CNMI to get largest share of federal CIP funds

President Bush recently signed the Fiscal Year 2006 Interior, Environment and Related Agencies Appropriations Act, which contains substantial infrastructure project funds for the CNMI. Included in the Act are $11.2 million for Capital Improvement Projects under the 702 Agreement signed in 2003.

“This is absolutely good news for the CNMI,” said CNMI Resident Representative Pete A. Tenorio. “It shows that our government has done a good job of managing prior years CIP funds, and that improvements to our water systems are continually being funded on a high priority basis.”

According to the President’s submittal to Congress, Covenant funds beginning in FY 2005 are allocated to the territories in a competitive system that allows opportunities to improve accountability and provide incentives for territorial management and financial reforms.

Under this new system the CNMI receives a base amount of $11 million, American Samoa $10 million, and Guam and the Virgin Islands each receive $3.360 million.

“The CNMI receives an additional $200,000 as an incentive bonus for its good management and timely completion of CIP projects,” Tenorio said.

The Office of Insular Affairs annually ranks the territories on 13 criteria, which are each assigned a score of 0-4. These scores are used to determine the annual allocation of funding among the insular area grantees. The management criteria include the status of audits, quality of financial and grants management, and compliance with procurement rules. There are also project criteria, including how well each proposed project support economic development goals and objectives, whether a project has measurable objectives, if it has measurable milestones, and if the project has detailed cost estimates that are within budget targets.

Of the total amount budgeted for Covenant funds for FY 2006, American Samoa will receive $9.542 million, Guam will receive $3.42 million and the Virgin Islands will receive $3.568.

The CNMI will also be receiving $5.171 million in Compact Impact funding under this budget as authorized in the 2003 renegotiated Compact funding agreement.

“I feel very positive about this Appropriations Act,” said Tenorio. “We have done very well considering the number of budget cuts the President and Congress are implementing in order to fund the War on Terror in Iraq and Afghanistan.” (PR)