Muna said CUC’s contract with Telesource may endanger the future operation of the company.
“They really have to come up with a better plan to cut costs to make current demand achieve the desired sufficient revenue to sustain their operation,” he said.
Earlier, Telesource CEO and president Nidal Z. Zayed said Tinian could experience a power crisis because their company’s continued to sustain financial losses.
Zayed said the power demand on Tinian has been stagnant and decreasing.
“Our losses will only increase next year and beyond,” he said.
To improve its financial condition, Telesource has asked the CNMI government to allow the company to enhance, upgrade and maintain CUC’s power plants on Saipan.
Muna said it was his understanding that Telesource wants to renegotiate its contract with CUC because the production fee is not sufficient.
He said CUC extended its contract with Telesource for another 10 years or until 2020.
CUC may look into other options if Telesource’s financial condition worsens, he added.
Muna said the contract may be renegotiated but it should not interrupt the power distribution service on Tinian.
