Telesource: Expedite power privatization
Telesource CNMI president KJ Semikian called on the Commonwealth Utilities Corp. to go ahead with the privatization of its main power plant and, at the same time, expedite its procurement process for emergency back-up power generation on Saipan.
This even as Semikian expressed concern over CUC’s plan to bring in a power barge to address the current power shortage.
Semikian, in a letter dated June 14, 2004 to CUC board chair Herman P. Sablan, also took exception to the proposed relocation and expansion of Pacific Marine & Industrial Corp., operator of the Puerto Rico power plant.
“I read with great interest [a news article] that CUC is looking into the possibility of bringing in [a power barge] as emergency back-up… In addition, another article indicated PMIC’s proposal to relocate its plant to Lower Base and to increase its capacity… This letter is written to indicate Telesource CNMI’s interest in providing such services,” said Semikian.
He said Telesource is “a longstanding member of the CNMI community that is extremely qualified to provide precisely the type of power services that the CUC would apparently like to obtain.”
“We do not, however, seek any competitive advantage in obtaining a contract from you for such services. Nor do we believe that it is in anyone’s interest for you to allow another firm to obtain such advantage,” said the Telesource official.
Board chairman Sablan immediately issued a press statement on June 14 to deny any attempt to sole-source the contract and lambasted the media for “totally and completely erroneous and unacceptable” news reports.
In a June 11 report, the Saipan Tribune quoted Sablan as saying during a board meeting on June 10 that CUC is exploring the possible entry of a power barge to supply the island with power for two to three years or until CUC has fully privatized its power plants.
“If we award it [privatization] this year, it would take up to three years conditioning. So look at two to three years operation of barge power plants as back up,” Sablan told CUC managers during the meeting.
The chairman said a power barge could provide up to 20 percent power reserve. “It’s just a temporary measure. So take a look at having a contract [for power barge],” Sablan had said.
On June 14, the Saipan Tribune also reported—based on a June 8 letter of PMIC senior development manager Stephen V. Green to CUC executive director Lorraine A. Babauta—that PMIC is pushing for a revision of its contract to expand its capacity and relocate its plant to Lower Base.
Green’s letter was a follow-up to PMIC’s proposal for the plant expansion and relocation, which, Green said, was previously presented to the whole board.
“In light of the current supply difficulties…we feel it may be timely and appropriate to revisit the proposals for improvements of the electricity supply services that we have previously placed before you. As you may recall from our presentation last month to the full Board of Directors, PMIC has offered to perform the following, without the need for any capital investment by CUC: relocate to the industrial Lower Base area, addressing the concerns of residents on the current Puerto Rico plant location; and increase the capacity of PMIC by installing brand new state of the art, high-fuel efficiency generators which will not only address the growing capacity needs of the island but also save CUC millions of dollars in fuel expenses,” Green said.
He further said that PMIC would be willing to install additional capacity on a temporary basis to further alleviate the immediate supply situation.
Sablan, in the June 14 prepared statement complained, that “misconstrued media reports and misinterpretations of verbal statements by CUC officers…may insinuate to the public at large that CUC might be looking for solutions to resolve its power crises by ‘sole sourcing’ solutions with Power Plant or any other suppliers.”
“I would like to go on record and publicly state that this is totally and completely erroneous and unacceptable to me,” Sablan said.
