House earmarks $300K for Saipan CIP

More than $300,000 were earmarked on Friday by the House of Representatives for two capital improvement projects on Saipan, while expanding a $1.7 million sewage project in China Town to include Chalan Kiya.

The lower house likewise passed legislation that will authorize the issuance of a construction performance bond for government projects to construction firms in lieu of cash premium payment.

About $256,636 have been identified as surplus funds from two earlier appropriations to several Saipan school projects. These will be re-allocated for pending school projects under HB 12-59 offered by Rep. Martin B. Ada.

Among the projects included in the list are the proposed construction of school playgrounds in Dandan, Kagman and Koblerville; drainage system for the San Vicente Elementary School as well as repair and renovation of the Headstart building in the same village; and fencing for the new Kagman Elementary School.

All the projects covered are from Mr. Ada’s Precinct 1.

Another $75,000 were re-programmed to the Achugao sewerline expansion from the $2 million set aside for As Matuis infrastructure improvement under a law recently signed by Gov. Pedro P. Tenorio.

HB 12-282, authored by Rep. Dino M. Jones who is representing the precinct, will amend Public Law 12-7 that appropriated the CIP money to As Matuis.

HB 12-279, on the other hand, seeks to expand the CIP project lists under PL 11-79 to include Chalan Kiya in the drainage construction planned for China Town.

Sponsored by Precinct 3 representative, Rep. Jesus T. Attao, the measure will ensure that any balance from the $1.7 million appropriated for the project will go to a similar proposed infrastructure plan in Chalan Kiya.

Meanwhile, the lower house voted in favor of HB 12-15 or the “Commonwealth Construction Performance Bond Act” offered by House Floor Leader Oscar M. Babauta.

Under the legislation, the Commonwealth Development Authority will be empowered to issue construction performance bond for a government project in order to help construction firms unable to get such a bond from any surety or insurance company on the islands.

If it becomes law, CDA will be allowed to accept as collateral leasehold interest or other security such as company assets equal to the total cost of the projects from these contractors applying for Commonwealth contractor preference as provided under the law.

HB 12-15 will seek to apply uniformity as to the preferential treatment with bonds or proposals of $5,000 or less, according to the report prepared by the House Ways and Means Committee.

CDA officials, however, expressed concern that it could not implement the proposal since it does not have a substantial experience in the bonding area and that the agency would end up competing with bonding companies.

“The committee realized these concerns that it further amends the bill to have the contractor first apply for bonding from any licensed surety company,” the report said. “CDA may not accept construction bond until a refusal from any surety company exists.”

All bills now head to the Senate for action before the governor considers signing them into law.