With only one response to the request for proposals for a private-public partnership in the management and operation of the government owned shipyard, the American Samoa Shipyard Service Authority board of directors will meet next week to discuss options to be presented to the governor.

Jan. 30 this year was the deadline to submit a response to the RFP for the “Public Private Partnership of the American Samoa Shipyard” in which the winning bidder would — among other things — guarantee an investment in the shipyard of $10 million over a five-year period.

However, board chairman David Robinson says only one local firm “expressed interest” in the RFP and the next step is for the Office of Procurement to establish a Source Evaluation Board (SEB) to review the RFP.

“After the review a decision will be made as to how to proceed,” Robinson said this week responding to Samoa News inquiries. “In view of the lack of interest in the shipyard, the board will discuss options to put forward to the Governor at its meeting next Wednesday.”

Robinson also says that the shipyard “operates at a profit, but the main need is capital to invest in a second dry dock of 1,000 ton capacity and re-equip the machine shop with new equipment.”

“There are a number of options for this capital raising and these, together with the level of funding required, will be explored by the Board, and recommendations made accordingly,” he said.

GOVERNOR’S REACTION

In his written State of the Territory Address, which is now the official ASG annual report to the Legislature, Gov. Lolo Matalasi Moliga says the solicitation for a partnership with the private sector will bring positive solutions and generate additional jobs from the perspective of investment in the facility.

“We are cognizant of the fact that grant funding is limited and that the private sector has better access to financing,” he said and stressed that the facility is important to local fisheries, acting as an attractive feature for fishing vessels to off-load their catches for the two canneries.

And since the shipyard was returned to ASG management in 2011, Lolo says revenue generating capacity improved substantially, earning an annual average of $2 million and facilitating the injection of $3.3 million in the territory’s economy through personnel wages.

Additionally, $1 million in capital was infused to upgrade the facility with $459,000 invested to purchase and replace the hauling chain, which has long surpassed its salvage value;  $75,000 was invested to renovate and refurbish the offices; and $492,000 to upgrade the plant, along with purchasing new equipment.

With ASG operating the shipyard, 98 vessels have been docked and repaired, including super purse seiners, which speaks highly of the technical capacity of the Shipyard workforce, which has 41 people producing quality workmanship.

“This reputation improves the competitive advantage of our ship repair facility, establishing incentives attracting fishing boats and other type vessels to use our vessel repair facility,” he said.

ECONOMIC PLAN

In the Economic Development Implementation Plan (EDIP) it says the shipyard needs an overhaul to maintain commercial fishing vessel needs as well as “to expand commercial and passenger operations through additional dock space.”

Prior to the consideration of privatization, infrastructure needs of the shipyard will need to be addressed by ASG, it recommends, adding that to achieve this goal, actions to be taken include organizing a task force to provide a plan to advise on the infrastructure needed to maximize the viability of the shipyard, with costs.

“When completed, seek governor’s approval to seek federal funding to support infrastructure,” says the EDIP, which also states that federal funding sources as well as secure funding should be sought.