Sablan told Gov. Benigno R. Fitial that the money should used to build better land and sea-based infrastructure for Rota, Saipan and Tinian.
“This is not the first time I have raised this issue with you. But the loss of funds, which we all know are essential to building up infrastructure on Saipan, Tinian and Rota, becomes more imminent every day. According to the Department of the Interior, which administers these CIP grants, the commonwealth now has $53,281,204 available, but unspent. These are grants from fiscal years 2001 through 2009,” Sablan wrote to Fitial.
“This loss means important infrastructure need to improve the quality of life in the commonwealth and provide a sound basis for economic development will not be built — or will require further indebting the taxpayers of the Northern Marianas,” he added.
The congressman stressed that other insular areas which need the money may benefit from the unexpended CIP funds earmarked for the CNMI.
“A decision by the new Interior Department leadership to use unexpended CNMI money to build infrastructure in other insular areas, where these monies would also help stimulate the local economy, would be perfectly rational. Criticism that such reprogramming would be unfair would have little salience, since the CNMI would still be left with tens of millions of CIP funds at its disposal,” he said.
Of the more than $53 million unexpended CNMI CIP funds, over $9 million is set to be loss this Sept. 30.
To tap this money, a specific project must be proposed for its use.
“This $9.3 million the commonwealth is scheduled to lose due to inaction were to have been spent for Rota East Harbor, Rota Health Center, the Tinian landfill and the Tinian wastewater project, in addition to continuing repair of [the Commonwealth Utilities Corp.] facilities on Saipan, among other vital projects,” Sablan said.
During the Bush administration, the Interior Department allowed the CNMI to roll-over expired CIP funds into new grant agreements.
This practice enabled CUC to repair its antiquated power facilities on Saipan and Tinian.
However, Sablan said the roll-over policy may not be allowed by the Obama administration.
“As you know, [Interior] and the Office of Insular Affairs are under new political management. Past practices will no doubt be reviewed and reconsidered,” he said.
With the anticipated loss of $9 million in CIP funds this month, the CNMI will be left with $44 million.
However, this money is projected to further shrink unless the CNMI government spends it.
