CUC expects that generators will be delivered to Saipan within 36 days after paying Aggreko.
Aside from the regular load shedding or rotating blackouts every two hours daily, residents and businesses, whose power rates have been doubled, have to cope with two more hours of unannounced power interruption almost everyday.
Since Monday, unannounced blackouts hit Garapan from 10 p.m. to 12 midnight and at 1:30 a.m. in Kagman.
In a letter obtained by Variety, CUC Executive Director Tony Muna wrote on Monday to Stephen Dunlop, sales director for Asia of Aggreko, informing him that CUC wants to rent 15-megawatt generators instead of just 10 megawatts.
The June 19 contract between Aggreko and CUC was for 10-megawatt generators costing $336,000 a month or over $4 million a year.
The 15-megawatt will cost $504,000 every month or over $6 million in 12 months.
“As we discussed this morning, the Commonwealth Utilities Corp. is still interested in leasing temporary power units per CUC Contract No. CUC-PG-08-CO16, with an additional 5-MW increase for a total of 15-MW of required production,” Muna wrote to Dunlop.
“CUC expects to make the initial contract payment of $1.512 million no later than 31st July 2008. I understand that the contract delivery timeline of 36 days may have to be extended if payment is made after the 31st of July,” he added.
Dunlop said Aggreko will have the specified generators on standby for delivery to Saipan as soon as payment from CUC is received.
He said the amendment to the original contract to reflect a 15-megawatt rented generators instead of just 10-megawatt was sent to CNMI Procurement and Supply Director Manny Sablan.
“With the aforementioned in mind, we further confirm that we will hold in our Singapore facility the entire Aggreko 10-mw, 13.8kV, 50Hz power generation package up to 31st July 2008 and on receipt of the signed contract amendment for the additional 5-MW package will hold that equipment also up to the 31st of July 2008,” Dunlop told Muna in a July 15 letter.
Under Aggreko’s contract with CUC, it will produce 15-mw daily power supply for Saipan. CUC will provide the fuel but the facilities’ engineers would come from Aggreko.
CUC will buy Aggreko’s electricity at 5 cents per kilowatt hour and would then distribute it to consumers with added production costs like fuel.
Aggreko is the leading supplier of rented power generators in the world. Its clients include the U.S. military camps in Iraq and Afghanistan.
Dunlop assured CUC it is capable of delivering stable power supply to the island whose business image was greatly marred by constant blackouts, including at its international airport.
“We look forward to executing a first class, professional power project in conjunction with the CUC on Saipan in the coming weeks,” he said.
In related news, Muna told lawmakers that his office is now discussing with DCM Group Inc. the “close out costs” including any billing issues.
CUC terminated its $5 million contract with DCM recently in connection with the power crisis on Saipan.
The government-owned power plants in Saipan are able to produce just over 30 megawatts. Consumers on island need at least 40 megawatts of electricity every day.
