Lawmaker: No need to review Guam move

By David Allen, Stars and Stripes

CAMP FOSTER, Okinawa — Guam Rep. Madeline Bordallo says the move of some 8,000 Marines and their family members from Okinawa to her U.S. territorial island does not need to be reviewed and should go ahead as planned.

Bordallo, in a news release Friday from her Washington office, countered Marine Corps Commandant Gen. James Conway’s assertion Wednesday to a House committee that the initial $4 billion estimated to be the U.S. share of the cost to move the Marines to Guam falls short of the actual cost.

Conway told the House Military Construction subcommittee that "it will be far more than that." He did not cite the cost, however, stating that the Marines’ move to Guam would be reconsidered as part of the upcoming Quadrennial Defense Review.

Bordallo said the military buildup on Guam is proceeding as planned, as it should.

"I have been reassured by officials at the Department of Defense that the military build-up on Guam is on track," she stated in her news release. "In particular, I was reassured that the Commandant was trying to address larger training as well as command and control issues that will be considered in the Congressionally mandated Quadrennial Defense Review."

In President Barack Obama’s proposed $3.4 trillion budget for the next fiscal year, $787 million is requested for military construction projects for Guam. It’s just the start of the $4 billion the U.S. has said it will spend for military projects on the island related to the transfer of several major Marine commands to Guam by 2014.

Included in the $787 million are $48 million for highway construction, $167 million for improvements to Apra Harbor and $259 to begin construction of a more modern naval hospital.

The total cost of the relocation project has been pegged at $10.27 billion, with Japan picking up $6.07 billion, or 59 percent, of the cost.

Japan’s House of Representatives approved $2.8 billion last month for the Guam project.

= = = =

US$787 million proposed for military construction projects on Guam

President Obama’s 2010 budget submission includes US$787 million in military construction projects on Guam.

Guam Delegate to the US Congress Madeleine Bordallo said that the funding targets key initial infrastructure to support the military buildup.

She said of particular importance is the $48 million in Defence Access Roads funding that will be used to improve the haul and access road network on Guam.

Additionally, the Department of Defence has programmed $259 million to begin construction of a more modern Naval Hospital that will ultimately provide better health care facilities and increased specialty care capacity for Guam.

News Content © Radio New Zealand International

PO Box 123, Wellington, New Zealand

Palace creates employment task force

BY Angelo S. Samonte, Manila Times Reporter

President Gloria Arroyo created the Presidential Task Force on Emergency Employment to thwart the effects of the global economic crisis in the country’s economy.

The task force would be created through the Executive Order No. 794 signed by the President recently.

The seven-member task force is chaired by the President herself with the following members: Labor Secretary Marianito Roque; Administrator Rosalinda Baldoz of the Philippine Overseas Employment Administration (POEA); Administrator Carmelita Dimzon of the Overseas Workers Welfare Administration (OWWA); and the presidents of the Employers Confederation of the Philippines, the Philippine Chamber of Commerce and Industry, one organization of recruitment agencies, and a representative of the Trade Union Congress of the Philippines (TUCP).

The President said the generation of employment and livelihood opportunities for targeted income groups is part of the country’s best preparation in thwarting the problems brought about by the global economic crisis.

The government held a job fair during the Labor Day celebrations instead of holding usual activities for the event saying 80,000 local and overseas jobs were up for grabs to Filipinos workers.

2000 workers Guam

Another visitor in the country, Lieutenant Governor Michael Cruz of the United States Territory of Guam, has announced their requirement for 20,000 to 30,000 skilled construction workers.

He said that 8,000 American expeditionary forces stationed in Okinawa, Japan, are moving to Guam, which translates to a 25-percent increase in the population of the Island Territory to 170,000, about 25 percent of whom are of Filipino ancestry.

Cruz said the U.S. region can only provide about 1,000 skilled workers and, therefore, has to hire masons, electricians, plumbers and other workers adept in construction works from other areas like the Philippines. He said that hiring is ongoing.

$15-billion infra budget

A budget of $15 billion was readied for various infrastructure projects to be built in Guam to cater to the needs of U.S. servicemen and families whose pullout from the Japanese city will be completed by year 2014.

He described the magnitude of growth and the construction boom that will happen in Guam within a decade as huge. “It is the largest build-up of millions and millions of dollars since World War II,” the lieutenant governor said.

Guam’s vice governor said that their economy is tourism-based with the bulk of tourists coming from Asia, especially from Japan. He chided that Filipino Lapu-Lapu killed their first tourist Ferdinand Magellan in 1521.

Cruz was in Bataan Wednesday to discuss with Gov. Enrique Garcia and son Balanga City Mayor Jose Enrique Garcia III the final plans for the establishment of twin-city relations between Guam’s capital of Agana and the City of Balanga.

“We have to do our homework and be ready to be able to supply a sizable number of skilled construction workers for Guam,” the Bataan governor said. 

--With Llanesca T. Panti and Ernie B. Esconde

Guam Buildup on track

Pacific Daily News - Guam - An "unprecedented" amount of money will be spent on projects here in the first year of the buildup, industry representatives learned yesterday.

Mayor Gordon's meeting with Guam Governor Felix Camacho and NavFac and French Navy officers onboard a French Frigate held May 1, 2009 at US Naval Facilities, Guam

Capt. Louis Cariello, operations officer for Naval Facilities Engineering Command Pacific, gave a presentation on NAVFAC's execution plan as it prepares for the historic relocation of 8,000 U.S. Marines and their 9,000 dependents from Okinawa to Guam within the next five years.

More than 1,300 industry representatives and community members are attending the forum.

The Defense Department is on track to have buildup-related construction projects starting next fiscal year, which begins in October, Cariello said. He said work will begin immediately once an official record of decision is issued.

