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Details sought in Saipan port lease proposal
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Posted on Apr 28 2009
The Commonwealth Ports Authority is being urged to fully disclose the details of its lease proposal with a new investor that plans to pour $100 million in fresh capital to the Port of Saipan.
In a letter to CPA executive director Efrain F. Camacho Monday, local watchdog Taotao Tano CNMI Inc. asked the agency to hold a public hearing before a decision is made on the investment proposal of Allegiance Capital Corp.
The company earlier said it wants to lease the whole Lower Base area for its military-related project.
“We may not agree on certain issues but we hope that a public hearing is called on this matter. Although the offer sounds interesting, we would like the full details,” Taotao Tano president Gregorio Cruz Jr. told Camacho.
Cruz submitted an Open Government Act to obtain a copy of the lease proposal.
Saipan Tribune earlier reported the planned investment, which could potentially be the biggest investment in the history of the Port of Saipan.
Besides CPA’s standing leases in the area, the investment plan would include the Power Plant 1 property.
Camacho, in his e-mail response to Taotao Tano, assured that CPA will exercise “caution” to make sure the public’s concern is heard.
However, he said the agency has not made any decision yet on Allegiance Capital’s proposal and is still evaluating all information it has so far received.
“CPA has as much questions about Allegiance Capital Corp. as anyone and will of course be asking them,” Camacho added.
He said there is no leasehold document at this moment nor is one being developed.
On the possible relocation of Power Plant 1, Camacho said the identified property is outside CPA’s jurisdiction. Negotiation with the power plant property must go through the Department of Public Lands.
Early this week, Gov. Benigno R. Fitial confirmed that the company is “willing” to pay for the power plant’s relocation.
A 25-year lease agreement is reportedly being eyed for the new investment.
