KPress Vol. 08 Iss. 05

From Habele Institute

Jaynes, Bill (2008-02-06). KPress Vol. 08 Iss. 05 (PDF) (Report). Kolonia, Pohnpei: Kaselehlie Press.

Abstract: KPress Vol. 08 Iss. 05: NEWS: Palikir, Pohnpei—The Pohnpei Utilities Corporation (PUC) reported ongoing difficulties with Mobil Oil Micronesia, Inc. (MOMI) beginning in March 2007, when MOMI announced changes to the terms of its fuel-supply contract, informing PUC—then under General Manager Marcelino Actouka—that the contract would expire on June 30, 2007, that no additional credit would be extended, and that all fuel purchases would thereafter require prepayment; the announcement sparked widespread concern in Pohnpei over a potential fuel and energy crisis beginning July 1, though such a disruption did not occur after MOMI renewed the contract for two additional quarters, with the final extension ending December 31; PUC’s attorney Joe Phillip stated in court filings that further short-term extensions were granted only after repeated requests, including a final 30-day extension; MOMI asserted that it had been engaged for more than a year in negotiations to sell its FSM assets to the FSM Petroleum Corporation, now known as PetroCorp, and that the shortened contract terms were intended to facilitate a rapid transfer should the sale proceed, while negotiations reportedly stalled pending agreement by Pohnpei State; amid uncertainty over future fuel supply, PUC issued a Request for Bids for diesel fuel to six suppliers, including MOMI, in mid-December, seeking one-year bids for an estimated 2.8 million gallons of fuel, with reporting noting disputes over the precise issuance date but confirming that PUC complied with statutory requirements governing competitive procurement for expenditures exceeding $25,000 by soliciting bids and selecting the lowest responsible bidder; OPINION / EDITORIAL: a column reflects on waste-management issues in Pohnpei State, with views attributed solely to the author.