The islands’ most predictable debate
LIKE mushrooms popping up after a heavy downpour, concerns over CUC sprout only when the FAC soars. This, in turn, is dictated by fuel prices, which fluctuate based on supply and demand and are heavily influenced by global events, including wars.
CUC issues, in any case, have been discussed and debated before, only to be forgotten whenever fuel prices decline.
Then, when fuel prices rise again, everyone ends up saying what has already been said, expressing concerns that have already been expressed, and proposing solutions that have already been proposed.
It seems that no one on Capital Hill wants to ask: What happened to the previous policy proposals, legislation, reports, court filings, analyses, and recommendations — several of which involved renewable energy — that were intended to “solve” the problems inherent in operating a utilities agency that provides power, water, and sewer services in small, remote, typhoon-prone islands?
Does anyone still remember those proposals? Does anyone want to know whether they were implemented? And if not, why not?
To gain a better understanding of the challenges facing CUC, policymakers must also be aware of the experiences of similar island jurisdictions. It is not enough to say that “Guam has this” or “American Samoa is doing that.” We also need to understand the specific hows and whys behind those approaches and determine whether their experiences can be applied to the CNMI.
We are good at identifying glaring problems and coming up with sensible solutions. But the follow-through leaves much to be desired. As a result, we find ourselves right back where we started whenever these issues resurface, discussing them as though they have appeared for the first time.
What we know — and what we ignore
WHAT policymakers, first and foremost, must acknowledge and understand are the factors that influence development in the CNMI, of which CUC is a crucial component. These factors were identified in several reports prepared during the Trust Territory era and were later summarized by local economist Bill Stewart in his excellent “Business Reference and Investment Guide to the Commonwealth of the Northern Mariana Islands,” first published in 1988 and reprinted in 1990 and 1992.
• Geography. The CNMI is far from the major suppliers and markets of Asia and North America. Consequently, the freight costs associated with importing equipment and materials increase the cost of virtually every project. As Stewart wrote, “Sheer distance and the time involved in traversing the Pacific are factors which must be taken into consideration when planning projects.” He noted that the CNMI “is about as far away from the U.S. west coast as Washington, D.C., is from Cairo, Egypt.”
Geography, he added, also separates the major population centers of Saipan, Tinian, and Rota, fragmenting an already small domestic market and increasing transportation and communication costs. In addition, “the separation of the three principal islands requires a tremendous duplication of government services as each island requires its own airport and seaport facilities, power and water production facilities, schools, and other public services which cannot otherwise be consolidated.”
• Demographics. The CNMI’s population, then and now, is roughly equivalent to that of a small rural American community. There simply are not enough people to fill all available jobs — especially positions that face chronic shortages not only in the CNMI but also throughout the United States and other developed countries, as well as neighboring Pacific island jurisdictions.
• Climate. “With respect to an otherwise pleasant and enjoyable tropical climate, the Commonwealth is situated some 600 miles east of an area…which is the breeding area of cyclonic disturbances. These can quickly and sometimes unexpectedly develop into typhoon-force winds of 120 miles per hour or greater.” Stewart observed that the effects of such storms on government and private facilities can be severe, resulting in property damage, service disruptions, and, at times, loss of life. Such events inevitably impose additional costs on government.
• Physical Constraints. The CNMI has “little or no surface or subterranean mineral resources, limited land area particularly as relates to assembling large tracts of agricultural land, relatively poor agricultural soils, and no stream or river courses which could be used for irrigation purposes during dry periods or for a potable water supply.”
There are no reservoir sites with sufficiently large drainage areas to sustain an adequate water supply. As for groundwater, Saipan’s principal sources of potable water are located in widely dispersed wells throughout the island, making consolidation difficult and costly. At lower elevations, saltwater intrusion can further limit the usefulness of some groundwater sources.
If we are serious about improving the delivery of utility services, we must first understand the realities that shape them. The information is not hidden. It has been available for decades.
Before the current fuel crisis subsides and collective amnesia once again takes hold, policymakers should revisit these longstanding realities and determine which recommendations were implemented, which were ignored, and which still deserve consideration today.
Zaldy Dandan is the recipient of the NMI Society of Professional Journalists’ Best in Editorial Writing Award and the NMI Humanities Award for Outstanding Contributions to Journalism. His four books are available on amazon.com/.
