Legislator backs 2nd review of project bids

The chair of the House committee on Public Utilities, Transportation and Communications yesterday threw his support behind a complete review of proposals on the new power plant on Saipan as an independent evaluation is likely headed into a second round.

In the meantime, a proposed legislation seeking government backing on the controversial project will continue to be deliberated by the panel until the Commonwealth Utilities Corporation reaches an agreement with a possible contractor.

“We just have to wait,” said committee chair Rep. David M. Apatang. “If the decision comes out and that they need government backing, we will continue and hold a public hearing on the bill.”

The House measure, pending before the committee, seeks full faith and credit guarantee from the government on the $120 million project based on an earlier agreement between CUC and Marubeni-Sithe that has drawn protest from competing bidders.

According to Apatang, he would support the move to send the current reevaluation into its second phase in efforts to resolve problems dogging the stalled power plant for almost eight months.

An independent engineering firm hired by the government-owned utility firm for fresh review of 13 proposals upheld last week the initial findings made by an in-house selection committee.

The Japanese industrial giant Marubeni Corp. and its US partner Sithe Energies, Inc. topped 12 other companies based on the initial evaluation of Burns & McDonnell, but the Kansas-based firm has strongly recommended a second round of review of proposals included within the “competitive range.”

Nine firms made it to the list, including Enron International, the Alsons consortium and PMIC-Ogden which have opposed the CUC choice, alleging technical deficiencies in the Marubeni-Sithe’s offer and incompetence in the CUC procurement process.

Apatang said the second round is crucial in determining the “best and final offers” which will be the basis to forge the contract on the power plant.

“They are following the procedure and we are up to support that because that is the recommendation (of Burns & McDonnell),” the representative explained.

Gov. Pedro P. Tenorio the other day tossed to the Attorney General’s Office for review the Burns & McDonnell report after meeting with CUC board directors and officials.

Enron, which has insisted their proposed financing scheme does not involve government guarantee, has also urged CUC to undertake the second round of independent evaluation, saying the initial phase is a “half-done” job.

The 80-megawatt plant, designed to meet increasing power demand on Saipan by the end of the decade, is to be constructed through the build-operate-transfer scheme under a 25-year agreement touted to be the largest deal ever in the Northern Marianas.