Policy on Tourism and Wildlife Concessions on State Land 2007

POLICY ON TOURISM AND WILDLIFE CONCESSIONS ON STATE LAND 2007 ur.'1TY UBl!IO'Y l \/lTlcl! MINISTRY OF ENVIRONMENT & TOURISM PREAMBLE Concessions on State land have significant roles to play in Namibia and complement other contributors to the economy of the country. Concessions are a means of providing access for tourists to parts of our protected areas that are ordinarily not accessible, to diversify the range of hunting opportunities on offer, and also to generate additional revenue for the State in a sustainable way from Namibia's indigenous plant and wildlife resources. Concessions also create opportunities for business development and the economic empowerment of formerly disadvantaged Namibians through access to tourism, hunting and industries based on wild plant and animal resources. Improving access to public resources for the empowerment of formerly disadvantaged Namibians with the aim of uplifting this sector of the population is of the utmost importance. In line with the Constitutional guarantees and the objectives set out in Vision 2030, this policy is formulated for the advancement of Namibians who have been socially, economically and educationally disadvantaged by past discriminatory laws or practices. Amongst the objectives of our Government's Vision 2030 is to ensure the development of Namibia's "natural capital" and its sustainable utilisation for the benefit of the country's social, economic and ecological wellbeing and amongst its broad strategies is to maintain stable, productive and diverse ecosystems managed for long term sustainability. Importantly, this policy for the first time explicitly targets such empowerment through improving access of formerly disadvantaged Namibians to these industries. The special situation of rural communities that are neighbours of parks, or in some cases resident in parks, is also recognized and such communities are invited to make the best possible use of concessions that in future could be made available to them. In this way, I trust that our parks and wildlife resources will contribute to rural development, employment creation and economic growth in general. Some of the concessions that potentially could be made available include world-famous attractions and scenery that lend themselves to the form of high value but low impact tourism that we wish to promote in Namibia, or include an unrivalled selection of high quality big game species and valuable indigenous plant resources. Most of the State land that is potentially suitable for concessions is nevertheless characterized by fragile environments, requiring careful attention to the management of concessions in ways that would avoid negative impacts and maintain the value of our natural assets. It is for these purposes that a detailed policy has been developed to guide the establishment and awarding of tourism, hunting and indigenous plant and wildlife concessions, and to bring objectivity and transparency to the process. The policy would provide the basis for legislation that would prescribe the form of the concession rights to be awarded, and an objective process for the awarding thereof. :::!.t?f~ Minister Table of contents Preamble Table of Contents Glossary Abbreviations 1. Introduction 2. Current and future legal framework 3. Types of concessions 4. General principles and objectives 5. Process of establishing, awarding and managing concessions 6. Other issues 7. Monitoring and evaluation Annex 1. Key principles and guidelines for the allocation of concessions to communities living adjacent to or in protected areas Annex 2. Guidelines for the management of the concessioning process Annex 3. Environmental and development checklist 1 1 2 2 3 5 7 8 8 10 16 28 GLOSSARY For the purposes of this policy, the words or phrases set out below have the following meanings: Commercial tourism activities mean all activities involving tourism, based on an agreement between the Ministry of Environment and Tourism (MET) and a concession holder. Community means a group of rural area residents on State land, that have formed a legal entity, which has a defined membership, defined boundaries, and an elected body which represents the interests of the members; or a group of Namibian citizens that have defined themselves as a community and by virtue of being formerly disadvantaged are being considered as beneficiaries under this policy. Community forest means a Community forest as defined in the ForestAct, 2001 (Act 12of2001). Concession means the rights, whether full or restricted or shared or exclusive to conduct tourism activities and/or to commercially use state-owned plant and/or animal resources (collectively refe"ed to as wildlife resources) on business principles in proclaimed protected areas and any other State Land for a specified period of time. Concession agreement means an agreement between MET and a concession holder that outlines each party's rights and obligations arising out of the granting of the concession Concessionaire or concession holder means any individual, collective of individuals, community, conservancy, community forest or incorporated or unincorporated entity that has been granted a concession by the MET. Conservancies mean community based organizations registered by the MET under the Nature Conservation Amendment Act (Act 5 of 1996) for the purpose of providing an economically based system of sustainable management and utilization of game on.communal /and. Disadvantaged people mean designated groups as defined by the Affirmative Action Act (Act 29 of 1998). ABBREVIATIONS MET Ministry of Environment and Tourism MAWF Ministry of Agriculture, Water and Forestry 1 Empowerment means the economic empowerment of formerly disadvantaged Namibians including women, workers, the youth, people living with disabilities and people living in rural areas through concessions, based on strategies that include, but are not limited to: • Increasing the number of formerly disadvantaged people that manage, own and control enterprises and productive assets; • Facilitating ownership and management of enterprises and productive assets by communities, workers, cooperatives and other collective enterprises; • Human resource and skills development; • Preferential procurement; • Investment in enterprises owned or managed by formerly disadvantaged people. Ordinance means the Nature Conservation Ordinance, 1975 (Ordinance 4 of 1975), as amended by the Nature Conservation Amendment Act (Act 5 of 1996) Proclaimed protected areas mean areas proclaimed as national parks, game parks, recreational areas or similar areas in terms of Ordinance 4 of 1975 (as amended} and Ordinance 20 of 1973, and managed by the MET. Regional Council means a Regional Council as defined in the Regional Councils Act (Act 22 of 1992). State Land means land inside and outside of protected areas that belongs to the State and it includes national parks, game parks, recreational areas, communal land, conservancies and community forests. Sustainable use means the use of a renewable natural resource in a way and at a rate that allows for the regeneration of the same resource. Traditional Authority means a Traditional Authority of a traditional community whose traditional leaders have been recognized under the Traditional Authority Act (Act 25of2000, as amended.) Wildlife resources mean wild animal and plant species that can be used to derive a commercial value. RfP SADC Request for proposals/participation Southern African Development Community 1. Introduction The granting of 'concessions' in Namibia by the Ministry of Environment and Tourism, and previously other au thorities, dates back over several decades. Existing and previous concessions have originated in different peri ods, for different activities and on different types of State land, e.g. tourism, hunting and timber concessions in pro claimed protected areas and on communal land. However, these widely diverse concessions were never awarded and developed under a uniform policy frame work. Concessions also create opportunities for business development and the economic empowerment of for merly disadvantaged Namibians through the tourism, hunting and forestry industries. It is therefore the aim of this policy to explicitly target such empowerment through tourism development and wildlife utilization based on pub lic assets. The Nature Conservation Ordinance. 