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CUC delivers draft MOU on CPA’s $17.7M debt
The Commonwealth Utilities Corp. has delivered a draft memorandum of understanding to the Commonwealth Ports Authority for review and approval of an agreement to settle CPA’s debt to CUC that now stands at $17.7 million.
CUC executive director Gary P. Camacho has informed the CUC board that the draft MOU is already with CPA executive director Christopher S. Tenorio for review.
Camacho said that, based on their communication, Tenorio feels there are no issues with the MOU.
Camacho said he wants Tenorio to see the draft MOU first to determine if that would be acceptable to CPA before he (Camacho) presents it to the CUC board for review and approval.
If the MOU is acceptable to CPA, Camacho would ask for a special CUC board meeting to address the matter.
The MOU would give CUC control and access to 46 water wells on CPA property for 40 years, in exchange for $10 million that will be used to offset outstanding water charges.
Camacho said the draft MOU expanded the number of wells to 75 facilities.
“Before, it was considered to be a 40-year lease. This is now a permanent lease for all listed facilities,” he said.
Saipan Tribune sought clarification on what these 75 facilities are, but CUC had yet to reply as of press time yesterday.
Camacho said the MOU will address CPA’s outstanding bills that were incurred many years prior to June 2018.
“Anything after June 2018, obviously they [CPA] are required to pay,” he said.
MD: The Commonwealth Utilities Corp. has delivered a draft memorandum of understanding to the Commonwealth Ports Authority executive director’s office for review and approval of their agreement to settle CPA’s debt to CUC that is now reaching $17.7 million.
KW: Gary P. Camacho, Christopher S. Tenorio, Memorandum of Understanding.
