24 Jan 2013

Controversial company points to US$500m savings in power deal

1:13 pm on 24 January 2013

The Delaware-based company Saipan Development LLC says its controversial power supply deal in the Northern Mariana Islands can generate hundreds of millions of dollars worth of savings.

In an open letter to the CNMI public, the company says drastic improvements in technology means it can generate more than 500 million US dollars in savings under its power purchase agreement.

The 191-million US dollar deal, signed off secretly by CNMI governor and the former attorney general means Saipan Development LLC, would provide diesel generated electricity to the main utility for 25 years.

The company's open letter comes weeks after the Attorney General Joey Patrick San Nicolas said the power purchase agreement signed last year is void and unenforceable.

The administration of Governor Benigno Fitial agrees with the attorney general's legal opinion.