Call center’s QC application OK’d

Gov. Juan N. Babauta has signed the qualifying certificate for the proposed call center business on Saipan.

Babauta said yesterday that he approved the QC as recommended by the Commonwealth Development Authority about two weeks ago.

“That’s the kind of business that we want to see here. I support that strongly,” said Babuata.

CDA earlier decided to grant We Manage Calls a $2-million tax relief over 10 years.

This decision, however, was actually viewed by the applicant as unacceptable.

When reached yesterday, We Manage Calls co-owner Erick Van Der Maas said that his Los Angeles-based business associate is even proposing now to just move the project to Guam.

“We’re seriously planning to go to Guam,” said Van Der Maas.

He said, though, that they would present their project to incoming Gov. Benigno R. Fitial after he is sworn in next week to ask for a better package.

“We’ll see what happens,” said Van Der Maas.

He said that they were expecting to receive a bigger tax incentive package from the CNMI government.

We Manage Calls submitted its QC application earlier this year, seeking exemption from the excise tax in the first three years, Business Gross Receipt Tax for five years, and a 10-year exemption from corporate tax.

The company wants to invest $2 million for the call center, which it projects will generate a cash flow of $98 million over 10 years.

The business aims to employ up to 200 people.

Based on the initial plan, the company wanted to begin the operations with 30 people in December 2005. That number would increase to 50 by June 2006 and 100 by end of 2006.

By middle of 2007, it hopes to already employ 150 staff and, beginning 2008, its workforce is projected to increase to 200 or more.

The firm further said that the business would also result in a $1.5 million extra revenue for the telecommunication company and $600,000 in extra income to the Commonwealth Utilities Corp.

CDA administers the government’s qualifying certificate program, which grants various tax incentives of up to 100 percent in tax rebates for 25 years to investors who build, expand, and operate commercial projects in the CNMI.

A call center business refers to reservation centers, help desks, information lines or customer service centers.

Van Der Maas said CDA informed him about the governor’s approval of the certificate a day before Christmas.