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CPA agrees to build kiosk shell at the airport
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Posted on May 31 2000
The absence of companies interested to take the snack concession contract at the Saipan International Airport has prompted the Commonwealth Ports Authority Board of Directors to share the cost of developing the site for the proposed kiosk.
However, board members only conferred its approval “in principle” to the CPA management to undertake the construction of a snack bar facility at the airport terminal pending the completion of a cost-estimate study.
LSG Lufthansa Service’s earlier efforts to solicit bids from interested investors through Requests for Proposal yield negative results apparently due to the economic slowdown and the reportedly high fees that will be collected from the concessionaire by both CPA and LSG.
CPA Executive Director Carlos H. Salas disclosed the RFP solicited zero response that caused the delay of the project, forcing LSG to ask the ports authority to shoulder the cost of constructing and developing the kiosk facility at the airport.
LSG has proposed that since there are no interested investors willing to take the kiosk concession, the company would take it on the condition that CPA carry the cost of constructing the snack bar shell.
“We have not been successful in soliciting response from potential investors for the concession because of the economic difficulties and the rates charged by both CPA and LSG,” Mr. Salas said.
He added LSG will provide the quotation for the construction of the kiosk shell at the airport terminal. Only then will the ports authority Board of Directors act on the allocation of funds for the project.
Among the things that need to be done and is currently being considered by the ports authority management are the costs of constructing the shell and installing power, drainage and water facilities.
Mr. Salas said the kiosk will add value to the airport, adding that CPA has been receiving numerous requests for the installing of a snack bar at the air transport facility which would cost the ports authority between $50,000-80,000.
A five-year lease agreement with an option of another five years is being considered by the CPA management and Board of Directors for the concession company.