1975 (Ordinance 4 of 1975). as amended by the Nature Conservation Amendment Act (Act 5 of 1996) vests wide-ranging pow ers in the Minister of Environment and Tourism ("the Minister'') to authorize other parties to provide services on behalf of the State within proclaimed protected areas, including the provision of tourism services in proclaimed protected areas through concessions. The same Ordinance also stipulates that the Minister may allow trophy hunting under a permit to hunt species of game and the number that may be hunted. The Minister may similarly grant approval for the use of indigenous plant re sources under his/her jurisdiction and in accordance with the requirements of the Forest Act (Act 12 of 2001 ), and in consultation with the Minister of Agriculture, Water and Forestry to ensure coordination given the current over lapping scopes of the Ordinance and the ForestAct. Although the legislative framework authorises the Minister to grant concessions in proclaimed protected ar eas and any other State land, at this moment guiding prin ciples and systems are inadequate. There is no legisla tive or uniform policy framework within the MET that has been specifically established to deal with such diversity of concessions. The purpose of this document is to articu late a policy and regulatory framework for awarding and managing concessions that will serve as policy guide lines to enable MET to act in a standardized and transpar ent manner when dealing with concessions and conces sionaires and in line with the powers of the Minister and provided for in the relevant provisions of the Ordinance. The scope of the policy is focused on concessions in pro claimed protected areas and any other State land, con cerning natural resources under the jurisdiction of the Minister. The types of concessions referred to are: tour ism concessions, hunting concessions, concessions for the harvesting of indigenous plants or any other conces sions for the commercial use of State-owned plant or ani mal resources. All such concessions are to be managed within this same policy framework. 2 The special role of park neighbours also has relevance, within the context of Namibia's community-based natural resource management programme and the Ministry's park-neighbour policy. Park neighbours experience con flicts with and bear costs of animals leaving parks. There are similarly situations where parks have resident people with minimal scope for economic development or where traditional authorities provided land for proclamation as parks with the understanding that they would share in the economic benefits from such parks through sustainable community-based natural resource management. In most instances, concessions can be used to address these needs. For concessions on State land outside proclaimed pro tected areas (including communal land), Regional Councils and Traditional Authorities have special roles to play and must be consulted throughout the process to en sure that such concessions complement regional and local community development objectives and comply with the Communal Land Reform Act (Act 5 of 2002). It may furthermore be determined in future that more spe cific responsibilities concerning concessions are dele gated or otherwise transferred to Regional Councils through the process of decentralization. In this event, the respective roles of MET and Regional Councils will be de fined according to the relevant policies on decentraliza tion. A further objective of the policy is to provide a transparent and objective framework for awarding and managing con cessions and to obtain support from other line Offices/Ministries/Agencies. This document will set out a process and, where appropriate, indicate what support ing documents and procedures are required to initiate and implement a concession process from start to finish. 2. Current and future legal framework In addition to the State prerogative to conclude State con tracts, or the Tender Board of Namibia Act (Act 16 of 1996), specific legislation exists that authorises the allo cation of wildlife and tourism concessions. The Nature Conservation Ordinance. 1975 (Ordinance 4 of 1975) as amended by the Nature Conservation Amendment Act (Act 5 of 1996), gives wide authority to grant concessions for providing services on behalf of the Minister in pro claimed protected areas [Section 17(2), specifically para graph 0) of the Ordinance'], within the general framework of the Minister's responsibilities concerning such areas. The Minister has the authority in terms of the Ordinance to issue concessions, however, consultations with other parties are not excluded and are indeed beneficial. The Minister may act in his/her own discretion, and there is no obligation as such to issue concessions. The Minister currently also has in terms of section 36 of the Ordinance the authority to grant trophy hunting con cessions. The ForestAct{Act 12of2001). as amended, vests pow ers in the MAWF to issue licences for the harvesting of forest produce on all State land. Some of the same forest produce are also covered in Ordinance 4 of 1975, and may be the subject of concessions awarded by the Minister of Environment and Tourism, therefore requiring close coordination between MET and MAWF in such instances. In cases where rights over wildlife and tourism resources have been devolved to communities residing on commu nal land (conservancies and community forests), such community management bodies are responsible for making their own arrangements2 concerning the com mercial use of wildlife and forest products, and for tour ism, subject to the provisions of the policy and regulatory frameworks administered by MET and MAWF and in con sultation with Regional Councils, Traditional Authorities and Communal Land Boards. However, the procurement processes and guidelines contained in this policy serve as guidance from the MET to other stakeholders con cerning the objective and transparent award and man agement of concessions in conservancies and commu nity forests. On other State land, the Minister may issue concessions regarding the use of wildlife and plant re sources under his/her jurisdiction, with the concurrence of the relevant Traditional Authority and Communal Land Board. The authority of the Tender Board of Namibia ("the Tender Board") concerning concessions only applies to cases where concessions are required to provide services to the State, as pointed out by the Office of the Attorney General. Concessions issued by MET have been re garded by Namibian Courts as services on behalf of the State, and therefore not within the mandate of the Tender Board. The Tender Board has concurred that the MET is not required to follow the Tender Board procedures when tendering concessions under its jurisdiction. It agrees that the authority to issue concessions in such areas rests with the Minister; however the MET must ensure that the awarding of concessions is competitive, fair and transparent, and ensure that safeguards against favourit ism, improper practices, fraud, theft and corruption are in place and followed. The Minister has to exercise his/her powers fairly and reasonably and in compliance with this policy, the com mon law, the enabling legislation and in his/her discre tion. In exercising his/her powers and discretion, the Minister will give priority to the empowerment of formerly disadvantaged Namibians through various empower ment strategies, in accordance with Article 23 paragraph (2)3 as well as Article 95 of the Constitution. In the absence of a procedure prescribed in law concerning the awarding of concessions, the Minister has the authority to establish a process that will govern such awards and com ply with the general requirements of fair and reasonable administration. In the exercise of his/her power and dis cretion, the Minister will be guided by other applicable laws, regional protocols and international agreements4• A standard and robust procedure for the awarding of con cessions and the management of concession agree ments is needed to ensure transparency, fairness and effi cient monitoring of compliance with agreements. It is es sential to base the proposed framework on specific provi sions in future legislation and procedural guidelines, and thus to strengthen and elaborate the current legal author ity of the Minister under existing statutes. Provision will accordingly be made in the proposed Parks and Wildlife Management Bill for a proper administrative, legal and procedural framework for concessions in proclaimed pro tected areas and on other State land according to this policy. 1 Section 17(2) of Ordinance 4 of 1975, as amended, provides that the Minister may within a game park or a nature reserve, in paragraph 0), "authorize any person to carry on, subject to such conditions and the payment of such charges as it may deem fit, any activities which may be carried on by the Minister'' in terms of paragraphs (e) [i.e. referring to provision of meals and refreshments], (f) [i.e. referring to business or trade for the convenience ofvisitors]or (g) [i.e. referring to providing any other service for the convenience of visitors]; read with paragraphs (h) [which authorizes the Minister to establish infrastructure in connection with the abovementioned services] and (i) [which authorizes the Minister to make any charges in connection with any of the above]. 2Although e.g. registered conservancies have been vested with rights over the consumptive and non-consumptive (i.e. including tourism) use of wildlife resources, MET will be guided by the objectives of this policy in developing safeguards in legislation to enable MET to set guidelines for such arrangements or co-sign commercial contracts associated with such arrangements to ensure that rural communities are not exploited. 3Article 23 (2) states that "Nothing contained in Article 10 (on equality and freedom from discrimination) shall prevent Parliament from enacting legislation providing directly or indirectly for the advancement of persons within Namibia who have been socially, economically or educationally disadvantaged by past discriminatory laws or practices, or for the implementation of policies and programmes aimed at redressing social, economic or educational imbalances in the Namibian society arising out of past discriminatory laws or practices, or for achieving a balanced structuring of the public service, the police force, the defence force, and the prison service." 