VIDEO: Ada Says His $75 Million Dollar Bond Won’t Breech GovGuam’s Debt Ceiling

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Guam – Senator Tom Ada has introduced bill 472 proposing the borrowing of $75 million dollars to fund specific highway projects that are identified in Guam’s 2030 transportation master plan.

This includes projects like Ypao road, Hamburger road, and the Tiyan parkway. The senator says that his bill will keep the road construction industry busy despite the buildup pause. Bill 472 would allow

GovGuam to borrow $75 million dollars through what is called a limited obligation bond which is a type of bond that is not tied to the general fund and therefore will not impact GovGuam’s debt ceiling or borrowing capacity. The bonds are instead tied to a stream of federal highway grants that are expected over a ten year period.

“The remote possibility that the grants will not be given in the years to come is really remote but not withstanding that is the risk that the investors will take but it is not a risk that will be born by the government of Guam,” said Senator Ada. The local lawmaker says that the bill has been vetted by the Guam Economic Development Authority bond counsel and the Department of Public Works.