GOVERNOR Arnold I. Palacios and the Marianas Public Land Trust on Wednesday signed a $15 million line-of-credit agreement that will serve as “bridge financing” for capital improvement projects funded by the U.S. Economic Development Administration.
Authorized by Public Law 23-12, which the governor signed on Nov. 20, 2023, the line-of-credit “will help expedite the progress of about $100 million worth of capital improvement projects without burdening the general fund,” Palacios said.
The EDA-funded projects for which the MPLT loan will be used include the Garapan Revitalization Project, the Oleai Sports Complex, the Oleai Cultural Events Center, the Department of Finance-Economic Resilience Center, Northern Marianas College’s Workforce Development and Training Center, the NMC Center for Research, Extension and Development Project, the Northern Marianas Technical Institute’s Workforce Career Training Facility, the statewide planning grant project, the Marianas Visitors Authority’s tourist site refurbishment activities, and the Northern Mariana Islands Maritime Training Center, with the 500 Sails as the grantee.
The EDA grants have been awarded to the CNMI on a reimbursement basis, and the line of credit from MPLT will allow the Commonwealth government to “front” the funds due to the vendors, such as architectural and construction firms. The CNMI government can then seek reimbursement of these funds from the EDA.
“We have been working on this line of credit agreement for several months now, and I am glad that we have come to a resolution that can now help accelerate the momentum of many of these projects that will benefit our community,” the governor said.
“The line of credit allows us to immediately provide seed funding to facilitate progress payments, improve payment turnaround time to contractors, and expedite project completion,” he added.
He thanked the MPLT trustees for their partnership and commitment to seeing the agreement through to completion. He also acknowledged the help of the Legislature and the Office of the Attorney General for expediting the review and approval of the legislation and the agreement; and the Office of Planning and Development, which oversees many of the projects.
The governor said the MPLT loan supports revenue generation for the CNMI through tax collections, and, “more importantly, it will help improve the overall quality of life for CNMI residents by ensuring the timely completion of critical projects.”
“Among other benefits, the projects will provide a safe and modernized tourist district, a disaster resilient government and educational facilities, and additional economic activity for the CNMI,” Palacios said.
