORT SECTOR DEVELOPMENT NEEDS indicated a continued empbsis on increased A. LNTRDUCnON productivity from agricultural land already accessible and on development of a forest 5.1 Westem Samoa has been an independent industry. The percentage of planned investment nation since 1962. During the late 1960s and in the transport sector (11 percent) in DP-4 the 1970s considerable work was undertaken in (1980-1984) reflected a change in emphasis from developing the nation's transport system. .'he transport infrastructure development to main wharf at the Port of Apia was opened in investment in agriculture, forestry and fisheries. 1966, the entrance channel and wharf (Actual expenditure on transport was higher). In constructed to open Asau Harbor for shipping in the main, the emphasis during 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 Mulifanua and Salelologa. Faleolo rehabilitation of the nation's transport assets Airport was reconstructed in 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) medium sized jet aircraft up to BAC 111 size and continued the emphasis on the maintenance and a new terminal and parking facilities built. cyclic rehabilitation of the transport system. Ihe greatest single need in 1991 still remains the 5.2 Development of the transport sector has effective administration and maintenance of the long received attention -n Western Samoa with nation's transport assets. a major road investment study (GWS, 1972), a multi-:nodal transportation 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 studies have provided a basis for developmental development of transport infrastructure in activities and have been effective in obtaining Western Samoa has been seen as a basic element support from donors. in economic growth. Investment in land transport infrastructure, in particular, has been 5.3 During the 1970s the main highway justified by the presumed increase in agricultural system on Upolu was substantially completed, production resulting from increased accessibility with some exceptions. The South Coast Road to land and greater return as a result of reduced on Savai'i was constructed in the early 1980s transport costs. The full effectiveness of this and construction or upgrading of some 1,200 km role has not been established. of feeder roads serving 175 villages was completed. The long-term economic scenario 5.5 Government Accountabllity. Departments and organizations of Government in -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 exposure of policies or the need to defend publicly the effectiveness and efficiency of operations. The review of C. GENEAL TRANSPoRT SECOR ISSUES growth prospects in Western Samoa (World Bank, 1991) notes the extensive involvement by 5.9 ProJect Selection and Appraisal. The State owned enterprises in virtually all sectors of completion of 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 restoration of 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-recovery and 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. Consideration should 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 Ministry of Police) to include matters of cost education and 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 continues to 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. maintenance of 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 rehabilitation of the rural sealed road system and commonly of the order of USS16-17 million per the development of effective administration of annum. Aid has been dominated by bilateral both a Roads Maintenance Unit and the Plant assistance (some 75 percent of the total), Management System is directed towards the need although there has been substantial multi-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 construction which 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 insufficient to 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 organization structure and staffing resources can donor assistance geared to ensuring that this be satisfactorily determined 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. LAND TRNSPORT SUBsCrOR by loss of professional and 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 maintenance mangement system reliant on professional and specialist technical has been identified in a number of studies. The resources through technical assistance 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 maintenance requirement and to apply the continuous turnover of expatriate staff (and the resources effectively. Consideration needs to be variability in competence and attitude) constrains given to road infrastructure life 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 standards to simplify or reduce the requirements 5.16 Private Sector Involvement. The local of road maintenance should be examined. private sector is involved in construction Increased plant serviceability and improved plant projects, but mainly as subcontractors to management would require lower plant holdings international organizations on major projects. and reduce overall costs. The use of fully Development of 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 maintenance programs. sector and a financial program which provides some certainty and evenness in the availability of 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 increased in communities up 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 collection and discharge of water from and vehicles is a problem of increasing potential. the road formations. This adds to problems of It will be necessary for the Public Works road maintenance. Department to develop better traffic management and engineering capabilities 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 function and capability of the maintenance of the road system, and not extended to road - 29 - E. MAmw Suuscro 5.21 Infrastructure. Themajorinfrastructure issue, in the short to medium term, concerns the 5.18 Strategy and Polcieo. The development possible reestablishment of an airstrip at Asau. strategy for marine infrastructure in Western With the loss of Asau airstrip, air traffic has Samoa was completed in 1987. The ADB has increased and cost recovery on domestic aviation financed works at the Port of Apia consistent services has improved. User reaction, therefore, with the study findings. The identified would not appear to support reinstatement of the requirement for more effective management and Asau strip; an acceptable economic return from greater self-financing capacity of port the investment appears doubtful. Moreover, any infrastructure is being addressed through the investment should be linked, technical and creation of a Western Samoa Ports Authority. financially, to support for specific development projects, including tourist ventures. 5.19 Domestic Shipping. Formal domestic shipping srvices ae adequate at presnt and 5.22 Airports Operations and Mainitnae. improvement in vessel utilization and reduction At present levels of traffic and user charges, in costs will occur when the Mulifanua terminal insufficient revenues are generated to cover is restored to full capability. The market is depreciation/restructuring of airport concessions contestable, but the established position of the but significant improvement in cost recovery Western Samoa Shipping Corporation and the would appear to be dependent on traffic growth. small market size deters competitive entry. 5.23 Arllne Operations. Polynesian Airlines has been innovative in exploring markets and F. AvILnoN SUBSEc R international services to Western Samoa appear adequate to meet present demands. 