CDA acting Executive Director Oscar Camacho said the agency is also willing to settle with CUC, but on the condition that it will take place prior to the privatization.
“CDA’s interests should be preserved and solidified,” he added.
Last week, the Senate overrode the governor’s veto on CUC privatization bill, or House Bill 16-77. The House is expected to follow suit.
The privatization bill requires the winning bidder to infuse $250 million in cash or a combination of cash and equivalent infrastructure improvements.
“But what is the basis of the $250 million purchase price?” Camacho asked.
Still, he added, CDA believes that “anything that moves toward CUC privatization while preserving CDA’s interests should be supported.”
According to Camacho, the memorandum of agreement between CUC and CDA has not been “solidified.”
Under the MOA, CUC’s debt will be converted into $45 million preferred stocks that CDA will own.
CUC originally owed CDA $45 million but the amount reached $100 million due to interest.
The MOA was signed in Jan. 2004 but it has not been implemented.
Last Monday, CUC Executive Director Antonio Muna met with the CDA board members to inform them about the status of the utilities agency.
Camacho said Muna disclosed that CUC’s debt to CDA “is still listed in CUC’s books…as a payable.”
