$100M investment proposed to CPA

A U.S. company recently met with officials of the Commonwealth Ports Authority and is proposing to infuse $100 million in investment to the Saipan seaport.

Saipan Tribune learned that a 25-year lease agreement is being drafted between the Allegiance Capital Corp. and the CNMI government.

A source privy to the issue disclosed that Allegiance Capital wants to plunk down over $100 million to the entire Lower Base dry dock property of CPA in line with the company’s project with the military.

Last Friday, CPA executive director Efrain F. Camacho confirmed that a company has expressed interest in leasing the big portion of seaport property.

“Yes a company has expressed interest in leasing the whole seaplane ramp area at Lower Base belonging to CPA,” he admitted, adding that the agency will work on addressing a possible lease.

Saipan Tribune learned that the private company is being assisted by former CNMI Attorney General Matthew Gregory who is coordinating with the CPA legal counsel on the drafting of the lease agreement.

The whole seaplane ramp area in Lower Base currently is the site of a submarine station, a restaurant, and the holding area for Tinian boats.

Once finalized, these facilities need to be relocated and will be paid by the company based on the proposed plan of use for the area.

The source said prior to coming to CPA, which will authorize the lease on the property, company officials met and presented the proposal to Gov. Benigno R. Fitial.

Based on the proposal, the whole dry dock area will be used for big vessels in connection with the U.S. military buildup in Guam.

Three big vessels are expected to dock all at the same time in the lease area, according to the proposal.

The project, the source added, was approved by the military.

Saipan Tribune learned that besides the seaport stakeholders and tenants who may be affected by the relocation, the Commonwealth Utilities Corp.’s Power Plant 1 will also be transferred to a new site.

However, the decision to allow the use of CUC’s property for the military project lies with the administration.

Saipan Tribune was told that if this pushes through, the undertaking will be one of the biggest investments so far infused to the Saipan port.

Once the lease is signed, processing of the local and federal permits is expected within two years.

About 8,000 U.S. Marines are expected to be transferred from Okinawa Japan to Guam starting in 2012. The CNMI is expected to economically benefit from the plan as portions of Tinian may be used for training sites.