Faipule looks into status of funds allocated for new hospital on hold
Pago Pago, AMERICAN SAMOA — Faipule Larry S. Sanitoa during a recent House session inquired into the status of the $186.5 million that was allocated to build a new hospital in Tafuna by the past administration and which has since been put on hold by the current administration of Gov. Pulaalii N. Pula and Lt. Gov. Pulu Ae Ae Jr., with the funds re-allocated.
The money is part of the American Rescue Plan Act (ARPA) funding that American Samoa was allocated and which had to be spent by Dec. 31, 2024. With the re-allocation of the funds to existing sub-recipients the deadline for expenditures has moved to Dec. 31, 2026, according to the former head of the ARPA Oversight Office, Mr. Keith Gebauer.
Sanitoa’s inquiry was referred by Gebauer to the Acting ED of the ARPA Oversight Office, Ms. Charlene Faalevao, which also included a request for the details of the reallocation of the SLFRF (ARPA) funds that had been intended for the specialized hospital.
Gebauer did answer some of Faipule Sanitoa’s questions concerning the re-allocation in an email dated Jan. 15, 2025, in which he also noted that he was no longer with the ARPA Oversight Office:
1) Approximately $186.5 million was reallocated from the new specialized hospital into existing sub-recipients as this was the most effective way to ensure the funds remain available to the incoming administration and satisfies the obligation deadline of December 31, 2024.
The sub-recipients selected to provide the incoming administration maximum flexibility for the use of the funds, based on other urgent needs of the territory that can be addressed through these sub-recipients projects and programs and with the expectation that the funds can be expended by the expenditure deadline of December 31, 2026.
The sub-recipients receiving the additional funds are subject to the same rules and guidance under their initial award when they were informed of the reallocation of SLFRF funds.
The ARPA Oversight Office is currently conducting status meetings with all its sub-recipients and clarifying their responsibilities to submit proposals for the additional funds. Time is of the essence.
2) The final reallocation list was approved by then- Governor Lemanu Mauga on December 27, 2024 and the necessary paperwork was routed to ensure all obligation requirements were satisfied. The Quarterly report due January 31, 2025 is critical to completing the obligation requirements.
3) The architectural design awarded to AHL by LBJ was approx. $12.9 million and between LBJ, ARPA Oversight Office, Budget and Treasury, the final invoices are being reviewed and routed for final payment.
The designs for the 36 room specialized hospital have been completed and the Steering and Management Committee (SCM) was in final negotiations before the decision to suspend the project was made.
4) Approx. $240k was paid to (in process of final payments) PIOA as the Project Manager and Construction Manager.
5) There is approx. $400 million of SLFRF funds available for American Samoa to be used before the expenditure deadline of December 31, 2026.
Each sub-recipient is in different stages of their programs and projects.
Healthcare related projects administered by LBJ, SCM and DOH account for nearly $340 million. These projects were the most complex and required the greatest lead time based on design requirements.
In a follow up email to the faipule, dated Jan. 16, 2025, Ms. Faalevao provided the SCM Committee Reallocation Proposal Final list outlining the sub-recipients and the use of the re-allocated funds.
BACKGROUND
Of note: $20 Million has been re-directed to the Office of the Governor for Emergency Relief from Natural Disasters (Emergency disaster, mitigation, etc.); while LBJ Hospital is to receive $30 Million for Facility Improvements.
Also included is the renovations to EOB, DPS sub-stations, etc. which gets $40 Million and will be overseen by the ARPA Oversight Office.
During a FY2025 joint budget hearing last year in August, Director of Department of Administrative Services Afalava Eliki Afalava revealed that ASG is looking at renovating the EOB building — it’s a health hazard — but did not have the money, nor did it have a plan for the renovations.
It however, was working with an off-island engineer to develop a plan, but they had not paid the engineer yet for work he had done, which Afalava claimed was close to a million dollars. Afalava indicated that they were waiting for ARPA funds to pay the bills.
Samoa News should point out that in the same hearing the moving of government offices out of the EOB while it is being renovated was discussed.
At the time, senators took issue with Afalava’s revelation that a lot of the ASG offices were looking to be temporarily housed until one roof — in a building still being built in Tafuna, owned by Lauli’i, the owner of Paramount Builders. Instead, the senators believed the leasing of office space(s) should go through a bidding process, not just given to one company or person.