AFTER LACK OF QUORUM House eyes CIP money OK next week

Lawmakers expect to pass next week legislation appropriating $50.8 million for various capital improvement projects after the initial attempt in the House of Representatives failed due to lack of required votes.

House Speaker Diego T. Benavente said a session might be held this week if the 18-seat chamber can gather at least 14 members to constitute a quorum to approve the appropriation bill.

“If there are 14 members, then they can call a session to act on it,” he said before leaving for Japan the other day for a tourism and travel fair. “If not, then by next week we will call a session.”

The House on Friday agreed to defer action on the bill and other appropriation measures after five members did not attend the afternoon session to pass the administration-sponsored legislation.

Under the Constitution, the Legislature must pass these proposals with at least three-fourth votes of all members. Aside from Mr. Benavente, Rep. Bennett Seman is also part of the local delegation to Japan.

Offered by Rep. Heinz S. Hofschneider, the proposal will set aside the $30 million loan secured by the CNMI from Bank of Guam as well as the $20.8 million federal construction grants in the 702 Covenant for the island’s CIP program.

Included in the measure are sewer, power and water projects in Kagman homestead; new prison facilities on Saipan; revitalization of the Garapan tourist district and various improvement plans on Rota and Tinian.

The bill will also refinance ongoing infrastructure projects of the government whose initial funding was approved three years ago, such as the 60 emergency classrooms and the Kalabera landfill.

According to House Ways and Means Committee Chair Karl T. Reyes, the delay in the legislative approval is not going to affect the status of the bank loan if the bill is passed this year.

“The bank set aside these funds a few weeks ago. If we don’t pick them at a certain time, they will demand interest payment,” he said, adding imposition of interest on the loan will occur next year.

Part of the interim financing under the $60 million bond float approved by the Legislature, the loan will be repaid by the proceeds from the sale of the bonds to be underwritten by investment firm Paine Webber.

Hopeful

Both Mr. Benavente and Mr. Reyes expressed optimism that the Senate will immediately approve the bill, noting that it includes projects on Rota and Tinian listed in the CIP master plan.

“CIP is very important. We are talking about funding for additional infrastructure projects,” explained Mr. Benavente. “I can’t say that the Senate will approve this particular bill, although I am confident that whatever the problems the Senate may have, we should be able to work it out and pass something as soon as possible.”

Mr. Reyes added: “They will approve if the funds are distributed equitably based on the population.”

Senators have in the past thoroughly checked CIP appropriation measures to change some of the items, including amount of the projects, derailing their smooth passage in the Legislature.

The island government is banking on the Covenant funds granted between 1996-2002 to spur the local economy, but it has met difficulties in meeting the matching requirement. The seven-year program has total funds of $154 million, including matching local money.

About $77 million will be made available by the federal government in the CIP program and so far CNMI has raised over $58 million to match the grants from local resources and the bank loan.