Former CUC director faults Aggreko deal

Former Commonwealth Utilities Corp. executive director Ramon Guerrero in a statement Sunday blasted the agency’s recent deal to lease emergency power generators from Aggreko International, saying CUC’s leadership has failed to consider a host of key problems with the contract.

“I am concerned that CUC will execute contractual mistakes with Aggreko,” said Guerrero, who has also served as a senator.

At issue in the statement is the $6 million deal CUC and Aggreko signed last week to lease the generators, a move that has already sparked outcry from Telesource, the company tasked with operating Tinian’s power plant, which has said it could have provided the same amount of power for half of the cost.

CUC’s current executive director, Anthony Muña, has yet to respond to questions about the deal

In the statement, Guerrero notes that the new contract contains a cap on the monetary penalty CUC can impose on Aggreko if the generators consume more fuel than expected, a provision that could leave the government paying for thousands in fuel costs each month.

“If the penalty cap is not removed, we’re in for some serious problems,” Guerrero said, adding that CUC never disclosed to lawmakers the other costs it will incur through the contract, such as the price of paying the six CUC staff members who will aid in operating the generators. “Hence, the costs are well under-estimated,” he said.

Moreover, Guerrero says the Aggreko deal might violate the Commonwealth government’s regulations for procuring goods and services. CUC’s contract with the company, he notes, contains language saying that sufficient funds are available for it in the government’s budget.

“[W]e’ve been hearing from CUC and the Governor that CUC doesn’t have any funding even to buy fuel,” he says. “This raises serious questions on how CUC and the Executive Branch are treating our procurement laws unless, of course, CUC has money stashed somewhere.”

Guerrero further questions why CUC inked the Aggreko deal when Telesource may have sold CUC the temporary power needed for less. “If CUC and the Executive Branch claim that CUC is severely cash constrained, how is it that such cost savings are not being considered?” he asked.

The Aggreko deal comes at a pivotal time for CUC given recent financial losses that have pushed it to the brink of disaster, Guerrero adds. “CUC has come to a juncture where, unless critical and correct measures are undertaken, CUC is only awaiting collapse and the Aggreko contract…will simply hasten such collapse.”

CUC officials were unavailable for comment at press time.