Press Release

Samoa receives US$4.825 million OPEC Fund loan for petroleum rationalization project

47/2005 April 21, 2005, Vienna, Austria

The OPEC Fund for International Development today signed a US$4.825 million loan agreement with the Independent State of Samoa to help strengthen the country’s petroleum bulk storage capacity. The project represents the third phase of a government petroleum rationalization program (PRP) that seeks to achieve cost-effective security of petroleum supply and distribution.

Samoa is heavily dependent on petroleum for use in its industry, power supply, agriculture and transportation sectors. As growth of energy demand is likely to continue over the next 10 years, further investment in infrastructure is required.

Earlier phases of the PRP have resulted in Samoa’s petroleum supply costs and wholesale prices being amongst the lowest in the region. Phase three aims to secure the sustainability of the country’s petroleum industry and enhance its independence of supply.

The project will involve the acquisition and rehabilitation of a petroleum bulk storage terminal, together with the renovation of secondary storage facilities and the replacement of petroleum discharge lines in Apia harbor. Completion of these activities will bring multiple benefits, including lower supply and distribution costs and reduced risks to supplies. Samoa will thus be able to import and distribute petroleum products more efficiently and also increase its reserves. This will improve independence of energy supply for the benefit of the economy and the entire population and secure a sustainable framework for least-cost solutions and operational efficiency.

The OPEC Fund has previously approved 10 loans for Samoa. Of these, six were directed towards balance of payments support, while the remaining four loans were given for projects in the energy and agriculture sectors.

Today’s agreement was signed in Vienna by H.E. Mr. Tau’ili’ili Uili Meredith, Ambassador of the Independent State of Samoa to Belgium, and by H.E. Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.

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