CUC to decide on fate of 80-MW power plant

A special board meeting is scheduled by the Commonwealth Utilities Corporation on Thursday to decide on the fate of the much delayed Saipan power project following the completion of an independent study on the island’s power load.

CUC Board Chair Rosario M. Elameto yesterday said it’s all up to the policy-making body of the government corporation on which course to take — whether to re-bid the entire project or scale back the original 80-megawatt plant.

She also refused to comment on the recommendation by Commonwealth Development Authority Board Chairman John S. Tenorio to split the initial plan and allow for future expansion.

“I can’t say anything now because it’s going to be the entire board’s decision,” Ms. Elameto told in an interview yesterday, adding the meeting will discuss the report drafted by independent evaluators Burns & McDonnell.

The board may also tackle the case of CUC director Benjamin A. Sablan, who is facing bribery charges in federal court, whether it can take action to suspend him while the lawsuit is on trial.

“He’s still a member of the board, but I am not sure whether he’s coming or not [to the meeting],” said Ms. Elameto.

Another new board member, on the other hand, will be sworn in on Thursday to join the present five members. Zania M. Fleming was confirmed by the Senate last month as Tinian’s representative to the CUC board.

The controversy surrounding Saipan’s new power plant has hounded the utility corporation for the past two years amid protests on the selection process conducted by it in-house committee which awarded the $120 million contract to Marubeni-Sithe.

Burns & McDonnell, in its re-evaluation, ranked Enron, Tomen Consortium and HEI/SPP ahead of the Japanese conglomerate and its U.S. partner. The board, however, has yet to make an award pending assessment of the need for a project with such magnitude.

The study will not be made public until the scheduled meeting. CDA earlier had asked the utility corporation to re-assess the need for an 80-MW plant, citing the continuous economic hardships which have lowered demand for electricity on Saipan.

The 90-day extension forged with various firms vying for the project in order to keep their proposed prices at the same level expires on Jan. 15. CUC is under pressure to make a decision soon, particularly in light of lobbying by bidders and moves in the Legislature to expedite resolution of the problems.

Designed originally to meet anticipated increase in power demand on Saipan by this year, the project was to be constructed through build-operate-transfer scheme under a 25-year contract touted to be the largest deal ever in CNMI’s history.