Guam – Former CNMI Attorney General Edward T. Buckingham signed off on a 25-year power purchase agreement with a private company granted “exclusive right to develop a diesel-generated electric power plant” on Saipan for a total “guaranteed price” of $190 million a day before his controversial exit from the CNMI.
The Saipan Tribune reports that Gov. Benigno R. Fitial, who left Saipan Tuesday for a three-week off-island trip, also signed off on the 41-page agreement with Saipan Development LLC, a private company organized in Delaware.
Under the agreement, the Commonwealth Utilities Corp. will pay Saipan Development LLC some $636,000 a month—equivalent to $7.6 million a year—for 25 years in exchange for building, operating, and owning a power plant to be developed on Saipan.
In addition to the guaranteed price, CUC also agreed to pay Saipan Development LLC an operations and maintenance fee of 0.02 cents per plant-produced kWh per month as well as pay a production fee of .015 cents per plant-produced kWh to cover the costs of lubricant oils consumables and spare parts.