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Power privatization talks go under radar
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Posted on Sep 22 2005
The “less than two months” estimate of the Commonwealth Utilities Corp. for the awarding of a contract to privatize the operation of Power Plant 1 in Lower Base has passed and all the government could say now is that the project remains “under review.”
Short of saying that the privatization program is no longer of immediate concern, Gov. Juan N. Babauta said yesterday that the financial statements of two proposers are “under review.”
The administration has been reviewing the financial status of Telesource and Rolls Royce for over a month now.
The Governor’s Office said earlier that the Attorney General’s Office has tapped the expertise of Economist.com to look at the financial statements of both proposers.
In early July this year, CUC consultant Harris Group executive Dennis Swann said that a privatization contract would be awarded “in less than two months.”
Meantime, CUC executive director Lorraine A. Babauta said that the government has spent $3 million so far since May 2005 for the immediate repair of the main power plant.
Gov. Babauta said that if decision has to be made on privatization, the government expenditure for the engines repair would have to be taken into account.
“The government continues to spend money. It will be factored in,” he said.
The proposed privatization contract, which amounts to at least $60 million, would involve the takeover of the eight-engine Power Plant I in Lower Base, its rehabilitation and upgrade to meet federal environmental standards, and installation of two new 15MW generators.
The contract would allow the private company to operate the machines for 20 years, with the government providing the fuel for free.
