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CPA to float $7.18 million bonds for seaport project
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Posted on Apr 25 2005
The Commonwealth Ports Authority will be floating $7.18 million in revenue bonds—$1.18 million greater than the previous estimate—to finance the concrete paving of the Saipan seaport container yard.
CPA had budgeted $6 million for the project. However, it was found out that only $4.8 million would be available for construction expenses if CPA proceeded with this budget.
CPA executive director Carlos Salas said a gross budget of at least $7.18 million was needed to fully finance the container yard paving, including the interest and processing fees. About $5.9 million of this amount will go to the actual construction.
Saipan Stevedore Company Inc., the sole stevedore operator at the Port of Saipan, has committed to contributing $2 million to the repayment of the bonds by amendment of its lease agreement.
Last Thursday, the CPA board of directors adopted a resolution allowing Salas to issue the $7.18 million bonds and to enter into negotiations with Saipan Stevedore.
Salas was also authorized to negotiate with Altura, Nelson & Company Inc. as bond underwriters, Orrick, Herrington & Sutcliffe as bond counsel, and Quaint & Thimming LLP as disclosure counsel with respect to the issuance of the bonds and the associated costs and fees.
The CPA board further tasked Salas to notify and seek the approval of the Commonwealth Development Authority of the proposed issuance of the bonds.
The bond issuance remains subject to the final review and approval by the board.
