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Ease of Doing Business in

Marshall Islands

Marshall Islands Download Profile (1604.8KB, pdf)
Region East Asia & Pacific
Income Category Upper middle income
Population 52,993
GNI Per Capita (US$) 4,241
City covered Majuro

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 143 137 down
6
51.92 51.90 down
0.02
Starting a Business 70 68 down
2
88.41 88.38 up
0.03
Dealing with Construction Permits 79 75 down
4
70.77 70.72 up
0.05
Getting Electricity 126 125 down
1
59.14 59.10 up
0.04
Registering Property 187 187
-
0.00 0.00
-
Getting Credit 82 78 down
4
50.00 50.00
-
Protecting Minority Investors 175 176 up
1
31.67 31.67
-
Paying Taxes 82 81 down
1
73.45 73.45
-
Trading across Borders 64 62 down
2
80.59 80.59
-
Enforcing Contracts 99 98 down
1
55.93 55.93
-
Resolving Insolvency 167 167
-
9.19 9.19
-

DB 2017 Rank: 126

DB 2016 Rank: 125

Change in Rank: down1

DB 2017 DTF (% points): 59.14

DB 2016 DTF (% points): 59.10

Change in DTF (% points): up0.04

STANDARDIZED CONNECTION
Price of electricity (US cents per kWh): 40.6
Name of utility: Marshalls Energy Company
City: Majuro
Indicator Marshall Islands East Asia & Pacific OECD high income
Procedures (number) info_outline 5.0 4.5 4.8
Time (days) info_outline 67.0 72.9 76.2
Cost (% of income per capita) info_outline 712.1 714.6 62.5
Reliability of supply and transparency of tariff index (0-8) info_outline 0.0 3.6 7.5
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Submit application to Marshalls Energy Company and await estimate

    Agency: Marshalls Energy Company

    The owner of the building and the land owner submit an application to the Marshalls Energy Company. There are no documents to be attached to the application. The customer does not have to include any particular document to identify the location of the warehouse. He just has to provide a general description.

    The application for the connection includes the supply contract details so it is all in one form and the supply contract is not signed separately.

    The utility is in charge of designing the external connection works.

    Once the application is submitted the customer has to wait for an estimate of connection fees which takes approximately one week. There is no legal time limit associated with the wait period for the estimate. The connection contract is signed upon payment of the estimate.



    7 calendar days USD 200
    * 2

    Receive external site inspection by utility for preparing estimate

    Agency: Marshalls Energy Company

    Marshalls Energy Company inspects the site before it issues an estimate. Someone from the applicant’s party is required to be present during the inspection.

    At this point the internal wiring is checked by the utility for the first time.

    7 calendar days USD 0
    3

    Await completion of external works by utility

    Agency: Marshalls Energy Company

    If material is available the works take 5 calendar days. If material is not available the works take 6-8 months. The materials are not available in more than 50% of the cases. Usually transformers are not available and if out of stock there is a 16 week lead time then another 6 to 8 weeks in shipping and receiving.

    The utility is in charge of the works from its grid and for the installation of the transformer and a meter. An electrical contractor is in charge of the works from the meter to the warehouse. The utility would also take charge of ordering the transformer.

    From pole to transformer with meter on the transformer is free for the customer. So transformer is not paid by the customer but by the utility. Sometimes customer can purchase the transformer if they can afford it. The trade off is if the customer can afford a transformer they can get it much faster but if they want to get it for free from the utility they have to wait for a long for it to be ordered. In this procedure the option when the customer pays for the materials and hence waits less time is recorded.

    From the meter to the building is at customer’s expense.

    The utility installs the meter during the connection works. Meter installation cost is included in the application fee.
    52 calendar days USD 30,000
    * 4

    Obtain midway internal wiring inspection by utility

    Agency: Marshalls Energy Company

    The utility will do some basic inspection and tests of the completed wiring and if it fails these tests, power connection will be refused until it passes those tests. The utility will do grounding checks and MEGA the system then do a general walk through. Anything considered unsafe must be repaired.

    The inspections are usually done during planning, midway and at the end.


    7 calendar days USD 0
    5

    Obtain final internal wiring inspection by utility and then electricity flow

    Agency: Marshalls Energy Company

    The connection is done right after the final internal wiring inspection if everything is completed and accepted. MEC will only check the Main load Center, Panel Boards and Sub Mains, they will not conduct an inspection of the wiring.
    7 calendar days USD 0

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer
    Reliability of supply and transparency of tariff index (0-8) 0.0
    Total duration and frequency of outages per customer a year (0-3) 0.0
    System average interruption duration index (SAIDI) ..
    System average interruption frequency index (SAIFI) ..
    Mechanisms for monitoring outages (0-1) 0.0
    Does the distribution utility use automated tools to monitor outages? No
    Mechanisms for restoring service (0-1) 0.0
    Does the distribution utility use automated tools to restore service? No
    Regulatory monitoring (0-1) 0.0
    Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? No
    Financial deterrents aimed at limiting outages (0-1) 0.0
    Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? No
    Communication of tariffs and tariff changes (0-1) 1.0
    Are effective tariffs available online? Yes
    Link to the website, if available online http://mecrmi.net/tariffs.htm
    Are customers notified of a change in tariff ahead of the billing cycle? Yes
    Answer
    Price of electricity (US cents per kWh) 40.6

    Note:

    If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.

    If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.