"That's our plan and we're on track," he said. "The amount of money for the first year is absolutely unprecedented."

More information on projects will be available when the Defense budget is finalized, which is expected to happen next month, Cariello said.

He listed for the audience some of the projects expected for the first year of the buildup. Among them are:

Utilities and electrical infrastructure projects;
A medical clinic and work on Naval Hospital;
Access and perimeter fence roads; and
Seawall and wharf improvements.

Some projects, such as a central utilities plant and wastewater collection system, both with price tags of at least $25 million, will get under way before this fiscal year is over, Cariello said.

Cariello spent much of his presentation detailing how contractors will be selected for the projects.

"Whether you're a large contractor or a small contractor, there's certainly enough, with a $10 billion program, to carve off enough for each of you," he told the audience.

A least a billion dollars of that is set aside to be awarded to small businesses, Cariello said. He said that was determined as the maximum amount of capacity those businesses can sustain.

Part of that will be strictly for participants in the Small Business Administration's 8(a) program, which helps small disadvantaged businesses, and those in the HUBZone Program, which helps disadvantaged small businesses in designated zones. Guam is one of those zones, and 164 local businesses will qualify for HUBZone contracts, Cariello said.

American businesses will get a 20 percent advantage in competing for contracts funded by the United States, he said.

For those projects funded by the Japanese government, under an agreement between Japan and the United States to move the Marines from Okinawa, Japanese firms would be on equal footing with American companies, Cariello said. By Connor Murphy - Pacific Daily News - pls. follow link to comment

Sen. Eddie Calvo and Olongapo City Mayor James Gordon met Monday to discuss furthering trade and other sister-city ties between Guam and Olongapo City, which once hosted major U.S. military installations at Subic Bay. Gordon met with Calvo at the Hyatt Regency Guam ahead of the Guam Industry Forum. Dozens of other representatives from the Philippines are attending the military buildup forum, including 53 worker recruitment agencies, 15 contractors and several Philippine labor officials. More than 1,350 delegates from the U.S., Japan, the Philippines and other countries are attending the forum, which is being held at the Sheraton Laguna Guam Resort, the Hilton Guam Resort and Spa and the Guam Marriott Resort.

Buildup-related construction projects scheduled for fiscal 2010:

Utilities project
Headquarters building
Medical clinic
Fire station
Bachelor enlisted quarters
Aviation utilities
Aviation parking
Dog kennel
Wharf improvements
Access roads
Training facilities
Exercise support building
Naval hospital
Perimeter fence road
Electrical infrastructure project
Vehicle maintenance facility
Operations facility
National Guard center
Seawall repairs

The ‘hidden’ strengths of OFWs

Written by The Entrepreneur / Manny Villar - Business Mirror

I have always been confident that overseas Filipino workers (OFWs) will play a big role in carrying the Philippine economy through the turbulent global recession. And I am optimistic we will not see any dramatic drop in their remittances at all.

So I was glad to read reports that the Bangko Sentral ng Pilipinas (BSP), which late last year expressed concern that remittances of OFWs would decline this year, is just as optimistic, too.

Only last month, the World Bank projected that remittances to developing countries like the Philippines would fall by 5 percent to 8 percent this year, citing the uncertainties over the duration and depth of the global financial and economic crisis.

The World Bank’s sister institution, the International Monetary Fund (IMF), estimated 2009 remittances from OFWs at 7.5 percent below the 2009 figure, or $15.17 billion, compared with last year’s $16.4 billion.

Actually, that’s not bad. Remember, OFW remittances totaled about $14 billion in 2007, when the economy grew by 7.2 percent in terms of gross domestic product. At $15 billion, remittances will still be several times the amount of foreign direct investments that flowed into the country, which reached only $1.5 billion last year, on a net basis.

Higher deployment to the Middle East will push remittances higher in the second semester, contradicting the dire forecasts by multilateral agencies of a decline in the money sent by Filipinos working abroad.

When Deputy BSP Governor Diwa Guinigundo returned from a trip to Saudi Arabia, he noted that highly skilled Filipinos are preferred in the Middle East.

“Personally, with the information I have, a decline in remittances is unlikely,” Guinigundo said. “There is also cause for optimism for the second half of the year, when we will have to review our numbers.”

Overseas Filipinos coursed $16.4 billion through banks last year, a 13.7-percent growth from 2007. During the first two months of 2009, remittances rose 2.5 percent to $2.6 billion, propped up by sea-based and land-based workers.

The BSP has explained that its earlier forecast of a flat growth in remittances this year was based on expectations that many OFWs would lose their jobs as their host- countries suffered from the impact of the global recession and deployment of Filipino workers overseas would slow down.

The opposite happened. More Filipino workers are leaving for jobs abroad than those who are returning home. The government has announced new job openings for Filipinos, who comprise almost half the workers in the construction industry in the Middle East.

According to Guinigundo, there are development projects worth $45 billion in Jeddah alone, which will open job opportunities for Filipinos.

I said earlier that Saudi Arabia and most other countries in the Middle East are the least affected by the global crisis. They may suffer lower earnings from exports, but they have ample resources to sustain their economies. Their sovereign funds are intact, they will not go into deficit.

This is why I don’t expect any radical cut in employment in Saudi Arabia, Kuwait, Abu Dhabi or Qatar. The only one hit by the global crisis was Dubai, which depends on tourism.

But what is happening now is that the OFWs who lost their jobs in Dubai are going to Abu Dhabi or Qatar, looking for new employers, instead of just going home. Their advantage is that Filipino workers, besides being hard workers, are multiskilled and can shift from one job to another.

There are other factors that will sustain OFW deployment and remittances growth amid the global financial crisis.

