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FSM/WORLD BANK ENERGY SECTOR DEVELOPMENT PROJECT:

CHUUK STATE STAKEHOLDER CONSULTATION MEETING

10TH MARCH 2014

MEETING REPORT

Prepared by: Mark Waite, CEO - CPUC


CHUUK STATE STAKEHOLDER CONSULTATION MEETING – 10TH MARCH 2014

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1 Introduction

A stakeholder consultation meeting was held on Monday 10th March 2014 to present the

Proposed FSM Energy Sector Development Project funded through IDA grant.

Formal Invitations were issued to stakeholders during the week of 3rd March 2014. Listing of

formal invitees is given in Annex 1; CPUC staff also issued invitations to landowners and other

stakeholders in the vicinity of the power house and within the general community.

A total of 32 people attended the meeting – a full list is given in Annex2.

2 Meeting Agenda

2.1 Opening Prayer

The meeting was opened with a prayer by Mr Tesime Kofot, vice chairman of CPUC and Director

of Chuuk State Marine Resources Department.

2.2 Opening/Welcome Address

An opening address was given by the Honourable Johnson Elimo, Governor of Chuuk State. In his

address he welcomed the World Bank initiative noting that this is the first engagement with the

World Bank in the Energy Sector; He recognised the necessity for direct engagement between

World Bank and National Government and urged the Chuuk State Energy Workgroup and CPUC

to work closely with the World Bank & National Government in support of the State Energy

Action Plans; He also noted that Chuuk State has the lowest electricity coverage in the FSM and

this project supports a properly managed expansion of service;

He rounded off his comments by encouraging people to actively engage in this meeting, noting

that one of the aims of the meeting is to improve the design of the project

2.3 Presentation

Presentation of the Energy Sector Development Project was given by CEO of CPUC, Mr Mark

Waite – copy of the presentation is attached in Annex 3; the presentation included overview of

World Bank safeguard mechanisms (Environmental Management Plan – EMP; and the

Environment and Social Management Framework - EMSF) and how they are to be applied in the

ESDP;

Copies of the draft EMP and the EMSF were made available to attendees at the meeting; It was

also noted that copies of the documents can be found on the CPUC website at

http://www.cpuc.fm/development-partners/world-bank/energy-sector-development-project/

along with other relevant information as it is developed and issued.

The meeting was conducted as an Open Forum and questions were taken throughout the

presentation. Detail of questions asked and feedback given is included in Annex 4.

Key concerns raised (discussed in detail in Annex 4) were:

The timeliness of project implementation and concern over the capacity of NDRD to

manage the project efficiently;



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Disposal of waste materials should comply with all applicable laws and regulations at

State and National Level;

The need for sustainability of future project investments through use of quality

technology/materials and effective operation maintenance;

Master planning should if possible involve local expertise and knowledge in support of

international experts undertaking the planning;

Master planning should utilise information already in the public domain rather than re-

inventing the wheel;

The RE investment should not necessarily be centred at the power plant but could be

dispersed around the distribution network;

The Chuuk State Energy Workgroup should be proactive in determining expansion of

electricity services and not wait for the master plan to happen;

Local involvement in the Master Planning Process will enhance the end product and

ensure its relevance to the community;

There is no conditionality concerning the grant although there is a timing implication

which is dependent upon FSM Congress approval of the Telecom Liberalisation Bill;

3 Meeting Close

The meeting was closed by the Chairman of the Chuuk State Energy Workgroup Mr Wilfred

Robert.

He gave an overview of activities in the Energy Sector and confirmed the important contribution

the ESDP will make towards the Chuuk State Energy Action plan targets. He re-iterated the

importance of the inclusive involvement of all stakeholders during all stages of the ESDP.

Photographs of the meeting are included in Annex 5.



