Muna’s letter was a response to the lawmakers’ inquiry about CUC’s contract with the U.K.-based Aggreko International Projects Ltd.
CUC wants to borrow $4.5 million from MPLT, subject to the Legislature’s approval.
A portion of the money will be used by CUC to make an initial payment to Aggreko.
According to Sablan, Ind.-Saipan, Muna described CUC’s certification of available funds for the Aggreko contract as “prospective in nature.”
Muna said they expect to pay Aggreko through “realization of projected revenue increases as a result of 24-hour power service, plus cost savings as a result of not having to implement a load shedding schedule, manage a blackout, and using more efficient generators.”
“This response from Mr. Muna left me even more mystified than before,” Sablan said.
She said CUC should no longer be asking the Legislature to approve its MPLT loan if it has available financial resources.
“Funds are either available, or they are not,” the lawmaker stated, adding that CUC should not have signed a deal with Aggreko given its current financial dilemma.
In an earlier interview, Muna said CUC would settle “future payments to Aggreko” through local revenues.
He said when engine #7 is put back online with the arrival of some ordered parts made by two of its contractors, together with the other online engines, CUC will achieve about 50 megawatts, which is sufficient to meet the current power demand on island.
He added that they expect to increase their sales to about $200,000 to $300,000 in terms of non-fuel charges.
“We’re allocating any increase in sales…to pay for Aggreko,” Muna stated, adding, “The revenue increase, plus the cost-savings, as a whole will allow us to pay Aggreko.”
According to the contract, CUC needs to deposit about $1.5 million to Aggreko before the company brings in its generators to the island.