In Europe, where most OFWs work as domestic helpers and whose presence in the household allows their employers to work, or as caregivers who are taking care of the aging population there, it is not likely that they would all be sent home; not in droves, at least. After all, people who have gotten used to having somebody take care of their needs, to give them the time to pursue their occupational interests or enjoy personal comfort, would not easily give up their helpers or caregivers.

In the United States, the worst fear is that the recession will drive up the unemployment rate past the 8-percent level to as high as 10 percent. If we apply that to Filipino workers in the United States, then we can assume that 10 percent of OFWs there will lose their jobs, and remittances from there will decline by 10 percent.

But the US unemployment rate was already averaging 7 percent last year. So the 10-percent unemployment rate under a worst-case scenario means only a 3-percent increase in the US jobless rate. Applying that again to OFWs, then we can expect 3 percent of Filipino workers in the United States will lose their jobs this year, and their remittances will decrease by 3 percent.

What I’m saying is that the big drop in remittances projected by the World Bank and the IMF may happen to other labor-exporting countries, but less likely to the Philippines.

The pessimistic forecasts of the two institutions are understandable. They did not take into account or were not aware of the unique characteristics of Filipino workers.

I know, for example, that some of the OFWs whom I helped come home after encountering problems abroad have gone back and found new employment. That’s resilience, a strength of Filipino workers that is not likely to be appreciated by Western analysts.

One more thing is that if remittances do actually drop, the reason may not be that OFWs are being sent home, but because they are deliberately withholding or reducing the amount of foreign exchange they are sending to their families, in anticipation of a higher exchange rate (more pesos for a dollar).

OFWs are smart. They will rather travel far to get more pesos for their dollars instead of changing their currencies in hotels or airports. In our housing business, we have noticed that when they see the exchange rate going up, buyers will delay their amortization payments, waiting for a more favorable exchange rate, thus maximizing their income.

Can the bright boys from the World Bank and IMF see that? I doubt it!

I agree with the Bangko Sentral’s plan to review its forecast on remittances, given the increase in deployment. On the average, the number of Filipino workers leaving for abroad has increased from 3,000 in the past few years to about 4,000 this year.

During the first two months of 2009, remittances grew by 2.5 percent to $2.6 billion. That’s significantly lower than the 13.7-percent increase for the whole of 2008, but 2.5 percent is also significantly higher than zero growth, which should now be our worst-case forecast.

We know ourselves better than the World Bank and the IMF know us Filipinos!

Labor Official React On Foreign Worker Report

Written by Stefan Sebastian - Pacific News Center

Guam -- Local labor officials are reacting to a foreign news report that efforts to bring workers to Guam from the Philippines ahead of the pending military buildup have hit a snag.

A newspaper in the Philippines is reporting that labor officials there and on Guam still have to resolve whether employers will have to pay for workers' food and housing while they are here. The report cites a Filipino labor official who says Guam has different rules when it comes to food and housing for foreign workers. However, officials with Guam's Department of Labor today downplayed suggestions that there is a conflict when it comes to those requirements. They say the only real difference in the rules they have seen involves paid vacation time, which is required by rules in the Philippines but not on Guam.

Meanwhile, Department of Labor staff say they expect thousands of workers from the Philippines will come to Guam for the buildup. They add the department will work with officials in the Philippines to solve any problems as they arise.

$3.5B for Guam's roads: $260M for village streets to be paid with local funds

BY CONNOR MURPHY • PACIFIC DAILY NEWS

More than twice as much traffic soon will be traveling Guam's roads, and it will cost $3.5 billion to prepare those roads.

Officials from the Department of Public Works and its consulting firms yesterday gave industry representatives a look at plans for Guam's roads and public transit, as the island gears up for the historic military buildup.

The military plans to move 8,000 Marines, as well as their 9,000 dependents here by 2014, requiring a new Marine base and the expansion of virtually all infrastructure on island.

Roadways and transit account for more than half of the estimated $5 billion cost to prepare the island's infrastructure and utilities.

If no road work is done, Guam would be looking at travel delays being five times as long as they are today, said Lee Gibson from consultants Parsons Brinckerhoff.

The planned work will cut that by half, he said.

Most of the work will be paid for through federal funds, Department of Public Works Director Larry Perez said at the Guam Industry Forum on Wednesday. The department is looking at $1.6 billion from the Federal Highway Administration and $1.5 billion from the Department of Defense, he said.

He noted that $260 million would have to come from the government of Guam for village streets.

Much of the work will be done to improve what officials are calling the haul road network, or the streets that heavy trucks would take from the port to development in the north.

The work on this network replaces officials' earlier idea to build a new high-capacity north-south road.

About $90 million in projects already have been started to improve island roadways, Perez said.

New Buses, Bus Stops

The buildup will require a significant increase in the island's mass transit system, officials said.

"Guam is at a point where public transportation is going to be a more important part of the mix," Gibson said.

Lawmakers earlier this year reestablished the Guam Mass Transit Authority, after abolishing it in 2003 and since then contracting private companies to provide services.

Perez said the department has identified $138 million for transit improvements from the Federal Transportation Administration and the government of Guam.

Plans are in the works to install public bus stops, five new routes and 50 new vehicles, Gibson said. Toward the end of the buildup, high-capacity transit on Marine Corps Drive could be possible, he added.

In addition, federal contracts would require employers to provide shuttles for their workers, Perez added.