Annex 1 – List of Invited Agencies/Organisations

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Chuuk State Senate;

Chuuk State House of Representatives;

Chuuk State Governor & Department Heads;

Chuuk State Mayors;

Chuuk State Energy Workgroup;

Chuuk Women’s Council;

Chuuk Conservation Society;

Chuuk State Chamber of Commerce Members;

Development Bank of FSM;

Bank of FSM;

Bank of Guam;

Faichuk Development Authority;

FSM Telecom;

CPUC Power Plant Landowners;

College of Micronesia – Chuuk;

Chuuk State Small Business Development Centre;

CPUC;



Annex 2 – List of Participants

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Chuuk State Stakeholders Consultation Meeting

March 10, 2014

List of Participants

Name Organization Email/Phone

Wisney Nakayama Chuuk Conservation Society 931-3832 Rocky Inek CPUC Board of Director 330-4116 Kayo Noket Deputy Mayor (Weno) 932-9672 Peter Aten Division of Commerce & Industry 330-8782 Kelly Keller CPUC 330-2400 Kachutosy Paulus Faichuk Development Authority 932-7043 Mino R. Mori CPUC/FSMTC 330-2740 Tesime Kofot CPUC/Dept. of Marine Resources 330-6729 Daniel Ham Bank of FSM Mark Mailo Chuuk State Legislature (Senate) 932-6797 Mark Waite CPUC 931-8598 Benjamin Akkin CPUC Board of Director 330-3282 Berly Killion Chuuk State Legislature (Rep.) Ketsen Haregaichy Chuuk SBDC [email protected] Johnson S.Elimo Governor’s Office (Governor) [email protected] Kind Kanto COM –FSM Chuuk [email protected] Redley Killion Chuuk State Chamber of Commerce [email protected] Josie Estepa MCM 330-5212 Bill Stinnett Truk Stop Hotel [email protected] Mathias Kuor Chuuk State Legislature (Senate) 931-4216 Atan Hetiback Chuuk State Legislature (Senate) 931-8735 Joakim Kaminaga Kaminaga Enterprise 330-6967 Cindy Mori Chamber of Commerce [email protected] Pintas Kenneth Weno Municipal (Mayor) 932-5262 Frank Cholymay DCO 931-6435 Kiki Stinnett Chuuk Women Council 932-8555 Sinory Meitou Weno Municipal 931-2247 Wilfred Robert Governor’s Office (Chief of Staff) 930-3387 Harris Rain Chuuk State Legislature (Senate) 330-4284 Peter Amaraich Chamber of Commerce [email protected] Larry Gouland CPUC [email protected] Fernie Esa CPUC 330-2400



Annex 2 – List of Participants

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Annex 3 - Presentation

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Annex 4 – Questions & Feedback

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QUESTIONS FEEDBACK

Governor Elimo - Disposal of waste – all waste disposal should follow Chuuk State law; Rules & Regulations and EPA requirements; Mr Wisney Nakayama - Is the FSM a member of the Convention on Persistent Organic Pollutants; And if so is there a National Framework for compliance with the convention;

Agreed that the safeguards require compliance with all laws, statutes, etc. of Chuuk State; the EMP will take this into account and disposal will be properly managed and regulated; For Chuuk State – disposal will be for old light fittings some of which may contain mercury vapour or other hazardous materials disposal of which is likely to be offshore with registered disposal agencies/mechanisms; Not sure – this question will be posed to NDRD for clarification;

Mr Minoru Mori – Disposal of oil wastes may require legislative change to ensure proper collection and disposal; Mr Katchutosy Paulus – is there a centralised agency responsible for collection and disposal of oil waste

The question of waste oil disposal whilst a valid discussion point is not directly related to the investment proposed under the ESDP for Chuuk State; The questioners comment was noted concerning the need for clear legislation; There is no centralised agency or clear cut means of managing waste oil collection and disposal; EPA rules are in place penalising discharge of waste oil; This may be an area that CPUC can play a role;

Mr Bill Stinnett – do LED fittings pose the same level of hazard that fluorescent and incandescent light bulbs pose.

