Previous Story
MPLT defers action on Plumeria funding
|
Posted on Nov 23 2005
In view of the upcoming change in leadership, the Marianas Public Lands Trust has deferred its action on the Babauta administration’s $5.8 million funding request for Plumeria Estate.
MPLT executive director Bruce McMillan also said that some issues have not been resolved. These include the method of repayment and legal issues surrounding the creation of a public debt.
“So the board, given some of these issues, voted to defer action on this. Also, we’re in state of change right now. It’s all these factors that entered into their decision to defer any action on it,” said McMillan.
The Housing Task Force, chaired by Public Works Secretary John S. Reyes, earlier submitted a loan application with MPLT for $5.8 million that would be used for the Plumeria project. The task force said it would tap the 702 capital improvement funds for fiscal year 2007 and 2008 to pay off the MPLT loan. This plan may no longer materialize since the new administration might use the funding for other priorities.
Governor-elect Benigno R. Fitial attended the MPLT’s board meeting Tuesday.
McMillan said, though, that Fitial did not make any comments on the Plumeria issue during the meeting.
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. The requested funding of $5.8 million would be used for the utility and roadways infrastructure.
The Babauta administration earlier asked the Commonwealth Utilities Corp. to borrow the money to finance the utilities project. But CUC has since been under an emergency declaration, stemming from a serious financial condition.
Based on 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.
