Admin, Stanley cast wary eye on Telesource offer

The Fitial administration expressed caution yesterday on an offer by Telesource CNMI Inc. to help solve the power crisis on Saipan. In the House of Representatives, a lawmaker urged his colleagues to be wary of the proposal.

Press secretary Charles P. Reyes Jr. said the proposal would be reviewed closely. But he underlined that the administration will make sure it does not become indebted to any particular firm with interest in a future privatization program.

“We want to get away from any possible conflict of interest. We will consider all situations,” said Reyes.

He recalled that the administration failed in its previous attempt at privatizing the Saipan power system because of perceived favoritism.

“Some people had already in mind certain companies. We want to prevent that from happening again. No special favors will be given to anyone. Our position is to be open and transparent,” he said.

Telesource, which operates the Tinian power plant, is proposing to lend one of its diesel generators on Tinian to the CUC power plant in Lower Base.

Rep. Stanley T. Torres called on his fellow lawmakers to approach Telesource’s unsolicited offer and other similar proposals “with extreme caution.”

Torres said there are many lingering questions about the original Telesource power contract on Tinian. He also questioned the intention behind the firm’s offer to help with the Saipan problem.

“I wonder out loud whether this offer is not made at this time precisely because we are so obviously desperate for power. Telesource cannot be faulted for exploiting business opportunities whether they find them or make them. They are a business looking to expand their business activity and perhaps overcome their cash flow problems on Tinian—who can blame them?” he said in a letter to Speaker Arnold I. Palacios.

In a statement on Wednesday, the company’s CEO and president Nidal Z. Zayed said the firm believes that the temporary relocation of 10 MW from Tinian to Saipan is feasible and beneficial to Saipan.

He said Telesource is prepared to pay for the relocation, commissioning, maintenance, and operation of the engines on Saipan, and for the ultimate relocation of the engines back to Tinian.

“The engines are Telesource’s responsibility under our agreement with CUC and we will assume the responsibility pursuant to our contractual obligation, no matter where the engines are located,” he said.

The company executive said that Telesource submitted such an idea to the CNMI government as far back as July 2006, but it had never received a reply to its offer.

In that letter addressed to Lt. Gov. Timothy P. Villagomez, Telesource proposed to deliver to CUC Saipan within 45 days modular containerized high-speed machines for a term of 18 to 24 months on a rental basis. The machines are said to be 25-percent more fuel efficient than diesel turbines and will include all required transformers and control gear.

Another option being examined is the laying down of cables on the ocean bed between Tinian and Saipan, where electrical power can then be shared by both islands.