THE Commonwealth Ports Authority may restructure its local loans to meet its annual financial obligations to a firm that bought its $53 million bond in 1998, it was gathered yesterday.
CPA Executive Director Carlos H. Salas said the ports authority must raise $3.9 million every year to pay Franklin Fund.
The $53 million bonds—$20 million for the seaport, $33.775 million for the airport—were floated in 1998 to finance aviation and seaport infrastructure projects in the CNMI.
CPA still owes Franklin Fund over $50 million, which is payable within a 30-year period beginning in 1999.
Salas said they may ask the Commonwealth Development Authority to restructure their loan payments in smaller amounts.
CPA’s outstanding balance to CDA is over $9 million which must be paid by 2014.
Salas said two officials of Franklin Fund recently visited Saipan to know more about CPA’s fiscal situation.
“They wanted to get a first-hand information about the effects of the Sept. 11 terrorist attacks on our traffic and cargo. They wanted to know if we could continue meeting our bond obligation,” Salas said.
“They had serious discussions with CPA regarding future plans, the current trend of activities, passenger and cargo rate and the ability to make payments on those bonds,” he added.
