PUP agreement proposed to build RO system on Saipan
A dinner meeting headed by the Office of the Lieutenant Governor on a proposed public-to-public partnership agreement to build a reverse osmosis water treatment plant on Saipan was attended by the Commonwealth Utilities Corp. and some members of the Legislature at the Fiesta Resort & Spa last night. (Frauleine Villanueva-Dizon)
A public-to-public partnership agreement with the Capital Projects Finance Authority to build a reverse osmosis water treatment plant to address Saipan’s water problems was proposed at a dinner meeting at the Fiesta Resort & Spa last night.
The meeting, initiated by the Office of the Lieutenant Governor, was attended by members of the Legislature and a quorum of board members and management of the Commonwealth Utilities Corp. and discussed the proposed reverse osmosis system to be implemented on Saipan and how it can be financed.
According to John Gonzales, chief of staff to Lt. Gov. Victor Hocog, they invited some senators and representatives for the presentation which started around 8pm. However, some representatives were not informed until around 7:30pm.
Robert Toelkes, who said he is a consultant for Hocog but is not under contract, according to Gonzales, was representing the lieutenant governor’s plan to address the water issue on Saipan, led the presentation.
Toelkes is also the president of Financial Solutions Group and International Bridge Corp., a company which filed for bankruptcy last year in the midst of its project to rebuild the John F. Kennedy High School in Guam and maintain its facilities for the next 25 years.
The Capital Projects Finance Authority or CaPFA, which was being proposed for the CNMI to enter into an agreement with, was also involved in the JFK project in Guam. CaPFA described itself as “nominal owner” of the high school.
According to its website, “CaPFA is a public body corporate and politic, created pursuant to Ordinance No. 214, duly enacted by the City Council of the City of Moore Haven, Florida on Sept. 23, 1993 for the purpose of making loans to qualified Public Agencies in the State of Florida or in the United States.”
“Capital Projects Finance Authority is a governmental entity and their goal is to assist credit challenged municipalities and that’s what they do,” Toelkes said.
In his presentation, Toelkes said that a six-million-gallon-per-day reverse osmosis water treatment plant was the immediate solution to the water problem on Saipan.
He said the RO system would be located in Lower Base adjacent to Power Plant 1 and will be housed in a precast concrete structure. The plant will include a full standby power utilizing existing rebuilt generators from Power Plant II.
The existing nine million gallon tank at Sadog Tasi would be rehabilitated and used as clear well water storage, according to Toelkes.
Toelkes said the reverse osmosis system would cost $160 million and would take 12 months to build—during which leaks and problems in the distribution need to be addressed. The cost of operation was estimated to be at $10 per a thousand gallon water.
The CUC board seemed to support the proposal, echoing Toelkes presentation that an RO system would be the immediate solution for Saipan.
However, leaks as well as problems with the aged pipes, which could later on cause contamination was raised.
Gonzales said the proposals are “options if and when the declaration is made.”
The CUC board last month requested for a declaration of emergency on the water situation on Saipan, also stating the fact that they do not have the financial capacity to address the issues. The move was seen as a possible way to circumvent the normal procurement process.
CUC board member Ignacio Perez commented that requesting for proposals on this kind of project will not give an offer like the one presented.
“This offer is a solution for power generation, reverse osmosis,” Perez said.
Asked if they will issue an RFP for such a project, CUC board chair Adelina Roberto said she has “no idea because the governor and lieutenant governor is involved now.”
“If it’s not RFP and the government gets involved, then it’s okay for CUC. That’s why CUC requested to declare a water emergency because we need the government to help us because we just don’t have the funding,” Roberto said.
With the financing proposed, CUC will not pay for five years after the system is built, according to board chair Adelina Roberto, but there is a 5 to 7 percent anticipated interest rate. CUC will pay for the project for 30 years.
When asked if she supports the proposed project, Roberto said, “We would like to go to RO system if that’s the best solution. If that’s the best solution, then we go for the best solution.”
Funny, again more losers involved, a bankrupt company, a CUC board member that has no idea of just what and how a RO system works.
A cost of $10 per 1k gallons just to produce the water. As I stated in the past a RO system is not cheap t operate and maintain.
Just how much will this system cost the Govt. after 5 years and the 30 years on after?
How much waste products will this plant produce, if any? How will they be disposed of?
This is an incomplete article, did anyone at this meeting ask any questions or were they only there for a free dinner?
