If we invest Australian aid in economic infrastructure and associated structural policy reforms we can reduce poverty in Samoa by stimulating inclusive economic growth. Economic infrastructure leads to increased employment, access to markets and lowers the cost of basics services and business inputs such as electricity, And… A legal, regulatory and policy framework is in place which maximises and sustains the economic impact of economic infrastructure and helps to spread the benefits to vulnerable groups in Samoa. Invest in economic infrastructure which is a priority and will deliver the inclusive economic benefits. Delivering infrastructure through the World Bank & Asian development Bank to invest at scale, leverage technical expertise & improve coordination. Natural disasters do not divert public expenditure away from planned investments. Public debt policy prevents from obtaining concessional finance from the development banks. Development partners design investments on a cost-benefit analysis. Maximize the long term financial sustainability of infrastructure, its maintenance& support inclusive economic benefits and the through policy and structural reform. Negotiating an effective reform agenda with GoS & supporting dialogue with society, the private sector & other development partners. Achievement in this area will be largely dependent on the ongoing commitment of GoS to economic infrastructure reforms. Ensure that investment decisions and reforms are well informed and consider cross cutting issues including gender, climate change, disaster risk reduction and disability inclusiveness. Conducting research and analysis of issues. Research is high quality, timely and credible. Recommendations are implemented. End-of-strategy outcomes The objective of this Delivery Strategy is to provide a flexible, year framework that will guide AusAID’s program in economic infrastructure that will reduce poverty by stimulating inclusive economic activity, in Samoa. To achieve this, and informed by the above theory of change, Australia’s engagement will be organised under three key end-of-strategy outcomes set out below. An end of program outcome model for the Samoa Economic Infrastructure Delivery Strategy follows at Figure 1 and a Performance Assessment Framework is at Annex 3. The year time frame, from financial year 2013-14 through to financial year 2020-21, is based on international evidence and AusAID’s infrastructure investment experience that points to the reality of long timeframes for infrastructure development and delivery. It will enable the program to align with the ten year timeframe of Samoa’s 2011-2021 National Infrastructure Strategic Plan. It also provides Australia with the opportunity to engage and link the infrastructure delivery strategy with Samoa’s national development planning process and measure the results of the program against Samoa’s medium term national development objectives. Investment Outcome: Improve high priority economic infrastructure. cutting
has historically led on energy in Samoa, having been involved in the sector since 1972 when it funded the establishment of the EPC. World Bank/ADB ICT infrastructure investment – the investment in ICT infrastructure aims to increase the economic opportunity for businesses and individuals through the provision of faster, cheaper and more reliable internet. AusAID will partner with both the ADB and the World Bank to install a new submarine fibre-optic cable system which will increase ICT connectivity in Samoa. An increase in connectivity will reduce transactional costs leading to cheaper internet and telecom services, improved delivery of public services such as health, education, disaster warning information, financial services and provide development opportunities in the private sector. Twinned with the provision of new ICT assets will be a focus on regulatory reforms that would increase competition amongst ICT providers and contribute to greater and sustained economic growth. While initial priorities in renewable energy, ICT and roads have been identified, the program is intended to be able to adapt through high level dialogue engagement, with the GoS, development partners and over time the private sector, for specific projects where return of equity is sufficiently high. Additionally all proposed investments will be further developed through Investment Concept Notes and/or Partner Led Summary Design Documents in accordance with AusAID design guidance. Further analysis of Phase One’s investments can be found in Annex 4.
