Power Utility Gets Critical $3.5M Loan
(Saipan Tribune)
The Northern Marianas Commonwealth Utilities Corp. yesterday received a $3.5-million loan from Marianas Public Land Trust to pay for emergency power and settle debts with its contractors, the Saipan Tribune reports.
About $1.5 million of the money was immediately deposited into the account of the Scotland-based Aggreko International, which CUC had hired to provide up to 15 megawatts of temporary power to Saipan.
CUC will use the balance to pay debts to contractors: $1.1 million to Pacific Marine Industrial Corp. and $800,000 to Telesource CNMI.
Under the terms of the loan, MPLT will charge CUC seven percent interest to be paid in monthly increments of about $20,000. At the end of three years, CUC is supposed to repay the $3.5 million principal.
CUC executive director Antonio S. Muna said Aggreko is poised to ship the rental generators from the company's Singapore headquarters this weekend. CUC anticipates delivery of the generators by Sept. 8. The engines are expected to be operational within six days after delivery, and put an end to the rotating blackouts on Saipan.
“I am relieved not only for me, but from the public's standpoint,” Muna said after receiving the $3.5 million check from MPLT. “With the emergency power from Aggreko, we can manage our power supply and eliminate the rotating blackouts that we've been going through for the past two years. That will give us a chance to step back and approach fixing the engines without the desperation of meeting power demand at the same time,” he added.
http://www.saipantribune.com/newsstory.aspx?newsID=82240&cat=1
