MPLT wants to know if NMI is in compliance with EDA grant terms
Before it can extend a $20-million line of credit to the CNMI government, the Marianas Public Land Trust wants to see first a letter from the U.S. Economic Development Administration certifying that the CNMI is currently in compliance with EDA grant terms.
This was among the list of requirements that MPLT is asking for in reviewing Gov. Arnold I. Palacios’ request for MPLT to consider extending a $20-million line of credit for several federally funded capital improvement or infrastructure projects in order to get these projects going.
MPLT board of trustees chair Phillip Mendiola-Long stated in a letter to Palacios last week that they want to see a working plan proposal that will help them understand the request for line of credit, specifically the timeline of the proposed projects.
Last July 17, Palacios asked MPLT for a $20 million revolving line of credit for reimbursable federally funded grants for Capital Improvement Projects administered by the EDA.
Mendiola-Long said that, under the working plan proposals, they want an EDA letter confirming that the proposed line of credit does not violate the terms of the grant agreement.
He said the letter should also state whether or not reimbursements for these grants can be assigned and paid directly to MPLT as settlement for the line of credit extended to the CNMI government.
The chairman said they also need other details such as current outstanding/ongoing projects and their progress; priority project listing and cost estimates; the status of the procurement process for each project; funds drawdown timeline; and if there are any of the interest costs on the line of credit eligible for grant reimbursement.
Mendiola-Long also asked for details of the architectural and engineering designs that have been performed to date and if none, when will they be completed and who is performing the project. He also asked for details of the cost budget and estimated completion timeline.
Mendiola-Long said the requested information is a requirement as part of their due diligence process and in supporting the trustees in deciding on the proposed investment, particularly in planning or scheduling of anticipated funds drawdown requests.
Palacios had also asked MPLT to consider lowering the interest rate on the government’s existing loan with MPLT that was used to fund various typhoon-related expenditures.
Palacios said these lines of credit and lowering the interest rate proposals will provide “safe, local investment opportunities that not only help current beneficiaries of the trust fund but future generations as well.”
He said the $20-million line of credit could be a type of bridge financing or advances to cover the costs of the initial stages of construction of these capital infrastructure projects.
Finance Secretary Tracy B. Norita had earlier disclosed that some $289 million worth of CIP funds are in the pipeline.
Marianas Public Land Trust office on Capital Hill.
Phillip Mendiola-Long