5.20 Strate and Policies. The strategy for Establishment of new arrangements for the the future development of aviation infrastructure management of Polynesian Airlines should has been reviewed recently. Existing airport and endeavor to draw on cooperation with other airstrip infrastructure is adequate for current carriers." services and future needs are tied primarily to growth in long-haul international tourist traffic in the late 1990s and beyond. A necessary, but not sufficient condition for such growth is the development and marketing of complementary tourist facilities, especially quality resort accommodation. - 30 - Endnotes 1. This transport sector survey is based upon a mission to 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 Government of 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, Solomon Islands, 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 development projects. 5. More recently (December 6-9, 1991), and less than two years after Cyclone Ofa, Western Samoa was severely damaged by Cyclone Val, the most destructive cyclone to hit Western Samoa in 100 years. A comprehensive assessment of damage, including to transport infrastructure, was still being undertaken (as of March 1992). An assessment of infrastructure rehabilitation needs is reported in Government of Western Samoa (1992). Official total damage is estimated at WS$713 million. Of this total, within the transport sector estimated damages are WS$34 million for roads and bridges WSS19 million by ports and maritime and WSS6 million for coastal protection works. 6. These training projects raise the question of whether plant workshops and road maintenance activities might be more appropriately developed in the private sector. 7. For further discussion see Part IV in Volume One of this Report. 8. Extension damage from Cyclone Val in early December 1991 has had a major impact on reconstruction needs; these were still being assessed as of March 1992. 9. See Part IV, Volume One of this Study. - 31 - BIBLIOGRAPHY Asian Development Bank (1987), Road Maintenance Report, prepared by Beca Worley International, 1987. Australian International Development Assistance Bureau (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. Government of Western Samoa (1992), Cyclone Val Inrastructure Rehabilitation Needs Assessment Report (Prepared by the World Bank with the assistance of ADB and AIDAB), June 1, 1992. International Maritime Organization (1988), Study of the Establishment of a Ports Authority in Western Samoa, Mission Report. Japanese International Cooperation Agency (1987), lhe Study on Development of the Ports in Western Samoa. New Zealand Ministry of Foreign Affairs (1988), Road Maintenance in Western Samoa, prepared by TGB Armitage. Tourism Council of the South Pacific (1990), Tourism Sector Report, Western Samoa. Transport and Road Research Laboratory (1982), The 7RRL Road Investment Model for Developing Countries (RTIM2), TRRL Laboratory Report 1057. Western Samoa Airport Authority (1990), MasterPlan UpdateforFaleololnternatlonalAirport, prepared by Henry Fan (Singapore Airport Authority). Western Samoa Accident Compensation Board (1990), A Study of Accidents. World Bank, (1989), South Pacific Islands Transport Sector Review. World Bank, (1990), Western Samoa Emergency Road Rehabilitation Project. World Bank, (1991a), Towards Higher Growth in Pacific Island Economies: Lessonsfrom the 1980s, Report No. 9059-ASIA, January 18. - 32 - Western Samoa Hondiiiu NZ Air Now Zeakid FJ Al(Pedle MA Hvvian 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 TRANSPORT SECTOR SURVEY ANNEX 1 -34- ANNEX 1 CONTENTS 1 INTRODUCTION 36 A. Context 36 B. Maintenance Management Framework .36 2 NATURE OF THE MAINTENANCE ISSUE ......... .. .......... 39 A. Transport Infrastructure Inventory ......................... 39 D. Assesed Maintenance ................................. 41 C. Maintenanc Practices ...A4................................ 4 D. Implications of Inadequate Maintenance ...................... .50 E. Maintenance Funding ................................. 52 F. Situation Summary ................................... 56 3 EQUIVALENT ANNUAL VALUE FOR TRANSPORT INFRASTRUCTURE 58 4 ROAD VEHICLE OPERATING COSTS .60 - 35 - ANNEX 1 LIST OF TABLES Table No. 1 Western Samoa-Management Information Inventory Roads .37 2 Western Samoa-Management Information Inventory Ports .37 3 Western Samoa-Management Information Inventory Airports .38 4 Western Samoa-Estimated Road Length, 1991 .39 5 Western Samoa-Road Construction Costs .40 6 Western Samoa-Estimated Replacement Cost Government Marine Facilities .41 7 Western Samoa-Estimated Replacement Cost Government Aviation Facilities .42 8 Westen Samoa-Average Annual Maintenance Costs of Roads, 1991 .42 9 Western Samoa-Annual Average Maintenance Cost as a Percentage of Replacament Cost for Marine Facilities .44 10 Westem Samoa-Average Annual Maintenance Cost Goverment Marine Facilities .44 11 Western Samoa-Annual Average Maintenance Cost Government Aviation Facilities. 45 12 Westem Samoa-Recurrent Expenditure Public Works Department Civil Section .46 13 Western Samoa-Road Maintenance 1991-1992 Allocation by Activity 46 14 Western Samoa-Recurrent Income and Expenditure for Ministry of Transport - Marine Division .48 15 Westen Samoa-Estimated Budget Allocation to Principal Activity Areas Marine Division 1991/92 .48 16 Western Samoa-Recurrent Income and Expenditure for Western Samoa Aviation Authority .49 17 Western Samoa-Annual Maintenance Costs Western Samoa Airport Authority, 1988-1991 .51 18 Western Samoa-Summary of Infrastructure and Maintenance Costs, !991 .51 19 Western Samoa-Income from Import Duty and Excise Tax, 1990 .55 20 Western Samoa-Summary of Cost Recovery, 1991 .57 21 Western Samoa-Summary of Infrastructure Value and Maintenance Costs, 1991 .58 22 Road Roughness and Condition .60 23 Western Samoa-Vehicle Operating Parameters .62 24 Western Samoa-Vehicle Operating Costs, 1991 .63 LIST OF BOXES Box No. 2.1 Vehicle Operating Costs .................................. 53 4.1 Traffic volumes. 6 -36 - ANNEX 1 CEAPTER 1 INTRODUCTION A. CoNmXT twice that of budgeted maintenance expenditure are required to adequately maintain existing road 1.1 This annex provides nof a aets. The urdeprovision for repairs and survey of the maintenance situation in Western maintenance for the port facilities at Apia and Samoa.' This survey, along with similar Asau were also noted in a study of a Port surveys for other PMCs represents the Authority in Western Samoa (IMO, 1988). background for the regional analysis of transport nfrastucture maintenance for the five PMCs presented in Volume One (Part II) of this report. B. MA1I'NANCE MANAGEMEr FAMWORK 1.2 At present, government policy does not incorporate a systematic approach to the 1.4 Tables I to 3 indicate the extent of assessment of maintenance needs and priorities management information available for each to assist recurrent budget planning. Substantial transport sub-sector, based on a classification rehabilitation and reconstruction of Western system outlined in the Part II Overview. The Samoa's road assets is currently being notional classifications used in the marine and undertaken with AIDAB, ADB and IDA aviation sub-sectors are subject to further assistance. In part, the program is the result of refinement. damage to the road system caused by Cyclone Ofa but some WSS91 million (1989 prices) of 1.5 The tables illustrate the almost complete rehabilitation needs were identified prior to the lack of information available below the sectoral occurrence of the cyclone.2 level