Saipan Laulau president Kim Yun said their request for the modification of their qualifying certificate was made to the Commonwealth Development Authority which was initially granted by the CDA board pending the publication of the proposed regulations in the Commonwealth Register.
Kim said the project’s original cost was $54 million, but this reached $70 million after the company made significant changes in the original design.
“That’s why we asked for the modification [of our QC]. Our investment amount is higher than what it was before,” he told Variety.
According to Kim, one major phase of the Laolao project is the completion of the clubhouse.
“This clubhouse alone costs $50 million,” he said, adding that the aluminum panel used for its interior alone cost about $3 million.
Kim said the project includes the construction of villas, the “golftel” tower and golf course.
The company, he added, also made significant changes to the design of the villas.
One of the five villas will be a big guest house on a 500-square-meter land.
“Just for one small villa alone, we’re investing $1 million,” Kim said.
But because of the depreciation of the Korean won, the project’s target completion, which is the end of next year, may be affected, he added.
“We didn’t scale down our investment…we just slowed down the construction because of the depreciation of the Korean won,” Kim said, adding that their company is very much committed in investing in the CNMI.
Gov. Benigno R. Fitial, in his message during the ceremony at the project site on Friday, called on all CNMI elected leaders to “renew” their earlier commitment of support to Saipan Laulau, Asiana and the Kumho Group.
The administration proclaimed May 27, 2007 as Kumho Asiana Day in CNMI while the Legislature adopted a resolution celebrating Asiana’s expanded flight service and investments in the CNMI.
Recently, some lawmakers opposed the granting of additional tax breaks to Saipan Laulau.
Fitial noted that the company has “already infused so much capital investment and flight capacity in the CNMI.”
Early Saturday morning, Asiana Airlines launched its maiden flight to Saipan from Osaka, Japan.
Noting the current financial climate, the governor said: “Now is not the time for our leaders to waiver their support for a committed investment.”
He said Kumho’s investments will bring a “convergence of unparallel flight service, exceptional accommodation, and world-class golfing opportunity in the commonwealth.”
