Commercial fishing group accredited by NOAA

The commercial fishing group wanting to locate in the CNMI is allowed by the federal government to fish in the western Pacific, according to the Department of Commerce.

Commerce economic development officer Glen Manglona said yesterday that Lady Kimberly has been issued a federal long-line fishing permit by the National Oceanic and Atmospheric Administration for the Western Pacific Fisheries Zone.

“In the documents submitted by the company, all federal permitting requirements have been met,” said Manglona, noting that the project “is a comprehensive ‘dolphin safe’ operation.”

In a statement, Lady Kimberly representative Courtney L. Zietzke said that the fishing operations on Saipan will be “locally owned.” He said local fishermen will own up to 30 percent share of the equity.

The company will also be incorporating a local CNMI fish processing and marketing office on Saipan.

Zietske said an additional 21-percent equity of the company will be donated to selected children’s charities within the CNMI.

He said Lady Kimberly will be relocating its two commercial longline fishing vessels from North America to Saipan, to fish 30 nautical miles to 200 nautical miles from the exclusive economic zone.

Local fishers are believed to be operating within 20 nautical miles.

“All catch will be landed at the Port of Saipan, where it will be processed and sold internationally,” he said.

The local fishermen’s co-op, meantime, will be marketing “the by-catch” locally.

Meantime, Zietzkie said that Lady Kimberly is seeking a $600,000 guarantee from the Commonwealth Development Authority “for vessel re-allocation to the CNMI and to capitalize the locally formed processing and marketing company on Saipan.”

He said the total funding the company is seeking is $1.2 million.

He said Lady Kimberly will unconditionally pledge its two longline fishing vessels to the CDA and the lender for the loan.

The two vessels, he said, are recently surveyed and insured at $1.8 million.

Lady Kimberly has reportedly been issued AAA rated comprehensive marine insurance that insures against all losses, including loss of profit and cargo insurance.

Earlier, CDA board chair Tom Glenn Quitugua said that Lady Kimberly’s loan guarantee application is now under review.

Off hand, he said it is a little problematic to issue a bank guarantee for a financial institution outside the CNMI.

“We can issue bank guarantee but it would have to be in the local bank. CDA does not engage in U.S. mainland banks. So we really have to look at the policies,” Quitugua said earlier.