CUC defers selection of 80-MW contractor

Rota — With barely two more weeks to go before a mandated deadline, the Commonwealth Utilities Corporation yesterday postponed discussion on the much-delayed power project on Saipan until May 25 where it expects to award the contract to one of the bidders.

“A decision will be made during that time,” CUC Board Chair Jesus T. Guerrero told in an interview after a board meeting held at the Rota Health Center cafeteria.

Although he declined to give details on what will happen at next week’s meeting, he said they will have to come up with a selection soon as the law stipulating installation of the 80-megawatt plant has given them 60 days to do so.

Signed by the governor in April 3, Public Law 12-1 reinstates the original plan on the controversial project and retains the result of the independent evaluation conducted by the private engineering firm Burns & McDonnell.

However, it provides the 60-day deadline for CUC to complete review of its findings and award the $120 million contract to the best bidder. This means that they have to come up with a firm plan no later than June 3, according to the chairman.

Enron, the Tomen Consortium and SPP/HEI received the highest scores in the nine-month evaluation that ended last October, but was nearly thrown out by the government-owned utility firm when it collapsed the 80-MW project in January 1999.

CUC officials are still trying to get a private legal counsel to help them implement the intent of the law. A search for a new lawyer to represent the corporation that began last April 27 has yielded only one prospect.

Mr. Guerrero refused to name the law firm that submitted the sole proposal under an emergency procurement approved by the board. He disclosed, however, that it is “under consideration.”

A copy of the proposal was given to each board member to “digest” it. This was one of the three items, which included a new line extension policy and the power project, that will be tackled during the May 25 meeting.

Because of the lukewarm response to its search, CUC may be forced to ask the Attorney General’s Office to provide them one of its legal staff to replace their long-time legal counsel, Bill Ohle who is scheduled to leave his post on June 15. It also ruled out the possibility of extending the emergency procurement.

“We don’t see any problem [in pushing through with the power project],” said Mr. Guerrero. “There are so many ways of looking at the situation.”

The legal counsel will be needed in the negotiation process for an agreement between CUC and the contractor on the power plant which is to be installed through the build-operate-scheme under a 25-year deal — the largest ever in CNMI’s history.