Reform Outcome End-of-strategy outcome to 2020-21 End-of-strategy outcome indicators Intermediate outcomes. Intermediate outcome indicators Key assumptions GoS agencies implement structural and policy reforms improve the sustainability of economic infrastructure and enhance inclusive economic growth. Percentage of planned reform activities implemented according to timetable. Percentage of reform plans adequately resourced (budgets and actual) Effectiveness of selected reforms established through tracer studies & evaluations management capabilities of the GoS are improved. GoS agencies & public enterprises have asset management plans in place. Achievement in this area will be largely dependent on the ongoing commitment of GoS in undertaking economic infrastructure reforms. Reforms lead to an increase in the performance of public enterprises. Agencies and public enterprises performance indicators show improvement. The cost of services to the consumer where appropriate, decrease. The price of services decreases where appropriate. Budget management is improved in respect to economic infrastructure assets. National budget includes appropriate allocation of resources for management. The private sector & civil society are better able to influence investments and reform choices. Number of consultations with private sector and civil society groups undertaken by the GoS. Key evaluative questions for outcome Are the reforms implemented by the GoS? What are GoS agencies differently due to the reforms? What effect are the reforms having on economic infrastructure and AusAID’s investments? How are improvements in public sector staff, plans, systems and processes leading to system-wide capacity development and reform? Suggested means of verification: Annual interview of key stakeholders including GoS, development partner and the private sector. Agency and public enterprise annual reports. Technical Assistance Outcome
End-of-strategy outcome to 2020-21 End-of-strategy outcome indicators Intermediate outcomes Intermediate outcome indicators Key assumptions Research & analysis which considers issues leads to decisions that support inclusive and sustainable economic growth. Decisions on the prioritisation of investments, allocation of resources and reform agenda takes account of cross-cutting issues. Cross-cutting issues are addressed in investments and reforms. Studies are produced which provide recommendations to improve investment design and implementation. Number of studies produced that are accepted by GoS and development partners. Quality analysis will produce useful information which will shape investments and reforms. Recommendations made by analysis will be taken into consideration. Studies are produced which provide recommendations for GoS reforms. Number of studies produced that are accepted by GoS and development partners. Key evaluative questions for end-of-strategy outcome What change did the study result in? Was the study made public? Was the delivered in time and was the content accessible to decision makers? Monitoring Phase one (to be refined as Phase one investments are developed): Results Hierarchy Indicators Data source / means of verification (Year) 2013/14 Annual (2014/15) Annual (2015/16) Annual (2017/18) End of phase one (2018/19) End-of-strategy outcome one End-of-strategy outcome: Priority
economic infrastructure are meet by assisting in the rehabilitation of existing infrastructure assets and the provision of new assets where necessary. Increased number of persons with improved access to services. National surveys. Lower cost of services where appropriate. Market sources. Increased functionally of services (such as improved road infrastructure). National surveys. Improved whole-of-life cost of infrastructure. plan. Intermediate outcome: Intermediate indicators will be determined by Data source/means
capabilities of the GoS are improved. management plans in place. Intermediate outcome: Reforms lead to an increase in the performance of public enterprises. Agencies and public enterprises performance indicators show improvement. Agency and public enterprise annual reports Intermediate outcome: The cost of services to the consumer where appropriate, decrease. The of services decreases where appropriate. Market statistics Intermediate outcome: Budget management is improved in respect to economic infrastructure assets. National budget includes appropriate allocation of resources for asset management. National Budget Intermediate outcome: The private sector & civil society are better able to influence investments and reform choices. Number of consultations with private sector and civil society groups undertaken by the GoS. GoS
while water & sanitation was low (due to high access and other donors providing substantial resources). The World Bank has a large and effective presence in the roads sector in Samoa and thus achieves substantial results from transport projects. Thus initial priorities of renewable energy, telecommunications (internet) and roads are recommended for investment. Investments in airports and ports have been included below but are tentative projects. Energy Sub-sector (Co-financed with ADB) Development of Five Mini Hydro Plants with a total cost of around $20-27 million. Possible AusAID support estimated at 25 per cent of total ADB indicative investment of around $25-30 million would amount to $xxx million. Telecommunication Sub-sector (Co-financed with World Bank) Pacific Regional Connectivity Program: Phase 3 Samoa with an estimated amount of $25-30 million Possible AusAID support estimated at $xx million. Roads Sub-sector (Co-financed with WB) IDA 16 (FY13-14) provides an indicative allocation for urban and rural roads improvement and improving access to villages and climate proofing existing roads and drainage systems in the amount of $25-30 million In addition, GoS has identified a Rural Access Roads Program in addition to the WB investment with this estimated at approximately $10 million. Possible AusAID support is estimated $xxx million. Airports Sub-sector (tentative) WB has indicated that it could consider providing financing support for terminal upgrades and runway improvements but there are no allocations in its IDA16/17 indicative investment program. The GoS has estimated the cost of this infrastructure at approximately $xx million. Possible AusAID support to be determined. Ports Sub-sector (tentative) While the WB has not committed any funding support to the Ports Sub-sector in its IDA 16/17 (FY15-16) indicative investment program, it has indicated that it could support a reform program needed to modernize ports, especially considering their vital importance to connectivity and inter-island trade. The GoS has estimated a cost of $30 million for improvement to inter-island ports, which would greatly benefit rural and low-income communities. Support would be needed for both capital works and policy reform for initiatives. Possible AusAID support to be determined. Component 2: Incentivised Reform Program