Recruitment Priority

GUAM DEPARTMENT OF LABOR
Maria S. Connelley
Director

Regional Collaboration

Sub-Committee Findings:•Regionalism•“Inside the Fence” and “Outside theFence”•Federal Capacity

U.S. Citizenship and ImmigrationService:
•Early Filing – 6 months prior to opening
•Prevailing Wage Rates - ConstructionLow prevailing wage rate affects abilityto recruit
•Service Contract Act ofBase Operations Support
•Visa CapThe Northern Mariana Islands Labor,Immigration and Security Act (H.R. 3079)

Off-Island Recruitment:•Priority recruitment from U.S. eligible pools•U.S. Territories•Freely Associated States•Veterans

Contact Information:
Guam Department of Labor
414 West Soledad AvenueGCIC Building,
Suite 400Hagatna, Guam 96910
http://www.guamdol.net/
Telephone: (671) 475-7075
Facsimile: (671) 475-7018

Apprenticeship program eyed ahead of Guam buildup

Guam-- The pending military buildup on Guam is expected to require billions of dollars in construction work. Guam labor officials and contractors gathered to learn how apprenticeship programs for tradespeople can help to develop Guam's workforce.

http://www.youtube.com/watch?v=moVMySAnrdM


http://www.youtube.com/watch?v=JAzOGnigMuI
At Forum, Local Needs Take Center Stage

http://www.youtube.com/watch?v=JHOZ1JfEBzU
Industry Forum Starts

Military may build new power plant

BY DIONESIS TAMONDONG • PACIFIC DAILY NEWS • 

The military may have to have a power plant built in Piti to accommodate the capacity needed for the Guam buildup, especially when a Navy carrier docks in Apra Harbor and connects to the local power grid.

Critical utility upgrades, the need for more land for training and firing ranges and ways to temporarily house construction workers were among the updates provided by retired Marine Maj. Gen. David Bice, executive director of the Joint Guam Program Office, during yesterday's opening of the three-day Guam Industry Forum.

Bice gave a progress report on many of the planned projects slated for the historic buildup during the first session of the third Guam Industry Forum yesterday.

More details of the projects will come out when the Environmental Impact Statement is published. The document, which Bice said was more than 8,000 pages, must be approved before any military construction projects slated for early next year can break ground.

Bice said an area in Finegayan, Dededo is the top choice for building homes for the more than 8,000 Marines being relocated to Guam. The parcel of land is located between the existing Navy South Finegayan housing area and the Naval Communication and Telecommunication Station.

But the area is partly under the control of the Ancestral Lands Commission and a few private landowners. Those issues still need to be sorted out, Bice said.

The military may also have to acquire private and government of Guam land to develop firing ranges on Pagat, Mangilao. As well, Route 15, known as the back road to Andersen Air Force Base, may also have to be rerouted to accommodate those training areas.

"We are still evaluating those options," Bice said.

The island's current power system won't meet the military's future requirements, Bice said, adding the military will continue to work with the local government and utility officials to upgrade the system so that it meets the needs of both the military and the civilian population.

The wastewater treatment plant in northern Guam will also have to be expanded to deal with the population influx, he said.

Bice said there may be a need to drill for new water wells, adding the military is also aware of the need to protect the island's aquifer.

Landfill Plans

Navy officials and the solid waste receiver in charge of Guam's solid waste facilities continue to work on an agreement that will ensure the military will be a customer of the local government's landfill, which has yet to be built. If that takes place, trash collection fees will be much lower than the proposed rate, which is between $30 and $40 per month.

Bice remarked on the progress made by the Port Authority of Guam, which officials just a year ago called a "potential chokepoint" for cargo. Cargo activity at the port is expected to increase from 103,000 lifts per year to a peak of 190,000 during the buildup. More than $200 million in capital improvement upgrades are slated for the 34-year-old facility.

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

GUAM’S STIMULUS SHARE AT $140 MILLION

The Obama administration is pouring in hundreds of billions of dollars to spur economic growth across the country, and the government of Guam’s share is at least $140 million. And GovGuam is asking for more.
GovGuam is sending a large package of proposals for American Recovery and Reinvestment Act funds to the federal government by next week.

Guam’s Bureau of Budget Management and Research has compiled a total of $463 million in shovel-ready project proposals from local government agencies, said Budget and Management analyst Art Mariano.
Guam EPA, the Department of Public Health and Social Services, and the Department of Labor have received economic stimulus funding notices from the federal government.

President Obama signed the American Recovery and Reinvestment Act in February. It authorizes $787 billion for long-term investments in health care, energy, education, and infrastructure nationwide. The federal government hopes to create or save 3.5 million jobs over the next two years through the use of stimulus funds.
To date, Guam programs have received fund notifications that total $52 million, according to the federal government’s economic recovery Web site, www.recovery.gov

Guam’s budget bureau will meet with administration officials within the week to determine the final list of projects for the package.

“We’re confident that we will receive funding for important projects,” said Shawn Gumataotao, the governor’s deputy chief of staff. He said Guam will receive a minimum of $140 million in stimulus funding.

“The No. 1 priority for us is the modernization of the port,” said Gumataotao. He added that other administration priorities include the closure of the Ordot dump and the construction of the new landfill, the expansion of water projects in central Guam, and providing funding for health-care issues on the island.

He said each stimulus program has different timelines and application requirements.

Shovel-ready projects have already been through architectural and engineering reviews, Mariano said. Projects need to begin in 60 to 90 days after the funds arrive, to release project funds in the economy as quickly as possible, he said. Proposals received by the bureau include road projects, port expansions, and a new DNA lab for the Guam Police Department.

Jobs hard to find

The Department of Labor will receive $4.4 million as part of the stimulus package to encourage employment, said Labor Deputy Director Erica Unpingco.

New job programs will begin in June 2009, and will end in July next year. Labor will train new workers and prepare displaced workers for careers in new fields with the money the department has received, Unpingco said. Stimulus money also will be used to to support senior citizen and youth employment.

