The administration has flashed the green light for the Port Authority of Guam to extend the Cementon Micronesia’s lease agreement from five to 30 years in a move that will enable the company to recoup its multimillion dollar investment in the cement storage facility project in Cabras Island.
Sen. Tom Ada’s Bill 446 which authorizes the lease extension was among several bills that outgoing Gov. Felix P. Camacho signed into law on Dec. 12.
Cementon Micronesia plans to invest an initial amount of $12 million for the construction of the cement terminal facility which will be built on a 4 983-square meter property owned by the port authority.
The company – a partnership between Perez Bros. Inc. and World Cement Inc. – leases the land for 37¢ per square meter.
The facility will provide up to 26 000 metric tons of storage capacity allowing the industry to meet the increased civilian and military construction needs.
The port authority and Cementon broke ground for the project based on a five-year lease commencing in December 2009 renewable for three more terms subject to legislative approval.
The bill now Public Law 30-209 lifts the five-year limit and removes the requirement for legislative approval.
In an earlier interview with the Journal John D. Perez controller of Perez Bros. said a longer lease term would allow the company to gain the lender’s confidence and expand its operations.MBJ