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38<br />

What has been the progress and achievement(s) over the last 12<br />

months? (continued)<br />

report was provided to the Republic of Marshall <strong>Islands</strong> for comment.<br />

• The supply chain in each of the signatory countries has been evaluated and the countries<br />

have been provided with advice on improving fuel procurement. However, the existence<br />

of long term supply contracts, and the absence of other countries joining the initiative<br />

and the geographical spread of the signatory states means that sub-regional arrangements<br />

are possible only for two countries. At this time, only Nauru and the Republic of Marshall<br />

<strong>Islands</strong> have the fl exibility to participate in a regional procurement tender.<br />

• The distinct requirements of member countries mean that regional bulk procurement<br />

is not the preferred approach to reducing the cost associated with their supply chain<br />

operations. Instead the type of assistance that appears to be of greater practical use to<br />

member states includes:<br />

- Pricing advice on the cost of transportation from Singapore and the local port charges;<br />

- Advice on logistical arrangements, such as improving shipping transport linkages that<br />

dictate any regional fuel movements;<br />

- Advice on local infrastructure, such as improving the ability of members to have appropriate<br />

fuel storage facilities or take medium range tankers; and<br />

- Providing support to tender and price negotiations.<br />

• Energy Ministers from Pacifi c <strong>Islands</strong> Countries and Territories at the Inaugural Regional<br />

Meeting of Ministers of Energy, ICT and Transport in April 2011 acknowledged and noted<br />

the progress to date with the regional bulk procurement of fuel and agreed to accept the<br />

Pacifi c Petroleum Project Phase 1 as complete following the presentation of Milestone 5.<br />

The fi nal Milestone 6 will become part of the petroleum advisory service to be delivered<br />

by SPC, following the signing of a Pacifi c <strong>Islands</strong> <strong>Forum</strong> <strong>Secretariat</strong> - SPC Memorandum of<br />

Understanding.<br />

Coordinate actions to facilitate investment in sustainable renewable energy technologies, energy effi ciency<br />

and conservation initiatives.<br />

• The PPA provided technical assistance to its member utilities on their renewable energy<br />

developments and programs through the facilitation of two workshops on grid-connected<br />

photovoltaic installations held in Koror, Palau, and Nadi, Fiji.<br />

• The PPA completed a study funded by United States Department of Interior to quantify the<br />

energy losses in the Federated States of Micronesia, the Republic of Marshall <strong>Islands</strong>, and<br />

Palau as well as Guam and Commonwealth of the Northern Mariana <strong>Islands</strong>.<br />

• The PPA commenced the study funded by the EU and NZAid to quantify the energy losses<br />

in the power utilities in Papua New Guinea, Solomon <strong>Islands</strong>, Fiji, Samoa, Kiribati, Tuvalu,<br />

Tonga, Cook <strong>Islands</strong>, Niue and Nauru.<br />

• The offi ce of the Pacifi c Environment Community (PEC) fund was established at the<br />

Pacifi c <strong>Islands</strong> <strong>Forum</strong> <strong>Secretariat</strong>. The USD66 million PEC fund is for environment<br />

issues including climate change projects with a focus on the provision of solar power<br />

generation systems and sea water desalination plants for <strong>Forum</strong> Island Countries. The<br />

PEC Fund governance arrangements have now been established. The Joint Committee<br />

(JC) established under the PEC Fund guidelines to provide an oversight and to make the<br />

necessary decisions with respect to the implementation of the PEC Fund. The PEC Fund<br />

governance structure has now been fully implemented with the establishment of the<br />

Project Management Unit and the Technical Advisory Group at PIFS.<br />

• The call for proposals has been made to <strong>Forum</strong> Island Countries by PIFS, which involves a<br />

two-phase process as follows:<br />

- phase 1 – submission of a project concept note, which is fi rst screened by the PEC Fund

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