CCC questions IPR completion

With just 581 workers that are working right now on the third floor of a 14-floor structure, the Aug. 31, 2018, deadline of Imperial Pacific International (CNMI) LLC to complete the casino resort appears difficult to meet. Unless it brings in a new contractor with lots of workers, the company may find it difficult to meet that deadline.

The Commonwealth Casino Commission told IPI executives last week that they are skeptical about the company’s ability to complete their resort casino in Garapan before the agreed deadline next year.

With only 581 workers right now, the Imperial Pacific Resort in Garapan appears to be facing a construction worker crisis. According to IPI executives, the resort is currently working on the third floor that is reportedly only 42-percent complete.

According to an official progress report submitted to the casino commission, the $507-million casino resort is currently 62 percent complete, with $334 million already expended.

IPI executives said this computation includes the material on-site.

Casino commission chair Juan Sablan told IPI executives during the meeting that the lack of manpower was concerning for them, especially since the upper half of IPR is “bare bones.”

“We just signed the [fifth amendment of the casino license agreement], setting up a timetable for August of next year to complete [the Imperial Pacific Resort]. That is a huge undertaking. You are looking at a structure that is practically from the top bare bones. I don’t think you can complete the project by August next year if you don’t hire as soon as possible another major contractor to take over,” Sablan told the executives.

IPI assured the commission that they are in discussion with local construction companies.

Currently, MCC International is the prime contractor for IPI.

MCC representatives reportedly fled the island after it came to light that they brought in construction workers from China as tourists and then failed to pay them properly.

“Based on what we have on our schedule, at this moment, we can tell you that we are still on target,” said an IPI executive in response to Sablan.

“… If we got more manpower, then we could accelerate [the progress],” the executive added.

CCC executive director Edward Deleon Guerrero asked the executive if he was confident that the hotel would be done before the deadline of August 2018.

“I think we can,” replied the executive.

Commission vice chair Joseph Reyes questioned the reported 62-percent completion of the facility. He noted that a quick inspection of the current progress suggests otherwise.

He pointed out that the commission has yet to receive anything from Development Plan Advisory Committee. “This is, in my view, part of [the DPAC’s] role on the implementation schedule,” he added.

Casino commission legal counsel Mike Ernest informed the commission that the casino license agreement revision 5 omits the initial gaming facility from “having to submit to DPAC.”

“It quite explicitly cut out the implementation schedules. They do not need to be submitting to the DPAC for the initial gaming facility,” he said.

“Whether or not DPAC is in the picture or not, IPI is still obligated to carry through with the terms and conditions of the license agreement,” said Deleon Guerrero.