Project delay upsets governor

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Posted on Apr 13 1999
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Gov. Pedro P. Tenorio, disappointed over the year-long delayed in a critical sewer line project, yesterday stepped into the dispute between the ports authority and the utilities corporation to push the construction amid threats by a contractor to bring the CNMI to court for failure to pay $1.9 million in fees.

According to the governor, he has scheduled a meeting with the Commonwealth Ports Authority, the Commonwealth Utilities Corporation and the Legislature on Wednesday to bring an end to the bickering arising from who should foot the bill.

“I want to see the resumption of the project,” a visibly dismayed Tenorio said in an interview. “We will try to find additional funding to complete the project,” he added, as he tasked CUC to identify resources to complete the sewer line.

CPA and CUC have tried but failed in the last few weeks to work out a deal to settle an outstanding obligation to the Pacific Drilling Ltd. for the construction of a new waste water collection pipeline from the airport to the Agingan Waste Water Treatment Plant.

The $4 million project, which is expected to benefit some 1,000 households, was halted in May last year due to lack of funds.

But health authorities warn that any further delay in the completion of the sewer line could pose public health risk since the ground water supply in the area is prone to contamination.

Officials of CPA and CUC have refused to budge despite recent negotiations, as the utilities company claimed it was not party to a previous memorandum of agreement between the agencies.

According to Carlos H. Salas, CPA executive director, unless CUC agrees to pitch in money and that the contractor caps their claim at $750,000, the ports authority would have to shut down the project.

Salas maintained that the cost-sharing agreement with CUC also applies to payment of the contractor’s claim.

An MOA signed late last year stipulates that CUC shoulders 70.6 percent of the project cost amounting to $3.5 million while the rest will be charged to the operating and capital improvement expenses of the Saipan International Airport.

Aside from funding shortage, the ports authority says it cannot defray the cost for the completion of the entire project, citing a restriction imposed by the Federal Aviation Administration that disallows CPA to use its revenues for projects beyond the airport premises.

CUC Executive Director Timothy P. Villagomez, however, balked at the proposal of cost-sharing, saying the government-owned utility cannot assume responsibility for “CPA’s mammoth mistakes and breach of public trust.”

“We will try to find a solution to that,” Tenorio said, “We will meet with…the legislature, CPA and CUC so we could try to finish the project since that would provide services to our community.”

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