House holds session today

Assuring that at least 14 members will be present, the House of Representatives is expected to vote today on an appropriation bill setting aside over $50 million worth of new capital improvement projects for Rota, Tinian and Saipan.

The session scheduled this afternoon was called by House Speaker Diego T. Benavente after learning that the 18-seat chamber can meet the quorum to satisfy the required 14 votes on legislation appropriating government resources as provided by the Constitution for the lameduck Legislature.

It follows the Nov. 26 session in which the House failed to pass critical bills, including the latest CIP package, as only 13 members were present at that time.

According to Mr. Benavente, the House is trying to expedite passage of the measure to immediately begin use of the money secured through the $30 million loan extended by Bank of Guam.

Offered by Rep. Heinz S. Hofschneider, the proposal will set aside the loan as well as some $20.8 million in federal construction grants under 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.

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.

House members are hopeful immediate approval by the Senate which in the past has closely checked CIP appropriation measures to alter some of projects and their costs — a move that has derailed implementation of the program.

The latest CIP appropriation is part of the efforts by the island government to use Covenant funds granted between 1996-2002 in order 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. (BS)