Managaha could be up for grabs again

The Procurement and Supply Division has pressed the Office of the Public Auditor to deny an appeal by a locally-owned corporation seeking to stop the re-solicitation of proposals for the new franchise holder of a popular tourist resort.

Division director Herman S. Sablan recently wrote to OPA requesting the latter to uphold a previous decision that it has no jurisdiction over plans by the Board of Public Lands to rebid the development of Managaha Island following the approval of new law that gives preferential treatment to local bidders.

The Marianas Marine Management Inc. had sought to block the issuance of a new request for proposals on grounds that it would constitute violation of CNMI’s procurement regulations.

MMM, whose incorporators include key political supporters of Gov. Pedro P. Tenorio, told the division that BPL should proceed with the selection of the next concessionaire of Managaha based on bids submitted in August last year.

The company also argued that since the board does not have its own procurement procedure, it is covered by existing regulations that apply to all government agencies.

But the Procurement and Supply Division junked the appeal, saying that existing regulations do not apply to the bidding of the tiny island resort since its development will not involve disbursement of public funds.

“While the sale, trade, or other disposal of surplus supplies is a responsibility of my office, we do not agree that the granting of a concession for Managaha Island is by any stretch of imagination a sale, trade or other disposal of surplus items which could possibly confer jurisdiction on my office,” Sablan told OPA.

Plans to tap a new concession holder of Managaha after the expiration of the lease agreement with Tasi Tours in September have been pushed back since the implementation of the new law that favors NMI descent to operate Managaha, whose annual potential earning could reach up to $25 million.

With the closure of a big number of business establishments catering to various tourist-related activities, Managaha is virtually left as the only place in the Northern Marianas with tourism potential. Over the years, the popular tourist destination has been a gold mine for franchise holders.

About 163,334 Japanese tourists trooped to the island last year who accounted for about 42 percent of the total number of travelers from Japan to Saipan. This meant revenues of at least $9.7 million at $58 day trip fee charged per tourist.

Of the $9.7 million, around $7.19 million went into the coffers of Tasi Tours, while $2.29 million in commission at $14 per tourist were paid to tour agents who sold tickets, according to independent estimates.

Every year, an average of 250,000 tourists flock to the island resort spending at least $70 per individual or a total of $17.5 million. Landing fees represent $1.25 million at $5 per tourist.