I BELIEVE it is important to correct some apparent misconceptions regarding the Saipan Chamber of Commerce’s opposition to H.B. 15-237.
My public comments regarding H.B. 15-237 were made in my capacity as president and official spokesman of the Chamber of Commerce. The Chamber’s official position on any issue is not reflective of any one member or officer’s personal beliefs; it is arrived at by the board of directors after careful consideration, research, and discussion with other members concerning the matter at hand.
The Chamber’s opposition to H.B. 15-237 focuses on the fact that it appears to be special-interest legislation intended to benefit one company to the potential detriment of the community at large. The Chamber’s letter to the Senate invites the Legislature to clarify if there are in fact, as the House findings allege, “several companies” licensed to do business in the Commonwealth for more than 10 years and who have been engaged in a business in the Commonwealth “closely related to a utility service” for more than eight but less t10 ten years — the exact class of businesses that the legislation at issue favors.
There exists in public law a preference for “local” companies. The bid-price preference allows a 15 percent bid premium for companies that meet certain criteria. It is my understanding that this preference is available to qualifying companies, even in the absence of H.B. 15-237. This legislation is not about “giving minimal preference” — preference is already granted under the law. It is about bypassing an entire step of a bid process allegedly designed to find the best and most qualified bidder. In light of the many “local” businesses that have defrauded both government and consumers over the years, the Chamber quite frankly is more concerned with carefully examining some potential “local” companies than a company such as, say, General Electric, although General Electric would still be required to complete the same process as any other bidder. This legislation does not open the playing field to additional companies who would otherwise not be able to submit a pre-qualification proposal — any company has that right. This bill accomplishes exactly one end: it furthers any unfortunate perception that in the CNMI, it’s not what you know, it’s who you know.
Unlike the existing public law, H.G. 15-237 waives a pre-qualification analysis and potentially waives a $25,000 pre-qualification fee. Indeed, the Chamber has been informed that, of the four companies that submitted pre-qualification proposals, one company did not include the $25,000 fee. We should all be very interested to learn the identity of the one company that submitted a proposal without the required fee. CUC itself has defended the process and the associated fees as necessary and reasonable. This particular $25,000 fee component has been explained as required to “give the potential proposer pause before submitting a proposal” and “pegged to the cost of evaluating a Pre-Qualification proposal.” The Chamber believes that, in considering what has been described as a “25-year business opportunity for a $100-million-per-year utility,” the attempted waiver of a $25,000 fee and the related evaluation for one bidder should be an issue of grave concern to our entire community. As one administration official noted: “if a bidder cannot [afford the fees], then I would be concerned as to their financial viability. Financial viability is important to provide reliable power at the least amount of cost to the consumer and requiring the acquisition and maintenance of over one hundred million dollars in assets.”
The Chamber disagrees with the assertion in a recent letter to the editor that “the most important question we should be asking about outside companies is: do they have any business track record on island? Have they invested or contributed to the growth of our island?” We believe that the most important question that should be asked is whether a bidder is qualified, experienced, and financially capable enough to fulfill the requirements of the privatization proposal.

JUAN T. GUERRERO
President
Saipan Chamber of Commerce