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‘Power privatization no longer a priority’
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Posted on Oct 29 2005
Gov. Juan N. Babauta has issued a categorical position on the power plant privatization, saying it is no longer a top agenda item for him.
“This administration is focusing on providing reliable power. The [power plant] privatization is not a priority of this administration,” he said during a gubernatorial debate on Wednesday evening.
The governor, who had pushed for the privatization project, refused to report on the status of the program during a public briefing on the power situation last week.
But at the debate, he maintained that privatization may be an option “in the future,” but not at this time.
He noted that the power division of the Commonwealth Utilities Corp. was no longer in a crisis, owing to administration efforts to rehabilitate CUC’s power generators under the governor’s May 19 state of emergency declaration.
“On May 19, CUC was on the verge of collapse. I took over, knowing that I would be criticized. CUC now has extra [power generating] capacity,” Babauta told the 500-strong audience at World Resort Saipan’s Diamond Hall.
Among the several companies that submitted proposals for the privatization program, two independent power producers are being considered by the government. These bidders are Telesource and Rolls Royce Power Ventures, which is represented locally by Pacific Marine Industrial Corp.
A request for proposal for the privatization project has been in place since 2003. CUC has hired Harris Group at an initial cost of $103,000 to handle the bidding process.
Working on behalf of CUC, Harris Group had put out a request for proposals from independent power producers to modernize, upgrade, operate, and transfer Power Plants 1 and 2.
The privatization project also entails an IPP installing two 15-megawatt generators at the Lower Base power plants, among other things. (Agnes E. Donato)
