Billions in DOD and federal investments for the NMI

The Department of Defense and the federal government have several ongoing infrastructure and development programs in the Northern Mariana Islands.

Philip Mendiola-Long, president of Sherman Consulting, and Joe Guerrero, chairman of the Saipan Chamber of Commerce board of directors, hosted a panel discussion at the Society of American Military Engineers Industry Forum 2024 on Nov. 15 at the Dusit Beach Resort. They spoke about ongoing projects and what that means for prospective businesses moving into the region.

Philip Mendiola-Long, president of Sherman Consulting, talks about opportunities in Tinian for military projects at the S.A.M.E. Guam Post Industry Forum 2024. Photo by Skyler Obispo.

On Tinian, roughly two-thirds of the island is ready for military building and an estimated amount of $2.6 billion has been projected for in DoD and federal investments on the island, Mendiola-Long said.

Over $1 billion has been assigned for military and civilian infrastructure upgrades, with the remaining being split between construction and upgrades of facilities for the Air Force, Navy and Marine Corps.

Mendiola-Long cautions that the island’s aged infrastructure may be a “heavy lift” for contractors as it lacks a sewage system, and an Environmental Protection Agency approved landfill. Tinian’s infrastructure was constructed in 1944 by the Navy’s Construction Battalion, better known as the Seabees, and no major improvements have been made since then.

Despite this, Mendiola-Long said that Tinian is a prime opportunity for contractors who want less competition compared to Guam. A variety of business opportunities are open including warehousing, commercial space development, and accommodations.

Furthermore, millions are being invested towards public infrastructure building to include hospital and education facilities updates as well as upgrades to the NMI’s power grid.

In addition to the billions of dollars already in play, Guerrero said the amount of federal funding for the NMI is slated to increase substantially over the coming years.

(From left) Jay Shedd, vice president of business development for Pacific Data Systems and member of the Society of American Military Engineers Guam Post; Philip Mendiola-Long, president, Sherman Consulting; and Joe Guerrero, chairman of the board of directors, Saipan Chamber of Commerce. The trio hosted a panel discussion regarding the ongoing military projects in the NMI at SAME Guam Post Industry Forum 2024 on Nov. 15 at the Dusit Thani Beach Resort. Photo by Skyler Obispo.

Historically, the Commonwealth’s leading source of federal finances was the Department of Public Health and Human Services, but in 2022 that changed to the DoD, he said.

Guerrero shared that the NMI’s tax structure allows for businesses to retain most of their profits and that the NMI shares many of the federal benefits Guam has including funding and access to H1-B and H2-B workers.

Additionally, he encourages outside investors to establish their presence in the NMI and to train and hire locally. mbj