Saipan braces for new power plant

There is nothing in writing yet to confirm that a contract was signed by the Commonwealth Utilities Corporation and Enron International Mariana Power Inc.

However, reports said major disagreements have already been ironed out which virtually clears the road for the eventual execution of an agreement to proceed with the construction of the controversial 60-megawatt power plant.

In fact, both parties have agreed to work within a specific timeframe, under which period an official deal should already be in place.

CUC Board Chair Jesus T. Guerrero distanced himself from the issue, pointing out that any information about the controversial power plant project should come from Vice Chair Laura Manglona, who heads the negotiating team.

Efforts to reach Ms. Manglona proved futile. She is reportedly off-island.

Mr. Guerrero has instructed CUC Corporate Communication Special Advisor Pamela Mathis to get updates and status of discussions with Enron. The board chair wants official information released to the media Monday.

Mr. Guerrero is afraid conflicting reports reaching media offices on Saipan may give the public the wrong impression that CUC entered into a backdoor negotiation with the private company.

According to initial reports, CUC and Enron officials have already ironed out issues relating to the project cost, negotiating terms and cost ratios.

When the contract is finally signed, Enron will begin applying for permits from at least two local environmental agencies before actual project construction begins.

The environmental studies and permitting processes will take at least six months while actual construction will take at least 18 months.

Utility corporation officials said the 60-megawatt power plant project should proceed immediately before one of the existing Saipan power grids collapses.

Enron earlier raised concerns on tariff payment and transfer agreement including CUC’s monthly payment.

Utility officials believed that the power plant is Saipan’s single most significant construction project seen to boost the CNMI economy.

The government-controlled corporation underscored the need to proceed with the project immediately to prevent possible energy problems in the future, similar to problems faced by California energy companies. (EGA)