$24 million CIP projects underway • Proposal to include construction plans vetoed by governor

Administration officials handed over yesterday to the Legislature a new measure listing down specific capital improvement projects worth more than $24 million, including items previously vetoed by Gov. Pedro P. Tenorio in an apparent move to please lawmakers.

The proposed legislation, sponsored by Rep. Karl T. Reyes, is expected to pass the House of Representatives today during an emergency session called specifically to vote on the bill.

A supplemental to an initial CIP measure signed early this month into Public Law 11-78 by the governor, the proposal will increase the total appropriation by more than $1 million from the $22.9 million earlier allocated by the Legislature.

The funding boost is made possible by additional source of money identified from public land lease payments which will be set aside for various homestead projects included in the CIP master plan.

Senators yesterday declined to comment on the proposal despite decision of the administration to reinstate projects they inserted at the last minute, but were vetoed by Tenorio in fear it would compromise the integrity of the master plan.

Under the new proposal, the expansion plan for the Rota Airport runway, road improvement in Songsong and Sinapalo on Rota, as well as expansion of the Tinian West International Airport are now part of the priority list.

Other projects on Saipan have also been reinstated, like the proposed improvement on Nang Ocha Road in San Vicente and Chinatown sewage project, while adding utility projects in both Koblerville and Tanapag homestead.

A bone of contention between the legislators and administration officials, these pet projects, estimated to cost more than $9 million, eat up about 40 percent of the entire amount.

To comply with the CIP provisions, expenditure authority for these projects, however, will remain with the public works secretary, but they may waive the CNMI procurement laws if the governor deems their construction urgent.

Prison funding slashed: In a technical amendment to the recent law, the bill will also cut by 20 percent or $1.81 million the initial appropriation for the first phase of the new adult prison, immigration and youth detention facility of the commonwealth government, from $8.84 million to $7.03 million.

The administration has attributed the reduction to shortfall in the source of funds — bond interest and income of the Commonwealth Development Authority — to match the federal grants as provided under Section 702 of the Covenant.

Some $12.1 million from local sources, such as developer’s infrastructure tax and poker fees, have been identified by the island government to meet the dollar-for-dollar matching requirement under the CIP agreement, for a total of $24.2 million.

This represents a portion of the $154 million provided in the entire package, half of which will be made available by Washington until 2002 on condition that the CNMI sets aside equal amount.

The master plan mapping out 50 priority projects on Saipan, Tinian and Rota is intended to fast-track use of the federal grants in view of recent attempts in the US Congress to slash federal aid to the CNMI due to failure to spend the money.

Island officials also hope the CIP money would help spur the local economy by funneling funds into various infrastructure projects which are viewed as their only ray of light amid continuos decline in tourist arrivals as well as anticipated slowdown in garment manufacturing due to the recent $1 billion lawsuits.

Washington has committed to allot $11 million each year beginning in 1996 until 2002 to the CNMI provided the island government sets aside a dollar-for-dollar matching from its own coffers.

The Northern Marianas is reeling from its worst crisis in years spawned by the prolonged recession in Asia, its main tourism market and source of investments.

Finance officials maintain more than $300 million are expected to be funneled into the economy in both direct and indirect contributions once these CIP funds are used by the government.