which would assist in the development, operation and maintenance of the transport 1.3 At present, there are no asset inventories system. Western Samoa has a more systematic held by the responsible departments which approach to the collection and analysis of road contain information on asset conditions, or traffic volume information than most other historical data (other than an estinate of the total Pacific Island Countries but there are length of road in the country). Evidence of deficiencies in other areas of the road insufficient maintenance is circumstantial and information system. Some additional generally consists of descriptive observations of information is available in the aviation sub-sector the present poor condition of infrastructure. directed mainly to meeting international Some analysis has been undertaken of the need operational and air safety requirements. The for cost efective maintenance in the road major deficiencies relate to information useful to subsctor. The relevant reports noted in the the development of adequate maintenance Country Survey generally indicates that outlays management strategies and systems. .37 ANNEX I Table 1: Westen Samoa-Management Informatdon 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 and physical charsotoriaics by ___________ link _ _ _ _ _ Project Specific data 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 Iand inveatiations of Develop- devlopmentof nug dt ayfy_i or hs L ~~~~~ficincy_ _ (l) Sespa1.1.7. - apabbl basic information available P - eall bask ifution available U - infmation unvilable Scum: .ieto revew. Table 2: WESTERN SAMOA-MANAGEMENT INFORMATION INVENTORY PORTS ___________ ~~Teebia I ar w 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 demand and P 1 P P P P T U cbrataiaic by locatlo- Project spte ii data - nt ASsessd.. O"retiem lXt ee aot t a l | D | * g t 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: WEIFTRN SAMOA-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 and phyds cgcFtuis by ____ lecabon _ _ Puee Specific dat Not Aseed - Opfat_om Malabmacof th 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 acceptable bamic nometio available P - patal basc informtion avaiable U infonntio uavaihablb. Source: Mision review. -39. ANNEX 1 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 maintain a formal road inventory. As st out in infrastructure in Western Samoa. Such Table 1, there is little or no data which would information which exists is presented below.' assist with the strtegic plnning, work programming, project development or 2.2 The value of major transport assets in operational control of the road system. Road Western Samoa has been established using link are listed by location an classified by estimates of the replacement cost of identified construction class and surface width. The length assets. Where projects have been completed of each link is given and general comment is recently, the replacement cost is assumed equal available on the condition of running surfacs. to the construction cost, adjusted to present No register is provided for bridges and culvert. prices. For older assets the replacement costs have been calculated by comparison with the 2.4 The estinwed lengths of road by recorded value of similar recent assets. By construction class are set out in Table 4. using a 'replacement' value for the asset, no Plantation and access road lenh is a general consideration has been given to the condition of estimate and could be as much as 1,500 km. the asset. In most cases the actual value of the The widths of sealed road surfaces vary from asset would be considerably lower than the 4.0 m to 6.5 m. replacement cost, due to age and lack of maintenance. Table 4: WEsTERN SAMOA-RoAD LENGTH, 1991 (km) Earth Forned Surfaced Sealed Total Road Road Road Town Roads 25 50 75 Primary Roads 167 240 407 Secondary Roads 330 10 340 Plantation/Access Roads 1,250 . - 1,250 Total 1,250 522 300 2,072 Source: Western Samoa Public Works Department, ADB (1987), IDA (1989). 40- ANNEX1 2.5 The replacement cost 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 construction or maintain an inventory of marine assets, use an reconstruction of sealed roads designed to asset depreciation system or prepare engineered standards with pavement widths commercially oriented financial accounts. Port generally of 6 m. Replacement costs 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. Replacement costs 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 construction in 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 development and reconstruction or 2.6 Based on the estimates in Table 5 the replacement of facilities affected by Cyclone calculated replacement cost of road assets is Ofa. Reconstruction works 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. replacement costs of public road assets is some However, timber milling for export at Asau has WS$250 million (1991 prices). ceased and is unlikely to be re-established because of destruction of forestry areas caused by Cyclone Ofa. The need for reconstruction and future operation of Asau appears unlikely. Table 5: WESTERN SAMOA-ROAD CONSTRUCTION COSTS, 1991 (WS$ 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/Access Roads 1.250 0.05 6.25 Total: Road Replacement Cost 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. Replacement costs for the facilities at Mulifanua ard Salelologa are 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 workcs have been preferred to day-labor works as management system. 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 estimated replacement cost and these figures are cost. A provisional estimate is included for used in this report. The facilities operated by plantation/access roads. The estimated costs are the Authority comprise the Faleolo international set out in Table 8. airport and two domestic airfields at Fagalii and Maota. No value of replacement cost is put on 2.12 The estimated annual maintenance cost of the airfield at Asau which was destroyed in WS$7.1 million (1991 prices) assumes the road Table 6: WsTEmRN SAMOA-GOVERNMENT MARINE FACILITIES REPLACEMENT COST, 1991 (WS$ 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 Infrastructure Replacement Cost 64.0 Source: Ministry of Transport and Mission Estimates. -42 - ANNEX I Table 7: WESwRN SAMOA-GovERNMNT AvATION FAcLmES RELACEMENT Cosr, 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 Other Buildings 18.0 3.5LI 21.5 Other Plant 1.5 1.5 Subtotal 72.0 Fagaii and Maota 3.8 3.8 Total Aviation Jnfrastructure Replacement Cost 75.8 La Includes allowance for radio and communication equipment. Source: Western Samoa Aviation Authority and mission estimates. system is in good maintainable condition and work are the result of damage to the road system that maintenance is directed to preserving design from Cyclone Ofa, the remainder results from standards. This is not the case and extensive under expenditure on routine and periodic rehabilitation and reconstruction works are now maintenance. in progress on the main road network financed by IDA, ADB and AIDAB. Some parts of this Table 8: WESTERN SAMOA-AVERAGE ANNUAL MAINTENANCE CoSms OF RoADs, 1991 (WS$, 1991 priCeS) Cost/km Length T Total Cost Road Type WS$ (kin) WS$ millions Sealed Roads * main roads 10,000 240 2.40 * secondary roads 8,500 60 0.51 Surfaced Roads * main roads 8,500 167 1.42 * secondary roads 6,000 355 2.13 Plantation Roads 500 1,250 0.62 Total 7.08 Source: Mission Estimates. .