Friday, May 1, 2009

Buildup on track: Top officials open Guam Industry Forum

BY DIONESIS TAMONDONG • PACIFIC DAILY NEWS

While optimism over the planned military buildup on Guam was tempered with some uncertainties over the funding of those multibillion-dollar projects, top officials assured the Guam Industry Forum audience yesterday that the buildup is on track.

Acting Secretary of the Navy B.J. Penn, in his keynote address to the more than 1,300 people in attendance, reiterated the importance of the buildup, a key component to the U.S. military's realignment of forces in the Asia-Pacific region.

"It's not just a matter of national security. The stability of the entire Pacific region depends upon this successful mission," Penn said during the start of the three-day forum.

The event is being held to provide updates for thousands of local, national and regional businesses interested in providing products, services and skills for the buildup.

The forum, the third conducted in as many years, was held at the Sheraton Laguna Guam Resort, the Hilton Guam Resort & Spa and the Guam Marriott Resort & Spa, which were linked by a live video feed. More than 200 late registrants were turned away due to venue capacity, according to forum organizers.

While the buildup is expected to bring many economic opportunities in the form of jobs and new businesses, authorities want to ensure it will also lead to improved infrastructure and better quality of life for both military and local residents.

"It is critical that the military buildup must benefit both the civilian and military community," said Guam Delegate Madeleine Bordallo, who also spoke at the forum.

As a result of the planned buildup, Guam's current population of 171,000 will increase by 14.6 percent -- an estimated 25,000 active duty troops and their dependents -- to 196,000, according to government reports. The bulk of this population influx comes with the relocation of about 8,000 Marines and 9,000 of their dependents from Okinawa to Guam.

In February, U.S. Secretary of State Hillary Clinton and Japan Foreign Minister Hirofumi Nakasone signed an agreement spelling out Japan's planned contribution of more than $6 billion to the relocation of the U.S. Marines to Guam by 2014.

But some uncertainties about the buildup were raised by the crowd during a question-and-answer period with retired Marine Maj. Gen. David Bice, executive director of the Joint Guam Program Office, which is the lead federal agency coordinating the buildup.


Japan Funding

Earlier this month, Japan's House of Representatives approved $2.8 billion for the transfer, but the agreement has yet to be voted on by Japan's House of Councilors, which, according to Japanese media reports, is expected to vote down the measure. However, under the Japanese Constitution, the larger House of Representatives prevails in such disagreements.

The progress of the relocation is also being affected by the progress of the Futenma Replacement Facility in Okinawa, which Bordallo called "the linchpin of the realignment of Marines to Guam."

Delays in the construction of the $5 billion facility, intended to replace Marine Corps Air Station Futenma, may delay the Marine relocation to Guam.

But Bordallo noted that the federal government has appropriated $300 million for the start of the Futenma construction, which she said was a good sign. The funding of more projects will be solidified as Congress starts discussions on the Defense Authorization Act in June.

Local Participation

Another positive sign, Bordallo noted, is the Navy setting aside $400 million for local HUBzone firms to participate in the military construction projects on Guam.

More than 160 local businesses are eligible for the HUBzone Empowerment Contracting program, which provides federal contracting opportunities for qualified small businesses located in distressed areas, which Guam has been designated.

"It is a good faith effort by Navy to ensure that local businesses will directly benefit from this buildup," Bordallo said.

Gov. Felix Camacho said the partnerships forged among local and federal officials and with the private sector will help "realize the potential that awaits us."

"While we move forward with these strategic plans, we must ensure economic sustainability," he said. "What we build today must last throughout the military buildup and beyond."


Kudos: JGPO has provided real opportunity with its industry forums

The Guam Industry Forum kicked off at three different hotels, with an expected 1,350 participants. Speakers included acting Secretary of the Navy B.J. Penn, retired Marine Maj. Gen. David Bice of the Joint Guam Program Office and Guam Delegate Madeleine Bordallo.


The primary goal of the forum -- put together by the Joint Guam Program Office -- is to provide information on the military's plans for the upcoming buildup, including the relocation of 8,000 Marines, plus their families, to Guam. The Joint Guam Program Office was established by the Department of Defense to manage and facilitate the military buildup.

The JGPO's Industry Forum also provides a chance for businesses to learn how they can make the most of the military buildup, which is projected to cost between $15 billion and $20 billion. Much of that money will be in construction projects and will translate into an unprecedented opportunity for Guam and its residents.

This will mean a wealth of opportunities for local companies, from design and construction contracts to logistics projects and more, which will mean new private-sector jobs and higher government revenue. The forum allows for local businesses get more details about the buildup and to network with other companies, from Guam, the United States and other countries.

This is the third industry forum put together by the Joint Guam Program Office. The efforts of the office and its staff are to be commended. Their work on this forum and the previous two translate into real opportunity for local businesses and residents.

Guam definitely has much work ahead in preparation for the military buildup, and to mitigate the expected surge in population throughout the buildup. The continued work of the Joint Guam Program Office allows us to better plan for the buildup, and offers local companies the opportunity to benefit from the growth

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