4These include for example, other Articles in the Constitution, theAffirmativeAction Employment Act, the Criminal Procedure Act, the Anti-corruption Act, SADC protocols, Transfrontier conservation agreements and multi-lateral environmental agreements. 3 3. Types of Concessions MET is already responsible for administering existing long- and short-term tourism concessions, but it is also foreseen that there will be new initiatives that have never before been implemented. The policy makes provision for four types of concessions: 3.1 Tourism Tourism concessions could entail a combination of various types, for example the right to develop a lodge within a specified area, the right to offer tour ism services such as guided tourism within a spe cific area, or the right to offer more specialized tour !sm services such as adventure tourism, aerial tour ism, car rentals, etc. within a specified area. In comparison to the privately owned tourism sector Namibian proclaimed protected areas, and othe~ State land, are relatively under-developed in terms of tourism, with a narrowrange of tourism services and activities on offer. Concessions are one of the mechanisms to expand the use of parks and other State land and diversify and modernize the tourism product, encourage innovation and thus enhance Namibia's competitiveness in the international tour ism market. Other examples would include the pro vision of additional or more specialized accommo dation suited for specific components of the tourism ~arket, tr~nsport ~ervices (including by boat or air), mght-dnvmg or hides at waterholes), guided tour ism concessions in place of, or in addition to self driving tourism, by vehicle, on foot, on hors~back etc. as the situation warrants in each proclaimed pro tected area and other State land. Opportunities also exist in the retail and commercial service sectors, e.g. car rentals, banking, travel agencies, shopping, r~~taurants, refr~shment kiosks etc. for the pro v1s1on of services m proclaimed areas related to tour ism. In many instances, it may be advantageous to offer economic opportunities concerning the ren dering of such specialized services separately from the provision of accommodation services, and thus to spread access to such economic opportunities to a greater number of beneficiaries. In some instances, a tourism concession may in volve the establishment of permanent infrastruc ture. Such permanent infrastructure established on State land becomes the property of the State. Concession holders will be given a reasonable op portunity to recover the costs of investment in such permanent infrastructure during the lifetime of the concession. If a concession in such an instance is terminated for any reason except through a breach of the agreement by the concession holder the State will have to compensate the conce~sion holder for the reasonable value of the permanent in frastructure established, as would be specified in each contract. Concessions similarly provide an opportunity toes tablish tourism in situations which characterize many Namibian parks and other State land, where sensitive habitats and substrates or other limiting factors require strict limits on the use of such areas for tourism, which can often only be accomplished through a highly controlled or specialized form of tourism. However, it is importantthat such opportu nities are compatible with environmental and con servation objectives for park management or other State land and within the constraints posed by the conservation needs and the environmental charac teristics of protected areas or other State land. MET therefore will specify exactly the nature of the tour ism activities included in a concession and the con cession agreement will prescribe such authorized activities in each instance. Therefore, the granting of a concession does not imply that the concession holder will have any rights over the natural re sources within the specified area or any other eco nomic opportunity not specified in the concession agreement. 3.2 Plant materials A further type of concession could entail the har v~sting of plant material. Although the granting of in d1ge~'?us plant concessions (e.g. the harvesting of medicinal plants, thatching grass or other valuable species, or bio-prospecting) has not commenced on State land there is still potential for these conces sions in the future5• Provision is therefore made in this policy for the MET to use concessions to imple ment innovative strategies to yield benefits and at tract investment concerning indigenous plants re sources in proclaimed protected areas and on any other State land. It is essential that the MET deter mine whether sufficient resources exist and that such action benefits the country economically and contributes to the sustainable environmental man agement of indigenous plant resources in Namibia, and that any such concession be developed in con sultation with the Minister of Agriculture, Water, and Forestry and other stakeholders. 3.3 Trophy hunting Trophy hunting concessions represent valuable eco nomic assets and hunting experiences with consid erable international marketing potential. The grant ing of such concessions can play a beneficial role in Namibia's rural areas, as a means of creating em P!oyment, facilitating the empowerment of formerly disadvantaged Namibians, contributing to the man agement of declared problem animals, providing meat for distribution to traditional authorities and ru ral communities, addressing over-population of cer tain species, and generating revenue from land or resources that are otherwise unproductive. However, high standards should be required for the ~Noting that forestry c?~cessions for the harvesting of timber on State land other than protected areas had in the past been issued by MET, but will in future be managed by the Ministry of Agriculture, Water and Forestry. 4 operation of such concessions to maintain the value ofthe resource and the ambience of the concession area, and Namibia's competitiveness in the hunting sector. Trophy hunting concessions should be managed and operated in a spirit of responsibility, cooperation and accountability amongst all parties. The conces sions should be operated in such a way to maintain environmental integrity. This includes the establish ment of hunting quotas that should be sustainable and carefully monitored. Such concessions should also complement the conservation management of the area concerned. MET should therefore establish measures to ensure a high standard of control and monitoring of trophy hunting concessions. 3.4 Other uses of wildlife It is also foreseen that there may be a need in future to regulate the commercial use of certain other wild life resources in State ownership through the grant ing of concessions in respect of such resources. 4. General Principles and Objectives Concessions are a powerful mechanism to enhance tour ism development and sustainable natural resource man agement at regional and national level. This is achieved by increasing the economic value of proclaimed pro tected areas and other State land in national develop ment, while maintaining and strengthening the conserva tion of biodiversity and the maintenance of the ecological integrity of proclaimed protected areas and other State land. Concessions can also contribute to economic growth through foreign currency earnings, employment creation, rural development, the alleviation of poverty and addressing social inequities. 4.1 General principles for the awarding of concessions 4.1.1 In the interest of ensuring transparency and fairness, a just and fair competitive process should be applied to award concessions. Equal opportunity should be given to any in terested Namibian party to apply for a con cession when concessions are offered to the public. The awarding of concessions in such cases should be determined on the ba sis of the degree to which applications meet the objectives outlined below. 4.1.2 The Minister may nevertheless in some cases, in his/her discretion, and in consulta tion with the relevant Regional Council, Traditional Authority and Communal Land Board as appropriate concerning conces sions on other State land than proclaimed 5 protected areas, decide to reserve a spe cific concession for a resident community (e.g. to provide for economic development opportunities for such residents that are con sistent with the objectives of a park), or for a neighbouring community (e.g. to offset the costs associated with problem animals or in cases where such communities requested that a park be established on their land to en able them to benefit from wildlife and tour ism) or in any other case of merit. 4.1.3 In awarding concessions to communities, the METwill: • Award concessions directly to communi ties with representative, accountable and stable community institutions that are legal entities with the right to enter into contracts on behalf of a defined com munity; • Give priority to communities that are resi dent inside protected areas or are imme diate neighbours, as these are the people who suffer most costs caused by wildlife as well as loss of access to land and re sources; • Use concessions to mitigate the costs that such communities suffer, to provide incentives for them to support the objec tives of the protected area, and to stimu late local economic growth; • Provide assistance and guidance in the negotiation of beneficial agreements with joint venture partners or investors, and technical assistance to access business management skills and resources; • Ensure that the communities are not ex ploited in any sub-agreement or joint ven ture with other partners; and • Ensure that community organizations or representative bodies entering into con cession agreements with the State act in accordance with their mandate from their members. 