Norita backs sticking with MPLT on $15M line of credit
Finance Secretary Tracy B. Norita said yesterday that, since the $15-million line of credit with the Marianas Public Land Trust is already moving forward, she would recommend that the CNMI government keep to this initiative instead of pursuing other means to acquire the necessary funds.
In response to a question by Sen. Corina L. Magofna (Ind-Saipan) during the Senate Fiscal Affairs Committee hearing, Norita said they’ve spent a lot of time already in discussions about this MPLT line of credit, developed processes and procedures, and they have already looped in the U.S. Economic Development Authority.
“So we are in the interest of moving the projects forward. Every day counts for our vendors or contractors. We just want to move the projects forward,” she said.
Norita’s statement was in response to an earlier question raised by private citizen Liana Hofschneider if the Commonwealth Economic Development Authority had also been considered as an institution to request for a loan or line of credit.
Norita appeared before the Senate Fiscal Affairs Committee to testify on House Bill 23-95, House Substitute 1, which is a bill that repeals and re-enacts a just-enacted law that authorizes a $15-million line of credit with the MPLT.
Aside from Norita, MPLT board of trustee chair Phillip Long and Office of Planning and Development director Elizabeth Balajadia also testified before the committee.
Norita said to restart and look for another financing source—if they must—could be done, but the MPLT line of credit is already an opportunity to move forward with many infrastructure projects in the CNMI
“We are so close. And so this would be the avenue that we would support,” Norita said.
He said if this legislation is not amended, MPLT is going to be placed in a very tenuous spot to where they would not be able to enter into an agreement with the administration. Long said this particular loan pins MPLT at 5.5% interest but has a much larger risk profile than a U.S. Treasury.
“So you’re exactly on point in pointing out…that there would be a significant opportunity loss,” said the chairman in response to a question.
Sen. Donald M. Manglona (Ind-Rota), who chairs the committee, continued the meeting to today at 2:30pm, Friday, and requested Norita to return.
Last Nov. 20, Gov. Arnold I. Palacios signed House Bill 23-77, Senate Draft 1, into Public Law 23-12 to authorize the $15-million line of credit. However, the House of Representatives saw a need to fix the new law; this prompted Speaker Edmund S. Villagomez (Ind-Saipan) to introduce House Bill 23-95, HS1. The House passed it and the bill is now before the Senate.
Tracy B. Norita
