CUC Executive Director Tony Muna said the Department of Public Lands’ investment arm, the Marianas Public Lands Trust, has yet to release $1.5 million to CUC so it can pay Aggreko.
Muna earlier assured Aggreko’s director for Asia, Stephen Dunlop, the initial pay rent for the generators would be remitted before the end of July.
CUC wants the generators shipped to Saipan not later than 36 days from the day the initial payment is received by Aggreko.
In an interview on Monday, Muna said MPLT wanted to review Public Law 16-7, or the Emergency Power Generation Act of 2008, which requires the land trust to provide CUC with a “loan” of $3.4 million.
“Apparently MPLT is deliberating on that legislation and I think it has identified certain things that will require them to revisit how this transaction should be accomplished,” said Muna. “So hopefully between now and the next few days, they would come up with a solution in the process.”
P.L. 16-7 will allow CUC to pay $1.5 million to Aggreko; $1.1 million to Pacific Marine and Industrial Corp, which runs Saipan’s power plant 4; and $800,000 to Telesource CNMI, which operates CUC’s power plant on Tinian.
MPLT officials could not be immediately contacted for comments yesterday.
Muna said CUC cannot pay Aggreko because the agency has barely enough to cover its fuel expenses,
“This is the problem, trying to balance cash flow,” he said. “Over the past five months, CUC’s cash flow was out of balance.”
He added, “The fuel cost from February to May was essentially almost 50 percent [higher]. When you’re in a situation wherein what you’re collecting was from 60 days ago, with fuel prices increasing, it really puts a dent on your cash flow.”
CUC will lease Aggreko’s generators for $504,000 a month, excluding fuel expenses.
CUC said it plans to rent Aggreko’s machines for at least a year while the agency repairs its antiquated generators.
Saipan has suffered more than 3,000 hours of blackouts since 2005.
