Michael C. Sammartino, senior vice president and director for business development of the bank, is scheduled to visit the CNMI next month along with representatives of an architectural and engineering firm to assess the proposed Rota seaport project.
In Fitial’s April 20 letter to Sammartino, it was indicated that the loan will be repaid within 40 years.
“It is my understanding that you and Rota Mayor Melchor A. Mendiola have already begun the process and that you will be accompanying an architectural and engineering firm to Rota sometime in May 2010,” the governor said in his letter to Sammartino.
“Please send me your loan proposal and requirements relating to the Rota port loan request for my review and approval,” he added.
Fitial and Sammartino went to Washington, D.C. on Feb. 22, 2010 and met with U.S. Department of the Interior’s Office of Insular Affairs Director Nikolao I. Pula to discuss the loan proposal.
The governor said Interior agreed to the concept.
“As you are aware, the CNMI government is suffering from a drastic drop in revenues since closing our garment factories. You have assisted us in finding a creative way to leverage our funding sources and I am pleased that the Interior Department agrees with the concept,” the governor said.
In a separate letter, Mendiola said fixing Rota’s seaport will allow cargo vessels to regularly service their island.
“At present and in the past, many times cargo vessels cannot service Rota on normal weather conditions due to the design of the existing port facility. An alternative plan is being looked at to develop the eastern harbor as the more ideal solution,” the mayor told the governor.
He said the loan will be repaid through future revenue activity of the port facility and future federal CIP funding.
Executives of Independence Bank offered their loan program and other financial services to the CNMI as early as 2008.
Robert Catanzaro, the bank’s chief executive officer, and Sammartino made a presentation to the Legislature.
In 2007, the bank reported a 29 percent appreciation in its assets which amounted to $368 million.
Catanzaro said their bank is primarily known for assisting entities in securing financial help for federally funded projects.
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