“So far, it’s good. No negative rating for the CNMI,” said Sablan. “But to float a new bond they have to do a lot of due diligence.”
The CNMI’s previous $140 million bond which was floated to meet the local share in funding different capital improvement projects had been fully paid.
But $60 million worth of bonds are still being paid every year.
The Department of Public Lands is currently exploring the possibility of floating a new bond to pay landowners whose properties were taken for different public projects.
DPL Secretary Oscar M. Babauta said the department is conferring with the Legislature if this is feasible.
Sablan said CDA has not been consulted regarding this proposal.
CDA is the government agency authorized to float a bond and deal with underwriters.
During the Babauta administration, CDA floated a $40 million bond.
Of the amount, $28 million was used to settle claims of landowners and several millions of dollars went to the federally funded prison project.
Sablan said although there’s already a precedent, floating a bond just to compensate landowners is a different issue because the previous one was done for CIPs.