GPSS

The Guam Public School System has submitted an application to Guam EPA for stimulus-funded projects that will “make our buildings more energy efficient,” said Superintendent Nerissa Bretania-Shafer.

“We’re spending more than $1 million a month on electricity,” said Bretania-Shafer. GPSS wants to upgrade electrical infrastructure at the schools and reseal school roofs to stop leaks and lower temperatures. She hopes these building improvements will cut costs for utilities.

Bretania-Shafer said GPSS still has not received specific guidelines or a dollar amount from the U.S. Department of Education about education stimulus funds.

“(Delegate Madeleine Bordallo) provided preliminary numbers, but we don’t have anything official yet from the U.S. Department of Education,” said Bretania-Shafer, referring to $70 million in federal education funding that Bordallo stated earlier this month would be available to Guam.

Because guidelines for the territories are not available, GPSS has been observing allowable costs for education stimulus spending in the 50 states, Bretania-Shafer said.

She said GPSS wants to upgrade older school buildings, which will cost $30 million to $50 million. This amount was derived from plans developed several years ago, so this is a low estimate, she said.

Officials are still discussing the potential use of stimulus funds to repair John F. Kennedy High School, Bretania-Shafer said.

Repairing the JFK facility in Tamuning would cost $30 million dollars, she said. “We’re still shooting in the dark with our requests at this point,” Bretania-Shafer said.
Source: Bernice Santiago, PDN

Latest version of Guam's buildup master plan out

SANTA RITA, Guam-The Joint Guam Program Office has released a public overview of the latest version of the military's draft Master Plan, documenting months of studies and planning done to date.

The public overview shows the preferred alternative sites and notional laydown for Marine Corps operational forces, aviation facilities, housing, training and other activities. It also shows the current status of the planning efforts for new facilities at Apra Harbor to support a transient aircraft carrier. The public overview is a summation of the draft Master Plan and also includes definitions of Marine Corps activities and frequently asked questions.

The draft Master Plan is a snapshot of where the planning process is at this time and was developed to provide Department of Defense Components with an opportunity to review and provide input. The Navy's planners will continue to assess requirements, resources and develop additional detail. Additionally, environmental studies required by the National Environmental Policy Act will continue to look at the sites outlined in the draft Master Plan, as well as others. The draft Master Plan will continue to be refined and will not be considered final until the environmental impact statement has been finalized.

“Sharing the contents of the draft Master Plan is important to show our progress and keep neighboring communities updated,” said Maj. Gen. (Ret.) David F. Bice, JGPO's executive director. “We will keep working closely with [Guam] Governor [Felix] Camacho and his staff to make sure the military's activities are compatible with GovGuam's vision for its future.”

Camacho and Rep. Judi Won Pat, Speaker of the 29th Legislature, were briefed on the contents of the plan. The Civilian Military Task Force will be briefed in the future. JGPO has collaborated with GovGuam representatives in order to develop the draft plans. Representatives from the Governor's and Lieutenant Governor's staffs provided input to Defense leaders as working group participants. Additional details, such as the location for training activities not noted in the current draft, are still being studied and will be shared with the Guam government for feedback.

The Joint Guam Program Office facilitates the realignment of Marines from Okinawa to Guam. JGPO works within the Department of Defense and closely with the Government of Japan, Government of Guam, U.S. Congress and Federal agencies to lead and manage the delivery of required capabilities to the Marines. (JGPO) . --- Saipan Tribune

Guam Industry Forum III attended by thousands

A recently issued First Hawaiian Bank Economic Forecast has Guam listed as one place not expected to be hard hit by the economic downturn. The forecast indicates numerous avenues for profit related to the upcoming military buildup. Companies from as far as Switzerland and as close to home as the CNMI are on island to attend Guam Industry Forum III and are eager to take advantage of the military buildup.

Almost 1,400 representatives from companies around the world are attending the third Guam Industry Forum, attempting to gain critical insight in what will be done during the 2010-2014 military buildup. JoeTen Industries out of the CNMI has their corporate hand in every business from real estate, construction material supplies and shipping. Construction Material Supply General Manager, Jesse Sablan says the CNMI based company is looking forward to the economic opportunities available on Guam come time for the buildup.

"If we pull our resources and vector ourselves into an area of the market we are familiar with and also listen to the good, kind advice that people give us," Sablan told KUAM News. "We intend on using that to our advantage and hopefully that will provide some gainful employment for some people who lost their jobs."

Even local companies with home field advantage like Advanced Management Incorporated are looking to forge new relationships with bigger off-island companies because this time around, local companies will have the upper hand. AMI president and CEO Monty McDowell said, "Guam businesses are very much in the know than businesses that have gravitated to Guam before so they're learning from us."

McDowell added, "As we proceed in discussions with them, they see that we have competencies here that can help them, so I think we're going to be good fore each other."

Construction companies and general contractors aren't the only ones wanting to take advantage of the military buildup. According to the economic forecast from FHB, the buildup will be good for Guam's tourism industry, which is already reaping the benefits of events associated with the troop relocation.

Hilton marketing and communications manager Crystal Sablan said, "We've seen an increase as far as travelers coming in from the U.S. mainland side staying with us at the hotel. Hilton is synonymous with hotels back in the U.S. and we've seen an increase in corporate companies heading to Guam to see what's going on with the military buildup."

And as the demand increases for hotels to provide service to people coming in and out of Guam, the demand also increases for airline service providers, something director for Continental Micronesia sales and marketing David Kendell says his company will take advantage of. "From an airline perspective," he said, "We always look for demand and we are wanting to grow, but of course it's all about supply and demand and this military buildup will bring Guam not only the demand, but a lot of opportunities for both the public and private sector and from that you're not only looking at customers flowing into Guam, but also customers flowing out."

