34 ARRA projects yet to start, be completed

With 16 months to go before federal agencies could reclaim unspent American Recovery and Reinvestment Act funds, the CNMI has yet to either start or complete 34 of 57 reported ARRA-funded projects involving almost $99 million of the more than $119 million in total grants since 2009.

Of the 57 ARRA-funded projects, only 23 or 40 percent have been completed involving $20.4 million in awards.

Three projects have not even started, involving $4.55 million in ARRA funding.

Eighteen projects or 32 percent are now more than 50 percent complete, involving $72 million.

The remaining 13 projects or 23 percent involving $21.7 million are still less than 50 percent complete.

These are all based on the latest reported data on the federal tracking agency recovery.gov, dated April 30, 2012, and covers the period through March 30, 2012.

The CNMI has been awarded $119,099,588 in ARRA grants since 2009, and there’s nothing else that will be added to it. However, as of April 30, 2012, the CNMI has yet to draw down $28.79 million but succeeded in receiving more than $90.3 million.

Despite what others may consider the slow pace in completing ARRA projects despite receiving 76 percent of total awarded funds, businesses and government officials said yesterday there is no doubt that ARRA money has helped buoy the otherwise stagnant economy by funding road construction, classroom construction and renovations, and putting energy-efficient air-conditioners and lighting systems, among other things.

Gregorio Q. Castro, Saipan general manager of SSFM International, said that were it not for ARRA, they and other private businesses and government agencies wouldn’t have had the chance to help build roads or employ or retain employees. SSFM provides civil and structural engineering, project management and environmental studies services.

Castro said that SSFM International bagged close to half-a-million in ARRA contracts for two projects-a portion of the Cross Island Road project and the Public School System’s newly inaugurated bus station in Lower Base.

“Besides the contracts, we were also able to hire two additional employees because of these projects funded by ARRA,” he told Saipan Tribune.

Considering that the CNMI’s budget is down to just $102 million, every tax and fee collected from ARRA-related projects will help the CNMI government fund public services such as education, health and safety.

The Obama administration’s ARRA was meant to jumpstart the economy and create and save jobs.

In the CNMI, some 41 percent or $48 million of ARRA funds were used for education. This was followed by energy/environment projects totaling almost $39 million. Transportation projects worth over $15 million ranked third, followed by infrastructure with $3.9 million.

Family programs funded by ARRA totaled $2.8 million, while public safety-related projects totaled $2.5 million.

Research and Development/Science programs received $2.3 million ARRA funds, followed by housing programs with $1.9 million; job training/unemployment with $1.8 million; and health, $1.13 million.

Rep. Edmund Villagomez (Cov-Saipan), chairman of the House Committee on Commerce and Tourism, said “to a certain extent,” he considers ARRA an economic driver.

“It helped develop some of our infrastructure and also provided jobs. Although it did not ‘save’ the economy, it helped in some way,” he said.

Richard Pierce, executive director of the Saipan Chamber of Commerce, said “without having figures at hand on the ARRA grant funding and expenditures to examine, I don’t believe there’s much doubt that those grants did help our economy.”

“We can see projects that were funded by those grants, the jobs they created and wage and salary and business gross revenue taxes being paid. Companies on-island benefited from local spending on those projects, as well,” he said.

Of the $119 million awarded to the CNMI, most or over $44 million was awarded to the Office of the Governor. But most of that was given to the Public School System, and others to Northern Marianas College. PSS also directly received another $5 million based on recovery.gov data.

ARRA fund is so far the biggest investment for public schools in the past 23 years.

The only thing that compares to it was the general obligation bond in 1998 when PSS received $32 million, which included the 50 percent local matching fund. In 1998, PSS built new schools.

Another $29.3 million and $13.6 million in ARRA funds were awarded to the “CNMI.”

The Commonwealth Utilities Corp. received $8.4 million, while the Commonwealth Ports Authority got $5 million.

The Department of Community and Cultural Affairs so far got $2.7 million, followed by the Criminal Justice Planning Agency with $1.89 million and RJCL Corp. with $1.78 million.

GPPC Inc. was awarded $1.77 million, followed by the Department of Commerce with $1.2 million and the Division of Public Health with $1.085 million.

The others awarded ARRA funds were: HDR Engineering Inc., $650,000; Department of Public Safety, $519,048; Government of the Northern Mariana Islands, $292,719; Center for Living Independently in the CNMI, $106,200; Black & Veatch Special Projects Corp., $103,577; Latte Stones Foundation, $94,998; Winzler & Kelly, $86,873; Northern Marianas Coalition Against Domestic and Sexual Violence, $78,125; Karidat Social Services, $44,350; Engineering Solutions Inc., $14,436; and NMC, $7,893.

The CNMI, with $119 million, however, has the least ARRA money awarded among five U.S. states and territories.

Guam has so far been awarded $284 million; American Samoa, $208 million; U.S. Virgin Islands, $284 million; and Puerto Rico, $2.6 billion.