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Tinian’s $150M bond issue on hold
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Posted on Dec 16 1998
Tinian’s proposed $150 million bond is put on hold indefinitely following the government’s request to rethink its priority of projects amid the deepening economic crisis, according to Commonwealth Development Authority Board Chairman Juan S. Tenorio.
The feasibility study of Tinian’s economic profile and CNMI’s limited capacity to float bonds were also considered, Tenorio said.
“Tinian’s proposed $150 million bond is still on hold. One, the feasibility study has only been drafted. It’s not finished yet…not final. Two, they were asked to reprioritize their projects. And three, the issue on the proposed terminal and runway,” the CDA chief told Saipan Tribune.
The planned flotation of the $150 million bond will be on hold until these issues are resolved said Tenorio.
Tinian had proposed to float $150 million worth of bonds early this year amid pressure to finance a new health care facility, public schools and runway expansion.
Tinian leaders said the projects, particularly the runway, complement efforts to market the island as a tourist destination.
The Tinian delegation have agreed to allot at least $5 million every year from the proceeds of the municipality’s revenue to service bond payments.
Tinian’s economy was thought to receive a boost from the hotel and casino, which opened early this year.
But although the hotel and casino had so far managed to survive the crisis, it did not meet earlier revenue forecast.
CDA is scheduled to have a board meeting Thursday to discuss Tinian’s case and the government’s plan to float $75 million to $80 million worth of nonrated bonds to match the untapped $85 million federal grants.
