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Leg. reviews $60 million bond for CIP projects
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Posted on Sep 10 1999
The proposed $60 million bond now moving forward in the Legislature is intended to boost the local economy and lawmakers are hopeful it would be finalized by the end of this year.
According to Rep. Karl T. Reyes, Chairman of the House Ways and Means Committee, the proposed allocation of the funds should be similar to the spending plan implemented by the Governor’s 702 Multi-Agency CIP Task Force.
That spending plan required projects to be selected for funding through a prioritizing process where certain criteria would be met for each specific project. Projects were identified by the various departments, agencies, joint legislative delegations, and mayors’ offices for the CNMI’s three major islands.
The first priority, Reyes said, will be to refinance about $12-$15 million in locally funded projects so the Commonwealth Development Authority and CNMI General Fund could be reimbursed. Next, he said, funds must be utilized for critical tourist site projects in tourist districts and beaches on Saipan, Tinian, and Rota.
“Tourism is our dominant industry in the CNMI,” he said, “we need to give it top priority and nurture this important industry. Tourism will be even more important as the garment industry will likely begin to decline as we approach the year 2005 and international textile agreement take effect.”
The balance of the funds, he said, should be prioritized and subject to the same criteria as the 702 spending plan. “The plan is a dynamic plan as much as possible and a process for amending the plan is provided.
House Bill 11-435, the Capital Improvement Projects Bond Authorization Act of 1999, will permit the CNMI to meet its dollar-for-dollar matching obligation to spend the balance of $154 million in CIP funds, half of which is provided by the federal government.
