There is a request for proposal to conduct a PRE-FEASIBILITY ON BUSINESS OPPORTUNITIES AT THE PROPOSED SHANGONI GATE AT KRUGER NATIONAL PARK
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2. Background Information
2.1 History of Project
The proposed Shangoni Gate Project has been on SANParks agenda for the past 16 years, but due to various reasons the project never materialised. The main problems that hampered the development of the project were insufficient community participation. This led to unreasonable expectations from the community as well as an administrative focus, instead of a product focus to understand the broader economic impact with the possible benefits to SANParks, the surrounding communities and the potential investors.
Subsequently, SANParks approached the Development Bank of Southern Africa (DBSA) to assist with the stakeholder management and development facilitation outside the Kruger Park. In order to achieve this, the DBSA invited the Industrial Development Corporation of South Africa Limited (IDC), the National Empowerment Fund (NEF), the Department of Trade and Industry (DTI), the surrounding communities, the local municipalities, Limpopo Dept of Economic Dev and Tourism (LEDET) and other stakeholders to develop in the compilation of a Development Charter.
The Shangoni Gate Development Charter seeks to form a basic understanding between all the stakeholders clarifying amongst others, the roles and functions of the various parties. Various stakeholder engagements since June 2012 culminated in the signing of the Development Charter an agreed document as presented in Annexure 2. One of the goals of the Development Charter is to enable the commencement of a pre-feasibility study. What will be required external to the Kruger Park to enable the opening of the gate as well as what potential business opportunities exist for the surrounding communities.
2.2 Concept
The proposed complete project will add a new gate midway between Pafuri Gate and Phalaborwa Gate to the Kruger Park and provide access from the Giyani and Thulamela communities. The proposed new gate will potentially provide numerous economic possibilities which will mainly benefit the surrounding communities. The proposed project fits the Tourism strategy of development of underdeveloped nodes and one of the communities have also been identified as a presidential poverty node.
The complete project will have the following potential final results:
• Improved road access from Malamulele up to the existing Shangoni staff gate (20km).
• Improved road inside the park (45km).
• New facilities inside the park to cater for visitors to the park.
• Potential three star lodges (one in an area to be incorporated into the park and potentially placed on the SANParks booking system – another potentially outside the park).
• Heritage sites with business opportunities (old gold mine and other heritage sites).
• Commercial developments to cater for the potential traffic that will pass through the area.
• Training opportunities
• Job creation & poverty alleviation.
PLEASE NOTE THAT THE SCOPE OF THIS PRE-FEASIBILITY STUDY FOCUSES ON THE AREAS EXTERNAL TO THE KRUGER NATIONAL PARK.
3. Objectives of the study
The objectives of the study should at include the following:
3.1 Social and development facilitation
Apply social and development facilitation to all aspects of the feasibility to ensure a sound process entrenched in sustainability principle of justice/democracy to meet fundamental human needs such as participation, subsistence, protection, identity, freedom and etc with appropriate satisfiers.
3.2 Macro-Economic and Social context of the project
• Key economic data – national, regional and the project area (demographics, income, employment, socio-economic conditions in the project area, sector information.
• Confirmation of how these projects will contribute towards addressing key economic and social challenges.
• Importance of the specific sector in the economy of the Province and the project area.
• How will the project enhance the development within the project area.
• Development challenges and priorities.
4 Scope of study
4.1 Feasibility Study and Business Plan to identify and propose business opportunities which should include the development cost, based on an elemental cost estimate (including cost of bulk infrastructure).
4.2 Concept drawings to be used as a basis for the elemental cost estimate.
4.3 Marketing plan to include 5 years detailed budgeted income statements and
balance sheets, assuming 50% equity and 50% debt, and assuming local market to be targeted at an affordable rate per room per night.
4.4 Preliminary EIA analysis to determine whether the proposed development(s) are appropriate for the proposed site and the cost and program estimates.
4.5 Engage professional teams such as attorneys, architects, engineers, environmental specialist and planners for advice and concept designs only (not detailed designs).
4.6 Engage with district and local municipal authorities on bulk service delivery
issues and required infrastructure.
4.7 Engage with the relevant national, provisional and local authorities on road rehabilitation or improvement and possible new access routes to proposed projects.
4.8 Engage legal experts in determining the legal requirements and contractual
Obligations.
4.9 Resources and waste issues during construction and operational phases
4.10 Economic and development impact.
4.11 Contractual arrangements and regulatory issues including legal requirements such as licences, rights, leases etc.
4.12 A route alignment should be considered and proposed after input from the local and provincial authorities.
4.13 A feasibility study that includes aspects in Eco-Tourism, Conservation, Economics, Civil Engineering aspects and development facilitation underpinned by sustainability principles.
4.14 Market study to determine an assessment of market viability.
4.15 Technical aspects to determine land-use, property route alignment (external to the Kruger National Park), bulk services availability, available resources, traffic and air quality, noise and climate factors as well as community health and safety issues during the full life cycle of the project.
4.16 Bio-diversity and nature conservation issues, cultural heritage, archaeology.
4.17 Economic and development impact of the project, socio-economic assessment, empowerment issues and development of small business, capacity building and skills transfer – understanding community benefits and social impact of the project.
4.18 Risk analysis with mitigations.
4.19 Operational and technical management of the project to cover all studies and surveys, design aspects, organization of operations, estimated Environmental Impact Assessment (EIA) process together with cost and programme, land regime, Implementation arrangements, capital cost estimates and operating cost estimates
4.20 Contractual arrangements and Regulatory Issues.
4.21 Financial projections to include business cases with Project cost, funding structure, detailed financial projections.
4.22 Investigation of tourism opportunities (one in the Shingwedzi river loop to be potentially incorporated in the Park and another outside the park area, both focussed towards community ownership operated by a reputable company)
Download Development Charter Shangoni Gate