GIF 3 continues through Thursday at its trifecta of venues - the Marriott, Hilton and Sheraton hotels.   By John Davis - Kuam.com

VIDEO: Packed venues at Industry Forum GIF3

http://www.kuam-media.com/flv_player/doPlayer.php?vid=789

Guam, Subic link up as sister-city

Senator Eddie Calvo is leading an effort to establish a sister-city relationship with Olongapo City, Philippines. Olongapo City includes Subic Bay, once the U.S. military’s major Asian military installation.

“Subic is a community that once had a strong U.S. military presence,” Calvo said. “We can learn from their experience and share in the prosperity ahead. I want to build a strong partnership that will benefit both our communities.”

The coordination of Guam tourism, economic development and labor agencies into this partnership follows the senator’s meeting with Olongapo City mayor James “Bong” Gordon yesterday at the Hyatt Regency Guam.

Gordon is visiting Guam with a contingent of Philippine government officials and businessmen. The group is participating in the Guam Industry Forum.

“We’re here not only about opportunities for workers, but also for investments,” Gordon said. “The people of Olongapo are interested in setting up businesses here. We can forge a sister-city relationship.”

Calvo yesterday wrote to the agency heads of the Guam Visitors Bureau, Guam Economic Development and Commerce Authority and Department of Labor informing them of the mayor’s invitation to establish a sister-city relationship.

The senator and the mayor discussed Guam and Olongapo’s shared history as host communities of major U.S. military installations. They also discussed similarities in the economic future of both communities.

The mayor said he believes Guam and Olongapo are insulated from the world economic crisis. Olongapo City, according to Mayor Gordon, is experiencing major economic development with a resurgent private sector looking to Guam because of its familiarization with the economic benefits of a U.S. military host community.

“Many of our residents can trace their roots to Subic and Olongapo City,” Calvo said. “It was an honor and privilege to discuss issues important to all our people with a leader from the Philippines, who cares about the new direction our island is taking.”

Several residents of Guam can trace their roots to this region of the Philippines. Gordon earlier this week met with the Zambales Association of Guam. Olongapo City belongs to the province of Zambales.

Gordon comes from an influential political family, which has led the Subic area for decades. His father was mayor of Olongapo City. His brother, Philippine Senator Richard “Dick” Gordon, became mayor as well. Then-Mayor Richard Gordon led the city and his country through the difficult transition following the closure of the U.S. military installation at Subic. Richard Gordon and James Gordon concurrently led the revitalization of Subic and Olongapo.

Senator Richard Gordon is considered a front-runner in next year’s election for Philippine President. Senator Gordon yesterday announced his application to the Philippine Commission on Elections to start a new political party, which his supporters have said will be the vehicle for his candidacy. Senator Calvo also has met Senator Gordon previously while in the Philippines.

Gordon is no stranger to Guam. This is his fourth visit to the island. He first came to Guam in the early 1980s and met with the late Governor Ricardo J. Bordallo.

Senator Eddie Calvo is leading an effort to establish a sister-city relationship with Olongapo City, Philippines. Senator Eddie Calvo, left, meets with visiting Olongapo City mayor James Gordon at the Hyatt Regency Guam on Tuesday.
Variety News Staff

Japan Lower House OKs US Marines Move To Guam

TOKYO (AFP)--Japan's lower house Tuesday approved a multi-billion-dollar plan to transfer 8,000 U.S. Marines from Okinawa island to Guam by 2014, despite objections from opposition parties.

Under the agreement, Japan would pay up to $2.8 billion for infrastructure and other work in relocating the Marines and their 9,000 dependents to the U.S. Pacific territory.

U.S. Secretary of State Hillary Clinton and Japan's Foreign Minister Hirofumi Nakasone signed an agreement in February on the relocation project, part of a wider 2006 bilateral accord on transforming US force deployments in Japan.

The plan is expected to be voted down in the opposition-controlled upper house but is assured final approval under a constitutional provision that gives the lower chamber precedence on international accords.

The Democratic Party of Japan and other opposition parties have rejected the plan, citing doubts about its cost breakdown and related plans to move a U.S. Marine airfield from a city to a scenic Okinawa shore.

Okinawa - where a bloody battle was fought in the closing days of World War II - has since the war been the reluctant host of more than half of the 40,000 U.S. troops based in Japan.

Many Okinawans are opposed to the related plan to move the Marine airfield to the shore, citing environmental and other concerns.

But the Clinton-Nakasone accord tied this plan to the pullout to Guam aimed at reducing the burden of the U.S. military presence in Okinawa.

Okinawan islanders have long complained of noise from military operations and a series of crimes committed by U.S. servicemen.

Site Traffic Map

Guam buidlup videos

General David Bice talks military buildup on Guam (4 of 4)


http://www.youtube.com/view_play_list?p=1C6B263051B8B308&playnext=1&playnext_from=PL
Follow above link to play all remaining discussion with General David Bice

http://www.youtube.com/watch?v=bL7pj94lcxs&NR=1
Locations of Guam Buildup

http://www.youtube.com/watch?v=qOPJS521AqA
This video is in Chinese, but the author added the English subtitle for the benefit of non-Chinese speakers.

US will invest $15 billion for the next 10 years for construction of new facilities or expanding old ones on US military bases on the Pacific island of Guam.

