AMERICAN SAMOA TO SIGN UNDERSEA CABLE AGREEMENT

PACIFIC ISLANDS REPORT

Pacific Islands Development Program/East-West Center
With Support From Center for Pacific Islands Studies/University of Hawai‘i

AMERICAN SAMOA TO SIGN UNDERSEA CABLE AGREEMENT
Hopes to be connected to Hawaii by December

By Fili Sagapolutele

PAGO PAGO, American Samoa (Samoa News, April 17, 2008) - An agreement between the American Samoa Government and the parties involved in the redeployment of the Pacific Rim East undersea fiber optic cable to connect American Samoa with Hawaii is expected to be signed this week.

If all goes as planned, American Samoa will be connected to fiber optic cable by December. The governor is expected to announce the status of the fiber cable project during his Flag Day address today.

On his weekend radio program Saturday, Gov. Togiola Tulafono said a deposit has been made for the fiber optic deal and a ship date has been set for November, when the landing of the cable will start.

Since the cable is already in existence, the submarine vessel will be moving the cable to connect American Samoa with Hawaii.

He said if all goes as planned, American Samoa will be connected to fiber optic cable by December.

The governor signed into law last week legislation amending the $20 million loan law to include among other things the $3 million for the fiber optic cable project.

Besides the fiber optic cable, the bill allows the government to use proceeds of the loan from the ASG Retirement Fund to pay for improvements to the Lee Auditorium, stream realignment, bridge and soil stabilization/retaining wall for the visa portion of the Lauli'i road.

"These projects, especially the fiber optic cable project, will assist directly with the economic development of the Territory as well as improvement of the health, safety and welfare of our residents," said Togiola in an Apr. 10 letter to the Fono leadership.

On his weekend radio program, the governor thanked the Fono for approving this measure that will help move the project forward. He said this project will become a reality later this year through the collaborative efforts of the Fono, the public and the administration.

Senate President Lolo M. Moliga said the fiber optic cable was briefly discussed Monday during a Fono leadership meeting with the governor.

"The governor gave us a timeline as to when American Samoa should be connected to the fiber optic cable and according to the governor once the cable is hooked up we should be connected within 30 days," said Lolo. "All of this should come in place before the end of the year."

Lolo said the Fono leaders hope the fiber connection could be sooner, "so we can start looking at other ways of utilizing the cable because of the uncertainty we face with the two canneries."

Getting a submarine ship date this year for PacRim is very good for American Samoa because these ships are very expensive and another slot won't be available for a while.

Sources close to the project say that the PacRim's progress is "very good" and all is going according to plan.

The parties involved in the PacRim project are the ASG, Telecom New Zealand, Merchant Capital, and Elandia Incorporated, parent company of Blue Sky Communications.

ASG's share for the project is $9 million and according to testimony by the governor's chief attorney, Tasi Tuiteleleapaga, $3 million from ASG is due upon signing of the agreement, then the $6 million is due on Aug. 1.

With ASG's contribution, ASG is to own one-third of the company that owns the cable.

The parties intend to pursue interconnecting an additional cable to serve neighboring Samoa. Negotiations are still ongoing to invite Samoa to join American Samoa in this cable venture, but negotiations are complicated as Samoa is also looking at another cable project, called the SPIN project.

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