CDA says Plumeria loan proposal ‘difficult’

Commonwealth Development Authority board chairman Tom Glen Quitugua expressed reservations on the proposed use of capital improvement monies as repayment tool for the proposed $5.7 million loan for the Plumeria housing project.

“It’s difficult because they’re all using CIP interests on all ongoing projects. They’ve got to complete pending projects first such as the prison project, the hospital project. Only then can we sit down and look at the figures,” said Quitugua.

Further, he said that the since the loan is a public debt, it requires the approval of the Legislature.

“It’s difficult because we’d be dealing with the Legislature,” he said.

Right now, he said, there is no available funding source to use as repayment tool for the proposed loan.

Earlier, Housing Task Force chairman and Public Works Secretary John S. Reyes said that 702 capital improvement funding is eyed as a repayment tool for a proposed $5.7 million “bridge” loan with the Marianas Public Lands Trust for the Plumeria Estate.

Reyes said that the government aims to tap the CIP funds for years 2007 and 2008 for the utility and roadways infrastructure of Plumeria Estates.

This housing 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.

Recently, Quitugua said the government can do without the loan if it makes use of infrastructure-ready site for the Plumeria project.

Quitugua reportedly suggested that the government revitalize the abandoned MIHA housing site in Garapan.

Currently, the Garapan site has dilapidated and unoccupied housing units.

Earlier, the Babauta administration proposed that Commonwealth Utilities Corp borrow the needed money to finance the infrastructure project.

Based on 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, on the other hand, 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 alternative funding source for repayment of the infrastructure project.

Reyes said that the awarding of project contract will be held off until the funding for the infrastructure is secured.