4.1.4 Preference will be given to rural communi ties and joint ventures that are demonstra bly beneficial to rural communities, either through the generation of revenue to that community and employment opportunities or other benefits. To guide the development of joint ventures involving rural communities and concessions in parks, principles and guidelines are provided in Annex 1. These principles and guidelines will continue to evolve to ensure that the desired impacts in development, empowerment and poverty alleviation are achieved. A standard tern plate for agreements, as well as for pro cesses to ensure equitable sharing of costs and benefits, transfer of skills, management responsibility, and ownership of rights and assets within agreed timeframes, will be de veloped by MET in consultation with other stakeholders. 4.1.5 Concerning empowerment, it is recognized that formerly disadvantaged Namibians, empowerment groups and rural communi ties specifically may face challenges in se curing capital and skills to enable their par ticipation in concessions. MET will continue to advocate for support from commercial and statutory financial institutions in this re gard, and explore other ways of facilitating access to capital. Except in the case of rural communities, the practice of using empow erment status to acquire a concession and subsequent sub-leasing a concession be cause of a lack of capital or skills to operate such a concession should be discouraged. As a general principle, concession rights are not transferable without the approval of the Minister. Empowerment groups should be advised to enter into mutually beneficial joint ventures with established companies in stead, within an equitable framework to en sure the transfer of skills, full accounting of the contributions from both parties, and shar ing in the management, decision-making, ownership and financial benefits from a con cession. However, it is recognized that in the case of communities, it may be benefi cial for them to enter into management con tracts with other entities until they (or local entrepreneurs within the community) have developed the skills to manage the conces sion activity themselves. Guidelines for these sub-agreements are outlined in Annex 1. 4.1.6 As a general approach, and in recognition that concessions based outside proclaimed protected areas fall within the jurisdiction of Traditional Authorities, Communal Land Boards and/or Regional Councils, these entities will be consulted in the granting of concessions as a means of fast-tracking socio-economic advancement and inte grated rural development. MET recognizes the plight of rural people and considers them as the priority beneficiaries from con cessions in their immediate geographic area and also in accordance with the na tional priority accorded to this group in terms of the SWAPO Manifesto, National Development Plans and Vision 2030. While 6 not excluding other formerly disadvantaged Namibians from concession opportunities, priority will be given to disadvantaged rural communities by awarding concessions to them that are in their immediate geographic area. As a general approach, concessions should therefore be awarded in such a way to have the greatest impact in addressing lo cal development in rural areas. 4.1. 7 Since the development, management, administration and particularly the monitor ing of concessions have significant cost implications for the Ministry, one of the goals is to generate revenue for the State through concessions as a means of recovering costs. Consultation with the Ministry of Finance will be required to ensure that MET or any other body with a responsibility concerning concessions is not left with additional management and monitoring costs concerning concessions without a commensurate increase in its financial resources, especially if the number of con cessions is increased. The establishment of a dedicated fund for supporting conces sion-based enterprise development will be pursued with the Ministry of Finance should gaps be identified in existing support mech anisms. As a general approach, and in rec ognition that concessions based outside proclaimed protected areas fall within the jurisdiction of Traditional Authorities and/or Regional Councils and Communal Land Boards, responsibilities for and revenues from such concessions will be shared on an equitable basis with Regional Councils for further allocation to Traditional Authorities where applicable, based on future guidance from the Ministry of Finance. 4.2 General objectives of concessions MET has the following objectives for concessions that should guide future decisions to establish and award concessions, and serve as a benchmark for assessing concession proposals or their environ mental and socio-economic impact, i.e. to: • Enhance the conservation of biodiversity and the maintenance of the ecological integrity of proclaimed protected areas and other State land; • Enhance the ability of the MET to effectively manage proclaimed protected areas and wild life resources on other State land where appli cable and to control and monitor tourism oper ations, trophy hunting, the provision of ser vices in proclaimed protected areas and other concessions involving wild animal or plant re sources; • Enhance through concessions the economic value of proclaimed protected areas and wild life resources on other State Land where appli cable, and the generation of revenue from the sustainable use of national assets contained in proclaimed protected areas and on other State land; • Promote economic empowerment of formerly disadvantaged Namibians and their entrance into the tourism, hunting and wildlife-based in dustries. Affirmative action should be applied and empowerment opportunities associated with concessions should be enhanced by for mulating minimum requirements that would en sure the participation of previously disadvan taged groups. Preference should be given to awarding concessions to disadvantaged rural communities where such concessions would have the potential to provide the greatest socio-economic impact at local level, whilst also recognizing the importance of employ ment creation; • Provide support to ensure the development of capacity, skills and to facilitate access to capi tal for all Namibians to meet concession re quirements; • Use concessions as a means of promoting sus tainable development, poverty alleviation and employment creation in protected areas and on other State land. 5. Process of establishing, awarding and managing concessions The process and procedure for awarding concessions will be transparent, objective and fair, but with the empowerment of formerly disadvantaged Namibians as a priority, and preference given to rural communities for concession opportunities in their vicinity. In certain in stances after consultation with the relevant Regional Council, Traditional Authority and Communal land board, the Minister as appropriate, may determine that a concession be allocated to a specific rural community resident in or neighbouring to a proclaimed protected area as provided in Section 4. The Minister has the dis cretion to determine whether a concession is to be awarded directly or through tender or auction. MET will furthermore identify concession opportunities in three categories for the awarding of concessions, i.e. con cessions that should be reserved for communities that Such criteria may e.g. include: are residents in orneighbouring to parks or other cases or merit; concessions that should be made available through tender; concessions that should be made avail able through auction, and criteria on which to base such classification. Once approved, it will provide a working framework for MET to initiate, manage and regulate con cessions. Annex 2 outlines the process of awarding and managing concessions in more detail, whilst Annex 1 makes suggestions regarding the award of sub agreements by communities that receive concessions directly, as explained above. The process for solicitation of concessions will be by way of application in a form as prescribed by the Minister or in such other manner, regard being had to the type of concession applied for and on such other terms and conditions as the Minister may deem fit (see Annex 2). 