2012-08-29

NPM 107-2012

Requesting Entity: Office of the City Legal Officer - Pasay City

Issues Concern: Concession of a Private Mall Operator for the Operation of a City Mall

 

Details

Whether the concession of a private mall operator for the operation of the Pasay City Mall is covered by Republic Act (RA) 9184 and its Implementing Rules and Regulations (IRR).

[T]he operation of the Pasay City Mall does not involve the lease of property, but rather the acquisition of the services of a private mall operator to increase its revenue. x x x the Pasay City Mall is patrimonial property of the LGU, which it operates for public service. It is property owned by the State, other than for public use. Thus, in engaging a private entity to operate, manage and maintain the mall owned by Pasay, the LGU, in effect, will not simply lease out space, but will be outsourcing a function it is currently performing or engaging others to perform.

[T]here is an intention to award the operation, management and maintenance of the City Mall to a private mall operator, which is procurement of services in general.

[T]he intention to lease out the Pasay City Mall to a private mall operator actually involves outsourcing of services, whether it be consulting or general support services, and would thus require public bidding.