CPA approves LOI for DOD’s $500M Tinian Port project

The Commonwealth Ports Authority has approved the U.S. Department of Defense’s request for a letter of intent for its $500-million project to improve the Tinian harbor.

During a special meeting yesterday, July 6, CPA’s board of directors adopted a resolution and a letter of intent for DOD’s Tinian Port Joint Area Development Project, which would cover port construction, repair, and maintenance of the Tinian harbor.

Gov. Arnold I. Palacios, who participated in the meeting virtually, described the project as a once-in-a-lifetime deal.

“This project comes one time in our lives: a major infrastructure project in partnership with the United States and our military. A rebuilt Tinian Port is a stronger support facility consistent with the vision of our Covenant,” he said.

CPA executive director Christopher Tenorio believes this project would be monumental for the CNMI.

Seabees assigned to Naval Mobile Construction Battalion 4 install formwork alongside rebar in preparation for the mooring bollard concrete placement at the Tinian harbor. The repair project will enhance the Port of Tinian for future operations. (U.S. Navy photo by Construction Mechanic 2nd Class Wenhan Fan)

“This agreement is monumental because, with our partnership with DOD, we will have a modern, functioning Tinian Port for our community and for our strategic partnership with the United States for national security,” he said.

CPA board chair Kimberlyn King-Hinds said the development of the Tinian harbor will lead to further developments and progress for the island of Tinian.

“Our airports and seaports on Tinian, when repaired and maintained, provide the key links for development and progress. The Letter of Intent enables DOD to secure the funding and CPA commits to the project for our mutual benefit in every way possible. This is the beginning of a negotiation process similar to that of the divert lease in 2019. We are excited to pursue opportunities for our CNMI,” she said.

The LOI provides DOD with the initial support and commitment it needs in order to secure congressional defense authorization for the project, which is expected to start in fiscal year 2025.

“CPA owns the Tinian Port. The Covenant Technical Agreement only reserves rights to the military for training use of the port. DOD can get the funding to repair and improve the port with military project funding. The Letter of Intent gives DOD the firm commitment to now secure the funds,” CPA said.

To clarify, CPA says the approval for an LOI only starts the process for discussions toward an agreement and allows DOD to first secure the funding for the project.

Currently, CPA has merely reviewed the project proposal and has even conducted a town hall discussion on Tinian and met with the CNMI and Tinian leadership.

If it pushes through, DOD’s joint area development project for the Tinian harbor will allow CPA and DOD to develop the port together for civilian, commercial, and military purposes.

“DOD will bring the money for the project that CPA could never afford without substantial bonding and burdening fiscal obligations. CPA owns the Tinian Port and DOD will have easement rights to repair, build, and maintain the Tinian Port with its project funding and construction. With this joint area development, CPA and DOD will develop the port together for civilian, commercial and military purposes,” said CPA.

Back on July 3, DOD through INDOPACOM, submitted a request for a Letter of Intent to CPA, requesting its support for the project to repair, improve, and develop the Tinian harbor.

The project concept includes two warehouse facilities; hardening and repairs to the four berths; dredging the harbor to 28 feet; removal of Finger Pier A and installing two mooring buoys outside the harbor.

The most substantial aspect of the project concept is the repair of the entire breakwater structure to protect the port area.