By Gemma Q. Casas
Variety News Staff

THE chairman of the Senate Committee on Public Utilities, Transportation and Communications says the Commonwealth Utilities Corp.’s unusually high prequalification fee in preparation for the privatization of its power plants on Saipan is unreasonable and severely limits the competition.
Sen. Luis Crisostimo, D-Saipan, said he is deeply concerned about the $76,000 nonrefundable fee required of CUC’s prequalification bidders.
“The $76,000 nonrefundable fee just to ascertain whether a firm can be prequalified to participate in this procurement appears to do nothing but discourage solid and experienced bidders, limiting the competition severely. Moreover, this prequalification fee is exorbitant and unreasonable,” he told CUC Executive Director Anthony C. Guerrero in a letter.
He disagreed with CUC’s claim that the fee requirement will attract only the most qualified bidders.
“It will have the reverse effect,” he said.
The senator said the privatization project will have a significant impact not only on government finances but household budgets as well.
“The agency must take great care in attracting firms that have established track records running good utilities, with the capability of expanding services in line with conservation efforts, technological advances, and other environmental and financial considerations,” said Crisostimo. “What happens today, affects tomorrow.”
Rep. Stanley Torres, Ind.-Saipan, who has also questioned CUC’s prequalification fee, said the Office of the Public Auditor should look into the issue.
“The matter I referred to your office,” he said in a letter to Public Auditor Michael Sablan, “simply asks whether this government agency should levy such an enormous fee, given the severe and unreasonable limitations a $76,000 figure would deliberately place on a number of competitors who might consider responding to this important proposal. This question is precisely the kind of matter your office should attend to.”
Torres added, “With all due respect, this matter should be given priority because of the approaching deadline. Like other government agencies, it seems the public auditor’s office needs to prioritize its work appropriately. Time sensitivities obviously put this request ahead of others.”