THE United States has secured $740 million from Japan to defray the cost of utilities upgrades, expansion and development associated with the Marine Corps relocation.
The fund earmarked for utility projects represents a fraction of the $6 billion pledge from the Japanese government.
The final environmental impact statement acknowledges “the existing sub-standard conditions of key public infrastructure systems and social services on Guam and the interest to have Department of Defense fund improvements to these systems and services.”
However, the report noted that the defense department’s capacity to fund infrastructure projects is limited by federal law.
Of the $740 million earmarked for utilities, $500 million will go to water and wastewater system projects.
The Department of Defense recognizes the seriousness of the needed upgrades, warning that any failure to secure funding could result in “significant environmental impacts” and a delay in construction.
DoD said it has arranged for funding to ensure Guam Waterworks Authority’s northern district wastewater treatment plant provides fully compliant primary treatment by 2013. But the department recognizes that the earmarked amount would not be adequate to meet the requirements of an increased population.
The final impact report also acknowledges that “the ability for GWA to secure necessary funding for the required CIP remains a key concern and a potential impediment to the Guam military relocation effort and the return of GWA to full compliance with the Clean Water Act.”
Hence the recommendation to get the involvement of the private sector.
The final impact report recommended that a private business entity be “formed to finance, develop, upgrade, operate and manage on and off base potable water infrastructure associated with the military relocation.”
Public-private partnership is definitely not a strange concept to Guam. It has, in fact, been proven a successful strategy to complete capital projects with minimal cost to the government, or taxpayers, for that matter. New schools, for example, have been successfully built through the municipal lease agreement.
The Guam International Airport has managed to build a freight facility in Tiyan through partnership with CTSI Logistics.
Meeting a funding need for a project requires more than begging; it calls for creativity and the government will never go wrong with public-private partnership.
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