The governor on Monday signed House Bill 16-130, now Public Law 16-7, to earmark $3.4 million in Marianas Public Land Trust funds for CUC’s financial obligation to its contractors, including Aggreko.
“There’s always that need to address the rehabilitation [of CUC engines]. We want the rehabilitation to take on immediately,” said Palacios, R-Saipan. “There’s urgency for that rehabilitation.”
The rehabilitation of the power plant engines have been suspended with the termination of DCM Group Inc.’s contract by CUC on July 10.
The speaker said he agrees with CUC’s notice of default against DCM.
Palacios wants to know if CUC has a plan once Aggreko pulls out its generators.
According to the contract, the U.K.-based company will provide power to Saipan for 52 weeks, using either a 10-megawatt or a 15-megawatt engines.
Palacios hopes that CUC will consider sending out request for proposals so that other private firms will be able to bid for the repair and overhaul of engines at Power Plant 1.
“Look at the different options whether to ask some experts like Mitsubishi personnel from Japan to come in” to either supervise or take over the rehabilitation, he stated.
There are two Mitsubishi contractors that CUC hired to be part of the repair and maintenance of its engines at Power Plant 1. These are Mitsubishi Heavy Industries Ltd. and Mitsubishi Corp.
CUC awarded Mitsubishi Corp. a $2.28 million contract, while Mitsubishi Heavy Industries received a $2,910 contract.
Palacios wants the next CUC bidding “done right.”
“Who are the experts for those engines? Mitsubishi.” Palacios said. “CUC used to have an annual contract with Mitsubishi personnel. These personnel oversaw the overhaul of major repairs [of engines] using our own men.”
As of July 17, five of the eight engines in Power Plant 1 were down due to various mechanical and electrical problems.
