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‘CUC privatization in back burner’
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Posted on Apr 28 2008
The plan to privatize the Commonwealth Utilities Corp.’s power operations has been put on the sideline as the administration and CUC focus on repairing the power engines in the power plants.
Acting Gov. Timothy Villagomez told Saipan Tribune that there is a company that is coming in to address the engine repairs at the power plants.
“So this is ongoing. That was more of a priority to me, I told the governor. Then down the line, once everything is in place, once we get the efficiency of the engines back, then maybe we can look privatization [again],” Villagomez said.
To his understanding, privatization has always been an option for the Fitial administration and CUC.
He said there is no request for privatization since the last one has been cancelled.
“The only one that is out is for alternative energy. But privatization is always an option,” Villagomez said.
He said right now they are more concerned with what’s going on at the power plants. “I opted to work on the situation at the power plants,” he stressed.
An Office of Public Auditor’s report issued in July 2007 on the CUC privatization bid ruled that CUC failed to conduct the procurement process fairly and transparently, and discouraged competition by charging exorbitant fees.
OPA cited, among other things, that one cannot view the actual request for proposals unless he or she has paid a total of $76,000, submitted financial and other information, and been deemed to be prequalified by CUC.
OPA said the fees are unreasonable, and counter the concept of full and open competition.
