Dry dock project draws 11 feelers

The proposed dry-docking facility at the Saipan seaport is drawing a lot of interest from various investors.

As of yesterday, the Commonwealth Ports Authority has received proposals from 11 individuals or companies who are interested in financing, building, and operating a small ship repair and manufacturing facility at the North Seaplane Ramp area of the Port of Saipan.

The period for submission of proposals will end on Oct. 29, Friday, giving other interested companies one more week to turn in their plans.

Guam’s shipyard is the only dry dock facility in the region at present. There is an existing dry dock area for small vessels at the North Seaplane Ramp in Lower Base. However, this facility is poorly equipped and the method used is crude and may be unsafe.

Once the Saipan dry dock project is completed, vessel owners on island would no longer have to go to Guam for ship inspections and repair.

In an earlier interview, Saipan seaport manager Antonio Cabrera said the project would benefit small vessels, which find it difficult to travel far for dry-docking due to their limited cruising range capability.

According to the request for proposals, CPA is looking at considering a build-operate-and-transfer arrangement, and encourages proposers to offer constructive and innovative proposals regarding the business operation and consideration for use of the area.

The RFP also noted that CPA may grant leases of land for periods of up to 40 years. Thus, all proposals are expected to consider the amount and type of rental to be paid to CPA under any lease. The amount may be a flat rate or percentage lease or a combination of two.

“It must be understood that [CPA] will neither finance this development, nor guarantee financing for any proposer. Thus it is expected that all proposals shall identify and include financing sources and make affirmative statements of their capabilities, qualifications, and intent to complete the project. It is the authority’s intent to review, evaluate, and select the best proposal,” a portion of the RFP read.

The proposer will also be responsible for securing required federal and local permits since the project will involve land with the shoreline areas and the Tanapag lagoon.

CPA said that, while it will cooperate and assist in the acquisition of the necessary permits, all the proposers will have to qualify for, secure, and pay for the permits.