5.1 Concession Committee An appropriate institution for dealing with conces sions by MET and to provide advice to the Minister, is needed to oversee the process and to ensure ob jectivity. This committee will perform this function as well as advise on any procedures, policies and documents that will form part of the procurement and allocation process. The Committee will need to convene from time to time to review the process and if necessary ensure that the process is fair, equita ble, transparent and clearly defined by monitoring compliance with the principles and procedures out lined in this policy. The Committee will have to en sure that all relevant government policies and laws are complied with, that the outcome will not jeopar dise the State or other parties and create the possi bility of litigation againstthe Minister. Proposals to amend concessions or the underlying contracts should be considered by this Committee, and forwarded to the Minister for approval before such amendments are implemented. The Concession Committee will be appointed by the Minister and will comprise of representatives from MET, the Ministry of Justice, the Ministry of Finance, the Ministry of Agriculture, Water and Forestry, the Ministry of Lands and Resettlement, the Ministry of Regional and Local Government, Housing and Rural Development and Regional Authorities where appropriate, as well as representatives of the pri vate sector and civil society. The Minister will ap point the Chairperson of this Committee. a) for dir ect awards to community: to promote rural development; resolution of human-wildlife conflicts; create opportunities for park residents; promote diversification of subsistence livelihoods that may otherwise conflict with park land use; b) for the auction or tender processes: to maximize revenue to the State and resources for conservation and park management through the Game Products Trust Fund and Environmental Investment Fund; c) for the tender process: where complexity of services or infrastructure and the level of investment requires the thorough due diligence that the tender process requires. 7 For concessions on State land outside proclaimed protected areas, Regional Councils, Traditional Authorities, Communal Land Boards, and Traditional Authorities have special relevance and must be consulted throughout the process to en sure that such concessions complement regional development objectives and applicable legislation. It may furthermore be determined in future that more specific responsibilities concerning conces sions will be delegated or otherwise transferred to regional level through the process of decentraliza tion. In this event, the respective roles of MET and Regional Councils will be defined according to the relevant policies on decentralization. In Regions where concessions are located or where there are concession opportunities on land under the juris diction of a traditional authority or the Regional Council outside a conservancy, existing structures under Regional Councils as well as Communal Land Boards should be included in the process of identifying, allocating and monitoring such conces sions. 5.2 Concession Unit Day to day administrative implementation of the con cession framework, as well as the secretariat role for the Concession Committee, have to be assigned to a dedicated staff unit. Experience in MET has shown that this responsibility cannot successfully be fulfilled on a part-time basis, and the proposed framework requires a significant administrative workload that cannot be achieved otherwise than making this the core responsibility of a separate staff unit. It is therefore proposed that a Concessions unit be established in the MET. 6. Other issues 6.1 Record-keeping Detailed records of all aspects of the concession pro cess need to be maintained securely, for subse quent reference, auditing and in case disputes arise. The Concession Unit will be responsible for all aspects ofrecord keeping. 8 6.2 Ongoing economic valuation An economic valuation study needs to be carried out to determine the economic and other non economic values of concessions. 6.3 Provisions relating to declarations of interest Situations may arise where members of the Concession Committee or staff members within the Concession Unit have an interest in the conces sion(s) being applied for. Any such member or staff member who or whose familial or business relation in any way has any interest of whatsoever nature in a concession(s) being applied for, shall fully and in writing disclose such interest. The obligation to de clare such interest continues in respect of an inter est which may arise after the particular concession is granted. In respect of staff members of the Unit, the declaration should be forwarded to the Concession Committee. In respect of the latter en tity, the declaration should be recorded in the min utes of the Committee meeting and forwarded to the Minister. In both instances, the Minister should be apprised of the interest. The declaration should be submitted to the relevant entity/person promptly af ter such interest comes to the attention of the rele vant person. In the event that the interest is material in nature, the existence of such an interest disqualifies the rele vant person from further participating under the aus pices of MET, in any fashion whatsoever with the concession in question. Failure to declare a conflict of interest will, in respect of Public Service staff members comprising the Committee or the Concession Unit, render such person(s) guilty of misconduct. 7. Monitoring and evaluation The impact of the implementation of this policy and prog ress and constraints regarding its implementation will be periodically assessed in consultation with other stake holders. ANN EX 1 : Key principles and guidelines for the awarding of concessions to communities living adjacent to or in protected areas 1. Principles for Selecting Community Beneficiaries Some general principles can be applied to identifying a community to whom a concession can be awarded in a protected area. Perhaps the most crucial is that in order for the Ministry to award a concession there needs to be a representative and stable community institution that is a legal entity with the right to enter into contracts on behalf of a defined community. Institutions that fulfil this require ment include conservancies, community forests, appro priately structured Trusts and registered community asso ciations, and cooperatives, and recognized Traditional Authorities and their traditional communities. For the purposes of this policy document, the definition of "community" refers to a group of rural area residents that has formed a legal entity, which has a defined member ship, defined boundaries, and an elected body which rep resents the interests of the membership. The following are further principles for selecting commu nity beneficiaries: • Where the community suffers personal injury, dam age to crops or livestock losses due to wildlife from the protected area; • Where people are in some other way negatively af fected by the protected area; • Where awarding the concession will help to improve natural resource management inside or outside the protected area (for example promote the adoption of compatible land uses in adjacent areas); • Where communities already show a commitment to conservation and can provide support to the pro tected area; • Where communities are particularly needy because they are marginalized (e.g. San communities); • Where awarding the concession contributes to di versification of livelihoods for the neighbouring com munity. 2. Principles for Applying the Concessions Policy to Different Types of Communities Namibian protected areas have a diversity of community neighbours. In some cases, people are living inside the park but there are also communities neighbouring the protected area. In most cases, there are many different community neighbours, including some that have formed legal entities such as conservancies and others that have not. It is therefore important to consider how the conces sions policy can be applied in these different sets of circumstances: 12 2.1 Communities resident in protected areas The main target for concessions from protected areas to local communities should be communities resident in a protected area because such commu nities potentially have the most impact on the park and are likely to be most negatively affected by wild life or by loss of access to land and resources. Where communities live within protected areas and there are other neighbouring communities nega tively affected by the protected area, the Ministry should give preference to those people resident within the protected area when awarding conces sions. It should however, endeavour to ensure that concession opportunities are equitably (i.e. fairly) awarded to other neighbours according to the prin ciples in 1 above. 2.2. Communities which have formed a legal entity living adjacentto protected areas Such communities should also be targeted for con cessions from protected areas because residents of ten suffer livestock and crop losses due to wildlife leaving parks and game reserves, and proclama tion of the protected area has often denied residents access to land and resources. Such communities can also have potentially negative impacts on the protected area. However they can have positive im pacts if they also adopt tourism and wildlife man agement as land users in areas adjacent to the pro tected area, and if they gain a stake in the success of the protected area. 2.3 Neighbouring or resident communities which have not formed a legal entity Where there are neighbouring communities but no suitable legal entities, the Ministry should notify po tential beneficiaries of pending concession opportu nities and encourage the formation of a legal entity. If the community is interested in forming such a legal entity, the Ministry should facilitate this process or help the community access support for this process. 