Begin selection of power project builder

Saying he was “pleased” with the signing of the bill reinstating the mothballed 80-megawatt power plant on Saipan, Senate Floor Leader Pete P. Reyes yesterday prodded the Commonwealth Utilities Corporation to begin work on selection of a contractor to build the project.

He said it’s about time that CUC officials buckle down to work and address the need of the residents for efficient power supply.
CUC Board Chair Jesus T. Guerrero, in a statement, thanked Gov. Pedro P. Tenorio for signing the new law as he stressed that the policy-making body will still have the flexibility in handling procurement of the much delayed project.

“It is not a matter of CUC being told what to do and we retain all that autonomy that we were originally granted. The winners here… are the power users of Saipan who will be spared unnecessary delay in getting this crucial public project built,” he said.

Mr. Reyes offered his assistance to the government-owned utility corporation in enforcing Public Law 12-1, the measure signed last Friday by the governor to revive the initial power plan on the island.

“So the sooner we get this going, the better prepared we are to handle the future power demand,” Mr. Reyes told in an interview. “We ask [CUC] now to do their job. I don’t see anymore problem.”

The lawmaker sponsored the legislation which reversed the action done by the board last January under the leadership of former Chairperson Rosario M. Elameto — a decision opposed by several members of the Legislature and business leaders.

Under the new law, CUC should begin preparation for the phasing in of a power generation with a capacity of 60 megawatts, while awarding the $120 million contract to any of the top bidders that offered proposal based on the terms the RFP issued in 1997.

It also requires the board to comply with the recommendations drawn up by independent engineering consultants from Burns & McDonnell which has assessed power load growth on Saipan and conducted evaluation of all the bids.

According to Mr. Reyes, the next step after signing of the law is for the board to implement its intent to prevent further delay in the installation of the new generation capacity on the island.

“The selection of the best bidder has been delayed long enough and many residents of the CNMI have been experiencing problem with power hook-ups,” he explained.

“I hope that with this law, the process can now be accelerated because, even if they award the project to the best bidder, we will still wait for about two years from now before the actual hook-up and availability of power generation can be realized,” added the senator.

With Mr. Guerrero on the helm and a new leadership within the board, the Legislature is ready to extend support to CUC to expedite the procurement of the project that has been the source of constant rift between the two parties.

“If there is anything we can do to help, let us know how we can assist them since we have pledged our desire to work with them,” said Mr. Reyes.

Due to be completed by this year under the initial schedule, the power plant has come under a storm of protests since 1998 when CUC chose Marubeni-Sithe as contractor of the biggest undertaking ever in the Commonwealth’s history.