A $1.7 billion missile defense program is to be built in Guam could have serious effects on the island’s infrastructure and environment, a new report says.

In the report, the Missile Defense Agency indicated that there would be “long-term and significant impacts” on the territory of the island, which is positioned in the Pacific Ocean near the Philippine Sea, if the Defense Department went ahead with construction.

Construction of the defense system would require Guam, which has a population of 170,000, to support more than 2,000 new people for the 10-year construction period, with contractors, Defense Department personnel and their family members requiring permanent housing.

The agency plans to build 16 sites around the entire island within a decade as tensions in Southeast Asia continue to rise.

Due to its location near the Philippines, Japan, China and the Korean peninsula, Guam is a significant strategic base for the US, especially with the growing conflict between the disputed waters of the South China Sea.

In a statement outlining the rationale for the missile program, the Department of Defense said: “Guam is a key strategic location for sustaining and maintaining US influence, deterring adversaries, responding to crises, and maintaining a free and open Indo-Pacific.

“An attack on Guam would be considered a direct attack on the US and would receive an appropriate response.”

Despite Guam’s strategic importance, its economy and infrastructure remain unstable.

The agency’s report described the island’s medical support as “already strained” and warned that “because the island of Guam is identified as a minority and low-income population, a significant impact on housing and medical services would result in a cumulative impact on minorities and low-income populations.”

Newsweek has reached out to the Missile Defense Agency by email for comment on the report’s findings.

The Missile Defense Agency said the Defense Department is taking steps to avoid significant effects on Guam’s infrastructure.

“While significant impacts to housing and medical services have been identified, DoD is approaching the military’s need for housing and medical services in Guam in a holistic approach to address potential cumulative impacts,” the report said.

Recent images from the territory have shown that US Army make further arrangements for prepare Guam for conflict in the region.

In a photo published by US Navy on Oct. 18, Acting Under Secretary of the Navy Tom Mancinelli was seen receiving a briefing the day before during his tour of the MK-41 Vertical Launch System site in Guam.

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