Speedy completion of CIPs eyed

The Legislature is seeking to institute a measure that would ensure the speedy completion of all Capital Improvement Projects by hiring private companies that would oversee construction developments.

As a concrete step, the Senate recently passed legislation that would pave the road for the hiring of extra-governmental on-site inspection and engineering companies which will ensure smooth and faster construction works at all CIPs.

Under Senate Bill 12-89, ten percent of funds appropriated for capital improvement projects will be used to finance contract management and administration of projects.

Senators said the government rarely resort to this practice even when existing laws allow the Commonwealth to do this.

Instead, the support services for CIP are undertaken by regular government personnel or pursuant to professional services contracts funded by the Commonwealth’s general operations budget.

In filing the proposed measure, Senate President Paul A. Manglona, the bill’s proponent, said the Department of Public Work’s Technical Services Division is unable to keep a closer eye on the capital improvement projects because it has already been overloaded.

“As a result, there are delays in starting and completing projects. Time gets wasted when improved contract management would keep the projects moving along,” said Mr. Manglona.

At the same time, SB 12-89 noted that on-site inspections do not take place and contractors representations do not receive full scrutiny in the absence of an administering body for CIPs.

“In these times of fiscal austerity, the Commonwealth can ill-afford to continue to absorb all the costs to this purpose. Likewise, the Commonwealth’s urgent need to make progress with its CIP efforts demands more resources be dedicated to moving projects from concept to completion,” the bill reads.

SB 12-89 seeks to remove impediments that may have discouraged administrative use of the permissible portion of CIP appropriations.

Senators have pointed out that this would ensure that administration of capital improvement projects will be improved and that projects will be completed more quickly. This will also help better assure the quality work of the contractors.

While administration of CIPs will be delegated to an extra-government body, SB 12-89 gives the public works department the complete expenditure authority over the federally and locally funded infrastructure projects.

The Commonwealth government has matched nearly 100 percent of the total $49.6 million in total funds earmarked by the United States under the third Capital Improvement Project Program which stretches from Fiscal Year 1996 to 2002, according to documents obtained from Capitol Hill.

This amount represents some $97.5 million in fresh money circulating in the local economy that brings prospects for increased business activity amid dramatic slowdown in the entry of new investments into the Commonwealth.

The money financed 47 infrastructure projects throughout the three major islands of the Northern Marianas. Saipan received $70.579 million for 24 projects, while Rota and Tinian received $12.345 million each for 13 and 10 infrastructure projects respectively.

The CNMI government has already identified local matching fund for at least $48 million of the $49.6 million federal money that was made available through the Covenant 702 Program.

Most of the available CIP money went to the construction of new prison an juvenile correction facilities as guaranteed by Public Law 11-78, while PL 11-79 earmarked funds for homesteads and other infrastructure projects, as well as supplemental funding for the prison project.

Around $18.5 million in both federal and local funds have already been earmarked for the completion of the new prison facilities, as well as the improvement of the existing detention center in Susupe.

PL 11-89 was passed and signed into law to pave the way for the completion of pending capital infrastructure projects at the Public School System. This was the time when the CNMI government floated $15 million bonds to raise the needed amount to match federal funds.

More than $22 million in combined local and federal funds were made available to finance a variety of PSS projects that include the construction of new high schools, classrooms and other school facilities on Saipan, Tinian and Rota. This also guaranteed the completion of the much-delayed Marianas High School.

Public Law 11-111 and 11-119 funded a variety of infrastructure projects like the Kagman homestead, the Garapan Tourist District Revitalization, Saipan Cemetery, Rota Airport, Rota Manamko Center, Tinian homestead water district systems and high rise engine and rescue equipment.