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CNMI seals PSS bond deal
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Posted on May 04 1999
Gov. Pedro P. Tenorio, along with Board of Education Chairperson Esther S. Fleming and Commonwealth Development Authority Board Chairperson Juan S. Tenorio, yesterday signed the $15.7 million bond purchase agreement that will clear for the implementation of key projects for the education sector.
Proceeds from the bond float will cover local matching requirements for the construction of new schools and additional classrooms under the Capital Improvement Projects of the Section 702 of the Covenant.
Building of new campuses for high school and a junior high, as well as repair of several existing school facilities, has been pushed back due to shrinking cash resources of the Commonwealth.
The financially-troubled government is eyeing similar bond float to bridge the financing gap in local matching funds for other critical infrastructure projects for the islands of Saipan, Rota and Tinian.
Local officials are hoping that massive construction activities will offset the prolonged slump in the tourism industry, once the backbone of the island economy.
Some $154 million worth of CIP projects have been lined up for the next seven years under a master plan put together with the help of federal agencies.
Last week Paine Webber and the California Financial Services confirmed the sale of the bond after two years of negotiations that have delayed the construction plan.
Over $500,00 in additional money is expected to be generated from the initial selling which would help the PSS defray cost for the payment made for the bond insurance premiums.
According to Fleming, members of the education board are delighted with the signing of the bond purchase agreement.
“This is an opportunity to alleviate overcrowding in our schools,” Fleming said.
Representatives from Paine Webber, California Financial Services and Orrick Herrington will arrive on Saipan May 22 for the final signing.
Also present during the signing at the Governor’s Office were Lt. Gov. Jesus R. Sablan, Education Commissioner Rita H. Inos and acting Attorney General Maya Kara. Cookie B. Micaller
