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CUC’s Sablan: No sole-sourcing of contracts
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Posted on Jun 16 2004
Commonwealth Utilities Corp. board chairman Herman P. Sablan denied yesterday that CUC is “sole sourcing” solutions to resolve the current power crisis.
In a June 12, 2004 statement that was released yesterday, Sablan said any reports insinuating that CUC would be sole-sourcing contracts for the privatization of its power plants are “totally and completely erroneous and unacceptable to me and my colleagues on the CUC board of directors.”
“It has come to my attention lately from misconstrued media reports and misinterpretation of verbal statements made by CUC officers, including myself, that might insinuate to the public at large that CUC might be looking for solutions to resolve its power crises by ‘sole sourcing’ solutions with power Plant 4 or any other suppliers,” Sablan said.
He further said that, “as long as I’m the chairman of the board, CUC shall follow the required legal process and publicly obtain competitive bidding that ensures the best interest of the CUC customers and the lowest cost to the people of the CNMI, without compromising quality or reliability.”
Sablan said that CUC would be “working diligently to achieve the appropriate long-term solutions to the inherited problems of power and water in the CNMI, without sacrificing the necessary short-term remedies that must also be carefully considered and provided urgently and timely.”
Sablan’s statement came following a letter from Power Plant 4’s contractor about its proposed expansion plan and the House of Representative’s creation of an investigative committee to look at various issues, including CUC’s inability to ensure a reliable power supply on Saipan.
Pacific Marine & Industrial Corp., which runs Power plant 4, said recently that it made a presentation to CUC board about its plan to revise its existing contract with the utility firm to increase its generation capacity.
Power Plant 4 only produces up to 15 MW.
Members of the House leadership had also expressed its concerns over CUC’s failure to provide the chamber with accurate information on the power situation, including its planned privatization of power plants.