2.4 Multiple neighbouring communities Where there are multiple neighbouring communities that have legal entities, the Ministry should issue concessions depending on the number and type of available concession opportunities and the number of immediate community neighbours that meet the principles in 2.1 and 2.2 above. A number of op tions are possible. For example, where concession opportunities are few (e.g. where tourism carrying capacity or market demand is low), the Ministry could consider issuing a joint concession to two or more communities, provided they were willing to co operate (e.g. the existing joint hunting concession along the Kwandu River in Caprivi Region). Furthermore, concessions need not be exclusive or limited to accommodation provision. Concessions could also be made available for different activities such as guided tours, walking trails, boat trips, hot air ballooning etc., some or all of which could take place within the same area of a park. 2.5 No immediate neighbouring community Where there is no immediate neighbouring commu nity the Ministry can consider awarding conces sions as part of its poverty reduction objective to or ganized community groups that meet the following principles: • Groups with a commitment to conservation (e.g. conservancy, community forest, commu nity conservation trust, etc); • The income received by the community is likely to be used for conservation in that com munity's own area; • The community is particularly needy (i.e. it has limited existing means of generating income). 3. Options for managing community concessions and ensuring community benefit MET wishes to ensure that concessions in protected areas or on State land that are awarded to local communi ties provide a full range of benefits that includes income, employment, the opportunity to provide "spin-off' services and the opportunity to be an owner of the concession enterprise. In some cases, the capital and skills may be available locally for the community to develop and run certain activities or to provide certain services. MET's first preference is that communities should own and manage concessions awarded to them and any business enterprise derived from that, and MET is committed to assist communities to achieve this objective to the greatest extent possible. MET intends to create a specialized organizational unit for this purpose and where MET's resources are insufficient, consideration will be given to alternative mechanisms of facilitating support to community-based enterprise development. However, MET recognises that many communities currently have neither the capital nor the capacity to run large-scale tourism operations which is a legacy of apartheid and discrimination and should not be perpetu ated. Where communities do not have the capital and capacity, and/or are unable to raise funding from recog nised financial institutions on their own, then they will need to enter into a partnership with another entity(s) to jointly co-operate in the development, management and operation of the enterprise. In such cases, there is a need to ensure that any sub agreement with a third party does not exploit the commu nity, and to ensure that appropriate benefits accrue to the community. However, it is neither desirable nor possible to prescribe in advance the type of arrangements between the community and the third party and the exact nature of the benefits to the community. It is nevertheless essential that such arrangements have the approval of the Ministry. Partly this is because each concession will be different, and partly because it is an important aspect of the empowerment process for communities to negoti ate agreements themselves and decide how they want to benefit from the agreement. 3.1 Where communities enter into a joint venture or other form of partnership with any other entity, MET will ensure that each sub-agreement between a community and third party covers the following ele ments and sets targets and deadlines for the perfor mance regarding these elements: • The level of community involvement in the busi ness desired i.e. being the full or part owner of the business, and ensuring that the option is available for the community to acquire or progressively increases its shareholding1; • The level of supervision to be exercised by the community (e.g. monitoring of performance 7 The community could become a partner in a company through owning equity (i.e. shares) in the business. Community income will depend on: a) the percentage of shares held by the community and therefore the same percentage ofthe profit of the enterprise, and b) the level of profit made i.e. the amount left in the business after operating expenses and tax. In this situation the community takes the risk that profits are low, but it has the option to sell its shares to provide a one-off source of income. 8 Note: Concerning the calculation of income payable to the community from a partner company that develops and operates the concession activity (via a sub-agreement), payments are usually calculated as a percentage of turnover. Turnover refers to the income of the operation (less trade commissions and VAT) before operating costs and income tax is deducted. Most tourist operations such as lodges do not make a profit in the first three to five years of operation. If communities were to get a percentage of profit, they might go several years without income from the lodge. By getting a percentage of turnover, communities are able to get a regular income right from the start. Further, if the business fails, the community can seek another partner to run it better, and it will not lose its own assets and capital. Other benefits that can be linked to payment of a percentage of turnover are skills transfer, procurement of supplies and services etc. 13 • • • • • • and compliance with the contract through a joint monitoring committee); Income due to the community and how this is calculated0; Preferential employment for community mem bers; Skills transfer, capacity building in all aspects of the management of the business entity and customer service delivery, and the promotion of local people into management positions, aimed at establishing equity and a balanced form of cooperation and partnership between the community and its partner; Preferential procurement of goods and ser vices from the community during construction and operation of the tourism activity; Environmental management obligations of the parties; Formal consultation, communication and moni toring and evaluation mechanism involving operator, employees, community stake holders, and MET to ensure that the objectives of the concession are met and that problems and opportunities are timely addressed. 4. Supporting Communities to Negotiate and Manage an Agreement In most cases, it is likely that the local community will need assistance in negotiating an agreement with a third party. Furthermore, MET wishes to ensure that its objec 14 tives in awarding a concession to a local community are properly achieved. MET will therefore: a) b) c) d) e) f) g) h) Ensure that the business plan for the enterprise ac tivity is developed in a transparent way, is realistic and clearly shows the level of investment and pro jected levels of income and profit overtime; Assist the community to set its benefit and empow erment objectives, including the extent to which the community wishes to become involved in manage me~t of the activity and ownership of the business; Assist the community to negotiate a realistic target for income from the private sector based on the busi ness plan/proposal for the enterprise; Assist the community to understand the offers being made by the private sector; Assist the community to develop principles for as sessing the private sector offer; End orse the financial offer from the private sector; Assist the community to monitor private sector per formance and compliance with the contract once it has been signed; and Provide advice to communities on legal and policy is sues pertaining to concessions. ANNEX 2: Guidelines for the management of the concessioning process 1. Identification and description of concessions 1.1 MET will identify a site or opportunity (or a group of sites or opportunities) within proclaimed protected areas or any other State land for a concession. MET should endeavour to base all concessions on a pro-active planning process for the management of tourism, trophy hunting and wildlife resources in proclaimed protected areas and other State land. 1.2 Management plans should therefore provide the ba sis for defining concessions, and specifying areas that would be excluded from concessions. Defining the concession areas and the type of con cession has to be done through a consultative pro cess within MET, involving all key Directorates and other relevant stakeholders. Management plans would identify sites which may be suitable for con cessions. They must include the physical location of the opportunity/ies, the expected outcome and the approximate timing of the development. They must identify any expected additional costs or resources which will be required by MET and im portantly must identify what benefits are expected. These may include the financial return to the State, social and economic benefits and any expected en vironmental implications. These plans are not ex pected to provide fine detail but merely identify broad issues and strategic direction over the pro jected time period. 