CUC board: Trip to S. Korea was ‘exploratory’

Directors of the Commonwealth Utilities Corp. board who had gone on a recent trip to South Korea said that it was an “exploratory” and “educational” trip to see options on how to improve utilities on Saipan.

CUC board interim secretary Albert Taitano and board treasurer Joe Torres went to South Korea together with water division manager Richard Wasser last month. It was not clear why there was no representative from CUC’s power division.

For the board members’ expenses, the trip was paid for by the administration. However, expenses for Wasser were paid for by CUC.

Torres said the trip was an “opportunity” to see what Korea has and it was closer. He added that it was Lt. Gov. Victor Hocog who was “the one who sent us.”

“Our trip is an exploratory trip to see some generators and water desalination and also the solar which is the LNG (liquified natural gas) factory. It was a very educational trip and we’re looking into those issues as to what we can do upon to help the utility go back into better infrastructure,” Torres said.

“Our trip to Korea is exploratory and for the board members to see what options are out there to address our issues in Saipan especially with regards to power and water because for me, coming from Rota where we have 24-hour water, and drinking water, it’s sad that Saipan doesn’t have that,” Taitano echoed.

Wasser declined to disclose information on the trip when asked by media on a separate occasion.

CUC board vice chair Eric San Nicolas, who wasn’t part of the trip but had earlier gone to Fiji with other CUC board members and with Gov. Ralph DLG Torres for a “fact-finding mission,” also echoed what his colleagues said that, “This fact-finding trip was to see what options CUC could have to potentially resolve these issues especially water, it has been an issue for 14 years. We have taken a position in this board that we are going to look for real solutions.”

Asked how the trip will affect their ongoing discussion for the Integrated Resource Plan, Torres said an IRP is still on the table.

“We still haven’t decided with the Integrated Resource, it’s still on the table and we’ll probably discuss that in Rota,” Taitano said, referring to the CUC board’s upcoming public hearing on Rota next week.

When asked if what they’ve seen in Korea is something that is feasible on Saipan, Torres said, “Everything is feasible if it’s done correctly. What’s there and what’s here is no different to the rest of the world.”

Procurement, funding matters

Board members said that for anything that will be implemented in the Commonwealth, they will still go through the proper procurement process.

“Of course, we’re not intended to circumvent any law or what not. We’re bound by that,” San Nicolas said.

“Everything is on the table. We don’t do anything below the table. Everything has to be discussed. Everything has to be legal,” Torres said.

San Nicolas said funding for would-be projects will be looked at, adding that they are finding options so as not to burden customers by increasing rates.

“There are ways to fund these things and that’s where the other entities, the Executive branch, CDA (Commonwealth Development Authority), that’s where they come in. what source it’s going to come from, right now we’re still in discussion phase,” San Nicolas said.

Last April, CUC requested Torres to declare an emergency for the water situation on Saipan, in the hopes, among other things, to get funding to address the water issues. It is not clear, however, if declaring an emergency will allow for grant money to be used for non-priority listed projects or if CUC can circumvent procurement rules.

If approved, it will be the first time that such an emergency will be declared on Saipan’s water situation.

“We’re still having that conversation. In the meantime there are action plans that are happening behind the scenes from the corporation side to make sure that we’re addressing the issue as we go forward, whether that gets issued or not, it’s business as usual,” San Nicolas said.