MPLT loan just first step in bridging CNMI’s budget gap

09/24/2025 - The $29-million loan agreement with the Marianas Public Land Trust is only the first step in bridging the CNMI’s deep budget shortfall—and proof to the U.S. Department of the Interior that the CNMI is exhausting every option to make ends meet.

Gov. David M. Apatang signed House Bill 24-50 into Public Law No. 24-13 last Sept. 23, authorizing the government to borrow $29 million from MPLT to cover annual retiree obligations. In return, MPLT is allowed to withhold net distributable income starting FY 2026 as repayment.

“Hopefully, we can continue to work with MPLT. Hopefully, they can change their mind and work with us for the betterment of our retirees, our people, and our students, especially the Public School System. This is a very important bill for all of us here.”

A day earlier, in a press conference, Delegate Kimberlyn King-Hinds outlined the CNMI’s path to secure a bailout from the federal government, and the priority is securing the $29-million loan from MPLT after the Apatang administration announced that the CNMI’s fiscal year 2026 budget has fallen from the projected $179 million to $156 million.

But officials were quick to emphasize that the MPLT deal is not a cure-all. The next steps are for lawmakers to pass an amended budget and for the administration to negotiate the terms of the MPLT loan. 

Senate President Karl King-Nabors confirmed the legislature is working in “lockstep” to avoid delays. “These are trying times, and these aren't easy questions and discussions. But [we’re] doing them, [we’re] having them, and we're making progress,” he said.

At the same time, the Commonwealth Economic Development Authority and the Department of Public Lands are moving to land new investors as part of the broader push to stabilize revenues. 

CEDA executive Derek Sasamoto has been courting investors in Asia and the U.S., with some companies expressing interest in developments as large as Kagman. Public Lands Secretary Sixto K. Igisomar said discussions are ongoing to clear space for potential projects.

Among the most advanced prospects is Zo Motors, which is exploring sites in Koblerville and As Gonno for an electric vehicle assembly facility. The project, covering as much as 20 hectares, is seen as a bright spot for Saipan’s economic recovery. Other investors—some initially dangling trillion-dollar scale proposals—have since scaled back to more realistic parcels on Saipan, Tinian, and Rota

Lt. Gov. Dennis C. Mendiola cautioned that while interest is strong, expectations must be tempered. 

“Let's not talk about billions of dollars. Let's not talk about trillions of dollars. Let's just be realistic and scale it down to an investment opportunity where the CNMI is going to benefit,” he said

For now, the focus remains on finalizing the budget and securing the MPLT loan terms. But officials are betting that pairing fiscal discipline with fresh private investment will be the path toward easing austerity and restoring growth.

Report by Mark Rabago