1.3 The concession needs to be thoroughly defined, in cluding any restrictions that will apply, such as types of transport, maximum numbers of guests, activities allowed and prohibited, and whether the conces sion is exclusive (e.g. in terms of access to area, or service) or not. Restrictions should be fair and rea sonable, and should be based on legitimate objec tives that are sought to be achieved. Ideally this should have been broadly described within the Management Plans for such areas. MET should in clude the identification of such sites or opportunities in its management (and tourism development) plan ning process. Management planning should be an ongoing function within the MET, where such plans are formulated for parks and identified State land pe riodically. These would then be presented to the Minister for approval and would guide the develop ment of parks and other identified areas in line with the strategic goals of MET. Developing concessions in parks where management planning has not been completed is more risky, but may proceed provided that at least a basic management and tourism de velopment plan has been compiled. 18 1.4 For concessions on State land outside proclaimed protected areas, concurrence from the relevant Regional Council, and where appropriate the Communal Land Board, must be obtained. lfthe re sponsibility for the identification and awarding of concessions on such land is subsequently dele gated or transferred to Regional Councils through the process of decentralization, the relevant re sponsibilities of MET and the relevant Regional Council must be determined through the normal pro cesses required for the decentralization of functions currently vested with MET. 1.5 Consideration will be given to whether the conces sion impacts on existing land or resource rights. Where the proposed concession requires that leasehold rights over communal land be granted, ap proval of the relevant Traditional Authority and the Communal Land Board would be needed. Should the period of the leasehold rights exceed 10 years then the approval of the Minister of Lands would also have to be obtained. 1.6 When concessions identified may be in conflict with incompatible forms of land use, consultation with other stakeholders and consideration of long-term local, regional and national socio-economic costs and benefits, environmental impacts or benefits are essential. If necessary, Cabinet must be consulted in decisions on trade-offs based on such consider ations. 1. 7 From the outset the duration of the concession has to be determined. Criteria need to be developed to guide the determination of the duration (e.g. a lon ger period such as 15 years for tourism concessions or more is required where the concessions would in volve the establishment of fixed infrastructure by the concessionaire that would become the property of the State at the termination of the concessions) compared to shorter terms for trophy hunting and otherwildlife-based concessions. 2. Feasibility assessment Once a concession opportunity has been identified, the following information must be compiled by the Concession Unit in collaboration with other components of MET as a feasibility study: a) Site description of the area: This must detail what the anticipated opportunity will offer. It must include a definition as to where developments or activities are permitted and what the nature and extent of these developments or activities are. It must specify broadly what type of activities should be permitted (in~luding a justification for any such restrictions), which structures may be erected, how many visitors are permitted on the site at any one time, how waste w(II be handled, how access and services will be sup phe~ and controlled, what environmental limits may be imposed for the development sites, cultural or archaeological issues and the general use of the area. A more detailed analysis of the development and environmental guidelines is presented in Annex 3. b) Infrastructure assessment: This must list what po tential seryice~ may be available, if they are used by other parties, 1f they have spare capacity, how ac cess will be controlled and what mechanisms could be practically implemented to control and adminis ter the operation should it become operational and what infrastructure may or may not be develop~d. c) Institutional capacity: Resources available to park management staff and any other identified group(s) may be insufficient to deal with and manage the con cessionaire and resulting problems. A thorough as sessment of management capacity and resource needs must be objectively undertaken. d) Social or cultural issues which may need to be ad dressed: These must include expected employ ment, source of employment, affirmative action tar gets, empowerment targets for formerly disadvan taged Namibians, and community concerns and rights which may exist (or perceive to exist) in the area. e) Legal issues which may need clarity or further in yestigation: These must include mineral rights (min ing or prospecting), existing tourism, trophy hunting, possible claims by third parties etc. f) A financial assessment (cost benefit analysis): To enable MET to measure the overall financial effect of t~e anticipated concession agreement, the fol lowing aspects should be covered: any additional costs which MET may have to make provision for as the result of the opportunity; an estimate ofthe value of the concession to MET (which would provide a baseline on which an evaluation can later be made on any bids submitted by investors and therefore a 19 threshold or minimum baseline rental for payment to the MET for any site or opportunity); impacts on other opE::rations, for example an existing facility could be impacted on positively or negatively and this may make it unprofitable or non-viable; and the possible contribution of the developed site to economic growth and job creation. g) Market assessment: This need not be elaborate but it must explore what other facilities/activities are in the area, how viable they are, what niche they are positioned in and what the likely demand for the site/activity may be. It should also identify what type of product/species is expected or available, e.g. up market low volume, dense - sparsely or other. h) '.imeframe: An initial assessment of an appropriate t1meframe for the concession should be developed. Concessions are to be granted for a fixed term pe riod, renewable. i) Risk assessment: This must identify what risks the MET may be exposed to in the process and how these will be dealt with through the process and pro cedure. If possible some attempt must be made to quantify them in financial terms, if not then qualify them. j) Based on the above analysis a recommended strat egy and concession outline must be prepared as suming it is viable. This must detail how the conces sion will operate, the duration of the contract, per haps what sort of partners may be sought and any other relevant considerations. An evaluation must also be made whether the concession should be al located through the tender process or by auction or by direct allocation to a rural community. This assessment should form the basis of a recommen dation to proceed subject to the provisions identified in the assessment. At the time of the submission of such a recommendation to the Concession Committee a broad outline of the tendering or auctioning paramet~rs must also be proposed to provide guidance in the drafting of documents for tendering or auction. The Concession Committee may reject the proposal, make recommenda tions for improvement and re-submission or approve to the next step. 3. Direct award of concessions 3.1 When MET is satisfied that a feasible concession op portunity is available, that it suits the criteria of direct awards, that it is compatible with an expression of in terest already received or anticipated, MET will in the case of opportunities on State land other than proclaimed protected areas consult the relevant Regional Council, Traditional Authority and Communal Land Board regarding its intentions to make a direct award of a concession to a commu nity. Once confirmation of support has been re ceived, MET will inform the target community of the opportunity. In the case of opportunities in protected areas that meetthe criteria, MET will inform the com munity of the opportunity. 3.2 The feasibility assessment will be explained in de tail, as well as the anticipated benefits to and re sponsibilities of the community, options towards the implementation of the concession and the require ments of MET, but also taking into account the con sideration of alternatives that the community may suggest, and the capacity of the community to make use of the opportunity. Assistance that the commu nity may need to make use of the concession oppor tunity must be identified at this stage. 