Despite having to meet stringent federal requirements that require CIP’s to undergo three different steps — environmental review, design, and then construction — the Fitial administration continues to see much needed progress in moving these projects forward.
“As you are aware, in order to expedite implementation of CIP programs I assigned additional resources to this task, I am pleased to report that in the past 14 months, 44 projects have been brought under contract for implementation and we project an expenditure level of $11,235,541 for 2011 which represents 112 percent expenditure of the annual allocation in just the 44 projects being administered by this agency,” Fitial stated in his letter.
Furthermore, the governor indicated that CIP expenditure levels are poised to see an even greater increase in 2012 as many of the three-pronged projects will begin the third and final phase which is the construction work.
Fitial informed the delegate that “in 2012, as we move into the construction phase of these projects we project an expenditure level of $19,226,202 which represents an expenditure rate of 202 percent of annual allocation. In total, the current CIP program has established the most aggressive 702 CIP implementation program in the history of the commonwealth.”
In an effort to clear up any misconceptions of the performance of the CIP Office, Fitial also provided Sablan with information that would be helpful in understanding how the program works.
“During this three-year implementation period, a large portion of project funds sit dormant as the most costly element, construction or procurement, occurs in the final year. This multi-year implementation plan is illustrated by landfill projects on the islands of Tinian and Rota where the total project cost is approximately $6 million; however, expenditures in the first two years associated with environmental review and design are less than $1.5 million,” Fitial pointed out.
The administration and the Legislature have both requested the assistance of Sablan’s office to work with the CNMI government to address the current fiscal challenges.
Although it has yet to receive a response from Sablan’s office, the executive branch remains hopeful that the delegate will soon join the local leadership in its efforts to improve the quality of life for the people of the commonwealth.
