He said his office is working with the Legislature to study the possibility of floating another bond.
“One of the biggest issues confronting DPL is land compensation,” Babauta told the Variety.
In 2003, the CNMI government floated a $40 million bond for land compensation payments.
Of the amount, $28 million went to the land compensation program; $584,000 was paid to Leyman Brothers for its underwriter fees; $415,309 went to the cost of issuance, including bond counsel fees; $1,895,306 went to interim financing; and $9,104,694 went to the federal prison project in Susupe.
DPL records showed the $28 million went to about 100 landowners but close to 300 more landed families are yet to be paid.
Babauta said the bond proceeds for the land compensation program have long been “depleted.”
“It’s just not enough. The plan is to float another bond to help the other land claimants,” he added.
The CNMI is mainly using liquid fuel tax collections to pay the $40 million bond.
According to the audited financial statement of the CNMI ending on Sept. 30, 2009, its total bonds payable during the period were worth more than $97 million, including the $40 million floated in 2003.
Babauta said his office, with the help of the Legislature, is now studying revenue sources that could still be tapped to pay the proposed new bond.
“We want to assist the domestic economy. If the landowners are paid, they could generate economic activities on the islands,” he said.
