The head of the CNMI's Commonwealth Ports Authority yesterday said he is confident the agency can comply with requirements for its seaport revenue bond.
The CPA executive director Efrain Camacho met with Bank of Guam officials yesterday to discuss the bond, which has been on the verge of default.
In a July report to Governor Benigno Fitial and the Legislature, the acting CPA executive director Lee Cabrera said that CPA may have to increase rates at the Port of Saipan because the seaport is not making enough revenue to meet bond requirements.
The seaport bond indenture agreement requires CPA to make timely payments and to maintain a $1.25 revenue-to-bond payment ratio at all times in the duration of the bond.
This means for every $1 owed on the bond, CPA must have $1.25 of net revenue in reserve.
During yesterday's weekly Rotary Club meeting, Camacho told members CPA was increasing the seaport fee 20 percent to 7 US dollars and 20 cents per ton to help fund the bond.
He says the increase will help bring the bond into compliance.