Another question is why was it si difficult to give advanced notice to the lawmakers. Seems this may be another one of Victor’s scams.
Exactly on point, Captain! We are witnessing a disaster in the making. Why isn’t the CUC Chief Engineer for Water and Wastewater not invited to these presentations and all expenses paid “Fact Finding” trips to Fiji and South Korea? Why is he not making technical statements regarding solutions to our water problems? We are paying this engineer over $130K per annum and he is relegated to the sideline – a BENCH WARMER!! Unbelievable! I read ALL the statements made from the Lt. Governor’s staff to the CUC Board members and the explanations we read are embarrassing! Adelina, I suggest you shut your mouth when trying to explain why we “NEED” Reverse Osmosis system because you have no clue! Where are you planning on installing this facility when it comes time to construct? Who is going to foot the maintenance and energy cost? We paid Duenas, Camacho & Associates $1M for an EPA/DOJ Stipulated Oder required Water and Wastewater Master Plan – Why aren’t we following that document?!!ARRRGGGGH! Unbelievably stupid!
Interesting story. . . fix the leaky pipes, change out defective meters, and build more storage tanks FIRST, that will save about 5-6 million gallons a day, and you can store more water in new storage tanks. . . $160 million for the reverse osmosis system! And this company in Florida is going to give CUC credit? Who’s money is at risk here? That municipal government in Florida is stupid to offer such an expensive system to CUC with the kind of board members sitting there. Sorry, Mr. Toelkes. You screwed the Guam government on the JFK high school project, then abandoned your 25 year maintenance obligation. CUC board and CNMI government, talk first to Gov. Calvo to find out what this guy did on Guam before you take his offer. Consultant for the Lt. Governor? So, this whole reverse osmosis system seems to be a conspiracy to screw the CNMI public. . . Declare emergency; skip the procurement process, and then buy the system from this bankrupt guy. . . hmmmm. . . will someone or all of them have a house built in Florida for retirement! This deal smells “po chada”.
Oh Great Idea, the City of Haven with population of 1200 in Florida, is finally going to be able to get some brilliant islanders to provide much needed revenue source to back Haven Revenue Bonds, which is supposely to finance Haven projects not Saipan projects. Great idea for cleaning out the CNMI treasury. I support whatever it takes to give people in power enough rope to hang themselves. Please get the show going!!! Anyway the idea is good. Fund CUC to bring in power and water. But the execution? Diesels from Korea – what is wrong ? Ever heard of EPA Tier IV program for air emissions? No one except Caterpillar can comply. Definitely not Daewoo engines. So they come up with using LNG? Right, how are you going to use LNG when there is a 5 year contract with Mobil for diesels? So they think Reverse Osmosis, at $10 per thousand gallons Great, but all those pipes are leaking and the rate payers stealing water, so who will pay for putting expensive water into leaky pipes? Jesus, God gave us a beautiful island but we filled it up with XX@@@????? Common Governor and Lt Governor, we appreciate your good intent, but could you both do some homework first? It is like a couple of guys that tell us they want our kids to be scientists, but get chinese drug dealers to be the teachers. They say in Ozzie, its BALLS UP!!!
Just what this govt needed now is to start with a person highly connected with a bankrupt company called FINANCIAL SOLUTIONS GROUP. Good gracious is this company have any relation with our SOLUTION DRIVEN TEAM of IT (Inos/Torres) group? When can you guys start doing something RIGHT just for change; tired of hearing CORRUPTION. Please have mercy on us all.
OTEC can supply plenty pure water, energy with lots of cool (literaly) side benefits per this article from one of the pioneers.
… Once we prove the technology on Saipan, imagine what it could do for places like Haiti. … Running the frigid pipes through heat exchangers produces unlimited air-conditioning that costs almost nothing. Draining their sweat yields an endless supply of freshwater for drinking and irrigation. The cold water also creates a temperature difference between root and fruit that Craven believes speeds growth. And by turning the flow on and off, Craven has found he can further accelerate the plants’ growth cycle by forcing them in and out of dormancy – he can get three crops of grapes a year and pineapples in eight months instead of the usual 18. … http://www.wired.com/2005/06/craven/
For those with the time and interest, stay away from snake oil salesmen?http://www.gewater.com/ is a good place to start for ACTUAL information from a respected global leader in the industry. No, I am not associated with GE, just sick of seeing lame brained bureaucrats getting led by the nose to yet another disaster.
Thank you, Sir!