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Reyes frets over hidden costs in ARRA projects
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Posted on Apr 16 2009
While Senate President Pete Reyes said he “wholeheartedly” supports the Fitial administration’s effort to obtain funding for the Rota power plant as part of the American Recovery and Reinvestment Act, he cannot support an application for a Public Health Information Network.
Reyes, in a letter to Esther Fleming of the Office of Management and Budget, said his hesitation with any of the applications stems from hidden costs that may be incurred to the CNMI government.
The government has been working to secure millions of dollars for projects in the Commonwealth, including money to buy two additional power generators for the island of Rota.
Reyes said he supports the application but encourages the government to make sure there are no hidden costs.
“While the proposal anticipates that with the acquisitions of new generators Rota customers can look forward to having reliable power 24/7, I am concerned how this will affect rates to be charged to CUC’s Rota customers,” he said. “My understanding of the proposal is that full funding for the proposed project is being sought under ARRA. If so, and with no cost outlay from the CNMI Government, it follows that power rates for Rota customers need not be increased.”
In a separate letter, Reyes said he supports the CNMI government applying for money to fund additional Fire and EMS response vehicles and to design and build a sold waste management facility on Tinian.
Matching CNMI costs are non-existent or minimal for these projects, he noted.
However, because the summary states there will be matching costs for a CNMI Health Information Network, Reyes said he cannot support the application.
“…the summary states that matching costs to the CNMI are ‘to be announced by National Coordinator for FY 2009 and FY 2010.’ I simply cannot approve a project without an idea as to what it will cost the CNMI taxpayers,” he said.
