Kumoi gets new $21K contract

Former senator Ramon S. Guerrero will get paid an additional $7,000 a month for three months following his recent hiring as engineering consultant for the Commonwealth Utilities Corp.

At the same time, CUC, which is currently under the direct control of Gov. Juan N. Babauta following his declaration of a state of disaster emergency, has hired a new power plant engineer, Roger Kitchingham, for two months at a cost of $20,000.

Kitchingham was recommended by Guerrero.

Last March, Guerrero entered into a separate $50,000 six-month consultancy contract with the Governor’s Office for the La Fiesta complex in San Roque. That contract is set to end in August 2005.

Documents obtained by Saipan Tribune showed that CUC executive director Lorraine A. Babauta and comptroller Sohale Samari approved the purchase order for the additional $21,000 payment for Guerrero on May 27.

Under the agreement, Guerrero would get 50 percent of the amount in advance and the remaining amount would be given after the three-month contract.

Guerrero, in a letter to CUC’s Babauta, said that, as discussed with Gov. Juan N. Babauta on May 26, he would oversee the mechanical and electrical repair of Power Plant II in Lower Base and assist CUC “in reviewing the privatization evaluation” by Harris Group, and assist in the final interview of an independent power producer.

According to Guerrero, he would assist in the “final recommendation [on privatization] to be presented to the governor for his approval.”

He said he would also assist in reviewing the final scope of work for the contractor selected to repair the No. 8 Mitsubishi Man Engine foundation.

Guerrero, a former CUC executive director, said his job includes overseeing the mechanical and electrical repair of Power Plant II, including the cooling tower repair, “and other repairs necessary to restore the plant back to its full capacity of 15 MW.”

He said he would assist CUC in the procurement of all needed parts and in preparing reports “required for the governor under the state of emergency declaration.”

He said that based on the discussion with the governor, he has agreed to a four-month consultancy work for CUC at $7,000 a month and “on a 24/7 on call during the emergency declaration.”

The CUC’s approval covers only three months of service by Guerrero.

Meantime, the CUC also signed a $20,000 purchase order for the electrical engineering services of Kitchingham.

Kitchingham, according to Guerrero, is a former CUC employee who is now based in California. He was scheduled to leave California for Saipan last Saturday.

Under the agreement, Kitchingham would get a $4,000 mobilization advance pay to be deducted from his first month’s salary. In his letter, Kitchingham said that he would arrange for his own housing and ground transportation.

In a separate letter, Guerrero said he highly recommends Kitchingham’s temporary hiring under the state of emergency declaration.

Guerrero had recommended a three-month contract for the services of Kitchingham “to assist in major calibration of all electrical systems in Power Plant II.”

“I urgently need his services to perform all the electrical system of Power Plant II before we put all EMDs in full capacity. Major electrical components need to be immediately addressed at Power Plant II, to include the main Power Plant I,” said Guerrero.

Power Plant II, he said, consists of six EMD units rated at 2.5 MW per unit.

He said Kitchingham is a certified power plant electrical engineer “which we do not have at present.” He said the rate he offered to Kitchingham “is way below standard.”

“With the short period of time for his temporary employment, he will be more than beneficial for the CUC,” Guerrero said.

Under the initial privatization plan, CUC would demolish Power Plant II, which is adjacent to Power Plant I, and use its site for the main power plant’s expansion.