CPA to oversee funds for Micronesian airports

In a show of confidence for the abilities of the Commonwealth Ports Authority, the Federal Aviation Administration has tasked the CPA to administer federal grants for Micronesian airports.

CPA executive director Carlos Salas bared on Friday a draft memorandum of agreement that would grant CPA the responsibility to oversee funds for airport improvement projects in Palau, Federated States of Micronesia, and the Marshall Islands.

In an interview, Salas said the agreement comes pursuant to the jurisdictions’ recently negotiated Compacts with the United States, which entitled the freely associated states to the federal government’s AIP program.

He noted that while CPA has been a recipient of AIP funding for several years, the Micronesian states would be getting the federal grant for the first time.

Salas said the initial grants that FAA is planning to give the islands would amount between $8 million and $9 million. The funds would be used to purchase about 12 new vehicles for the three jurisdictions’ aircraft rescue and firefighting facilities.

“FAA is asking CPA to serve as central procurement point for these airports. We will help in the actual specification of equipment [engineering-wise], actual advertising of the bids, actual award of the bids—all the way through delivery of vehicles from the manufacturer to the airports,” he said.

Salas also said that CPA is glad to be able to help the other islands in procuring the much-needed vehicles, as well as to assist FAA which has been generous in providing financial assistance for the CNMI’s airport projects.

“The FAA is desirous of taking advantage of [CPA’s] skills and knowledge in both administering AIP funding, and knowledge of the Micronesian area in assisting new AIP participants,” a portion of the proposed agreement read.

Also under the draft agreement, CPA at the request of FAA will assist Micronesian airports “by providing instruction in preparation of applications for AIP grant funds, procurement and bidding, financial controls, legal requirements including U.S. statutory and regulatory requirements, program oversight and general compliance with AIP grants,” among other things.

The FAA and CPA have yet to agree on the process by which FAA would pay CPA for its services.

One proposal is for FAA to pay an hourly rate for each employee provided by CPA to FAA or the other airports, plus costs of travel and accommodation. The parties are also looking at considering a flat fee, to be agreed upon before services are rendered. The flat fee would be based on the type of assistance to be provided and number of personnel involved, among other factors.