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 maintenance cost is WS$710,000 (1991 and specific maintenance program. The prices) for facilities at 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$830,000 (1991 prices). rehabilitation program (now under implementation), excluding specific road 2.16 It is not possible to separate the backlog improvements, training programs and of maintenance and rehabilitation needs resulting institutional strengthening totalled some from past underfunding of maintenance WSS90.7 million (1989 prices) made up of: requirements from the damage caused to port facilities during Cyclone Ofa. The extensive WS$ 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 facilities affected 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/Culvert Reconstruction 8.7 provision of 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 assessment of the backlog of rehabilitation works at that time. 2.17 Annual maintenance costs for the aviation sub-sector also have been calculated by 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 rehabilitation needs 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, building plant WS$64 million (1991 prices). maintenance and civil works maintenance in 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 average maintenance 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: WESTERN SAMOA-MANE FACILITIES ANNUAL AVERAGE MAINTENANCE COST AS A PERCENTAGE OF REPLACEMENT COSr 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 equipment and boats 1.5 10.0 Source: Ports Authority of Fiji and UNDP. WS$0.04 million (1991 prices). The total for all Airport during the 1980s and most of the facilities is WSS1.06 million (1991 prices). infrastructure is relatively new. 2.18 No major rehabilitation needs resulting from under maintenance have been identified by C. MAINENANCE PRACTCES the Western Samoa Aviation Authority. The possible replacement of the airfield at Asau is Roads the result of cyclone damage and the potential upgrading of Fagalii and the relocation of Mlaota 2.19 Readily available data pertaining to the result from land ownership problems and Public Works Department provide separate topographical restraints. Considerable budgets for each of its functions. The Civil development work has occurred at Faleolo Section budget includes the allocation for road Table 10: WESTERN SAMOA-GOVERNmENT MARINE FACILITIES AVERAGE ANNUAL MAINTENANCE CoSn, 1991 (WS$, 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: WESTERN SAMOA-GoVmEN AviATION FACILITIES ANNUAL AVERAGE 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 building plant 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. maintenance as a specific line item. The road maintenance appropriation includes the costs of 2.20 For 1991/92 the 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 allocatable to Road Maintenance are estimated at maintenance are contained in separate approximately WS$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 maintenance function (Table 13), Beach detailed examination is required to fully Road duplication could be considered a delineate the relevant costs. Table 12 sets out betterment project. Urban drainage allocations the direct allocations to road maintenance for the for Upolu and Savaii are possibly only partially period 1988 to 1991, and the full allocation to 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 allocation of WS$3.3 million is attributed to maintenance of the road system is contained in the 1991-1992 Development Budget of the order of WS$3.5 million. The direct for the AIDAB funded Road Resealing Project. allocation to road maintenance has increased in This allocation is for rehabilitation of 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 insufficient to mee, the under maintenance of the road system, rather long term average annual costs of maintenance than a contribution to present routine and period which are estimated at WS$7.08 million (1991 maintenance requirements. prices). -46- ANNEXI Table 12: WEmN SAMOA-RECURRET EXPENDITURE PUBLIC WORKS DEPARTmENT CML SECr1ON, 1988-1991/92 (WS$, current prices) 1988 La 1989 1990 1991 1991/92 Salarios and Overtime 308,960 Wages and Overtime 337,263 Local Travel 44,000 Operating Supplies 32,000 Plant ged Vehiclo 70,000 Operaions Road Mainteance 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 $4,055,393 L 1988 to 1990 ar 12 mouth calendar yoara (Jan-Dec) 1991 is 6 months Jan 1991 - June 1991. Source: Treasury Department. Table 13: WEsTERN SAMOA- 2.21 The maintenance of the road system is ROAD MAINTENANCE generally undertaken by the Department of ALLoCATION BY AcTvw, 191-192 Public Works. The Department is responsible for the maintenance of the primary and Activity WS$ 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 UnSealed Maintenance32,850 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 Almost all maintenance works 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 Maintenance Unit within the Public Works Savaii Urban Drainage 220,500 Department as 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 maintenance works have been set This subdivision of the Division allocation is set historically at levels well below real operating out in Table 15. On this basis the actual costs. A plant workshop upgrading program is allocation to maintenance, including dry docking being carried out by AIDAB which is of the tug (Talofa) is considerably in excess of complementary to the Road Maintenance project. the apparent appropriation for maintenunce The plant project includes the development of a (Table 14). Detailed assessments would be plant costing system. Plant hire rates have been required to obtain the real appropriations in reassessed for 1991 based on Australian previous years for maintenance functions. experience as there are no useable records of plant costs within the Department at present. 2.27 The allocated funding for maintenance, The calculated rates for government works do even taking the revised figures presented in not include the ownership capital costs Table 15, is well below the assessed average (depreciation and interest charges). and are annual requirement of WSS832,S00 (1991 about 42 percent of the hire rate of plant which prices). The major discrepancy is in the the Department charges to private contractors. provision for the maintenance of wharves, jetties and terminals. The current new construction Ports and rehabilitation works at Apia have rectified much of the work arising from previously 2.24 The Ministry of Transport is responsible deferred or inadequate maintenance. Adequate for the maintenance of port facilities at Apia, provision needs to be made to avoid repetition Asau, Salelologa and Mulifanua. Funds for and to maintain the facilities at Salelologa and maintenance are appropriated to the Ministry. Mulifanua. The Public Works Department undertakes maintenance of fixed facilities on request from Aviation the Ministry of Transport. Other general maintenance works are carried out by Ministry 2.28 The Western Samoa Aviation Authority personnel. (WSAA) is responsible for the operation and maintenance of Faleolo airport and the two 2.25 The budget allocation to the Ministry domestic airfields at Fagalii and Maota. Routine provides separate appropriations for Head Office maintenance of general facilities is carried out and to the functional divisions Marine, Aviation, by authority personnel. Periodic maintenance of Fire Services and the Transport Control Board. civil works and buildings are undertaken by the The recurrent expenditure appropriations and the Public Works Department or by contracts let by income for the years 1988 to 1990 and for the the Authority. Maintenance of navigation aids, financial year 1991/92 for the Marine Division communications equipment and electrical are set out in Table 14. The figures indicate a services are carried out in-house or by using surplus of income over expenditure for the private enterprise resources. period. 