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House still wary about power privatization
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Posted on Jan 21 2005
The House remains wary over the proposed power privatization, saying that it has not been getting necessary information about the plan.
Vice Speaker Timothy Villagomez, who led a public hearing last week on privatization and other utility issues, said there remains legal impediments that have yet to be resolved.
“Members of the PUTC panel are just concerned that the Legislature is not being well informed about the status of this procurement,” said the lawmaker, who chairs the House Committee on Public Utilities Transportation, and Communications.
These impediments, he said, include the dispute between the CUC and Commonwealth Development Authority, land concession, and employees’ tenure.
He said that CUC has already received three proposals for the power plant privatization.
“They’re now processing and making the review of the proposals,” Villagomez said.
CUC board chair Frank Guerrero, for his part, assured the House that the utility firm is handling the issue very thoroughly.
“There’s no awarding of contract here yet,” he said.
He said that the CUC’s consultant, the Harris Group, would meet with CUC officials end of this month to report on the companies that submitted proposals. The proposal solicitation had ended on Jan. 7.
Lawmakers have been demanding more information from CUC on the proposed privatization of the government’s power plants in Lower Base.
Minority bloc member Rep. Arnold Palacios had expressed shock that the CUC board had already voted to go ahead with the privatization without public consultation.
“On what basis? Was there any study? Have you conducted hearings?” he asked during a recent public hearing.
Majority of the CUC board voted to pursue the power privatization since summer 2003.
Guerrero had noted then that the board used a previous report that recommends the privatization of the power plants.
The board also expressed confidence that the presence of Harris Group consultancy would result in excellent work.
