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CUC submits $33.6M projects wish list
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Posted on Apr 25 2006
The Commonwealth Utilities Corp. has submitted a $33.6 million wish list to the Governor’s Office, detailing the utility’s “immediate” infrastructure needs for its power, water and sewer operations.
The list included parts and repairs urgently needed for the Saipan and Rota power plants, annual materials inventory for the three CUC divisions, and the utility’s fuel needs for the remainder of fiscal year 2006.
Washington Rep. Pedro P. Tenorio, using information from the Governor’s Office, has asked request the U.S. Congress for a $140-million bailout package that included $17.5 million for utility operations.
But CUC’s wish list shows that the requested amount represents only the fuel subsidy that CUC needs from March through September 2006. CUC said it needs the central government to subsidize its fuel payments by $2.5 million every month.
CUC estimated that preventive maintenance, repair, and upgrading projects at the Saipan power plants would cost $11.66 million.
CUC also said it needed $850,000 to purchase power distribution supplies such as power poles, transformers, transmission wires, insulators, and safety equipment.
The agency pointed out that it had not entered into a long-term supply contract since Fiscal Year 2003. As a result, CUC has been relying on whatever materials it has left on stock and sometimes, has resorted to salvaging and cannibalizing used materials. “The urgency of the need for the annual material inventory has become an even greater concern due to the approaching typhoon season,” CUC said.
CUC also asked for $500,000 for the upgrades to the power distribution system and $1 million for the purchase of supplies for the water and wastewater divisions.
The power generation system on Rota also needs repairs at an estimated cost of $1.6 million.
Furthermore, CUC said it needed $500,000 to replace, repair and maintain its vehicles and equipment. Currently, CUC has 96 vehicles, including one purchased in 2004, five in 2003, two in 2002, and nine 2001. The remaining 79 vehicles are more than five years old. As of last month, 34 of the 96 vehicles were not running.
