Pago Pago, AMERICAN SAMOA — The first ever New Markets Tax Credit Program funded project in American Samoa closed on November 30, 2018. The Project will substantially reduce the high non-revenue water loss of 60% fresh drinking water, that serves the upper Pava’ia’i to Aoloau areas with over 550 homes and a population of 3,000+ by replacing approximately 1.5 miles of AC pipe and 1 mile of HDPE pipes with new PVCO pipes in the Pava’ai’i DMA System.

Project construction will begin in early 2019.

The New Markets Tax Credit Program was established as part of the Community Renewal Relief Act to encourage investment into low income areas.

Governor Lolo Matalasi Moliga places a high priority on seeking funding from new sources to address the many challenges facing American Samoa.

“The list of important matters and issues that must be confronted are substantial; we are actively seeking to widen the net by inviting additional partnerships to assist us with project financing that supports our communities and their priorities. We also recognize that our work could not be accomplished without the support of our current partnerships. These partnerships serve as a critical piece to our success, by leveraging funds from a traditional funding source, the US-EPA, we were able to complement it with New Markets Tax Credit Financing,” said Lolo.

He added, “Along with addressing the health and well-being of our people by helping to lift the Boil Water Notice, the American Samoa Government has created an economic impact by creating 10 direct full-time jobs and 24/7 construction jobs.”

The ASG welcomes and thanks the territory’s new partnerships with Capital One Bank, Ecotrust CDE (Portland, Oregon), and Valued Growth Associates (Honolulu, Hawaii).

Ecotrust CDE allocated $10 Million in New Markets Tax Credits via Valued Growth Associates towards the construction of the Pava’ia’i Pipe Replacement. The allocation was offered to Capital One Bank who made a much needed $3,198,000 financial injection into the project. The tax credit equity financing filled a critical funding gap after several years of the American Samoa Power Authority raising capital to address the 2010 and 2013 US-EPA/AS-EPA sanitary survey of the ASPA public water system.

ASPA, a semiautonomous agency of the American Samoa Government, is a development-oriented public utility providing electricity, water, wastewater and solid waste service to over 55,000 residents of American Samoa. The American Samoa Power Authority installs, operates and maintains American Samoa’s public utility infrastructure and offers its customers the highest quality services at affordable rates.

Questions regarding the New Markets Tax Credit Program and its implementation in American Samoa should be directed to Paul Michael Young, the Governor’s Special Assistant for Economic Development and Finance.

(Source: Governor's Office)