CPA gets power to grant concessions

Gov. Ralph DLG Torres believes that signing a bill into law to empower the Commonwealth Ports Authority to grant concessions is the first step for economic activity to spill over to Tinian and Rota.

House Bill 19-189, SS1 became Public Law 19-76 yesterday. It was introduced by Rep. Joseph Leepan T. Guerrero (R-Saipan). This comes at a time as the DFS concession at the Saipan airport is about to expire.

CPA executive director Chris Tenorio thanked the governor and the Legislature, particularly Guerrero, for having the bill passed and enacted.

“Your signature, governor, would allow us to move forward in making decisions on mass concessions,” he said.

Torres said that giving CPA the authority to deal with concessions would mean more businesses as they could now rent out space at the CNMI’s ports of entry. The law could also help CPA get the funds that would allow it to either improve or renovate the airports.

“We already met with the CPA board and the development of the airports is something that we’re going to follow up with them. I just signed the concession law and it is definitely a good start,” said Torres.

Torres asked the Legislature to come up with bills similar to PL 19-76 or amend certain sections of previous laws and other policies to attract investors to Tinian and Rota. “For now, it is difficult to get investments on the islands of Rota and Tinian. That’s why I urge the [Legislature] to amend policies and try to also think of ways to help give opportunity for these investors to reach Rota and Tinian. There’s opportunity for us to move forward, for investments to grow while also protecting our interests.”

Torres said he has met with Rep. Edwin P. Aldan (R-Tinian) and they have discussed other issues that prevent potential investors from going to the other islands. “The administration is cognizant in supporting projects that they have.”

As of now, Alter City Group and Bridge Investment Group are the two biggest investors that have pumped additional revenue to Tinian. The island is also expecting more economic activity in the coming years when the United States Air Force begins its divert airfield program.

Torres, however, emphasized that concerns like environmental issues should be put in perspective when allowing new investors on Tinian and Rota. “We want to emphasize in the permits that we need to be sensitive in investing on Tinian and Rota investments. The opportunity is very difficult.”

“Therefore our permitting agencies should move forward by also protecting our environment as well. If we need to amend certain laws, regulations or rules, I would support it as long as it makes sure the projects would move forward. We want to see Tinian and Rota also prosper. That is something that we should seriously look at as long as it won’t jeopardize the environment.”

Guerrero said his bill had to go through some changes after the Senate passed it with amendments. “The House [of Representatives] acted on it immediately after the Senate was done with the amendment. [PL 19-76] gives the CPA the authority to negotiate with concessions independently, which is the best for them to make the necessary changes at the airport.”