Rep. Edwin K. Propst (Ind-Saipan) described the $160,000 freight cost for a used 2-megawatt generator set for Rota as \u201cunacceptable and unbelievable\u201d\u2014an amount that Sen. Paul A. Manglona (Ind-Rota) also called \u201cjust unbelievable.\u201d<\/p>\n
Speaking during a Commonwealth Utilities Corp. board meeting yesterday, Propst questioned the estimated freight cost for the emergency purchase of a used 1992 2-megawatt generator to provide reserve power on Rota. <\/p>\n
Manglona urged the CUC board to take a step back with the emergency purchase because the electric power situation on Rota now is different from a month ago.<\/p>\n
CUC chair Miranda V. Manglona assured Propst that what she had in mind as a representative of Rota was that CUC does not put a price tag on the community of the island.<\/p>\n
Miranda Manglona said they want to procure that generator as soon as possible because Rota was then experiencing power outages and that it doesn\u2019t matter who the vendor is.<\/p>\n
\u201cWhat we had in our mind is the community of Rota. We don\u2019t want Rota continue to have all those outages,\u201d she said, assuring Propst that they are going to diligently do their job with the guidance of the Office of the Attorney General.<\/p>\n
As for Sen. Manglona\u2019s comments, she said they are confident that the OAG will steer them in the right track.<\/p>\n
CUC\u2019s procurement officer Manny Sablan, power generator manager Richard Cano, and contracting officer John Mafnas explained to the board about how the quotations were made to the vendors for the emergency purchase of the generator and the $160,000 freight cost.<\/p>\n
The $160,000 that is for unit and equipment freight cost and apparently includes logistics\u2014not just for shipping.<\/p>\n
CUC director Matthew Holley said he has a concern with the emergency purchase that he wants to discuss during their executive session.<\/p>\n
When Saipan Tribune left the CUC conference room, the directors were still in executive session about the emergency purchase as well as about executive director Gary P. Camacho\u2019s employment contract.<\/p>\n
During the meeting\u2019s public comments portion, Propst said the contract that is on the table right now is to purchase a used 2-megawatt generator in the amount of $690,000 to provide reserve power to Rota. <\/p>\n
Propst said the breakdown of the cost includes several factors and there are a few where he has some concerns, but perhaps none as great as the cost for unit and equipment freight, which will cost CUC ratepayers $160,000. <\/p>\n
\u201cThis is unacceptable and unbelievable,\u201d he said. \u201cAnd I say this because, if you have ever done any freight forwarding, or even if you talk of grocery stores that ship in containers from the [U.S.] mainland to Saipan, the cost is less than $10,000. That\u2019s for frozen goods.\u201d<\/p>\n
Propst said they know that it doesn\u2019t cost anywhere in the neighborhood of $160,000 and that was the first red flag.<\/p>\n
He said the actual cost for a 40-foot container from the U.S. mainland to Saipan without refrigeration requirements is about $8,935. He said it will take 90 days together to bring a 40-foot container from the United States to the CNMI. <\/p>\n
Propst said his understanding is that the reason why it\u2019s going to cost $160,000 is because this includes the rental of a crane. The lawmaker said CUC ratepayers should not have to pay for the rental of the crane. <\/p>\n
\u201cNo ratepayers should pay for that cost,\u201d he said.<\/p>\n
That cost should be borne by the Commonwealth Ports Authority if it refuses to ensure that Rota Terminal & Transfer, which operates stevedoring services on Rota, would pay for it, Propst said. <\/p>\n
He pointed out that, based on Rota Terminal\u2019s contract, they are required to provide that crane service. \u201cHowever, they [could] not because [their crane is] broken. \u2026Whatever their excuses,\u201d he said.<\/p>\n
\u201cBut this is not only impacting CUC. This is impacting the people of Rota, [who are] trying to get medical supplies, rice, and other things,\u201d he said.<\/p>\n
Propst said he certainly does not want to ever take a chance to see that the people go without power on Rota. \u201cWe understand the importance of getting reserve power. However, there are other options.\u201d <\/p>\n
One, Propst said, there is a 1.5-megawatt backup Caterpillar engine on Rota right now that just needs to be fixed. \u201cFrom what we have been told, the parts and everything to fix this and rehabilitate this Caterpillar engine is already here on Saipan,\u201d he added.<\/p>\n
Once the parts are brought to Rota, CUC mechanics can work on it and get it operational again, Propst said.<\/p>\n
\u201cSo, if the crane is working and if we can get a ship to bring this is in for a reasonable price, then we should do it,\u201d he said.<\/p>\n
Propst said a shipping operator that they talked to stated that they can bring a 40-foot container to the East Harbor on Rota for a mere $14,500. \u201cA mere fraction of what we are talking about,\u201d he pointed out.<\/p>\n
The other concern, Propst said, is that there has been a notice-to-proceed to purchase a brand-new engine for Rota. He said the total cost for this brand-new engine is $315,000. <\/p>\n
Propst said this engine was approved by the board at the end of January and that the contractor said it would take two to four months to bring here.<\/p>\n
\u201cTthis brand-new engine that CUC has already procured\u2026will be the main source for power of Rota, from what we have been told,\u201d he said.<\/p>\n
Propst suggested that CUC can perhaps call this company and tell them that there is a dire need for Rota to have power and request to get this new engine earlier. This is still going to save CUC a lot of money, he said. <\/p>\n
\u201c$690,000 for a reserve unit that\u2019s a used unit\u2026is a concern because, as we all know, we are faced with a $26-million deficit right now,\u201d Propst said.<\/p>\n
Citing past CUC deals, Propst said there are \u201cbad actors\u201d that are coming to CUC that have tried to make a fortune. Propst said CUC should have debarment rules and regulations to stop these \u201cbad actors\u201d from bidding on contracts.<\/p>\n
\u201cPlease understand that I come here not to oppose you or to attack or demonize you. That\u2019s not my point. I am actually here to plead with you,\u201d he said.<\/p>\n
Sen. Manglona said CPA executive director Christopher Tenorio informed him Monday that CPA has approved the opening of East Harbor for shallow draft shipping vessels to accommodate the shipping services needs of the people of Rota.<\/p>\n
Manglona said Tenorio disclosed that CPA obtained the approval from Rota Mayor Efraim M. Atalig, who has jurisdiction over this harbor.<\/p>\n
\u201cThat\u2019s a significant development because these vessels can actually carry at least two 40-foot containers,\u201d the senator said.<\/p>\n
\u201cThis $160,000 is really just unbelievable. Even all the way from the East Coast, it is still too much for us to bear,\u201d he said.<\/p>\n
Manglona also discussed the repairs done on the generators on Rota.<\/p>\n","protected":false},"excerpt":{"rendered":"
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