MANAGAHA CONCESSION OPA clears way for new RFP

By quashing a local corporation’s attempt to stop a new bidding, the Office of the Public Auditor yesterday paved the way for the Board of Public Lands to push through with its solicitation of new proposals for the grant of a concession to operate Managaha Island.

OPA denied an appeal by the Marianas Marine Management Inc. (MMM), which had attempted to stop the land board from seeking a new request for proposals on grounds that it violated the CNMI’s procurement regulations.

MMM, whose board members include key political supporters of Gov. Pedro P. Tenorio, had wanted the board to proceed with the selection of a concessionaire based on bids submitted in August last year.

MMM first protested the board’s decision to the Division of Procurement and Supply, which, however, junked its pleading saying that matters relating to Managaha concession was not within its jurisdiction as it did not involve disbursement of public funds.

OPA upheld the procurement division’s position.

“We understand that under the existing concession, [the land board] receives rental payments from the concessionaire for the commercial use of Managaha and as such, it would hardly be the lessee or buyer referred to in the CNMI Procurement Regulations,” OPA said.

OPA agreed that the grant of Managaha concession is not a procurement action as defined in the CNMI Procurement Regulations, and therefore not within the jurisdiction of the procurement and supply division.

The public land board earlier decided to re-bid the development of Managaha Island following the enactment of House Bill 11-220, which gives bidding preference to locally-owned companies.

Managaha was operated by the Japanese company Tasi Tours, whose lease agreement expired in September last year.

Plans to tap a new concession holder of Managaha 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.

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.