The new plant, which will be run by an independent power producer, is part of the administration’s long-term plan once its 12-month contract with Aggreko expires.
Rep. Tina Sablan, Ind.-Saipan, said she was “surprised” to hear about this plan.
“How was this decision arrived at, and what progress has been made toward developing [a request for proposal]?” she said in a letter to Commonwealth Utilities Corp. Executive Director Tony Muna.
According to Press Secretary Charles P. Reyes Jr., however, “The immediate priority is to evaluate and rehabilitate the engines. An RFP for this has already been issued. The next phase, after the engines have been repaired, is to employ an independent (and more efficient) power producer driven by economic rather than political considerations. Full privatization may be an option for the final stage.”
He added, “To my knowledge, we have not yet issued an RFP for an IPP, as we are not in that stage yet.”
Sablan asked Muna “what impact, if any, would the pending privatization bill have on this plan [to build a new power plant]?”
H.B. 67-77, or the CUC Private Sector Partnership Act of 2008, was rejected by the governor, but the Senate has already overridden the veto and Speaker Arnold I. Palacios, R-Saipan, earlier said that the House would follow suit.
On Friday, the Saipan Chamber of Commerce said it “strongly opposes an override” and urged lawmakers to pass a new privatization bill that will not result in high utility rates.
Sablan, in a separate letter to Muna, said the Saipan legislative delegation’s Public Utilities and Infrastructure Committee wants to see an “up to date and complete information regarding all contracts and small purchases executed by CUC from Jan. 2005 to Sept. 2008.”
Sablan, who chairs the committee, asked Muna to “please include the following types of information”:
• Date of contract award or small purchase order
• Contract or purchase order number
• CUC division that received contract or purchase order goods or services
• Copy of the contract or purchase order
• All pertinent change orders made, including justifications, change order amounts, and dates authorized
• Description of deliverables actually received
• Method of procurement (i.e., competitive sealed bid, competitive sealed proposal, small purchase, sole source, contract amendment, contract renewal, request for quotation, etc.)
• Source of funding
• Amount paid to date
Sablan also wants to see “all pending requests for proposals, invitation to bid, requests for quotations and other relevant procurement documents for any goods and services for CUC. Please also provide copies of any contracts executed between Jan. 2005 and Sept. 2008 to which CUC was not a party but was a beneficiary.”
Sablan said her request is part of the oversight investigation initiated by the committee.
