Mañagaha has a new concessionaire

The Department of Public Lands has entered an agreement with Mariana Global Inc. to operate the Managaha Island’s exclusive concession for 10 years, in exchange for payment of $800,000 in annual base rent, 9% business gross receipts rent, and over $200,000 in annual public benefit contribution.

According to the copy of the master concession operator agreement obtained by Saipan Tribune yesterday, the term of the concession started on July 1, 2023, and will end on June 30, 2033.

An option to extend an additional five years may be granted at DPL’s discretion, based on Mariana Global’s performance under its existing agreement.

David Sablan, the special advisor of DPL, signed the agreement on May 18, 2023. DPL Secretary Teresita A. Santos recused herself from the matter. Attorney General Edward Manibusan approved the agreement as to form and legal capacity on May 19, 2023. Mariana Global chief executive officer YoungHee Yoon signed the agreement on May 18, 2023.

Known for its crystal-clear water and white sand, Managaha Island is one of the most popular tourist attractions in the CNMI.

Mariana Global responded to DPL’s request for proposals to operate and maintain an exclusive recreational concession area containing 11,203 square meters on Managaha Island.

Regarding public benefit contribution, Mariana Global will provide an annual contribution of financial support in the amount of $100,000 to each of the Indigenous Affairs Office and Carolinian Affairs Office for the promotion of traditional and cultural activities.

Mariana Global shall provide an additional contribution of financial support in the amount of not less than $10,000 to the Department of Community and Cultural Affairs ($5,000) and Chamorro-Carolinian Language Commission ($5,000) for similar purposes.

Mariana Global will provide an annual contribution of $5,000 toward educational scholarship for eligible Northern Marianas descent students through a scholarship program.

The concessionaire shall reserve 20% of its seating capacity for CNMI residents on regularly scheduled daily round trips from Saipan to and from Managaha, free of charge, on a 24-hour reservation basis.

However, residents may not be prohibited from free transportation for failure to obtain advance reservation if space is available.

Under the agreement, Mariana Global Inc. shall not impose a fee or prohibit the general public from entering the main pavilions in the exclusive concession area for the purpose of using the picnic tables, restrooms, and shower rooms.

Concessionaire shall have the right to limit access by the public to those areas in the exclusive concession area where safety is a concern.

Concessionaire shall post “No Entry” signs in such areas where the public is prohibited from entering or gaining access to, such as concessionaire’s office, generator room, reverse osmosis plant, storage facilities, etc.

Mariana Global shall not prohibit the general public from using any beach on Managaha.

The agreement requires Mariana Global to deposit $4 million in an account or accounts in concessionaire’s name in a CNMI bank or banks within 15 days of the effective date of the agreement.

The agreement also requires Marianas Global to provide an enforceable commitment in the form of a letter of credit or other documentation for an additional $4 million in an account or accounts in the concessionaire’s name in a CNMI bank or banks, to be deposited by not later than Dec. 31, 2023.

Marianas Global shall provide security services on patrol on the island on a 24-hour basis for visitors to experience a high level of security and to safeguard the property belonging to the DPL and the concessionaire against theft and vandalism.

The concessionaire shall also provide, among many other things, lifeguards on the island.

The DPL shall charge a landing and user fee on all tourists arriving on Managaha. The landing and user fee shall be at least $10 per tourist landing on the island.

Tasi Tours, which has managed concession services on Managaha for over 20 years, did not submit a proposal.

U-Top (Saipan) Inc. also responded to DPL’s request for proposals.