Permits choke off investors

The planned dry dock project, which drew interest from at least 11 potential investors, ended up receiving only one formal proposal, as businessmen got discouraged by the lengthy permitting process involved in the project.

Saipan seaport manager Antonio Cabrera said the Commonwealth Ports Authority got only one formal proposal, as the submission period concluded last Friday.

“We got a lot of inquiries. But the cost of dredging and improving the dock facility, as well as the many permits required by different regulatory agencies, apparently swayed the investors from pursuing that proposal. As you know, any project located on coastal waters involves many requirements and regulations,” Cabrera said.

CPA, in the scope of work it prepared for the dry dock project, said the proposer would be responsible for securing required federal and local permits since the project will involve land with the shoreline areas and the Tanapag lagoon.

While the ports authority pledged to cooperate and assist in the acquisition of the necessary permits, all the proposers will have to qualify for, secure, and pay for the permits.

“I’m not saying that we should not care about the environment. We just hope that regulatory agencies will assist us in making this project happen,” Cabrera said.

The project involves constructing a small ship repair and manufacturing facility at the North Seaplane Ramp in Lower Base.

Currently, Cabrera said, small vessel repair is being done at the dry dock facility within the same area, which is poorly equipped and uses a dry-docking method that is crude and unsafe.

“With the planned dry dock project, we can do small ship repair the way it should be done. We can centralize it and let the industry regulate itself. We can even let watchdog groups come for inspections. This way, we can prevent from happening anything that can destroy our environment,” Cabrera said.

He said CPA will evaluate the one submitted proposal, but refused to name or disclose details about the sole proposer, pending review by the CPA board of directors.

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.