LED fittings have no toxic risk; Specific disposal requirements for LED fittings are not known by the responder – any future disposal would have to follow recognised practice and would be built into CPUC operating procedures for material disposal; further information will be provided to the questioner;

Mr Kind Kanto - Would it make more sense to locate solar PV installations elsewhere in the system rather than concentrate them close to the power plant;

Distributed location of solar assets is in general a good idea; one of the constraints for construction is land ownership; CPUC are currently focusing to undertake installations on Government owned land or CPUC;




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Governor Elimo – Chuuk State law also provides for the taking of land under the eminent domain process provided that funds for purchase of the land are available. Mr Kind Kanto – is it possible to fund eminent domain land purchase using grant funds under the ESDP Mr Peter Aten – is the roof area at the power plant of sufficient size to house 200 kWp; Is the shadow from the hillside behind CPUC power plant going to restrict the use of the solar system

Another factor is the size of the installation in relation to the Chuuk State Energy Action Plan targets - the interim target is 450kWp installed by 2015 which together with other currently planned installations at the airport and Chuuk State High School the 200kW proposed in the ESDP would achieve the target; the long term target is 30% of generation to come from RE sources by 2020 – this will definitely require land at sites further afield from the power plant The footprint is estimated to be sufficient to house the full 200kW; the design of the power plant building will take into account the necessary mounting structures and space for maintenance; The project design however is not exclusively for siting at the power plant so other government owned lands can be used if necessary. Initial indications are that the hillside adjacent to the power house will not negatively impact power generation provided the structure does not extend beyond the current roof line of the power house; use of the hillside itself is not possible.

President Mailo – how much involvement does the State have in preparing the ESDP; How can we be sure that the project will move along in a timely manner - there is a need now; Does NDRD have the capacity to manage the role as Implementing

CPUC has been involved in the assessment of potential for the project; World bank made a technical visit in 2013 to look at potential; CPUC has requested the RE and street-lighting option to best match current unmet needs; The ESDP contains a specific element for strengthening and building the capacity of NDRD – in relation to procurement and project management;




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Agency; what can be done to ensure that the program moves at a proper pace and doesn’t get bogged down as has been the case for example with the Road Project; The comments and concerns were endorsed by Senator Rain;

The Association of Micronesian Utilities (AMU) – comprising the four utilities of the FSM will act as the Technical Steering Committee for the ESDP – this State influence can/will be expressed through this body to ensure on time implementation; There is also provision for capacity building for the AMU in order to strengthen their ability to oversee the project process

Mr Peter Aten –is there any conditionality associated with the Grant – e.g. is it related to the Telecom Liberalisation bill currently in Congress;

There is no conditionality with the Grant; there is however a timing issue; The project documents are being prepared for submission to the World Bank Board under IDA16on May 29th 2014; If FSM Congress approves the Telecom Liberalisation bill before mid April 2014 then the IDA16 funds will be channelled to FSM Telecom as part of a much larger and wider investment package; In this case the documents prepared for ESDP will be submitted to the World Bank Board under the next funding round IDA17 which could be as soon as August 2014; If Congress does not approve the Telecom Liberalisation bill before mid April 2014 then submission for approval will be under IDA16 on 29th may 2014; World Bank Energy Sector team and NDRD is assuming submission under IDA16 for planning purposes;

Mrs Josie Estepa – will local companies be able to bid for the Master Planning project Mr Wisney Nakayama – Can the Master Planning be carried out by local people who understand the situation in Chuuk best of all;

The Master Plan TOR will be let through the World Bank International Competitive bidding process – qualified bidders from FSM should be eligible to bid. There is a requirement that qualified and experienced companies undertake the Master Planning process – local involvement will be a central part of the process through the EMSF;




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It may be possible to include local participation through the TOR for the Master Planning company; Consultation with all stakeholders will be a requirement of the Master Planning TOR

Mr Redley Killion – we shouldn’t be waiting for the Master Plan before we do anything we should be shaping energy sector development and rather than be told what to do. The master plan should take into account previous studies and not re-invent the wheel

The Energy workgroup is tasked with spearheading energy policy – this group should be proactively involved in the ESDP at State level supporting the Steering Committee and should also engage with the Master Planning consultants to ensure effective outputs from the Master Plan. The Master Plan will take into account pre-existing work and will not re-invent/re-do work for the sake of it

Senator Rain – For sustainability purposes the investments that are proposed and made under the Master Plan should use quality technology and materials – operation and maintenance is a key part of the development of the sector;

Agreed – it would be helpful to incorporate planning for O&M in the Master Planning TOR to ensure whole life cycle considerations are made when preparing the investment plan;



Annex 5 – Photographs

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