The City General Services Office disclosed that the three-year contract entered into by the city government with a private company for the short-term operation of the Asin Hot Spring complex will expire in three months.
City General Services Officer Eugene Buyucan stated that the company and the city’s Local Finance Committee (LFC) had already been informed on the upcoming expiration of the short-term lease contract and the committee will have to ascertain the next step for the further improvement of the city-owned property and to maximize its potentials as a source of revenue for the local government.
He claimed that despite having been heavily impacted by the ongoing Coronavirus Disease 2019 (COVID-19) pandemic, the lessee was able to settle its obligations with the local government on time aside from introducing minor improvements within the property to entice people to use the available amenities.
Buyucan stipulated that if the local government will not come out with a decision on the Asin Hot Spring contract when it expires, the company might be requested to operate the same on a hold over capacity until such time that the city decides what to do with the property.
Earlier, City Budget Officer Leticia O. Clemente claimed that the LFC will ascertain the best option to maximize the potentials of the city-owned property in generating added revenues for the city.
According to her, the committee will be studying the possibility of offering the city-owned property for a long-term public-private partnership based on the city’s existing relevant ordinance or for the city to continue operating the same with minimal improvements until such time that the situation gets better to be able to entice interested private companies to participate developing the property.
The city budget officer said the current contractor of the Asin Hot Spring complex is aware of the short-term lease that it entered with the city that is why the same was able to implement minor improvements in the existing facilities to sustain its viability as a resort while maintaining the quality of services for users.
The local government took over the city-owned property from the previous lessee and immediately offered the same for a short-term lease in 2019 so that there will be a continuous operation of the resort while awaiting the final decision of the city government what to do with the property.
The city-owned restore is in the jurisdiction of Tuba, Benguet which the city government acquired and for which the city is perfecting its ownership of the property.
