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CDA endorses Marubeni contract
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Posted on Mar 05 1999
Japanese industrial giant Marubeni Corp. yesterday received strong backing from the Commonwealth Development Authority amid controversies surrounding the $120 million power project after a CDA in-house review found the conglomerate the most qualified among the bidders.
According to CDA chairman Juan S. Tenorio, the offer of Marubeni and its US partners, Sithe Energies, Inc., emerged as the most financially-sound among the proposals short listed by the Commonwealth Utilities Corporation.
Tenorio said CDA created an in-house panel to go over the financial aspect of the proposals to ensure that viability of the project touted as the biggest deal ever in the Northern Marianas.
“Our in-house review showed that Marubeni’s offer is the cheapest by a fraction of penny compared to Enron and Hawaiian Electric based on a 25-year contract,” Tenorio said in an interview, as he pressed CUC to go ahead with the construction of the project stalled by protests raised by losing bidders.
The contract to build an 80-megawatt power plant on Saipan, which was envisioned to meet the increased power demand by year 2000, has been put on hold after the Office of Public Auditor called for a fresh round of review by an independent panel of the 13 proposals initially submitted to CUC.
Enron and consortium Alsons, Tomen Singapore Power and Tan Holdings Corp. which sought to build the power plant had questioned the bidding process and the competence of CUC’s in-house review committee.
But Tenorio said CUC should proceed with the construction in order to help pull out the island from its worst economic crisis. He said the power expansion program will provide opportunities for local suppliers and contractors to participate in the multi-million project.
“We’re pressing CUC to go ahead with the digging because this project will serve as an instrument to boost the economy and allow our local businessmen to take part in a project of this magnitude,” Tenorio said.
Further delays in the project, he warned, would also dull CNMI’s attraction as an investment hub in the region particularly when the economy starts to pick up. “How can we entice investors if we don’t have the proper infrastructure?” Tenorio raised.
