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Mobil, govt negotiation resumes
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Posted on May 27 2005
No new fuel contract was signed yesterday between Mobil and the government as their scheduled negotiation was reset to today.
“We’re finalizing some details. The documents could not be completed so we’re meeting tomorrow [today],” said Lt. Gov. Diego T. Benavente yesterday.
Benavente, who heads the government’s negotiating panel for “a long-term” contract with Mobil, said the parties are now in the final draft.
At the same time, the House leadership said late yesterday afternoon that it has not received any written report yet from the administration on the fuel crisis.
The Governor’s Office said Thursday that it would submit a written report to the Legislature Friday on all the actions taken since the emergency declaration on May 19.
The Governor’s Office said the report would include “a short-term and long-term” fuel supply plan for the Commonwealth Utilities Corp. power generators.
“We’re very close to an agreement with Mobil on a contract for fuel supply,” Gov. Juan N. Babauta said in the statement.
Press secretary Peter C. Callaghan said yesterday that he has seen the initial copy of the report.
During his State of the Commonwealth Address on May 19, the governor declared a state of disaster emergency, citing potential danger to the public if the power situation is not addressed immediately.
The emergency declaration also strips the power of the CUC board of directors, enabling the governor to take control of the utility firm.
On Wednesday, Babauta said that his two immediate goals are to secure a long-term fuel supply contract with Mobil and to have the rundown power plant engines repaired.
Meantime, CUC executive director Lorraine A. Babauta said the government panel favors the intent of the original Request for Proposal, which calls for a two-year fuel contract.
Mobil’s previous two-year contract expired on April 30.
CUC’s over $8 million debt with Mobil is a key issue in the negotiation for a new contract.
