Acting CPA Executive Director Lee Cabrera yesterday said the agency is about to approve the rate hike recommendations of its consultant, Ricondo & Associates.
Cabrera said the figures are based on CPA’s projected revenues and expenditures for fiscal year 2009.
The airline companies and other stakeholders will be given the chance to comment on the new rates, he added.
“Rest assured that there will be discussions on how the rates where arrived at,” Cabrera said. “But if a rate will be increased, say, 50 percent, CPA may consider a gradual or incremental increase as long as there are valid reasons from our stakeholders.”
CPA’s failure to meet its bond indenture agreement requires a report on how the agency can address its debt service bond ratio.
CPA’s current airline fee is about $9, according to Cabrera.
He said a fee increase may be prevented if the decline in revenue resulting from the pullout of Continental Airlines can be offset by additional flights to the CNMI.
Ricondo & Associates is also expected to make recommendations regarding the operations and management of CPA.
Last May, the governor declared a state of emergency for CPA, dissolved its board of directors and took over the agency’s management.
