CPA readies to bid out airport concession

Posted on Jul 29 2019


The Commonwealth Ports Authority’s board of directors confirmed last July 16 its decision to solicit bids for concession services at the Francisco C. Ada/Saipan International Airport.
The CPA board also determined the scope of the concession privilege, approved a concession privilege evaluation plan, and adopted CPA board resolution 2019-03.

The approved scope of concession indicates, among other things, the area of the concession, the type of merchandise to be sold and delivered, the type of retail services to be provided, the taxes and fees waived, and the exclusivity of the concession.

The CPA board stated that the concession is for the privilege of establishing, operating, and maintaining post-security facilities at the Saipan airport. The concessionaire will have the exclusive right to sell duty-free merchandise and other items, such as various goods, sundries of interest to passengers, and food and beverages, in less than wholesale quantities for the direct or indirect benefit of a departing individual. The concessionaire will also have the exclusive right to provide services, such as vending, for-fee departure lounges, currency exchange, automated teller machines, postal services, telephones, and luggage carts. Additionally, the concessionaire will have the non-exclusive right to offer the services of massages, cell-phone charging stations, and wireless communications. The concession excludes advertising, gaming, automobile rental services, and automobile insurance services.

CPA has waived all taxes, imposts, duties, tariffs, and assessments waivable by law, other than the Northern Mariana Islands Income Tax, any income tax levied pursuant to the U.S. Internal Revenue Code or any other general tax levied upon net income, the business gross revenue tax, the license fee, and the concession fee.

The CPA board also approved the proposed evaluation plan developed by CPA executive director Chris Tenorio. Among other things, the evaluation plan indicates that it is in the best interest of CPA to include three CPA employees and two non-CPA employees on the evaluation committee and lists the evaluation factors CPA will use in selecting the future concessionaire.

The CPA board has also requested the CNMI Office of the Public Auditor to provide a government ethics presentation to the CPA board and to CPA staff and management before CPA issues the request for proposals.

Right now, the concession is being handled by DFS Saipan, a service it has been providing at the Saipan airport since 1985.

For more information regarding the concession privilege at the Saipan airport, visit the Business Opportunities section on CPA’s website at (PR)

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