Aging infrastructure, funding needs highlighted at Chamber Economic Forum

Aging power plants, airport modernization needs, and ongoing road projects were among the infrastructure challenges highlighted during the Saipan Chamber of Commerce Economic Forum held last March 11 at the Kensington Hotel.

Officials from the Commonwealth Utilities Corp., Commonwealth Ports Authority, and Department of Public Works outlined current conditions and future plans aimed at supporting economic recovery in the CNMI.

Speakers said reliable utilities, transportation infrastructure, and digital connectivity remain essential for economic growth, tourism recovery and business development across the islands.

The Commonwealth Utilities Corp. said most of Saipan’s generators are decades old and increasingly difficult to maintain.

CUC chief financial officer Betty Terlaje said Saipan currently has 49.5 megawatts of available generating capacity out of a designed capacity of 101 megawatts, with most units already well past their intended service life.

“Except for the newly commissioned diesel engine… the remaining 19 engines that we have located at Power Plant 1, 2, and 4 are very old, spanning from 26 to 40 years in age.”

She said many of the engines require costly repairs because replacement parts are no longer manufactured.

“Original engine manufacturers no longer sell parts needed to overhaul the engines.”

Terlaje also addressed ongoing efforts to reduce electricity costs and explore alternative energy sources.

“Yeah, there are a few things that I didn't mention in the slides… everybody wants their rates to be lower, right? CUC employees, none of us get a discount, so we feel it too. But we are looking at a lot of other alternatives. In our request for funding, we have requested for funding for geothermal… we're looking at other renewable alternative sources for power. There's the micro nuclear that came up too… CUC is looking at alternative ways because it is not easy to continue to operate the way we're operating. Any other alternative that would help us bring down our costs is in our mission at this point. So rest assured to the stakeholders that that is what we're doing.”

She said a rate case has been filed for the first time in over a decade, with plans for gradual increases over a five-year period to reduce the impact on customers.

“The one thing that would raise the rates for residential and commercial more than maybe we would like to is that the government can no longer subsidize the community… the rates will be spread out accordingly to all class of customers.”

Terlaje added that while solar power and renewables are part of the plan, they alone will not immediately reduce electricity rates.

“The perception by the community that solar will bring the cost down is not necessarily what we forecast in the next five years.”

Terlaje said CUC has submitted a $700-million funding request to replace aging engines and upgrade infrastructure.

“CUC needs to fix its engine problems as it remains the reliability anchor while renewables are being integrated.”

CUC has also filed a rate case, noting that power rates have not been increased since 2012.

Commonwealth Ports Authority executive director Esther Ada said maintaining and modernizing airport infrastructure is critical to restoring tourism and improving connectivity.

She noted that the Francisco C. Ada-Saipan International Airport terminal is approaching 50 years in service.

“Saipan International Airport has served the CNMI for nearly 50 years and is beginning to show its age.”

Ada said the authority is making targeted improvements while planning for a long-term terminal replacement that could take five to 10 years to complete.

She added that CPA is also working with the Marianas Visitors Authority to help restore air service and increase visitor arrivals.

Department of Public Works Secretary Ray Yumul highlighted several road projects underway or planned across Saipan, including improvements along Route 33 and continued upgrades to the island’s highway system.

Ada also said DPW is preparing to break ground on Saipan’s first roundabout near American Memorial Park.

The department is also working on landfill expansion and solid waste management upgrades across the islands.

Broadband Policy and Development Program manager Edwin K. Propst said digital infrastructure is becoming just as important as roads and utilities for economic growth.

He said an $81-million federal broadband grant will support expansion of fiber infrastructure across the CNMI.

Propst also discussed the planned subsea cable landing on Tinian through a Google-backed project that could significantly improve internet speed and reliability.