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CDA seeks exemption
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Posted on Nov 21 2000
The Commonwealth Development Authority is asking the House of Representatives to approve immediately its request for a waiver in connection with the $60 million bond float.
CDA Executive Director Marylou S. Ada said she will lobby the lower house this week to adopt a resolution seeking exemption from the 30-day notice required prior to closing of the bonds sale.
The Senate last week adopted the same resolution which Ms. Ada said would allow CDA to proceed with the closing by December 5, less than 30 days from now.
“If we don’t ask for a waiver, it will make the bond invalid and we will not proceed with the closing,” she added.
The House is expected to go into session later this week, and some members said they don’t see any problem in adopting the joint resolution.
A request from the chief government lending agency, the resolution will waive the requirement as provided under Public Law 11-3 or the “General Obligation Bond Law” to submit to the Legislature certified copies of CDA’s issuance of the bond sale at least 30 days prior to the closing date.
“We can’t afford this delay and we have to lobby really hard to get the waiver. Otherwise we’re going to lose investors,” explained Ms. Ada.
The bond proceeds will be used to match equal amount of federal construction grants under the Capital Improvement Projects/Covenant 702 funding.
CDA, which has been authorized to undertake the bond flotation with Paine Webber as underwriter, has stressed the additional funds will stir economic activities and create jobs in the CNMI.
Half of the $60 million have been set aside to repay the $30 million owed by the government from Bank of Guam under an interim financing scheme that was approved by lawmakers last year in an effort to immediately avail of the CIP funding. (BS)
