CPA’s grant application to support interisland air travel disapproved

The Commonwealth Ports Authority’s 2022 Small Community Air Service Development Program grant application that was asking for $1.9 million to support interisland air service through a minimum revenue guarantee has been disapproved, according to CPA executive director Christopher S. Tenorio.

In his recent report to Senate Public Utilities, Transportation and Communications Committee chair Sen. Paul A. Manglona (Ind-Rota), Tenorio disclosed that they have asked SCASDP Team from the U.D. Department of Transportation to debrief them on how to improve future applications so they’ll pass muster.

He said the SCASDP Team stated that the $1.9 million that CPA was asking for was too large, there was no local cost match, and no public-private partnership.

Tenorio said the grantors suggested that CPA partner with local agencies and obtain letters of support from government boards, politicians, and private entities to strengthen the CPA’s next application.

Christopher S. Tenorio

Tenorio provided information about SCASPD and other CPA-related issues in response to Manglona’s request during a recent PUTC public hearing.

The SCASPD provides financial assistance to small communities to help them enhance their air service.

Tenorio said there is no cap to the award amount, and only public entities may apply as the sponsor of the grant. He said there can be “consortium applications,” which are applications from multiple communities working together toward one grant project and objective.

He said the SCASDP is currently open with funding availability of up to $15 million and that applications were due last May 17.

As of press time yesterday, Saipan Tribune was waiting for a response from Tenorio whether CPA managed to file its 2023 application by the deadline, and if they did, how much the agency is asking for this time.

In his report to Manglona, Tenorio said that CPA is seeking the senator’s assistance and influence in garnering CNMI government and private sector support in order to strengthen CPA’s application.

He said support letters from various stakeholders and lobbying for local in-kind or matching funds available for the program would be especially helpful.

He said CPA’s application will be stronger if there are multiple levels of contributions from state, local business, private organization, non-airport revenues, and in-kind contributions.

Tenorio said in-kind contributions include waivers of airport fees/rents and donated advertising from media outlets, and others.

Under the SCASPD, the U.S. Department of Transportation is authorized to provide airlines revenue guarantees, offset start-up costs, and provide funding for marketing and promotion.

Tenorio said under the SCASPD, the funds go to the communities rather than directly to an airline serving the community.

He said the SCASDP has communities designing their own solutions to their air service and airfare problems and then seeking financial assistance under the program to help the implement the plans.