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Lower Base investor willing to pay for new power plant
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Posted on Apr 26 2009
A company interested in leasing the entire Lower Base dry dock property of the Commonwealth Ports Authority is looking into paying for a new power plant as part of the project, according to Gov. Benigno R. Fitial.
Allegiance Capital Corp. is looking to invest millions of dollars into the CNMI in line with the company’s project with the military.
The whole seaplane ramp area in Lower Base is currently the site of a submarine station, a restaurant, and the holding area for Tinian boats, as well as the Commonwealth Utilities Corp.’s Power Plant 1, the main power plant on Saipan.
“I told them I’d only move CUC if they paid for a new power plant. Guess what? They’re looking into it,” Fitial said at a news briefing last week.
A 25-year lease agreement is being drafted between the Allegiance Capital Corp. and the CNMI government, according to a source close to the project.
Once the lease is signed, processing of the local and federal permits is expected within two years. The project is expected to infuse $100 million in revenue into the local economy, Fitial said.
About 8,000 U.S. Marines are expected to be transferred from Okinawa Japan to Guam starting in 2012. The CNMI is expected to economically benefit from the plan as portions of Tinian may be used for training sites.
