depend on private firms in managing the island’s power utility.
Under a BOT system, the government may allow a private power company to build a power plant and eventually turn it over to the government.
Cabrera, who served under Gov. Froilan C. Tenorio’s administration, said CUC should seriously apply the build-operate-transfer plan on Saipan.
“Give [the power project] to the company for 15 to 20 years. Require that it be a model of quality and efficiency, and ensure that the [power] rates go down,” he said.
The build-operate-transfer scheme was used on Tinian where CUC signed a 10-year contract with Telesource on May 1997.
CUC renewed its contract with the power firm for another 20 years. It will expire by the year 2020.
Cabrera said if Telesource’s energy output will be brought on Saipan, electricity on island will be “reasonable.”
“I think what they need to do is run the power line from here to Tinian,” Cabrera said, adding that “if we get a good [request for proposals] I think we can get good, reasonable rates.”
He said the money that is supposed to pay Aggreko International Projects Ltd. for its temporary power service should be used for build-operate-transfer investment instead.
CUC still owes Telesource production fees, operation and maintenance fees, and the May 2008 Note.
