Power shortage looms • Electric problems imperil NMI’s economic growth

Overall efforts by the CNMI government to lure more investors in the Northern Marianas could be in vain due to a looming power shortage caused by the virtually shelved 60 megawatt power plant project on Saipan.

Government officials raised this alarm yesterday after reports claimed Enron has decided to pullout from the multi-million project which would have paved the road for a new 60-MW power plant on Saipan.

Due to the possible delay in the construction of the power grid, foreign and local investors wishing to put up businesses here are faced with higher costs since they will have to put up their own power source.

Rep. Rosiky Camacho, chairman of the House Committee on Public Utilities, Transportation and Communication, said the existing power plants on Saipan are no longer capable to supply electricity to new customers.

Mr. Camacho disclosed that only about 70 percent of the island’s power needs are being supplied by the Commonwealth Utilities Corporation. The remaining 30 percent which are mostly businesses supply their own power needs.

He said existing power plants maintained by CUC on Saipan could break down if additional customers hook up, thus, the need for new and a more powerful source of electricity.

“Businesses have to bear with additional costs because they will have to put up their own power generation system. There is no way our existing power plants can hook up new customers,” he told reporters.

Officials also said the Northern Marianas faces a grim energy supply situation if construction of the 60-MW power plant is delayed for yet another year, which is more likely the case due to Enron’s decision not to push through with the project.

CUC officials previously confirmed that the delay in the construction of the 60-MW power plant project could cause serious consequences on the island’s power supply needs, since current facilities do not have the generation capacity to handle additional, and even present loads.

CUC has been working on the power plant project over the past four years. The new power grid was originally envisioned to meet the island’s projected power supply needs by 2000.

Construction of the power plant should have started during the latter part of 1998 so it will be in complete operation by the turn of the century or the CNMI faces a possible power crisis.

The power plant project has been besieged by controversies soon after the utility corporation awarded construction contract to Enron. In fact, formal protests had been filed with the Office of the Public Auditor and local courts,

The consortium of Alsons, Tomen, Singapore Power and Tan Holdings; Saipan Power Partners; and Telesource CNMI, Inc. have individually lodged formal complaints against CUC’s controversial decision.

The Tomen consortium, SPP and Telesource had opposed the awarding of the contract, citing unconstitutionality of Public Law 12-1 which formed the basis of the CUC board’s decision to choose Enron over other bidders.

Enron garnered the highest scores in the evaluation conducted by CUC’s power consultants from Burns & McDonnell. Tomen and SPP, which closely followed, claimed they were in “statistical deadheat” and should be given an opportunity for a final round of bidding.

On the other hand, Telesource has argued that since the scope of the project was changed when the law allowed phasing in of a 60-MW plant, a new request for proposal should be issued to include potential contractors.