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05/13/2025—Regional economic stagnation, rising inflation, and urgent infrastructure needs dominated the agenda as the Pacific Islands Development Bank convened its second-quarter board meetings in Saipan on Tuesday, May 12, 2025.
PIDB president and CEO Lindsay M. Timarong spoke to Marianas Press during a break in the meeting at Crowne Plaza Resort Saipan and shared difficulties across Micronesian economies.
“This morning’s discussion centered around stagnation in the tourism sectors throughout the region,” Timarong said. “There’s also a serious housing and accommodation shortfall—not just for local families, but for foreign workers needed for critical projects tied to compact renegotiations and broader U.S. trade and economic policies.”
The quarterly board meeting rotates among PIDB member jurisdictions, and the CNMI served as host this quarter. “It’s important for our board to witness firsthand the challenges experienced by member communities,” Timarong added.
Attendees included representatives from the Federated States of Micronesia, Guam, the Republic of the Marshall Islands, Palau, and the CNMI. Representing the CNMI was former lieutenant governor Diego Benavente, who sits on the PIDB Board of Directors.
“This is a critical year for PIDB,” Timarong said. “We’re discussing updates to our strategic plan and presenting our annual and independent audit reports to the Board of Governors.”
Benavente said the CNMI’s economic struggles were a major topic of conversation. “It’s now been over two years that I’ve had to report quarterly that things are not getting better. In fact, they’re worse,” he told the board. “I talked about DFS closing, reduced air services, hotels that are still shuttered, and an average occupancy rate of just 20%. Our economy is in a fragile state.”
Benavente also cited concerns over shifting federal support. “We used to rely on the federal government during crises—after 9/11, during SARS, or COVID. But now we’re seeing a different administration, one that’s aggressively looking to cut programs. That’s scary for communities like ours.”
Despite these struggles, Benavente said the CNMI is grateful for the PIDB presence. “It may seem small, but having so many PIDB representatives and staff here—staying in hotels, eating at restaurants, renting cars—helps. It’s a shot in the arm.”
The PIDB was formed through the Association of Pacific Islands Legislatures to help member nations and territories access funding for infrastructure and development projects. The bank now offers commercial, consumer, and housing loans across its jurisdictions.
“The CNMI government invested $2 million into PIDB, and a large portion of that has been loaned back out as commercial and housing loans,” Benavente said. “We’ve already helped families on Rota, Tinian, and Saipan.”
Benavente also emphasized PIDB’s role in fostering regional solidarity. “These meetings—much like APIL or the Micronesian Islands Forum—bring leaders together to talk about real solutions. For small islands like the CNMI, it’s a crucial network for support and innovation.”
Timarong noted that guest speakers at the May 13 governors’ meeting would include key leaders from across the region. Among them are Chuuk Speaker Lester Mursai, Guam Gov. Lou Leon Guerrero, and Yap Speaker Nicolas Figuere-Larouan.
“We want this week’s meetings to lead to collaborative solutions. This is not just talk—these are real problems, and PIDB is committed to helping our communities rise to the challenge,” said Timarong.
Aside from Timarong and Benavente, other attendees of the board meeting last May 12 were Andrew May of Chuuk, Robson Henry of Kosrae, Frank Atalig of Guam, Julius Tun of Yap, Wilbur Heine of the Republic of Marshall Islands, Anjojo Kabua of the Kwajalein Atoll Development Authority, and PIDB manager Rosa Weilbacher.
Story by Mark Rabago
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