Two Chinese analysts explained military and geopolitical significance of this US military posturing in West Pacific Region.


http://www.youtube.com/watch?v=Z4gIRo7wc2I&NR=1
Guam: Tip of the Spear - USA - by journeymanpictures
China's militarisation is challenging the balance of power in the Pacific. In response, America is shifting tens of thousands of serviceman to Guam and transforming the island into a military fortress.


http://www.youtube.com/watch?v=u3NvbdjeZtU&feature=related
Guam History: World War II Conquest of the Marianas

http://www.youtube.com/watch?v=UZu-2n1HZsY
Guam Video Documentary

http://www.youtube.com/watch?v=TXYswH7vwm0
Short slide show about Guam - a relatively unknown gem in the Western Pacific. Situated beautifully, filled with lovely flora, fauna and people

Funds already flowing for Guam buildup

By Teri Weaver, Stars and Stripes
Pacific edition, Monday, April 6, 2009

TOKYO — When the United States and Japan agreed in 2006 to move 8,000 U.S. Marines from Okinawa to Guam, a succession of public meetings, task forces, proposed legislation, and — dare we say it? — PowerPoint slide shows ensued.

Now, three years later, the promise of billions of dollars in military investment still hovers over Guam, and shovels are more than a year from going into the ground, military officials say.

Yet, while everyone waits for congressional approval of money and a final environmental impact statement, the U.S. military already has designated up to $165 million for the buildup, according to Navy officials.

The spending authorization began in May 2006, less than a month after U.S. and Japanese officials figured out how to split the costs of moving the III Marine Expeditionary Force from Okinawa to Guam, according to Pentagon contract records.

Back then, the Pentagon awarded a $40 million contract to Tec Inc. Joint Venture of Charlottesville, Va., to help the military write the required environmental impact statement and a project master plan, said Gary Damaschi, the U.S. Naval Facilities Engineering Command Pacific’s point man on the project.

Earlier this year, the cap for that contract grew to $65 million, Navy spokesman Don Rochon said.

In October, the military agreed to another contract with a $100 million cap. They hired Pacific Program-Design Management Services out of Pasadena, Calif., to help the military write the architecture and engineering specifications it will need to award construction projects, said Damaschi.

"It’s to take inventory of the infrastructure of possible sites," said Catherine Cruz Norton, a spokeswoman for the Navy’s engineering command on Guam. "It’s about coming up with a framework for the requirements."

So far, the Navy has allotted $12.1 million to Pacific Program-Design in four payments. The most recent was $5.7 million in March to determine construction needs on Navy bases in Finegayan and at Apra Harbor, Cruz Norton said.

Other parts went to the California company to plan for housing for transient workers, she said.

The military expects it will need workers from outside of Guam to complete the project, which will nearly triple the number of military servicemembers and workers on Guam.

Both contracts bring in private-sector experts to help the military survey land, study the environment, inventory current utilities and roads, and create a foundation to write future contracts, the Navy officials said.

Both also allow for spending in Hawaii, home to the military’s Pacific Command, and in the Commonwealth of the Northern Mariana Islands, where the military envisions training sites for the Marines.

The overall buildup plan on Guam includes the move of the Marines, the addition of an Army air defense unit and improvements to Navy facilities to accommodate frequent visits from aircraft carriers.

The military cannot award construction contracts until the environmental impact statement is approved.

Approval is expected in early 2010, said Marine Capt. Neil Ruggiero, spokesman for the Joint Guam Program Office.

It’s also possible the military won’t spend the entire $165 million already authorized, Damaschi said.

"The scope of the contracts … is to give us flexibility in case we need it," said Ralph Naito, director of the engineering command’s Pacific architecture and engineering contracts division.

Marianas buildup, not Guam military buildup

By Haidee V. Eugenio - Saipan Tribune Reporter

Guam Lt. Gov. Michael Cruz yesterday said he and Gov. Felix P. Camacho propose to rename what has long been known as the Guam military buildup to “Marianas buildup,” and both look to forming a regional economic task force to tap a projected $2 billion to $4 billion in annual defense-related contracts associated with the influx of military personnel on Guam.

Cruz was the keynote speaker at yesterday's opening of the two-day 2009 Economic Restoration Summit, which drew over a hundred businessmen and government officials from the CNMI and Guam.

He talked about the growing need for a regional approach to the economic challenges faced by the Marianas.

“I firmly believe that Guam's strategic value would diminish if not for the assets of the CNMI. The complexity of current military operations and the security requirements which accompany them cannot be resolved by one island alone,” Cruz told participants in the summit held at the Fiesta Resort and Spa in Garapan.

Jobs

In his remarks, Cruz said he and Camacho propose a regional program in which the CNMI government will share experts with Guam for up to four years, with taxes paid to the Commonwealth to ensure critical government services.

Cruz said the next four years will increase Guam's need for tax enforcement officers, building inspectors, environmental health inspectors, policy specialists and public safety officers.

Although Guam will train its people to meet the increased demand, the number of needed positions requires that it finds other sources such as the CNMI.

“If the CNMI has an excess of these officials, we believe our governments can engage in a program of shared expertise during the peak years of the buildup,” he said.

The program, according to Cruz, would allow the region to share in Guam's future prosperity and by giving jobs to people.

Opportunities

CNMI Gov. Benigno R. Fitial, in his welcoming remarks, recognized the military buildup and the federal stimulus funding as opportunities for the islands.

The summit identified agriculture, aquaculture, edu-tourism and call centers as alternative industries for the CNMI, and brought together experts, entrepreneurs, lawmakers and other policymakers to help develop these industries.

Results of the summit will be presented at the U.S. Department of the Interior-sponsored Business Opportunities in the Islands Conference in Hawaii from April 6 to 8.

In an interview, Cruz recognized the CNMI's growing interest in agriculture and aquaculture which on Guam, “unfortunately, is sort of a dying industry because of multiple concerns, and the increasing price of land.”

Reducing the cost of shipping goods from the CNMI to Guam, he said, is a key area of cooperation.

“Gov. Felix Camacho has been very strong about ensuring the region benefits from the prosperity that Guam is going to see. A healthy region is a healthy Guam, and a healthy Guam should mean a healthy region,” Cruz said.

