CUC banking on bill for Agingan funding

The Commonwealth Utilities Corp. hopes that the Legislature will pass a bill that would provide funds for the Agingan sewer treatment plant project and spare CUC from paying an environmental fine of $37,500 a day.

The U.S. Environmental Protection Agency had given CUC until today to find funding for the project. However, it appears that the utility firm has yet to identify a definite funding source.

In a phone interview yesterday, CUC chairman Francisco Q. Guerrero expressed confidence that the Legislature and the governor will solve the Agingan problem by enacting House Bill 14-286.

“There’s funding for Agingan already. House Bill 14-286 will be passed and the governor will sign it,” said Guerrero.

The bill seeks to reprogram $3.3 million from the Kagman wastewater treatment plant project to the construction of the Agingan ocean outfall and upgrade of the Agingan sewer treatment plant, as well as other sewer projects.

When introduced, the bill originally allocated $3.3 million for the Agingan project. The measure, however, has since been amended to cover other wastewater and road-paving projects, leaving only $1.6 million for the treatment plant.

The bill, as amended, seeks to allot $800,000 of the $1.7-million balance to supplement the shortfall of the As Matuis Wastewater project, to connect the Gregorio T. Camacho Elementary School toilet facilities to the CUC sewer system, and to install sewer service lateral lines in Achugao and Tanapag areas.

The proposed legislation aims to provide $200,000 to supplement the shortfall of the Fina Sisu wastewater project, and $700,000 for various road-paving projects in Precinct I.

On Feb. 2, another bill tapping the Kagman project funds was introduced in the House of Representatives. H.B. 14-303 seeks to reprogram $4.35 million for the Lau Lau Bay Drive and Kagman III and IV road paving and drainage projects.

CUC will face daily fines of $37,500 if it fails to find funding for the Agingan plant before Feb. 28, the deadline set for CUC to comply with the U.S. Environmental Protection Agency’s administrative order.

EPA issued the order against CUC in 1999 for its failure to construct an ocean outfall and improve the quality of water effluent being discharged into the ocean.

The CNMI government failed to match funds for a $1.2 million grant from the environmental agency for Agingan’s plant repairs, and CUC still needs $3.6 million for the project, the utility firm said.