EEMC completes 7 CUC task orders, makes $2M savings

Gilbane Federal, the federal court-appointed Engineering and Environmental Management Company which is tasked to oversee some of the Commonwealth Utilities Corp.’s stalled projects, has now completed seven task orders and made over $2 million in savings for CUC.

Gilbane Federal/EEMC principal Daryl Greenway disclosed that they have achieved significant cost savings on multiple task orders, in comparison to budgets and grant-approved amounts.

In EEMC’s annual report for 2018 filed before the federal court, Greenway said Gilbane Federal has now completed seven task orders at or significantly under budget, resulting in an overall savings in excess of $2 million.

He said these savings will become available for funding other Stipulated Order No. 2 projects.

SO 2 refers to court-mandated CUC projects that focus on oil issues and also apply to oil spills and the remediation of the contaminated power plants.

These savings, Greenway said, have been achieved with the “excellent assistance and cooperation” of CUC and U.S. Environmental Protection Agency, as well as the timely addition of funding from the court registry of the U.S. District Court for the NMI that avoided a loss of project momentum between the annual grant funding cycles.

The seven completed task orders were the facility drainage, Tank 103 inspection, Tank 103 materials, Rota containment, Rota facility drainage, Tank 103 repairs, and smart pigging.

The U.S. government recommends the extension for one additional year the term of Gilbane Federal as EEMC.

U.S. Department of Justice Environmental Enforcement Section senior attorney Bradley O’Brien said the court’s order specifically authorizes extending the EEMC’s term and therefore, its term should be extended approximately one year until Feb. 15, 2021.

In the U.S. government’s January status report about CUC stipulated order projects, O’Brien said the U.S. and CNMI governments and CUC continue to make substantial progress in SO2 but additional time is needed to efficiently complete the projects using the EEMC funds to the extent possible.

In December 2014, U.S. District Court for the NMI designated Judge David O. Carter selected Gilbane Federal, a California-based full-service construction company with 64 offices worldwide, as an EEMC which will have the power to expeditiously complete some CUC stalled projects.

In CUC’s January status report, CUC legal counsel James Sirok said that on SO2 projects, he was informed that projects under the outstanding task orders are moving along on a timely basis without any major problems.

Sirok said the parties agree that the remaining and expected EEMC account funds are being utilized efficiently.