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Inos issues $15M guarantee to fund stalled CUC projects
Gov. Eloy S. Inos has affirmed that the CNMI government will meet its $15-million funding obligation for 2016 to 2018 for the Commonwealth Utilities Corp.’s stalled projects.
Inos issued a letter on Monday that serves as a financial guarantee that the CNMI will meet its financial obligation of $15 million. The letter was addressed to U.S. Environmental Protection Agency Region 9 superfund division director Enrique Manzanilla.
The governor said the CNMI understands that if it fails to uphold its obligation, the U.S. government may require the Commonwealth to obtain a third-party financial guarantee.
Under the federal court’s final order, by Feb. 1 of each year for the years 2016, 2017, and 2018, the CNMI must deposit $5 million into the U.S. District Court for the NMI’s court registry, or file a notice of the Department of the Interior’s authorization to proceed for $5 million to fund projects under Stipulated Order No. 2.
SO2 refers to court-mandated CUC projects that include the CUC pipeline; tank erection cleanout and testing; secondary containment; and used oil disposal, and others.
The final order also requires the CNMI to provide a financial guarantee that promises that these payments will be made.
Assistant attorney general Teresita Sablan, counsel for the CNMI, U.S. Department of Justice Environmental Enforcement Section senior attorney Bradley O’Brien, and CUC legal counsel James S. Sirok notified the court on Wednesday about Inos’ financial guarantee.
