Brief Chat
Saipan — While the military buildup in the CNMI is a welcome addition to the local economy , it has an ambiguous effect on the civilian landscape , according to PK Phommachanh-Daigo , president and founder of the Marianas Business Network .
Defense investments are “ both a significant opportunity and a complex challenge for our local economy ,” said Phommachanh-Daigo , who owns Sincerely Saipan Destinations , a wedding and tour company .
The first-phase completion of the Tinian Divert Airfield construction project — an alternative landing site for the U . S . Airforce in case Anderson Air Force Base in Guam is inaccessible — is expected to be completed by October 2025 .
“ We can ’ t rely on fixed bases ; we need to have , ideally , lots of options , lots of opportunities to be flexible and move around the theater ,” Lt . Gen . Laura Lenderman , Pacific Air Force ’ s deputy commander , said during a meeting with the Saipan Chamber of Commerce last month . “ We have a vital interest in our peace and prosperity in this region . Our presence here is really to deter .”
The first-phase construction , which cost
$ 161.8 million , will provide parking aprons for military planes . The second phase cost $ 221.7 million and focuses on the construction of a cargo pad , a taxiway extension , a maintenance support facility , and fuel tanks among others .
“ There are concerns about potential gentrification and a resulting lack of affordable housing , which could drive up rental rates and strain the local community ,” Phommachanh-Daigo said .
The housing-shortage scenario in the CNMI is a reality that the neighboring territory of Guam is currently grappling with . With more military personnel expected to arrive this year , Guam ’ s real estate market
P K Phommachanh-Daigo
President , Marianas Business Network Military buildup opportunities and challenges
is expected to explode .
“ There is a fear that the rapid development might erode our unique cultural identity — a comparison is often drawn to what has happened in Hawaii ,” Phommachanh-Daigo said , referring to the dilution of the 50th state ’ s indigenous culture .
But at the end of the day , he added , the military is part of the CNMI ’ s economic growth . “ Their presence can be a crucial factor in sustaining our small businesses and ensuring long-term stability ,” he added .
Over the next few years , the U . S . Department of Defense plans to invest close to $ 800 million in Tinian to build up defense operations .
By Bryan Manabat
“ Many of our members view this development as a chance to stimulate economic growth , create local jobs and foster entrepreneurship .” Phommachanh-Daigo said . “ The influx of resources and demand could help sustain and even expand local businesses , contributing positively to the gross domestic product of the CNMI .”
Phommachanh-Daigo founded the Marianas Business Network last June to unify small business owners on Saipan and provide them with a venue to share their experiences and challenges .
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