Reyes lobbies for approval of 80-MW project • Senator says he will persuade colleagues to override bill if vetoed by governor

Senate Floor Leader Pete P. Reyes yesterday vowed to press approval of a bill restoring the mothballed 80-megawatt power plant on Saipan despite protests from some of the top bidders on the controversial project.

If Gov. Pedro P. Tenorio vetoes the measure, he said he would drum up enough votes to override his rejection in order to push the much delayed project which has been pending for the last three years.

Two leading bidders — the Tomen Consortium and the Saipan Power Partners/Hawaii Electric Inc. — have asked the governor to veto Senate Bill 12-19 due to a provision they said will eliminate competition and practically award the $120 million contract to top competitor Enron.

Section 7 of the legislation requires the installation of low-speed diesel-powered generators in the proposed plant, implying that Enron should get the award as it is the only one that offered such specifications in its proposal.

But Mr. Reyes maintained that requirement is part of a report prepared by Burns & McDonnell, the private engineering firm hired by the Commonwealth Utilities Corporation to evaluate all bids and undertake power load assessment on Saipan.

“If they are saying that the provision is unfit, then they are also implying that the report is not credible,” he told in an interview.

Noting that the Kansas City-based engineering firm has the expertise to determine the best engines to run the proposed power plant on the island, the senator said opponents of his measure should have complained when the report first came out.

“Why are they targetting the bill now,” asked Mr. Reyes. “They waited until the last minute when the bill is done.”

Despite the stiff opposition, he said, however, that he is optimistic the bill will clear the governor’s office or that the Legislature can have enough votes to override a possible veto by Mr. Tenorio.

If it becomes law, SB 12-19 will invalidate earlier decision by the CUC board to collapse the initial request for proposal and force the government-owned utility corporation to adhere to the original plan finalized in 1997.

Lawmakers had passed the measure after the CUC board ignored their pleas to work out a compromise on the project that has drawn controversies for the past two years and attracted attention even from U.S. legislators.

Touted to be the biggest deal ever in the Commonwealth’s history, the utility corporation has planned to conduct a new bidding — a move that would bring the project back to square one.

Mr. Reyes’ bill is an attempt to curtail such action and to declare a public policy on Saipan’s need for a power plant with such magnitude, while allowing flexibility for the utility corporation to phase in a smaller-size generator.

CUC has voted to install a 60-MW plant, citing assessment made by Burns & McDonnell on the island’s power demand which has declined in recent years amid the economic difficulties confronting the CNMI.