2.26 A distribution of the Head Office 2.29 The Authority is expected to be self allocation has been made to each of the financing, using airport taxes, landing fees and functional areas for 1991/92 based on estimates other charges as the income source. The of work performed for each Division. The Authority collects and retains passenger Marine Division allocation has been further departure taxes as part of its revenue source. subdivided to the three principal activity areas of However, the right to retention is under the Division - Regulation and Safety, Port challenge as it is considered by the Treasury Operations and Port Repair and Maintenance. Department as a government tax and not an - 48- ANNEX 1 Table 14: WESTeRN SAMOA-RECURRENT INCOME AND ExpENDITURE FOR MINISTRY OF 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 * Wharfage Fees 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 * Miscellaneous Charges 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: WESTERN SAMOA-EsTIMATFD BUDGET ALLOCATION TO PRINciPAL ACTIVITY 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 * Beacons and 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 * Distribution of Head Office 14,244 179,955 3,864 costs Total 94,023 870,330 298,516 La Includes WS$180,000 for dry docking costs of tug - Talofa. Source: Western Samoa Treasurv Department and mission estimates. -49 - ANNEX 1 Table 16: WErN SAMoA-REcuRENT iNCOM AND ExPNDruRE FOR WElRN SAMOA AVIATION AUTHORIYY, 1988-1991 (WS$, current pica) 1988 1989 1990 1991 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~~~~ ~~ ~~(budget) 1. Capital Expcditure * 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 Annual Accounts. 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 collected by 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 underestimate the actual costs of maintenance. estimates an increase in landing fees, resulting The average annual cost over the period 1988- -50- ANNEX 1 1991 is WSS266,000 which is considerably and aviation infrastructure. This level of below the estimated long term average expenditure is used as an approximation of the requirement of WSS1.06 million (1991 prices). amount assessed as being necessary for optimal maintenance (maintenance expenditure which 2.32 Estimates of required annual maintenance results in a minimum life cycle cost for the asset expenditure prepared by the WSAA, indicate an at a given design standard). Assessed annual cost of WSS860,000 (1991 prices) for maintenance does not imply that it is warranted; buildings and civil works at Faleolo and this requires a beneflt-cost analysis of individual domestic airports. This estimate excludes assets. The optimal level of maintenance navigation and communication equipment and expenditure cannot be established. Current mobile equipment. This level of cost is maintenance expenditure is derived from budget comparable to the assessed maintenanc3 data. requirements of the relevant items (WS$948,0C0) in Table 11. 2.34 The replacement value 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 rehabiitation needs are equal to 25 percent of transport infrastructure, maintenance overhang, the total replacement value of the road system. assessed maintenance needs and actual Current maintenance expenditure on all transport maintenance expenditure derived in this and infrastructure is only 45 percent of that preceding sections are summarized in Table 18. estimated as being required. If there was no Data on replacement cost are drawn from Tables accrued maintenance liability for the current 5, 6 and 7, data on assessed maintenance infrastructure, an additional WS$4.9 million is requirements from Tables S, 10 and 11 and estimated to achieve the assessed annual maintenance overhang from para 2.14. The maintenance of the infrastructure. The current stimate are derived from a very limited maintenance overhang may require expenditure database. The objective of the estimates is to greater than the assessed maintenance of WS$9.O provide an indicative quantified perspective of million per year if the average condition of the present situation for the pu;rpose of infrastructure is to be improved. illustrating the nature and scale of the transport infrastructure maintenance issue. The current 2.35 Inadequate maintenance results in more replacement value of transport infrastructure has rapid deterioration of infrastructure than need be been based on data assembled on the quantity of the case. An estimate of the increase in the infrastructure and unit construction costs. The equivalent annual cost of infrastructure resulting maintenance overhang (i.e. rehabilitation from poor maintenance is also presented in requirements resulting from past inadequate Table 18. This item is discussed in the next maintenance) is derived from past studies which section. have identified infrastructure rehabilitation needs; however, none of these is comprehensive or up-to-date, and rehabilitation needs are D. IMnLcAnoNS OF INADEQUATE greater than presented in Table 18. The M.R.NCE expenditure required to adequately maintain current infrastructure, suitably rehabilitated so 2.36 Reduced expenditure on maintenance is that it is mainainable, is estimated on the basis offset by more rapid deterioration of of unit maintenance costs for roads and a infrastructure than would be tie case with proportion of the replacement value of marine optimal maintenance. Lnicative estimates of the -51 - ANNEX 1 Table 17: WESTERN SAMOA-ANNUAL MAINTENANCE COrS WESTERN SAMOA AIRPoRT AutHoRrrY, 1988-1991 (WS$, 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 Additional estimated amount. Source: WSAA. Table 18: WESuRN SAMOA-SUmmARY OF INFRAsTRucruRE AND MAINTENANCE COSMS, 1991 (WS$ million, 1991 prices) Road Marine Aviation Total Replacement Cost 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) Additional Expenditure to Achieve Optimal 3.6 0.5 0.8 4.9 Maintenance Ld Additional Annual Capital Expenditure arising 11.2 1.4 3.0 15.6 from Inadequate Maintenance Lt -, -, - La Cost required to rehabilitate infrastructure to a sound standard, i.e. the standard through time which would have been the case with assessed maintenance and for which the assessed annual maintenance expenditure is sufficient to adequately maintain the infrastructure. Lk No information available. L, Expenditure required for assessed maintenance. La Difference between current annual expenditure on maintenance and equivalent annual expenditure assessed us being optimal. Lt Difference between equivalent annual capital cost for replacement of 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 agricultural output 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 significantly greater sales. 