He added that the Marianas buildup recognizes the various impacts the military relocation will have on the islands, which need to work collaboratively to share in the success coming their way.

“This region must deal with a higher military profile, a large population influx, and a severe lack of skilled labor. If we do not meet our challenges together, we will be divided by them.” he added.

To implement this concept, Cruz and Camacho propose the creation of a regional economic task force that will use the Marianas buildup as the initial engine to address the region's economic concerns.

The proposed economic task force is seen to explore continued collaboration on the guest worker program to ensure new federal regulations address the region's shared concerns.

Accompanying Cruz on Saipan for the summit was his chief of staff, Carlotta De Leon Guerrero, a former TV anchor on Saipan.

Difficulties

Businesses in the CNMI and Guam experience significant difficulty identifying federal contracts and obtaining them, according to Cruz.

While companies with Guam addresses transacted approximately $250 million with the federal government last year, only less than 10 percent of the companies in Guam actually performed the work, he said.

“With a projected $2 billion to $4 billion per year in defense-related contracts associated with the buildup, companies throughout Guam, the CNMI and Micronesia must participate in these good times, especially after we survived the hard times,” said Cruz.

Over the next four years, Guam's population is expected to grow by 28 to 30 percent-the equivalent of some 22 years of population growth occurring in less than a third of that time.

Cruz said the government of Guam is spearheading efforts to prepare for the buildup, but these efforts are not for the military alone.

A dramatic increase in the population requires an upgrade to public services such as health, education, public safety, cultural preservation and economic development.

No easy solutions

Fitial, in his welcoming remarks at the summit, said it's not an easy task to develop promising new industries because of a dramatic change in the economic environment.

For example, the CNMI no longer holds its traditional competitive advantages such as local control of minimum wage rates, local control of immigration, and duty-free access to U.S. markets via Headnote 3(a) provision.

There may be no easy solutions, he said, but the Economic Restoration Summit represents a “good, healthy starting point.”

Fitial thanked former Supreme Court chief justice Jose S. Dela Cruz and others for publicly calling for an economic summit to discuss the CNMI's problems. He also thanked Commerce Secretary Michael Ada for organizing the summit along with other public and private sector agencies such as CDA, Northern Marianas College, and IT&E.

The well organized summit, co-sponsored by the Department of Commerce and the Commonwealth Development Authority, identified agriculture, aquaculture, edu-tourism and call centers as alternative industries for the CNMI.

Commerce Secretary Ada presented the Commonwealth Economic Development Strategy, which serves as a master plan for the CNMI's economic development. Among the priority projects involve the Commonwealth Utilities Corp., inter-island super ferry, alternative energy, and housing. Ada also provided an update on CNMI efforts to tap into the American Recovery and Reinvestment Act, or the federal stimulus package.

Dr. Arthur L. Smith, president of consulting firm Management Analysis Inc., said with half-a-billion dollar in proposed projects, the cost of which is more than three times the CNMI's annual budget, there is increased opportunity for public-private partnership.

He cited as examples the CUC power plant 1, Garapan Elementary School, Garapan redevelopment, Pinatang Beach Park, alternative energy and international sports complex as areas in which public-private partnership can benefit the CNMI.

Sergio Loya, project manager of MAI, presented the results of discussions on aquaculture, agriculture and edu-tourism. Each was followed by presentations of experts and entrepreneurs, including Dr. Shaun Moss of the Oceanic Institute who talked about aquaculture; businessman Tony Pellegrino, who talked about agriculture; and Wayne Pangelinan, who talked about edu-tourism.

The summit was broadcast through video teleconference to Rota and Tinian participants, who were also able to ask the presenters questions.

Guam official says military buildup should be a national commitment

By Gemma Q. Casas - Variety News Staff

GUAM Lt. Gov. Michael Cruz says the planned military buildup in the Marianas region should be a national commitment because the islands don’t have the resources and capabilities to ensure its success.

Cruz, the keynote speaker in the two-day CNMI Economic Restoration Summit, is also the chairman of the civilian military task force of Guam.

The buildup project involves relocating more than 8,000 U.S. Marines and their dependents from Okinawa, Japan to Guam starting 2012.

Photo: Guam Lt. Gov. Michael Cruz, left and his chief-of-staff, Carlota Leon Guerrero, a former senator and KMCV news director, are on island to attend the two-day CNMI Economic Restoration Summit at the Fiesta Resort & Spa.

The construction of facilities that will house them and their families, among other infrastructure projects, are scheduled to begin next year.

Cruz said Guam needs the assistance of other federal agencies to ensure that the construction projects go smoothly as scheduled.

“We’re appealing to the federal government outside of the Department of Defense. The other federal agencies need to be involved to ensure that this buildup happens in the time frame that they wanted to,” he said in an interview.

“Our job is to continue to lobby for additional resources and funding to ensure the success of this project in the long run,” he added.

Guam will host the relocating Marines while the Northern Marianas will provide the venue for their training and drills in land, sea and in the air.

Japan and the U.S. agreed to realign their forces in 2005.

Cruz said $2 to 4 billion will be used for the buildup project and the Marianas region must use this opportunity for their economic benefits.

“With a projected $2 to 4 billion dollars per year in defense related contracts associated with the buildup, companies throughout the region must participate in these good times. If we do not meet our challenges together, we will be divided by them,” he said.

The visiting Guam official said plans to form a regional economic task force in connection with the buildup are still a work in progress.

The idea will be discussed at the next meeting of the Council of Micronesian Chief Executives.

“We look forward to working with our brothers and sisters in the CNMI and throughout Micronesia so that we may see more of our people gainfully employed and ultimately, see an improvement in the quality of life for all of our citizens,” Cruz said