11 May 2011

Buy America provisions slow CNMI projects

12:46 pm on 11 May 2011

Reports from the Northern Mariana Islands say only 41 percent of a 121 million US dollar economic recovery fund has been spent.

Figures show that this may be due to the conditions tied to the disbursement as all the goods used in these projects have to be produced in the United States.

The American Recovery and Reinvestment Act requires that all funds are used in line with the Buy America campaign.

CNMI officials say US territories have historically found the Buy America provision to be an obstacle to procurement because the cost of shipping significantly increases the price of obtaining products manufactured in the mainland.

Of the 61 projects funded through this programme, only seven have so far been completed.