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New bonds eyed for airport projects
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Posted on May 24 2000
In the absence of sufficient local and federal funding, the Commonwealth Ports Authority may float new bonds to finance badly-needed airport improvement projects through the assistance of a Guam-based financing company.
Hagatna-based Financial Solutions Group has offered expertise to the ports authority’s pursuit for additional sources of funds that would fast-track the completion of major improvement projects in the Commonwealth’s air transport facilities.
Financial Solutions associate partner Carlos Camacho earlier discussed with CPA Executive Director Carlos H. Salas the possibility of assisting the CNMI government in the issuance of new bonds to fund airport improvement projects in the Northern Marianas.
The company currently woks with a mainland United States-based finance firm in accessing funds for Capital Improvement Projects for both Guam and the Commonwealth.
“[T]ax-exempt bonds are a primary source of funding for airports in the mainland primarily due to its very attractive finance rate and the willingness of investors to invest in these revenue-generating operations,” Mr. Camacho told the CPA official.
He mentioned new financing opportunities which will make increased airport revenue bond issues available to interested publicly owned airport agencies. The bond issues will be backed by a recently passed bill in the U.S. Congress.
“In addition, included in the bill is an increase in passenger facility charges that may advance some projects that weren’t financially feasible earlier on,” said Mr. Camacho.
Financial Solutions executives are also proposing to meet with CPA officials for a presentation of other potential funding opportunities for major improvement projects involving air transport facilities on Saipan, Tinian and Rota.
CPA floated $53 million bond in March 1998 which was used by the agency to finance its projects like the $7.6 million dredging work at the Saipan Seaport and the corridor expansion of the International Airport and other federal-funded projects that require a 10-percent share on the entire contract price.
San Francisco-based Altura Nelson and Company floated the bond, which is the same company that handled CPA’s air and sea ports bonds in 1985 and 1995.
