The possible loan that a Florida-based financing firm had offered the Commonwealth Utilities Corp. to fund its projects is no longer in the works, according to CUC board chair David Sablan Jr.
In an email to Saipan Tribune over the weekend, Sablan said that CUC should invite all interested financial institutions to offer their services via a proper request for proposals, or RFP.
“In order to not jeopardize their chance to participate in the RFP invitation, it would be best to avoid any further contact with the company,” Sablan said.
On Sept. 23, the CUC board disclosed that Capital Projects Finance Authority had gotten in touch with CUC about possibly loaning CUC the funds it needs for some of its stalled projects.
In that board meeting last month, CUC executive director Alan Fletcher said that as far as financial organizations are concerned, CUC is interested.
“We are interested but there are many issues involved so we need to discuss this with CPFA on the loan they are offering,” he had said.
CPFA describes itself on its website as “a public body corporate and politic” based in Haven, Florida, that was created for the purpose of making loans to qualified public agencies in Florida or the United States. They provide financing for capital projects.
Fletcher had said CUC would need to do some sort of request for proposal.
Sablan said that they have a contract to study the types of generators, fuel sources and financial arrangements for CUC once CUC’s financial posture improves.
“Leidos Engineering LLC, is contracted to talk to all interested financial institutions, so they can be evaluated to determine the best approach for CUC to finance capital improvements to the islandwide power system,” he said.
The CPFA firm will be presenting its case tomorrow, Oct. 30, according to CUC’s latest notice of its upcoming board meeting.