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June 05, 2009

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Has the power supply gotten any better with the new General Manager? Does not seem like it. I know PPUC Board turned down all people interviewing for the GM's job to keep the current one.

Perhaps the short term solution in solving our utilities problems is to privatise Power, Sewage, telecommunication and waste disposal.

Issue out contracts to international companies for about 15 years to 25 years with conditions for said companies to upgrade our utilies to a fixed level.

This will give the government the required time to sort itself out financially.

Redherring,

What a splendid idea.

You're the man. More good suggestions please!

But to offer out a contract to a 3rd party group -expecting that they would have to operate current facilities, upgrade the power generation equipment facilities, as well as the transmission and distribution facilities which would require substantial costs-thereby increasing the current costs of electricity per Kwh by at least a third per Kwh-then on top of that-there would be the expected profit by an amount for return on their initial investment of at least 10-15% (currently PPUC is a not-for-profit corporation)included on top of the previous mentioned cost.

A company would also want formal written into law guarantees for needed rate increases, and guaratees for collection of arrears and debts from private and commerical/utility customers (like the ROP government/state governments that already has the largest amount of arrears that the PPUC has never been able to collect on in any fashion) - thee are all the exact same things the US Department of Agriculture (RUS system) wanted and could not get-so they would not give PPUC the loans to uppgrade and replace the current power generation, transmission and distribution systems. There was no demand for profits or percentages-just guarantees for rate increases as needed, and guarantees for enforcement of collections from the National and State Governments.

If you could get someone to come in for a 25 year term, utilize the monies currently in investments by PPUC for upgrades, and get the aforementioned guarantees from the National government, and take only a 5-7% return-that would be good for Palau.

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