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EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf

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None of the <strong>Pacific</strong> ports reviewed have container cranes. This increases ship turnaround<br />

time, and means that ships docking at these ports have to have their own lifting gear,<br />

limiting ports’ ability to service international traffic.<br />

Likewise, <strong>Pacific</strong> airports do not often suffer from overcrowding, but terminal facilities like<br />

retail, car rental and other services are lacking at most of the smaller airports. <strong>The</strong>se<br />

services are important sources of non-aeronautical revenue for airports and help to finance<br />

maintenance and upgrades or expansion. <strong>The</strong>y also provide a more positive experience for<br />

tourists and business passengers.<br />

Tariffs are relatively high in some countries<br />

In all <strong>Pacific</strong> countries in this review, international telecommunications services are<br />

provided by monopolies. Charges for internet services and international calls from the<br />

<strong>Pacific</strong> are higher than in other small island countries, but local and mobile rates are<br />

similar.<br />

<strong>The</strong> international trend in mobile and international telephony has been that tariffs have<br />

fallen significantly with the introduction of competition. This has been the case in most<br />

Caribbean countries. Tonga is the only <strong>Pacific</strong> country with competition in the mobile<br />

sector. It also has the lowest average mobile tariffs.<br />

Average electricity tariffs are high in some <strong>Pacific</strong> countries, such as Tonga, Kiribati and<br />

Vanuatu as shown in Figure 5.2, but low in others. <strong>The</strong> lower tariffs in some countries can<br />

be partly explained by government subsidization. <strong>The</strong> lower tariffs in Fiji are partly<br />

explained by the fact that over 50% of electricity generation is hydro based.<br />

While fuel costs and small size account for a good part of the high costs, there are other<br />

factors at work. For example, Tonga relies on the same fuel as Vanuatu, has about the<br />

same system size, and more favorable topography, and yet charges its customers<br />

considerably more.<br />

Figure 5.2: Residential Electricity Tariffs<br />

Average Tariffs (Residential and Commercial customers)<br />

(US cents per KwH)<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

New Zealand<br />

Palau<br />

FSM<br />

Marshall Islands<br />

Source: Castalia Research, SOPAC. Notes: FSM: Federated States of Micronesia<br />

Fiji<br />

Jamaica<br />

St Kitts<br />

Timor<br />

Barbados<br />

Solomon Islands<br />

St Lucia<br />

Samoa<br />

Grenada<br />

Vanuatu<br />

Dominica<br />

Kiribati<br />

Tonga<br />

17

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