IPI: Over half-a-billion dollar investment so far

Imperial Pacific International (CNMI) LLC has already invested over half-a-billion dollars in the CNMI economy—the largest by far by any single foreign investor in the CNMI and validated by a recent report of the federal Bureau of Economic Analysis of the U.S. Department of Commerce.

In a statement yesterday, Imperial Pacific said the BEA report validates the Hong Kong-based investment giant’s impact on the massive growth of the islands’ real gross domestic product in 2016.

The BEA report stated that the CNMI GDP for 2016 posted an unprecedented 28.6-percent increase, to $1.24 billion. In 2015, the GDP also grew 3.8 percent to $933 million.

Citing its latest six-month interim financial report filed with the Hong Kong Stock Exchange, Imperial Pacific says its total investment for its Garapan property stands at $506 million.

The federal agency’s report separately highlighted how private fixed investment increased by over 60 percent in 2016. The U.S. Bureau of Economic Analysis pointed out how this significant increase reflects the value of Imperial Pacific’s casino resort construction, among other construction projects on Saipan.

The government’s main tourism agency, the Marianas Visitors Authority, separately reported that the sharp increase in Chinese arrivals is correlated to the increase in investment amounts, after Chinese investors became particularly interested following the awarding of the casino license to Imperial Pacific, a Chinese-owned investment firm.

At the end of the second quarter of this year, the company had also contributed $201.6 million directly into local coffers in combined payments of business gross revenue tax, corporate income tax, excise tax, casino license fees, Commonwealth Casino Commission operating fund, donations, and payroll withholding tax.

This is reflected in the just enacted budget for fiscal year 2018, which at $212.6 million, is being touted as the largest budget in the history of the CNMI. A huge portion of these funding resources came from taxes and fees contributed by Imperial Pacific, the statement adds.

These taxes and fees paid and contributed by Imperial Pacific meant that more residents found employment, making the company the largest private sector employer.

As a result, public services received additional funding, including extending the lifeline of the government’s pension plan. This was previously at risk of being depleted due to the lack of funding.

The CNMI has nearly 3,000 retirees that depend on the government’s retirement program. Contributions made by IPI prolonged the like of the pension plan.

Under the approved new government spending plan, $56 million was allocated to retirees and $45 million of which was directly funneled to the Settlement Fund for the minimum annual payment of benefits.

Public education continues to receive additional funding, as well as hospital and medical care, among others public services.