The Territorial Bank of American Samoa (TBAS) and the American Samoa State Small Business Credit Initiative (SSBCI) program have announced a $5 million loan to finance a solar energy project in American Samoa. This marks the first loan made with support of the American Samoa SSBCI program.
Owen Peery, President and CEO of TBAS, said “TBAS is pleased to have been able to partner with the SSBCI program to make this loan possible. The bank is committed to supporting local businesses and look forward to continuing to grow our commercial loan portfolio in partnership with SSBCI.”
The loan will be used by Mana Solar LLC, a locally-based solar construction firm, to finance materials, equipment, shipping, labor, permits, and other expenses related to the construction of Phase 1 of the largest solar farm project in American Samoa. Long-term financing for the project once construction is completed is expected to be provided in the form of a loan from the U.S. Department of Agriculture.
Daniel Myung, President of Mana Solar, highlighted the significance of this loan: “The collaboration between TBAS and the American Samoa SSBCI Program allowed us to move forward with the financing of this project, which is part of a larger renewable energy initiative our firm is supporting for American Samoa.”
Petti Matila, Director of Commerce and Chair of the American Samoa Innovation Authority, which oversees the SSBCI program, highlighted the broader impact: “This project is a catalyst for our transition to renewable energy sources. By facilitating loans like this, we’re addressing the pressing issue of high energy costs while increasing the reliability of our energy production.”
The solar farm will sell energy to the American Samoa Power Authority (ASPA) at approximately one-third of the current cost of diesel-generated electricity, potentially leading to substantial savings for businesses and residents.
The solar project is expected to create 30 jobs and engage 10 contractors during the construction phase, providing workers with valuable skills applicable to future projects.
