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CPA signs $14M contract with Boeing
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Posted on Aug 03 2005
The Commonwealth Ports Authority signed yesterday a $14.3-million with Boeing for the enclosure and air-conditioning of the Saipan International Airport.
CPA executive director Carlos Salas, who is coming back from Honolulu today, said that with the contract now signed, CPA would give Boeing the green light to start construction sometime around Aug. 22, 2005.
Salas said the groundbreaking for the project is tentatively scheduled for Sept. 2, 2005. This comes eight months after the initial date set for the start of construction. The delay results from funding problem that CPA encountered over the past months.
CPA originally budgeted $10.1 million for the federally funded project, including the $1-million design contract with Boeing. But due to the high cost of needed technology, the construction cost shot up to $14.3 million, resulting in a budget shortfall of $5.2 million.
CPA finally identified a funding source in its future grant entitlements from the U.S. Federal Aviation Administration. Salas said the FAA would release $2.6 million from the ports authority’s entitlement for fiscal year 2006 and another $2.6 million from FY2007.
The airport project includes enclosing and air-conditioning the departure area, as well as the installation of new counters, an online baggage conveyor system, and a state-of-the-art explosive detection system.
Construction is expected to be completed within 20 months.
