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CUC reiterates BOT plan for plants’ privatization
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Posted on Nov 14 2006
The Commonwealth Utilities Corp. remains poised to enter into a build-and-operate privatization deal with an independent power producer.
Addressing a panel at the U.S. Office of Insular Affairs’ island business opportunities conference, CUC executive director Anthony Guerrero reiterated the Commonwealth utility’s plan to privatize its main power plants.
He reported that CUC will issue a request for proposals for the privatization plan “within the next several weeks.”
“Saipan currently has an installed, but unreliable capacity of 110 megawatts. The privatization concept includes the construction of a minimum of 90 megawatts, the rehabilitation of the existing assets, and all operations, both generation and transmission, for a 25-year period,” Guerrero said.
He also said that the CNMI’s water and wastewater sectors need immediate infrastructure development. Saipan is the only U.S. jurisdiction without drinkable water, while Tinian and Rota require capital wastewater infrastructure.
Immediate projects, which have now obtained federal funding, are two water storage tank projects at $1.5 million each and two water transmission lines costing $1 million. The CNMI government expects to receive the funds in the coming year, Guerrero reported.
He also told potential investors that CUC is open to the possibility of privatizing other parts of its operations, besides the power sector.
“Let me conclude our utilities profile with this encouraging factor: our law stipulates that where feasible, fair to the federal, local governments and its people, the utilities shall contract construction and operations to private business,” Guerrero said.
