Variety learned that the 25-year lease contract of Suwaso Corp., which runs COP in Koblerville, will expire in February next year. It submitted its extension request earlier this year.
The corporation owned by investors based in Osaka, Japan said in its letter of intent that it wishes to continue its investment on Saipan for the next 15 years.
DPL Secretary Oscar M. Babauta said his technical staff are still reviewing Suwaso’s request.
He said they are also reviewing what transpired in the mid-1980s when the company failed to comply with its agreement with the Legislature.
Babauta said Suwaso was supposed to provide $4 million in “public contributions” to the CNMI government as well as other amenities that would benefit the community and local golfers.
But none of these materialized, Babauta said. So when Suwaso showed its interest again to extend the lease, DPL had to “scrutinize what transpired over two decades ago,” he added.
“They have shown interest to extend their investment but we have asked for their definitive plans for the next 15 years and we have yet to receive those. If our requests are met, we would consider theirs,” Babauta said, adding that he supports any investment that will continue to generate revenue for the CNMI.
However, he added, it is also up to the Legislature whether it will approve Suwaso’s request.
Variety learned that there are other potential investors interested in the COP property.
The CNMI government has not made any new commitments to Suwaso, Babauta said.
“We continue to dwell first on what happened before and what will be their potential investment in the future,” he said.
