Previous Story
Cost to repair power plants: $9.8M
|
Posted on Mar 30 2008
The cost of repairing the Saipan power plants has reached nearly $10 million.
According to a report by the Commonwealth Utilities Corp., a major contract of $5.1 million has been awarded to the Guam-based DCM Group to rehabilitate seven of the eight generators at the main power plant in Lower Base. Local funds will be used to pay for the contract.
An additional $4.7 million worth of contracts has been awarded to several other firms involved in the power plant repair. Of this amount, $2.87 million will be funded by federal grants and the remaining $1.84 million will be funded by local money.
Due to engine problems, the Saipan power system is currently producing 45 megawatt, or only 39 percent of its built-in capacity.
Press secretary Charles P. Reyes Jr. said the administration is optimistic that power outages will be minimized once DCM completes is project in June 2008.
“The rehabilitation project will bring the engines to a greater level of efficiency. We also expect this to result in substantial savings—about $2 million a month—in fuel and lubrication costs,” Reyes said.
DCM got the six-month contract in December 2007. The team arrived at the power plant on Feb. 7, 2008 and after completing the assessment, started the rehabilitation program on Feb. 14. DCM’s job includes the complete engines, the alternator and auxiliaries at Power Plant 1.
After DCM, the company that received the next largest bulk of CUC contracts is Mitsubishi Corp. The firm has been awarded a total of $2.28 million in contracts.
Other contractors and vendors involved in the refurbishment of the Saipan power plants are CBM Tech. Pty. Ltd. ($375,700), SAI Traders ($431,300), South Pacific Eng. Pty. Ltd. ($25,440), IMSE BUBA ($3,534), and Mitsubishi Heavy Industries Ltd. ($21,910).