2.37 In addition to the higher costs which accrue to the Government from inadequate maintenance, users of the transport system incur E. M^AImENANCE FuNDING higher costs. For road users, this includes increased vehicle operating costs; these in turn 2.39 There is no hypothecation of revenut to may result in further decline in economic maintenance of road or aviation inifrastructure in efficiency through reduced accessibility and Western Samoa. Nor is there a formal policy on increased spoilage of products, and suppressed cost-recovery in 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 inadequately maintained 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 license paid for each vehicle; (b) driving license less competitive on international markets. For fees; (c) a fuel levy which acts as a short-term example, inadequate maintenance of wharves price stabilization fund 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 maintenance results in unreliability and delay of services due to closure of airports-deterioration of the airport terminal could also have an adverse effect on user perception and marketing credibility. 2.38 There are opportunities for agricultural development in Western Samoa, primarily in root crops, fruit and other vegetables. However, the connection between 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 OPERATING COSTs Vehicle operating 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 0.545 I/ Fair 0.642 (11%) 2/ 0.562 (3%) Poor 0.750 (30%) 0.639 (17%) There is an almost complete absence of data on traffic volume by road type and condition. Thorefore, it is not possible to estime, with any measure of accuracy, the total cost of operating vehicles over the road network in its current condition and the cost with roads in good condition. However, woring assumptions, based on judgment, have been made to provide an indicative estimate of such vehicle opoeting costs. Based an 6,312 rgsterod vehicle. travelling an averag, of 14,000 km p kr yer (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 vehicle operating costs will boNWSS53.6 million. The equivalent cost if roa e in good condition is WSS49.2 million, i.e. curret voeicl operating costs ar 9 Prcent higher than would be the cmn if road were in good condition. Forign costs ccount for78 pOrcent ofthdse cos. The WS$4.4 million diffoerce btowen vehicle operating coas on good and poor roads thus reproments an incremental import bill of WSS3.4 millon per year (equal to 2 percent of current imports). I/ Average economic vehicle operating costs in WSSlAa (see below). Financial vebicle 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 Revenue from the vehicle registration and tonnes to between 50 to 70 percent for cars. license fees and driving license fees was Import duty for petrol and diesel is 50 percent WS$1.10 million in 1990. Based on data from and 35 percent respectively. On average, other countries, it is estimated that collection vehicles and fuel are subject to an average rate costs are about 10 percent of this sum leaving of import duty and excise of 54 percent, the revenue of WS$1.0 million. The petroleum compared with 23 percent for other imports (see levy is imposed to generate surplus funds which Table 19). The fiscal efficiency of imposing a can be used to subsidize the price of fuel in the higher rate of these duties in the transport sector event of sudden increases. However, the levy is is an open matter. Imposing tax "mark-ups" also used as a source of general revenue. The where price elasticities are relatively low rate of the levy changes periodically. ("Ramsey" pricing) might justify higher tariffh for the road transport subsector, with higher 2.42 The Government of Western Samoa tariffs for road transport resources being a fiscal obtains about 42 percent of its income from measure, and not treated as cost-recovery. import duties. The charges are imposed on all Alternatively, all income from duties can be imports, though the Treasury meets the cost of, considered as contributing to cost-recovery, to for example, duty and excise for vehicles the extent that the duties are imposed on road imported for aid projects. The rate of import transport users, and revenue from the duties is duty is 50 percent for all vehicles except buses less than that required for full cost-recovery. -54 - ANNEX 1 The analysis presented in this Annex i based on 2.44 Even leaving open the question of only that revenue from the duty on road whether some attribution of import duty revenue transport resources in excess of the average rate should be reviewed as an indirect road use of duty for all other imports as contributing to charge, total revenue from the sector is only cost-recovery. (The regional analysis presented one-third of the total long term cost of sustaining in Volume One of this study presents the effect the present road system. In the long term the of all revenue from duties being attributable to Government will need to further increase its cost-recovery.) The revenue from these duties revenue or continue to secure aid funding to be in excess of the average rate for other imports is able to adequately sustain the present road viewed here as a specific levy on road users. network. Increased road user charges need to be An import duty/excise tax of 23 percent of the carefully considered as a significant fiscal value of vehicles and fuel would produce burden already falls on road users and raises revenue of WS$6.39 million in 1990 (assuming transport costs. dasticity of demand equal to zero). The 54 percent import duty/excise tax utus results in an 2.45 Two key equlty issues relate to cost additional levy on road users of WSS8.63 recovery in the land transport sub-sector: (a) the million in that year. There is no incremental geographical distribution of sources of receipts cost associated with collection of the higher rate and disbursements of expenditure; and (b) the of tax applied to vehicles and fuel, and the apportionment of costs and revenue by vehicle amount of WSS8.63 million can be considered category. Given the distribution of economic an additional charge to road users to meet the activity and road infrastructure between Upolu cost of development and maintenance of public and Savaii, it is likely that there is cross-subsidy roads and as a fiscal/general revenue raising from Upolu to Savaii. This may be warranted measure. on social grounds and the close links between the two islands, but should be monitored to 2.43 If the incremental import duty/service tax ensure its sustainabUity. A major proportion of is assumed to contribute to cost recovery, costs the road network involves low traffic volumes and revenue associated with development and (less than 100 vehicles per day). Such roads, maintenance of the road system are estimated for typically gravel and earth formed, provide 1991 4 at: accessibility as a social service. Fixed costs for maintaining these roads are high-over WS$ million 75 percent. In such circumstances, a lower Net Revenue: share of revenue for cost recovery will derive * Registration Fees and Driving from specific vehicle-related fees; a higher share Licenses 1.08 will need to be supported by more indirect and * Petroleum Levy 0.76 general taxes.5 The second equity issue pertains * 'Excss' Import Duties and Excise 9.15 to the allocation of cost and revenue to vehicle Total 10.99 types. Trucks cause considerable damage to the road system, disproportionately more than their Expenditure: share of total vehicle kilometers by all road * Current Maintenance 3.50 vehicles, and road user charges should be * Incremental Maintenance designed to reflect this incremental cost to the Requirement 3.58 system. To the contrary, the average rate of * Annual Capital Charge 23.80 import duty for trucks is two-thirds that for cars Total 30.88 (see Table 19). Registration fees for trucks are higher than for cars, but, for example are less than double in the case of a three tonne truck -55- ANNEX 1 Table 19: WESTUN SAMOA-INCOME FROM IMPORT DUTY AND EXCISE TAx, 1990 Avewe Rate of CIF Value of Imports hnport Duty and Excise Duty and Tax (WSS million) Tax (WS$ million) La (%) Vehicles *Cars 3.45 3.39 98 * Trucks 7.70 4.91 64 * Other Vehicles 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 Total Imports * Including Vehicle. and Fuel 188.54 52.74 28 * Excluding Vehicles and Fuel 160.75 37.72 23 /a Derived on the basis of rates of duty and excise applicable to vehicl types and total revenue from all duty and excise of WSS52.74 million. No allowance is made for items for which no duty is payable; WS$10.64 million of the duty and excise for all imports is attributable to these unspecified items. Source: Customs Department for CIF values and mission estimates for duty and excise payable. (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 * Incremental Maintenance 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 increased substantially to provide sufficient estimate costs and revenue associated with revenue to provide for capital replacement. development, operations and maintenance of the ports and other activities of the Ports Division of 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 system to * Incremental Maintenance Needs 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 estimated annual outlays required for asset maintenance presume 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 insufficient to 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 infrastructure has 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 inflation of 6.5 percent in 1988 and 1989 of one year's replacement of assets would be there should thus be scope for increased revenue 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. SITUATION SUMMARY WS$64 million (1991 prices). It needs to be reiterated that this estimate is based on imprecise 2.50 The previous sections of this survey data; nevertheless it 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$22 the information which is available to assess asset million per year (1991 prices). management needs, even from the most general perspective. 2.54 The historic levels of actual maintenance expenditure are difficult to establish and hence to assess. Departmental budget allocations and -57- ANNEX 1 Table 20: W ERN SAMOA-SUmmY OF CosT RwOVERY, 1991 (WS$ mIllon, 1991 prices) Roads Marine Aviation Income * Direct 1.08 1.65 2.57 * indirect 9.91La - Total 10.99 1.65 2.57 Operating Expenditure * With Current Maintenance 3.50 1.06 1.84 * Incremental Maintenance Needs 3.58 0.53 0.81 Operatn Surplus (Lou) 3.91 0.06 (0.08) Less: Annual Capital Charge 23.80 4.80 7.20 Net Surplus (Loss) (19.89) (4.74) (7.28) /a Share of import duty in excess of average rate of duty for all imports. Source: Mission estimates. costing procedures are not designed to provide 2.56 An indication of cost recovery with information on a program/functional basis (e.g. assessed maintenance for each transport mode maintenance task). The lack of function based presented in Table 20 indicates substantial financial data is a constraint to understanding underrecovery of costs for road, marine sad and managing maintenance. An apportionment aviation transport. Use of current maintenance of recurrent Departmental expenditures for all expenditure and the equivalent, higher annual transport modes indicates that some WS$4.1 capital charges would result in a lower level of million was spent on maintenance in 1991; this cost recovery. is estimated to represent only 45 percent of assessed average annual maintenance 2.57 Assessment of existing Infrastructure requirements warranted for the existing and determination of what assets warrant infrastructure assets. maintenance (and at what standard) is needed. So too is attention to maintenance 2.55 At present, virtually all maintenance is priorities and higher cost recovery through user undertaken by Government Departments 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 give sufficient implementation. consideration to he separation of management and technical activities, and has resulted in almrost exclusive emphasis on the latter. The approach also places heavy demands on the limited number of qualified staff in Departments, and fails to take advantage of the greater flexibility available in private companies and the community. - 58 - ANNEX I CHAPTER 3 EQUIVALENT ANNUAL VALUE FOR TRANSPORT INFRASTRUCTURE 3.1 Inhcducon. Inadequat ntonce example, poor maintnance of a road may result results in moro rapid deteroat of rport in inadequate drainge and pot-holing. Water infrastructure than would be the case with can then penetrate the base structure of the road optimum maintence. This Annex estimates the and result in deterioration of this element of the extent of this effect. fixed component. The lives of the fixed components of infrastructure adopted for the 3.2 Infrasbtcte Value. The value of current assesment are presented in Table 21. urrent infrastructure estimated in Section A of Typical lives of the renewable components of Chapter 2 Is summarized in Table 21. The cost infrastructure with current maintenance and of this infrastructure comprises two parts; a optimum maintenance are also presented in fixed component and a renewable component. Table 21. The former includes, for example, clearing and construction of the base for a road. 3.5 Equivalent Capital Cost. The equivalent annual capital cost of infrastructure 3.3 The renewable component of with current maintenance patterns and with infrastructure is that part which periodically optimum maintenance are shown in Table 21. requires reconstruction, for example the surface An opportunity cost of capital of 7 percent is of a road. The approximate proportion of the used. The data illustrate that the current total cost of infrastructure which is fixed and equivalant annual capital cost with current renewable is described in Table 21. The maintenance patterns is about 44 percent greater estimate are drawn from construction cost than would be the case of optimum maintenance estimates for typical construction projects. was undertaken (i.e., WSS51.4 million compared with WS$35.8 million). The data also 3.4 Economic Life. With optimum shows the importance of adequate maintenance maintenance, the fixed component of of engineered, unsealed roads, with the infrastructure should have a life of at least 50 incremental capital cost of this item alone years. By definition, all elements of the fixed accounting for over 50 percent of the component of infrastructure should not be incremental capital cost for all infrastructure. affected by the level of maintenance. This is not necessarily the case, however, in practice. For Table 21: WEsTERN SAMOA-SUMMARY oF INFRASrRucTuiE VALUE AND MAINTENANCE COs, 1991 (WS$ millions, 1991 prices) Rond& muie Aviatie 1ti Eni What. Equp. Equip. TOTAL Sealed -eered E Toal & Yads Bdp. & TOl R _Ma 11dgs. & TeW Ant Replacement Value 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 Maintenace Ovedhang /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 Maiatenmce Expeaditume .. .. .. 3.5 .. .. .. 0.3 .. .. .. 0.3 4.1 S of Aueaed Maintensnce .. .. .. 49% .. .. .. 36% 27% 45% Ec e.mental Mainteace Expenditure .. .. .. 3.6 .. .. .. 0.5 .. .. .. 0.R 4.9 for Optimal Mainveaace /c Equivalent Annual 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 Wilh Curent 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 Capital Cost Ptapostioo of Capital Cost: Faed Component 65% X 0% 100% 20% 100% 0% 20% 100% 0% Re_wable Component 35% 20% 0% S0% 0% 100% 80% 0% 100% Economic Life: (yean) Fixed Conpor Wdh Optiuam Maintenance 50 S0 20 S0 30 0 50 30 Wth Curent Maintenance 40 30 10 40 IS 0 40 15 Renwable Component With Optimum Maintenance 16 5 - 50 10 16 10 Wih Current Maintenance S 2.0 . 