Sen. Maria T. Pangelinan, D-Saipan, said the investment arm of the Department of Public Lands — the Marianas Public Lands Trust — and the government’s lending institution, the Commonwealth Development Authority, are being urged to infuse more capital into CUC.
She said the idea is still in the exploratory stage but already some lawmakers like her are leaning toward supporting it, provided the right measures are in place.
“There are too many questions that we have to ask and see how it would be structured. Of course, the proposal is that they would venture together with MPLT which has the capital, the money, and CDA, and the Retirement Fund,” she added.
The senator said though there may be risks involved, the proposal is “one alternative solution” that should be seriously considered to ensure that the basic utilities need of the community is met.
MPLT already bailed out CUC from its $3.4 million debt, including the $1.5 million down payment to Aggreko’s 15-megawatt generators.
Retirement Fund Chairman Juan Guerrero already discussed with the governor and lawmakers the possibility of allowing the CNMI pension system put money in CUC.
CDA, which has indefinitely suspended certain loan programs due to high delinquency rate, has yet to make a statement regarding investing in CUC.
CDA previously sued CUC because the utilities agency refused to pay its multi-million dollar debt used as matching funds for several federally funded projects.
CUC’s debt was later converted into preferred stocks that are now owned by CDA.
