By Gemma Q. Casas
Variety News Staff

THE Commonwealth Utilities Corp. on Friday issued a request for proposals inviting private companies to take over the operation of its power service on Saipan through a 25-year privatization franchise agreement.
CUC Executive Director Anthony C. Guerrero said privatizing the power plants on Saipan is designed to “maintain low electric rates; deliver reliable, high-quality service; reduce dependence on expensive imported oil; ensure that CUC gets maximum value for its investment; and, minimize negative environmental impact.”
He said the privatization project should also result in employment of more local residents and contribute to the economic development of the islands.
Saipan, the center of business and economic activities in the Northern Marianas, has been experiencing periodic power rationing since 2005 due to limited fuel or power supplies.
This week, some villages again experienced unannounced power outages lasting from less than 30 minutes to one hour, as the old engines continue to experience problems, said CUC spokeswoman Pamela Mathis.
According to the RFP, the privatization plan for CUC’s power plants on Saipan will include not just the operation of the generation, transmission and distribution systems but also the billing, collection and customer service.
Yesterday, CUC began the distribution of the “pre-qualification requirements” documents for a nonrefundable fee of $1,000.
The same documents are also available online at www.cnmicuc.com for a fee.
Companies interested in submitting a prequalification proposal are required to pay a nonrefundable fee of $25,000 each to CUC.
The criteria: technical capability, 57 percent; financial capability, 23 percent; business experience, 10 percent; and other objectives, 10 percent.