MPLT assures that it has funds but…

The Marianas Public Land Trust board said the agency has available funds for projects but it requires concrete repayment schemes from borrowers.

“Yes, we have funds,” said members of the MPLT board of trustees yesterday when asked if the agency has the ability to finance certain government projects, specifically the $5.7 million Plumeria Estate and the $5.8 million Micronesian Games.

Both projects are top government priorities but nothing has been done yet due to lack of funding.

On the Plumeria Estate project, MPLT board chair Juan S. Torres said yesterday that the agency is being asked for a fund guarantee.

“They [Housing Task Force] are asking for a guarantee that will be repaid by 702 funds,” he said, adding that this matter requires further discussion with the task force.

Trustee Edith Deleon Guerrero said the issue boils down to “return on investments.”

Housing task force chair John S. Reyes said earlier that the Babauta administration is eyeing 702 capital improvement funds as a repayment tool. This means that the MPLT has to release the funds, totaling $5.8 million, to begin the project. Reyes said the government aims to tap CIP funds for years 2007 and 2008 to repay the loan.

The initial MPLT funding would be used for the utility and roadways infrastructure of Plumeria Estates.

The administration earlier asked the Commonwealth Utilities Corp. to borrow the needed money to finance the utilities project. But CUC has since been under an emergency declaration, stemming from a serious financial condition.

Under the initial plan, $2.2 million of the loan would be shouldered by CUC for the construction of sewer lines, water lines, and power lines at Plumeria Estates.

The repayment of this shall be guaranteed from the utility charges of the estates’ projected 128 households.

The rest of the loan, amounting to over $3 million, would be used for the roads and drainage construction and will be repaid by the Governor’s Office.

The administration has also looked at the Marianas Public Lands Authority as an alternative funding source for repayment of the infrastructure project.

The task force chairman said that the awarding of the project contract would be held off until the funding for the infrastructure is secured.

There are two developers wanting to build the Plumeria Estate.

The project involves the construction of new houses on approximately 13 hectares of land in Koblerville. Up to seven different styles of residential homes will be built in the area for first time homeowners.