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Consulting firm to be hired for container yard project
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Posted on Jul 17 2005
The Commonwealth Ports Authority is hiring a U.S.-based consulting firm to conduct an economic feasibility study on the $7.18-million container yard-paving project at the Port of Saipan.
On Friday, the CPA board of directors approved a $25,000 budget for the professional services of BST Associates, a team of marine industry economic analysts based in Bothell, Washington.
The budget will cover all of BST Associates’ fees and expenses in connection with the scope of work prepared by CPA.
According to the ports authority, the work to be done BST Associates includes a projection of activity and financial performance for the next five years. “A critical component of the feasibility study is to evaluate whether net revenue is sufficient to cover debt service with a 1.25 debt service coverage factor,” CPA said.
Specifically, BST Associates will obtain and review relevant databases and reports prepared by CPA, including the most recent master plan for the seaport, leases, cargo trends, and financial trends.
The consulting firm will also prepare forecasts on cargo volume for the next five years, gross revenues, operating and allocate expenses, and net revenue available for debt service.
CPA will use BST Associates’ report in seeking $7.18 million in bond revenues for the concrete paving of the Saipan seaport container yard.
The proposed improvements will include dock paving and grading, as well as the construction of a drainage system approved by the U.S. Environmental Protection Agency.
CPA initially set a budget of $6 million, but later raised it by $1.8 million after finding that the amount would not be enough to fully finance the construction project, as well as interest and other processing fees.
Of the final $7.18 million budget, about $5.9 million will go to the actual construction.
Saipan Stevedore Company Inc., the sole stevedore operator at the Port of Saipan, has committed to contributing $2 million to the repayment of the bonds by amendment of its lease agreement.
