CPA won’t takeover marina

The Commonwealth Ports Authority board yesterday stood pat on its earlier decision not to take over the operations of the financially-troubled Outer Cove Marina since the ports authority is still struggling to generate revenue to pay for its $33 million seaport revenue bond.

Gov. Pedro P. Tenorio has asked CPA to study the offer made by the Marine Revitalization Corp. for the government to take over the operation of the Outer Cove Marina. MRC, a non-profit corporation operating the marina, is bleeding some $24,000 a month in interest payment alone for its huge debt.

While the board understands the difficult financial situation of MRC, the ports authority cannot assume additional debts since it is saddled with its own financial problems, according to Board Chair Roman S. Palacios.

Board member Roman Tudela said CPA is not ready to expand its operation by taking over the marina as the current seaport revenue could barely support the debt service.

“CPA has its own financial problems already, it is not ready to assume responsibility financially or legally. The bottom line is it will not be beneficial to CPA at all,” Mr. Tudela said.

CPA Executive Director Carlos H. Salas said he has met with the governor’s representatives to discuss the controversy surrounding the operations of the marina.

Mr. Salas said the governor would like to explore the option offered by Anthony Pellegrino, president of MRC, since he has been having difficulty collecting the right fees.

Commercial boat owners have refused to pay the $4 passenger departure fee claiming it is very high amid the slowdown in the island’s tourism economy. MRC spent $4 million for the construction of the marina.

Mr. Pellegrino has earlier met with the governor and his financial advisor Mike Sablan seeking their help to save the company from sinking.

MRC signed an agreement with the Department of Lands and Natural Resources and the National Parks Service to build and operate the Outer Cove Marina. As partners of MRC, both the CNMI and federal governments have agreed to the ensure that the operations of the company run smoothly by helping in the enforcement of the rules and regulations of the marina.

Mr. Pellegrino claimed that the CNMI government has failed to do its share in making sure that commercial boat operators comply with the agreed rules and regulations.

“We sympathize with the government and MRC but the board has expressed concern on the effect of taking on additional debt. We have enough problems to take care of and we are not ready to take on a new facility,” he added. Mr. Salas said the ports authority has to develop the north and south seaplane ramp which is a priority of CPA at present.