Full power by Sept. 16—Aggreko

Relief is in sight.

Gov. Benigno R. Fitial, CNMI lawmakers and Antonio Muna, executive director of the Commonwealth Utilities Corp., met with an Aggreko International representative Thursday to set Sept. 16 as the target date Aggreko generators will be ready to service the island.

CUC hired the U.K.-based Aggreko to provide up to 15 megawatts of power capacity for Saipan. The island is suffering constant blackouts due to the poor conditions of its power plant. Fitial declared a state of emergency for CUC Aug. 1, stating that one of Power Plant 1’s engines is “so damaged by wear and lack of adequate maintenance for many years that it may experience a catastrophic failure.”

The Aggreko generators will be shipped in four installments. The first should arrive Aug. 23. Three installments will follow on Aug. 30, Sept. 6 and Sept. 14, Charles Reyes, Jr., press secretary for the Governor’s Office said.

The generators should provide for 24-hour power to the entire island starting Sept. 16.

There were many hurdles that had to be crossed to pave the way for the Aggreko deal.

In July, a law was passed allowing CUC to receive $3.4 million of the Marianas Public Land Trust’s income for the next two fiscal years.

CUC used $1.5 million of that money to pay the down payment of the $6 million Aggreko contract. Aggreko had said they would not ship the generators without receiving the down payment.

Fitial passed a law at the beginning of August exempting emergency power contracts from review by the Public Utilities Commission. The move cleared the last obstacle to obtaining the power.

“We worked to get this done in a legal way,” Reyes said. “We identified and worked with lawyers and lawmakers from the legislature. We addressed the problem and identified a solution.”

Steve Dunlap, representative from Aggreko, said the company has been in a state of preparation and readiness.

“We understood the situation and the need for a fast response, so that when the funds came through we were ready to go,” he said.

The equipment is too large to fit into one vessel so it is being shipped separately, Dunlap said. The first shipment has already left Singapore, he added.

Muna said the generators’ arrival is not only a relief to the public but to the CUC maintenance staff as well.

“Since Oct 1, 2007, maintenance staff hours have been irregular and many times going beyond the usual workday through late in the evening and at times into the early morning,” he said.

Reyes said he does not anticipate the public’s monthly utility rates to increase as long as fuel rates remain steady.

Other members attending Thursday’s meeting were Senate President Pete Reyes, House Speaker Arnold Palacios and Secretary of Finance Eloy Inos.