CEDA touts new investment interest as Senate panel advances funding bill

The Commonwealth Economic Development Authority said it has attracted investor interest in industries ranging from fiber-cable manufacturing and distribution to shipbuilding as lawmakers advanced legislation that would allow the agency to use its own preferred dividend funds for economic development efforts.

During a June 2 hearing before the Senate Standing Committee on Resources, Economic Development, and Workforce chaired by Sen. Corina L. Magofna, CEDA executive director Derek Sasamoto said the agency has built significant momentum over the past year and is already fielding inquiries from investors exploring opportunities in the CNMI.

"We've actually have investors who are already waiting on the government to act with the lease applications and QC applications," Sasamoto told lawmakers. "And these are new industries, completely new industries for the first time in our history."

Sasamoto said CEDA's recent participation in national and international investment promotion events has generated increased attention for the CNMI.

"The Marianas has gained a lot of attention internationally as well as in the [United] States," he said.

Among the industries expressing interest are fiber-cable manufacturing and distribution companies, as well as firms involved in shipbuilding.

"We actually have a lot more interest now in terms of even like new industries such as even fiber cable manufacturing, fiber cable distribution, ship building," Sasamoto said.

He added that shipbuilding has emerged as a potential opportunity because of the CNMI's strategic location in the Western Pacific and growing interest in expanding U.S. maritime capabilities in the region.

The hearing focused primarily on Senate Bill 24-52, introduced by Sen. Manny Gregory T. Castro, which would authorize CEDA to use preferred dividend funds already under its control to carry out the economic development mandate assigned to the agency under Public Law 22-1.

According to testimony presented during the hearing, Public Law 22-1 designated CEDA as the Commonwealth's lead economic development agency but did not provide a dedicated funding source to carry out those responsibilities.

Sasamoto said the legislation is critical because the agency's current economic development efforts have largely been supported by a previous $1-million appropriation from the dividend fund.

"We're gonna run out of money soon and we need to use money that, like was said, is CEDA's money for economic development," he said.

He said the funding would support investor recruitment, trade missions, grant matching requirements, and other development initiatives aimed at diversifying the CNMI economy.

"We're also thinking about how we can help, for example, farmers and agricultural producers with equipment," Sasamoto said. "We're even thinking about the development finance side of things as well."

Castro said the bill is intended to provide CEDA with the tools needed to attract new industries and expand the Commonwealth's economic base.

"We really need to give CEDA the tools for them to help grow our economy and it really starts there," he said.

While the Department of Commerce, the Office of the Attorney General, and CEDA submitted testimony supporting the measure, committee members noted that the Department of Finance had previously expressed concerns due to the Commonwealth government's fiscal challenges.

Despite those concerns, lawmakers voiced strong support for the legislation.

Sen. Ronnie M. Calvo said the measure would allow CEDA to continue promoting the CNMI to investors without placing additional pressure on the Commonwealth's general fund.

Sasamoto agreed, telling lawmakers that the dividend funds would provide sufficient resources for the agency's current plans while avoiding future general fund appropriations.

Following discussion, the committee unanimously voted to move Senate Bill 24-52 forward and directed staff to prepare a committee report for action during a future Senate session.

The committee also advanced Senate Bill 24-57, another Castro measure that would modernize the CNMI's business licensing framework by allowing a single business license to cover multiple locations operating under the same line of business.

Supporters said the proposal would reduce administrative burdens and costs for businesses while maintaining necessary regulatory oversight.