CNMI lawmakers, policy implementers and off-island experts discussed what legislation is needed in order to develop the new industries identified during the pre-summit last week.
Arthur L. Smith, president of Management Analysis Inc., discussed public-private partnership.
He said the CNMI needs almost half a billion dollars for new infrastructure projects.
Infrastructure, he said, is needed in order to bring in new investors.
And since such a huge amount needed — more than triple the commonwealth government’s annual budget — it makes sense to work in partnership with the private sector, Smith said.
“We want those projects to be funded and we suggest that there are ways to tap private sector financing and expertise to help [construct] the key infrastructure needs in the CNMI,” he said.
The Comprehensive Economic Development Strategy report stated that allowing the private sector to participate in providing assets and services the CNMI needs will benefit the commonwealth.
The various projects identified in the report can be best achieved through public-private partnerships, Smith said.
He cited the Commonwealth Utilities Corp. as an example.
He said that due to underinvestment over a number of years, CUC has not operated its Power Plant 1 in full capacity which caused rolling power outages last year.
A power plant that is cost-effective and efficient would be in the interest of everyone, he added.
Smith said there are a couple of things that must be done.
“And I hope we’re going to be able to get it done in the next couple of months — and that is to identify the highest priority projects for attracting private sector participation in infrastructure.”
The legislature, he said, needs to come up with enabling legislation that will help the CNMI attract new investments.
