Tinian military buildup offers economic benefits, experts aid
BY MARK RABAGO Saipan Correspondent
SUSUPE, Saipan — A total of $2.6 billion in military/federal investment is expected to pour into Tinian as part of the U.S. Department of Defense’s military buildup to counter the People’s Republic of China’s influence in the region.
In a presentation during the Chamber of Commerce’s 2nd Annual Economic Forum on May 16 at the Saipan World Resort, Sherman Consulting LLC CEO Phillip Mendiola-Long broke down the $2.5 billion in military/federal spending.
Mendiola-LongHe said the biggest expenditure is for the more than $1-billion Tinian Joint U.S. Military/Civilian Infrastructure Upgrades, followed by $700 million for the U.S. Naval Divert Facility/Port Upgrade. Both are in the pre-decisional stage.
The much-ballyhooed over $450-million U.S. Air Force Divert Facility and over $420-million North Field Resurfacing Runway/Taxiway Upgrades, with construction projects underway, are the next big-ticket items. The over $100-million Tinian Marine Training Range/LCR Base project, which is pending Supplemental Environmental Impact Survey, rounds out the $2.5-billion suite of military/federal projects on Tinian.
Daniel I. Aquino, special assistant at the Commonwealth Bureau of Military Affairs, gave an update on the progress of the U.S. Air Force’s Divert Facility during his own presentation at the Economic Forum.
The project is needed by U.S. military in the event Andersen Air Force Base in Guam is rendered inoperable due to attack or natural calamity, or to perpetuate the concept of “agile combat.” The U.S. Department of Defense already leases two-thirds of the land on Tinian.
Aquino said Phase I of the $450-million project, which was awarded to Black Micro Corp. on Nov. 30, 2021, is now slated to be completed on Oct. 16, 2025. The $161.8-million project includes Airfield Development Phase 1 and the construction of a parking apron.
The $22.6 million Phase II is expected to be completed on Oct. 11, 2026. Also contracted to Black Micro on April 19, 2023, it encompasses construction of a cargo pad with taxiway extension, maintenance support facility, fuel tanks with receipt pipeline and hydrant system, and roads.
Aquino said the U.S. is realigning its military posture in the Asia-Pacific area with an alphabet soup of training activities and military facilities buildup that includes the MIRC (Mariana Islands Range Complex), MITT (Mariana Islands Training and Testing), CJMT (CNMI Joint Military Training), IRT (Innovative Readiness Training), as well as the Tinian Divert Airfield and Camp Tinian.
“The U.S. military is recommending expanding joint military training capabilities on the island of Tinian to facilitate this. This joint service project is being spearheaded by the U.S. Marine Corps on behalf of U.S. Pacific Command. The Commonwealth of the Northern Mariana Islands Joint Military Training Project, or CJMT, calls for live-fire military training on the island of Tinian,” he said.
Mendiola-Long said aside from $2.5 billion in military/federal spending, the NMI stands to benefit from a projected $200 million in military expenditures on Tinian.
“Tinian can expect a strong, diversified economy with an estimated annual expenditure of $200 million a year derived from U.S. military direct and indirect buys. Up to three military installations will require annual federal contracting for construction, maintenance, and sustainment purchases.”
He said all military installations will require new personnel, both private and military, to operate
the facilities.
“These new personnel will need housing, food, entertainment, services and transportation. Tinian business opportunities also don't have to be limited to just federal contracting. Tinian businesses can focus on the ‘multiplier-effect’ of increased expenditures by the federal government to drive local business opportunities outside of the fence.”
Mendiola-Long said the top forecasted business opportunities are the following: Construction/A&E services, inspection services (construction trades), IT consulting/services, security and alarm services, shipping/tug/pilot (U.S.-flagged vessels), environmental/biological consulting services, trucking/logistics suppliers, archaeological services, medical services and suppliers, lab testing: medical/environmental, laundry and janitorial services, water supply (potable and non-potable), surveyors, food services and wholesale grocery, accommodations (hotel/apartments/home), facility management services, restaurants, bars, nightclubs, landscaping services, heavy equipment/vehicle rental, waste disposal services, HVAC sales and repair, warehousing, electrical/plumbing services, commercial space development, and safety and construction equipment rental.
Aquino doubled down on the promised multiplier effect mentioned by Mendiola-Long. He said the military buildup and training in the NMI provides opportunities through employment opportunities, military service opportunities, defense contracts, and a boost in business sales for hotels, restaurants, stores, etc.
Aquino revealed there were also missed opportunities. First and foremost is employment with Fluor Corp. for the Tinian Divert Airfield Facility, which is a task order contract for Pavement and Transportation Support for North Field on Tinian to pave the existing runways.
Aquino said Fluor Corp. will be hire Turkish workers because it was informed the NMI doesn't have an adequate workforce.
Another missed opportunity for CNMI vendors and suppliers was during the 2024 Agile Reaper military exercise in April. Aquino said more than 1,000 cases of bottled water were flown in from Hawaii because suppliers thought the NMI lacked the volume of water needed for the mission.
Aquino said the Innovative Readiness Training Program will continue this year.
That provides five medical services to all the three islands of Saipan, Tinian, and Rota at no cost to the community. This includes veterinary care, optometry, dentistry, health exams and behavioral health and public health education. The Innovative Readiness Training will be from June 10 to 28 and will involve 300 military personnel:100 for Saipan, 25 for Tinian, and another 25 for Rota.
Last year, the IRT team provided services to more than 3,000 patients, according to Maj. Daniel LaVorgna, who was the 2023 Innovative Readiness Training program manager for the U.S. Army.
From a training perspective, he said the IRT mission gave around 12,800 hours of training for the participating units last year. LaVorgna said the ballpark figure for medical benefits for NMI residents was between $2.6 million and $2.8 million, based on fair market value in the civilian sector.
Aquino also said the projected economic benefits from the scheduled Distinguished Visitors Day and Morale Welfare and Recreation Day was more than $150,000 for four days. This included car rental, souvenirs and food and hotel from 25 distinguished visitors. He said local businesses submitted proposals and some companies have already been contacted about pending contracts for services like water, forklift, among others. mbj
