The Commonwealth Ports Authority board of directors has approved a resolution to float a $40-million bond that will be used to finance the resurfacing of the Francisco C. Ada/Saipan International Airport runway.
At a regular board meeting at the Port of Saipan’s conference room last week, the directors approved the resolution that authorizes the issuance of bonds and the execution and approval of loans and indentures to the Bank of Guam.
The financing is needed for the corrective work under the Airport Runway Rehabilitation II Project and the refunding of the 1998 airport bonds.
CPA will issue bonds payable from certain gross revenues derived from the airport revenue in amounts sufficient to pay the principal of and interest on the bonds to finance the project.
CPA board chair Kimberlyn King-Hinds said yesterday that, with their action, the resolution is now before the Commonwealth Development Authority for review and approval which involves an analysis of CPA’s ability to service the debt, among other factors.
Given CPA’s current state of finances, which has been significantly detrimentally impacted by the suspension of flights from the CNMI’s Asian markets for tourists as a result of the ongoing global efforts to contain the coronavirus for an undetermined period, it is likely that this process will take considerably longer, King-Hinds said.
CPA has 16 projects for the Saipan International Airport that have a total cost of $121.2 million, including the $19-million runway resurfacing.
Last April CPA stated that the original contractor for this runway resurfacing project is now being sued due to poor workmanship and that plans and specification have been repackaged and are pending approval by the Federal Aviation Administration.