Inside the government's financing plan for Ordot - KUAM.com-KUAM News: On Air. Online. On Demand.

Inside the government's financing plan for Ordot

Posted: Updated:
 by Sabrina Salas Matanane

Guam - The Ordot Dump isn't the only solid waste facility closing. According to documents filed in the District Court, the Dededo Transfer Station might be shutdown.

According to the receiver the government needs to come up with an additional $19.9 million to comply with the Ordot consent decree. That's because it argues GovGuam has imposed additional projects that weren't initially included in the case.

In response, Attorney Rawlen Mantanona has submitted GovGuam's financing plan to address the shortfall and in the filings three projects are on the chopping block.

Number one:    GovGuam is asking the court to remove $8.2 million project to improve Dero Road, which even the receiver has comported was not a requirement of the consent decree.

Number two: GovGuam says it wasn't an easy decision, but permanently closing the Dededo Residential Transfer Station will also save an additional $3 million.

Guam EPA administrator Eric Palacios says the closure comes as the brand new Harmon transfer facility prepares to open. He adds even though Dededo will close, the issue of contamination at the site will still be handled.

"Guam EPA is still pursuing its options as far as holding the last known occupants of Dededo property," he said. "We fully intend to address the contamination we fully intend to cause for cleanup and mitigation at the site."

The third project relates to $6.5 million safety enhancements project for route four. GovGuam is proposing what they call is a viable financial alternative. Namely to continue the project on an going basis by utilizing the current ongoing pilot vehicle escort program at a cost of $12,000 per month as compared to the cost of full construction.

The government contends that experts including representatives from the Federal Highway Administration have determined route four is no more dangerous than other roads on Guam. Federal funding for the project is also expected to become available sometime within the next decade. Ultimately GovGuam is hoping for the Route 4 project to removed entirely from the consent decree and instead be dealt with later by the appropriate agency .

Aside however from these three projects, the government's financing plan also addresses costs associated with the Ordot Dump post-closure, which it only learned last year from the federal receiver would cost $14.3 million net present value over the next thirty years or $18.6 million unadjusted if GovGuam pays for the post closure care on an ongoing basis pursuant to the court's order.

GovGuam is proposing to establish a separate trust account for the accumulation of the post-closure care costs over the next30 years.

The trust account would be funded by an initial deposit of $1 million in seed money to be credited against the $19.2 million debt service reimbursement owed to the government, thereafter it would be funded by a monthly deposit of $49,000 that will be collected from operations and revenues from the Guam Solid Waste Authority.
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