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702 money eyed for $5.7M Plumeria loan
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Posted on Sep 21 2005
The Housing Task Force is eyeing 702 capital improvement funds as a repayment tool for a proposed $5.7 million “bridge” loan with the Marianas Public Lands Trust for the Plumeria Estate.
Task Force chair and Public Works Secretary John S. Reyes said Tuesday that the government aims to tap the capital improvements project funds for years 2007 and 2008 for the utility and roadways infrastructure of Plumeria Estates.
“We’re working with MPLT to provide us with the money. This is a bridge loan. We’re using the 702 funds for repayment,” said Reyes.
The Babauta administration had proposed to the Commonwealth Utilities Corp. to borrow the needed money to finance the infrastructure project. Under this plan, $2.2 million of the loan will go to CUC for the construction of sewer lines, water lines, and power lines at Plumeria Estates. The repayment of this shall be guaranteed from the utility charges of the estates’ 128 households.
The other $3.3 million will be used for the roads and drainage construction and will be repaid by the Governor’s Office.
The administration has also looked at the Marianas Public Lands Authority as an alternative funding source for repayment of the infrastructure project.
Meantime, Reyes said that the awarding of the project contract will be held off until the funding for the infrastructure is secured.
The Plumeria Estates project involves the construction of new houses at approximately 13 hectares of land in Koblerville.
Up to seven different styles of residential homes will be built based on plans and specifications provided by the Northern Marianas Housing Corp.
A total of 128 houses with two-, three-, and four-bedroom units will be available to first-time homeowners at a low price, the government said.