20 5 8 7 /a Cost required to rehbilitate inf ucture to a ml standard, i.e. the standard thiough time whicb old have been tke case wid opial maintnace and for which the assesed _mml nminteace expenditure is sufficient to adequately maintain the infrastructure. k Expenditure required for optimal maintance. /c Difference between curmrnt anual eenditu on maintenance and the equivales annual expenditure assd as being optimal. Td Baed on oppottunity coat of capitel of 7 percent and parameters dewcribed in the lower pair of the table. -60 - ANNEX 1 CHAPTER 4 ROAD VEHICLE OPERATING COSTS 4.1 Introduction. Vehicle operating costs average annual cost over the economic have been established using 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 commonly very low, * Light Utility (Mitsubishi 1 Tonne Pickup) and the rate of road deterioration will 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: ROAD ROUGHNESS share of registered vehicles and the annual AND CONDMTION distance travelled by each vehicle category. The number of vehicles registered in 1990/91 was: 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 vehicles are similar to pickups and the remainder - 61 - .ANNEX I of trucks. This results in the distribution of vehicles types as shown in Table 23; the Box 4.1: TRAMC VOLUMES distribution is similar to that in other Pacific countries currently being reviewed. Vehicle Th diibution of traffic volum over teroad network is highly inkew Traffic resource consumption for travel on good sealed vol on the Wet Coast Rd of Upolu linkin roads derived from the RTIM model is also the airport to Apia ar of the order of 2,0 presented in Table 23. vehicles per day. Elewhoe on the seled presee in T 3 s volumes vay from 1,000 vehicles per day to the main urban areas to as lov 4.3 Vehicle Operating Costs. Total vehicle a 100 vehicles per day. Indications are tht operating costs, in WS$ per kilometer (1991 volumes on the noe stions of the primm road network and on the secondary roads are of prices), for travel on sealed roads in good the order of SO to 100 vehicls pr day. condition are deseribed in Table 24. (Note that economic operaing costs are two-thirds of financial costs.) Thbs figr are used s a datum from which vehicle operating costs are estimated for sealed roads in fair and poor condition and unsealed roads (in each of the three conditions) using road roughness as described in Table 22, and relationships in the RTIM model.' Traffic volumes are low (see Box 4.1) and representive volumes have been used in estimating total vehicle operating cost savings. The principal items with a substantial imported component are fuel, oil, tires, spare parts for maintenance capital charges. About a quarter of these costs can be attributed to local distribution and retailing; however, there is an import component to these latter costs. This component is estimated as 40 percent, the share of net imports in GDP in Western Samoa.' Applying this proportion to other components of vehicle operating costs, the foreign component of financial vehicle operating costs is estimated to be 78 percent.9 -62 - ANNEX 1 Table 23: Wzn3N SAMOA-VzcLE OrRATING PARAMEFS: SLE RoADs IN GOOD CoNDmoN, 1991 Car Light 4WD Light Utility Truck Physical Data Free Speed 60 S0 60 45 Power-Weight Ratio (BHP/t) - - 25 Gron Vehicle Weight (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 Effectvo Life (years) 10 10 10 10 Avage Vehicle Age (yas) 4 4 5 5 Vehicle Crew: Driver 0 1 1 1 Other 0 1 1 1 Traffic Composition 40% 37% 10% 13% Unit Price Data (1991 prices) (i) Financial Prices 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 Crew Time (/hr) 1.00 1.00 1.00 1.00 Maintenance Labor (/hr) 3.33 3.33 3.33 3.33 Insurance 1,000 1,300 1,400 2,100 Annual Registration 110 110 120 174 Real Interest Rate 7% 7% 7% 7% (ii) Economic Prices 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 Derived Data lk Average Speed (kph) 58 48 59 44 Fuel Consumption 0/'000 km) 72 67 113 134 Oil Consumption (1/'000 kIm) 1.2 1.8 1.8 4.0 Tires (Consumed/'000 km) 0.139 0.139 0.139 0.331 Spare Parts (%/'000 kIm) 0.001 0.001 0.001 0.001 Maintenance Labor (hrs/km) 0.001 0.001 0.001 0.001 la Excludes taxes and duties. Lb Derived from RTIM for sealed roads with roughness of 2,000 mm/klm. Source: Mission estimates. -63- ANNEX 1 Table 24: WESTERN SAMOA-VECLE OPRATING Comr oN PAVED RoAS IN GOOD CoNDmON, 91 La (WS$/km. 1991 prices) Car Light 4WD Light Average Utility l Truck Financial Cost Fuel 0.064 0.060 0.094 0.111 O0)72 Oil 0.015 0.023 0.023 0.050 0.023 Tires 0.029 0.026 0.046 0.088 0.038 Maintenance 0.061 0.048 0.070 0.072 0.059 Interest and Depreciation 0.57*0 0.319 0.524 0.469 0.460 Licenses and Insurance 0.089 0.096 0.122 0.134 0.101 Driver and Crew 0.000 0.090 0.074 0.098 0.054 Total 0.827 0.660 0.952 1.022 0.805 Economic Cost Fuel 0.047 0.044 0.074 0.088 0.054 Oil 0.012 0.018 0.018 0.040 0.018 Tires 0.019 0.018 0.032 0.060 0.026 Maintenance 0.032 0.033 0.047 0.047 0.036 Interest and Depreciatiwi 0.285 0.208 0.343 0.302 0.265 Insurance 0.080 0.088 0.112 0.124 0.092 Driver and Crew 0.000 0.090 0.074 0.098 0.054 Total 0.475 0.499 0.700 0.750 0.545 La Vehicle operating costs for paved roads in good condition (roughness index 2,000 mm/kn) are used as the datum, against which vehicle operating costs for other road types (unsealed and earth) and road conditions (fair and poor) are estimated. The total annual cost of owning and operating vehicles is expressed in WS$/km; variations in operating costs with road condition are tested only for fuel, oil, tires and maintenance. Source: Mission estimates. -64- ANNEXs Endnotes 1. The survey of the maintenance situation presented here is based upon a World Bank mission visit to the Western Samoa September 15-22, 1991. 2. Western Samoa was struck by another cyclone-Cyclone Val-on December 6-9, 1991. Damage to the nation's infrastructure was still being assessed as of March 1992. 3. The information is derived from two sources. A questionnaire settin out the data required was circulated prior to the mission visit and used as the reference for discussions with the relevant Ministries and Departments. In addition to the information from thC imiission, data have been drawn from sectoral and subsectoral reports on transport in Western Saroa. 4. The GDP deflator in 1988 and 1989 was an average of 6.5 percent per annum. S. The structure of road user charges and other fees/taxes for road cost recovery is more complex in such situations. This issue of providing reliable access to small, often remote, communities also arises in mariime and aviation with small wharves and airfields. 6. Transport and Road Research Laboratory (1982). 7. The vehicle operating costs are summarized in Box 2.1 in Volume One of this report. 8. Based on data for 1989 when imports, exports and GDP were WSS195 million, WSS94 million and WSS248 million respectively. 9. Average vehicle operating costs on gravel and sealed roads in the three conditions described in Table 22 are presented in Box 2.1 of Volume One of this present report. WESTERN SAMOA PACIFIC ISLANDS TRANSPORT SECTOR REPORT MAJOR ROADS INTERNATIONAL AIRPORT - MINOR ROADS , AIRFIELDS M - PLA OTAtON ROADS HIGHLANDS OVER 1,000 FEET SELECTED TOWNS AND VILLAGESR \ipipi S NATIONAL CAPITAL MAJOR PORT RIVERS F.g. ~~~~~~~~~~~~~~~--INTERtNATONAL BOUNDARIES 1345 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~ 40'--~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 0- Togcd ~~~~~~Got.OM, IS 7MA I N STE B S,0 5. 10 W. tAIIL~~~~~~~~~~~ IA P1 O48 I2 16 Klo rr , 1 ;. sdr . S1 nI. -UT.A, A