Telesource renews offer to operate CUC’s plants

The chairman and president of Telesource CNMI Inc., Nidal Z. Zayed, has reiterated the company’s offer to help the Commonwealth Utilities Corp. in resolving its problems, citing the firm’s capability to supply reliable and dependable power to the island of Saipan.

In a letter to Committee on Public Utilities, Transportation, and Communications members Sen. Paul Manglona and Rep. Victor Hocog, Zayed said it has always been the firm’s intention to help CUC in its ongoing challenges but their offers have always been ignored.

In the last three years, he said, Telesource has offered to make $100 million investment in CUC and waive over $1 million of accounts receivable in exchange for a negotiated contract on Tinian. Part of the package was the transfer of 10 megawatts of excess power from Tinian to Saipan at the company’s own cost. It also offered to conduct a wind power energy study and assist in rehabilitating engines 5 and 7 on Saipan.

He informed the committee that Telesource still stands ready to assist in alleviating Saipan’s power crisis and averting a potential crisis on Tinian.

“Telesource acknowledges financial times are hard and it is probably impossible at this time to attract an equity investor or senior debt to invest in CUC. Had some of our ideas and offers been at least discussed and given serious consideration, Saipan may not be where it is today,” Zayed told the two lawmakers.

The company president said the Tinian power plant is a world-class facility that people have come to depend on without worrying or second-guessing its reliability and dependability, compared to Saipan customers.

Saipan Tribune learned that the company’s investment on Tinian exceeds $40 million as it financed, designed, built and now operates the Tinian power plant.

Zayed admitted that the company has never made money on Tinian and has accumulated vast financial losses in the tens of millions of dollars; they also forecast increased losses next year and beyond.

“While we are incurring losses over the years, we nonetheless maintained a sense of hope and optimism,” he said.

On the issue of privatizing CUC, Zayed believes this is next to impossible, citing the existing status of the utility plants.

“Today the financial reality in the world is such that finding investors to buy CUC or finance the upgrade of the power structure, including new engines, would be next to impossible. What is possible, however, is that a company like Telesource is willing to assume full operations and maintenance responsibility for the plants including enhancement and upgrade to the systems where necessary,” he said.

The company official is inviting lawmakers to visit its power plant on Tinian to see proof of the quality service it is offering to the CNMI.

Zayed said they are willing to compete with larger international firms for this work.

In an interview yesterday, Sen. Paul Manglona said the committee has yet to discuss Telesource’s “invitation” to visit its Tinian power plant.

The lawmaker acknowledged Telesource’s complaint about its offers being “ignored” in the past. However, Manglona said the commission has yet to make a comment on the correspondence.

Manglona intends to visit the Tinian facility and would give the Telesource official a call when he’s ready, along with other members of the committee.