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CUC, Enron seals deal on 60MW power plant
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Posted on Mar 22 2001
After almost a year of tedious negotiation, the Commonwealth Utilities Corporation and Enron International Mariana Power Inc. finally closed the deal on the controversial 60-megawatt power plant project.
Highly-placed sources disclosed CUC and Enron officials yesterday ironed out remaining concerns including power plant costs, negotiating terms and cost ratios.
Sources further revealed the completion of the negotiation is red-hot confidential and CUC officials opted to keep it under wraps for now.
Exact construction cost of the power plant project was not immediately known. But well-placed sources said an agreement was reached yesterday when concerns raised by both parties on other related issues were finally resolved.
Vice Chair Laura Manglona, who headed the power corporation’s negotiating team, earlier said Enron raised concerns on tariff payment and transfer agreement including CUC’s monthly payment.
With the contract now signed, Enron will begin the process of applying for permits from at least two local environmental agencies before actual project construction begins.
The environmental studies and permitting processes will take at least six months while actual construction will take at least 18 months.
CUC officials are hopeful that the permit will be granted expeditiously so construction can begin by 2003.
Utility corporation officials said the 60-megawatt power plant project should proceed immediately before one of the existing Saipan power grids collapses.
Once the project with Houston-based Enron pushed through, CUC officials are optimistic that it will be a huge economic boost for the Northern Marianas and for businesses that will use full-time power supplies.
Utility officials believed that the Enron power plant project is Saipan’s single most significant construction project that will boost the CNMI economy, and that it will be a reliable source of energy at an affordable price.
The government-controlled corporation underscored the need to proceed with the project immediately to prevent possible energy problems in the future, similar to problems facing California energy companies. (EGA)