3.3 If the community is in agreement and ready to ac cept the concession opportunity, such agreement must be documented. Thereafter MET will provide assistance to that community to meet their obliga tions concerning the concession, access capital, ne gotiate subsidiary agreements, identify suitable part ners or investors etc. 4. Preparations for the tender of auction process 4.1 Preparation of tender or auction documents The information and planning compiled in the identi fication and description as well as the feasibility as sessment forms the basis of the tendering or auc tioning process through the preparation of a Request for Proposals/Participation (RfP) docu ment. This document, to be drafted by the Concession Unit of MET, and reviewed by the Concession Committee, should describe the concession oppor tunity and the rules of the tendering/auctioning pro cess. The RfP is based on the earlier feasibility study. The RfP must define what MET wishes to achieve in the process and what the expected out come of the process is. It should list any relevant im portant information which may make the of fer/opportunity attractive. It should identify what type of contracting arrangement is expected, how the process will be conducted and what specific out puts are required. The environmental and social or other specific performance standards and site specific conditions must also be set. Where the man agement plan is not sufficiently detailed, more precisely defined standards and conditions need to be specified (seethe checklist in Annex 3). Details of the concession area and development 20 site must be exactly defined and preferably clearly delineated on a map. All rules for the use ofthe area by the concessionaire, including all details of rights for exclusivity, must be described and any limita tions on use unambiguously stated. Restrictions on types of use and development should also be listed. Expectations or requirements regarding communi ties and the development of local economies, small businesses and empowerment targets must be set as applicable. Any other conditions or restrictions should be clearly stated, e.g. requirements con cerning site visits, harvesting areas and species. Where the concessions involve the development ( or maintenance) of infrastructure, specific guidelines must be supplied. The option of negotiating these and other issues during the tendering process should be described where applicable. Where ap plicable, a bid guarantee should be established and included in the RfP. The format for financial offers in case of tendering must be described in the RfP. The RfP should indicate the minimum requirements that will be non-negotiable and failing compliance with which, the bidder may be ruled out from further consideration (e.g. compliance with procedures, ca pacity and experience, empowerment, environmen tal management etc.). The RfP should contain a checklist for documentation to be provided to assist bidders in the preparation of their submissions. The RfP should indicate if a pre-determined grace period may be provided between the allocation of a concession and signing of a contract, to allow the concessionaire an opportunity to obtain the neces sary operating licences, registrations, skills, assets etc. The RfP must specify a deadline for the submission of tenders and in the case of an auction the date of the auction, as well as submission requirements. Between the launching of the process and this dead line sufficient time must be given to the bidders to ob tain the documentation, familiarise themselves with it, attend the required meeting and consult partners or financiers before the final submission. This pro cess can take between 3 to 9 months depending on the complexity of the issues. Typically the site visits would occur within 2 to 4 weeks of the process being launched with a presentation conference about 6 weeks before final submission. These deadlines must be clearly spelt out in the process and must be adhered to, save in exceptional circumstances. 5. Tender process 5.1 Processandrequirements The RfP must indicate what the bidders are re quired to submit and how many signed copies, that all copies of certificates and other relevant docu ments should be duly certified. The requirements and format of the tender submission should be spec ified e.g.: A. Technical proposal • Business plan and feasibility study for the pro posed developments in the submission, in cluding sketch plans of any developments and/or alterations to the site and/or buildings; • Company profile, i.e. the organisational struc ture of the bidding company, including any joint venture arrangements or cooperative ventures with other parties that would be involved in the proposal, and detail on the arrangements con cerning such parties; • Empowerment plan where appropriate (in cluding information on capacity building or other forms of benefit sharing with a local com munity or other empowerment beneficiary group), (including information regarding the sourcing of employment, goods and services at local or regional level); • Environmental plan, outlining how the bidder intends to meet all the environmental and so cial guidelines and requirements outlined in theRfP; B. Financial proposal • Financial offer for the bid (in a separately sealed envelope); • A bid guarantee if required; • Estimated development cost; C. Supporting documents • Founding documents of the bidding entity. In the case of companies or close corporations, certified copies of the founding documents in cluding the most recent documentary evi dence of directorship and current shareholding or member's interest, as the case may be (noting that such documents, if not available already, could be submitted within the grace period); • Compliance with affirmative action legislation where appropriate; • Certificate evidencing due registration with the Receiver of Revenue in respect of applicable taxes (noting that such a certificate, if not avail able already, could be submitted within the grace period); • A certificate from the Social Security Commission evidencing that the bidder is a registered employer and has paid all contribu tions due by him or her (noting that such acer tificate, if not available already, could be sub mitted within the grace period); 21 • A written undertaking by the bidder to ensure that any employees employed by the bidder for the purposes of performance in terms of the agreement that will be concluded should the bid be successful, are employed on terms and conditions not less favourable than those pro vided for in a collective agreement in that in dustry or those prevailing for similar work in the industry and the region in which the employ ees are employed, or, those prevailing in the nearest appropriate region, if similar work is not performed in the region (see section 136 of the Labour Act (Act 4 of 2004); • Any other documents required by the process. The RfP should explicitly state that no binding obligations or entitlements are created until such time as a written agreement is entered into with the successful applicant, and that the entire process, including the awarding of the bid, is subject to the conclusion of a written agreement. A sample or draft of such a written agreement could be provided as a part of the RfP. 5.2 Advertising and public announcement Once the Concession Committee has approved the documents, process and format, the concession op portunity or opportunities must be published in na tional media, including at least 2 (two) newspapers in national circulation (and where appropriate, inter national media), ), as well as announcements over the radio, indicating where the RfP can be obtained. The RfP can also be made available at appropriate trade and investment conferences or missions. Information on any payment required for tender doc uments should be provided. Any amount payable should be pre-determined by the Concession Committee. Care should be taken with the timing and coverage of the advertising and announcement process, with the aim of ensuring that important in vestments and development opportunities are not missed through omission. 5.3 Registration All tenders must make provision for a formal regis tration of potential bidders at the time when the RfP is distributed, including contact details for later fol low-up. 5.4 Site visits It may be appropriate under some circumstances to require all parties who wish to bid to attend a site visit, and such requirements should be stated in the RfP. Site visits provide an opportunity to bidders to see the area and gain a better understanding of the conditions which have been established. Site visits should be formally arranged on predetermined days and times at the sites. In addition to formal site visits it may be necessary to allow for a number of in formal visits to the site by bidders. In such cases MET staff will need to be available to escort people to the site or area so they can undertake their nec essary surveys, but should not provide any addi tional information that would not be available to other bidders. All site visits should be at the costs and own risks of the bidder, and must be accompa nied by MET staff. 5.5 Presentation of concession opportunity It may be appropriate under some circumstances to require all parties who wish to bid to attend a confer ence during which the concession opportunity can be presented. This conference will provide all bid ders the opportunity to discuss and obtain clarity on any issues in the process or documentation, and the detail on such conference should be provided in the RfP. After the conference the Concession Unit will prepare any changes to the documentation that appear to be necessary as the result of these con sultations. