CPA Executive Director Edward M. Deleon Guerrero told the board on Friday he had not received information on the planned development of Rota’s east harbor. However, information packet on the $25 million loan had been made available to him.
With Rota’s east harbor sitting on public land, he said it could the reason that CPA was not provided what it asked for.
He, however, said the leadership of the municipality of Rota had been given the opportunity to come and do a presentation before the CPA board and discuss plan to develop the east harbor.
He said he also made known CPA’s intent to assist; however, no action could be made by CPA pending receipt of the information on what the Rota municipality intends to do.
“That is not part of our jurisdiction. It is not CPA’s property,” he said.
During Friday’s board meeting, Deleon Guerrero also told the board that CPA would be hands off on the project given that the east harbor sits on public land.
He also made known his objection to the $25 million loan of which CPA was made to repay the loan.
“My main objection to the loan application was CPA was mentioned as the body to repay back the loan after they secured the $25 million,” he said.
He said his objection is premised on the need to have a study of the volume of cargoes coming in to ascertain if there would be revenues to pay off the loan.
He also said he wanted to make sure there is proper planning to ensure CPA can pay the loan.
He apprised the board of his meeting with the Rota Delegation and the new approach they’re taking on the issue.
“CPA is not going to be involved with the harbor. That’s a public land. It doesn’t belong to CPA,” he said.
Deleon Guerrero also responded to an inquiry from CPA board member Barrie Toves if there was a previous plan on the development of the West Harbor and Deleon Guerrero spoke of a 7-year plan that called for $16 million to build the breakwater and required dredging.
He said, “There is enough money to develop breakwater and enough money for dredging,” he said.
He also informed the board the new direction that the Rota municipality is taking involves a nonprofit organization running the development of the east harbor with other funds coming in “from different angles.”
Although it was clear that CPA would not be involved, he said he was requested by the Rota Delegation to continue to assist in the planning.
“CPA will be happy to participate,” he said.
Deleon Guerrero also voiced his opposition to the project saying $25 million won’t be enough and the project may need up to $80 million to complete.
“That is why I am going against it in all my public comments,” he said.
He also informed the board that CNMI Senate has introduced a bill authorizing the mayor to be the administrator for the east harbor development project.
He said he was not aware of the status of the said piece of legislation.
CPA board member Benigno Sablan Sr., meanwhile, advised for Deleon Guerrero and CPA to continue assisting Rota in this endeavor to develop their seaport.
Toves, meanwhile, asked the CPA board to commission a study for the development of the West Harbor.
He said Rota Delegation has been diligently seeking assistance from CPA on the improvement of the seaport facilities as the improvement of their cost of living hinges on this.
“If we develop the port to the point where it’s going to accommodate larger ships coming in, ther’s a chance for the people of Rota to experience lower cost of living,” he said.
He found it ridiculous for shipping costs from Saipan to Rota to be twice the regular cost.
“As long as we don’t do anything to improve especially the harbor area for ships to come in, the people of Rota will continue to be at the mercy of Mother Nature,” Toves said.
He also asked that CPA work with the leadership in Rota.
He acknowledged that no formal proposal was given to CPA for review. He also said there are a lot of questions on the financing schemes.
He said he understood the board’s fiduciary duty to protect CPA from unforeseen future liabilities. “I understand that and I am committed to work to protect that.”
He expressed difficulty in discussing the issue further for lack of supporting documents CPA requested from the leaders of Rota for the board to see what is the plan.
With the dearth of documents to work with, Toves said the CPA could not make a position on the issue.
Toves said, “We haven’t even done our homework — to do a feasibility study to tell us if it is not financially feasible for us to pursue that route.”
He also told the board of a recommendation made by engineers who worked on the harbor before that recommended to look into possibility of developing West Harbor.
He also questioned if $25 million is enough given that the appraisal of the cost to construct was based on an old study and may need to factor in inflation, among other costs.
“We must start somewhere. I think it is about time for us to commission a study,” he said.
But for Benigno Sablan, the geological morphology of the west dock obviates the need for feasibility study as the geological structure is difficult.
“A feasibility study of any sort is going to come back, is going to be very difficult,” he said.
Supplemental budgets
The CPA board on Friday also approved two supplemental budget requests.
First, the CPA board approved the additional budget of $188,976 for the Precision Approach Path Indicator or PAPI Project.
“We asked supplemental budget two board meetings ago to begin getting a contract from FAA,” he said.
He said the money requested would defray the cost of design and also to address FAA contractual obligation. However, the project called for an additional $188,976 to complete the construction.
“That has been requested for a long time,” he said.
He also said CPA is now capable of constructing it using PFC income.
With the PAPI project, “if there is an inclement weather and airlines going to land on Runway 725, that instrument will be required for safety.”
According to Wikipedia, the Precision Approach Path Indicator is a visual aid that provides guidance information to help a pilot acquire and maintain the correct approach (in the vertical plane) to an aerodrome or an airport and located beside the runway approximately 300 meters beyond the landing threshold of the runway.
He told the CPA board that CPA had already signed the contract with FAA.
The second project approved by CPA board was the supplemental budget for the TSA office renovations at the airport.
Deleon Guerrero said FAA has not processed CPA’s request; however, he was assured by FAA that it would reimburse the expenses incurred.
He said CPA was supposed to be responsible for $37,000 to renovate rest rooms but FAA approved the project before the furlough began.
The board approved the request for $57,000 to cover the costs for renovating the other areas of the TSA office.
Correction
CPA said the arrears incurred by the former lessee of the Westpac facility in Lower Base that Ginen Saipan is planning to settle should have been $66,000 and not $6,600 as reported yesterday.
Quick Facts
• CPA executive director Edward M. Deleon Guerrero says he objects to the $25 million loan where CPA was made the payor.
• He objected to CPA repaying the loan pending appropriate study to ascertain revenues to pay off the loan
• $25 million will be needed to develop the West Harbor with $16 million to be spent on building the breakwater and the rest for dredging.
• It may cost around $80 million to develop the East Harbor
• Board member Barrie Toves asked for CPA to commission a feasibility study on the development of seaport facilities on Rota before CPA could make a decision.
• CPA approved $188,976 in supplemental budget to construct the PAPI project
• FAA approved $37,000 to renovate rest rooms at the airport
• CPA board approved $57,000 in supplemental budget for the renovation of the TSA office.
