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Final accord with Mobil expected today
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Posted on May 26 2005
The Babauta administration expects to strike “a long-term” fuel contract with Mobil today, a week after Gov. Juan N. Babauta declared a state of disaster emergency in the CNMI.
Lt. Gov. Diego T. Benavente, who heads the government panel in the weeklong negotiation with Mobil Oil Marianas, said that the parties have come up with a “final draft” of a new agreement.
“We had a very productive meeting. We’re meeting tomorrow [today] with the final document. We’re in the final draft,” said Benavente yesterday afternoon.
Subsequently, the Governor’s Office issued a statement saying that Babauta will submit a written report to the Legislature today on all actions that have been taken since the emergency declaration.
It said that the report with include “a short-term and long-term” fuel supply for the Commonwealth Utilities Corp. power generators.
“We’re very close to an agreement with Mobil on a contract for fuel supply,” Babauta said in the statement.
In an interview Wednesday, CUC executive director Lorraine A. Babauta said the parties would follow the original Request for Proposal, which calls for a two-year contract.
Mobil’s previous two-year contract expired on April 30.
While a new contract was being negotiated between the oil company and CUC, two major power outages—triggered primarily by lack of fuel—occurred on Saipan.
The latest breakdown of power services took place on May 17, during the two-day investment conference led by the Department of the Interior and attended by representatives from 15 U.S.-based companies.
During his State of the Commonwealth Address on May 19, the governor declared the state of disaster emergency, which he said covers not only power but also sewer and water services.
On Wednesday, Babauta said his two most immediate goals at this time are to secure a long-term fuel supply contract with Mobil and to have the rundown power plant engines repaired.
