Status of Pohnpei Water Supply and Sanitation Project
Per National Planner June 1997 Report
PALIKIR, Pohnpei (FSM Information Service): July 31, 1997 –
In his June 1997 monthly report, the National Planner stated that the
authorizing legislation for the financing agreement has not been
introduced in the Legislature due to some concerns over some wording
of the security clause which attorneys are attempting to incorporate
provisions to require Pohnpei Utility Corporation to provide cash
security for the loan from the State to the Corporation.
With several meetings held between the Vice President, Pohnpei
State Governor and the Speaker of Pohnpei Legislature it was
concluded that the draft legislation would be introduced during the
week ending July 11, 1997.
In the State of Kosrae, it was reported that so far there is no
indication when and whether Kosrae Legislature will enact the
necessary legislations. One aspect which Kosrae Utility Authority
(KUA) objects to is the provision giving the State Government the
right to reduce amount of compact energy grant which is passed on to
the KUA, which would force KUA to rely more on its revenues.
The continued delay by the Kosrae Legislature in enacting
necessary legislation may mean that Kosrae could be left out of the
ADB Project and will become ineligible for funding from other
external funding agencies for water and sewerage development.
The bid evaluation has recommended that contract for drilling rigs
for Chuuk and Yap are awarded to Dando Drilling International of
England for a contract price of $501,134. However, a contract for
drilling rigs cannot be awarded until the ADB loan is declared
effective. If the bank agrees that the project can proceed with only
one state, it is planned to award the contract for drilling rig for
Chuuk State before expiry of the bid validity period of July 23,
1997, and to request the Supplier to extend the bid validity period
for Yap drilling rig by one month, the report stated.
The proposed effectivity of the projects in each of the four
states were July 11, 19997 for Chuuk State; July 30 for Pohnpei;
August 31st for Yap and September 30th for Kosrae.
Procurement and delivery schedule for drilling rig in Chuuk and
yap is November 7, 1997. While the schedule completion of well
drilling in Yap is June 4, 1998, and in Chuuk on November 25, 1998.
All engineering designs are scheduled for completion by march 15,
1998, the civil construction work for Pohnpei is scheduled for
completion in February, 1999; Chuuk, Yap and Kosrae by December 8,
1999, the report stated.
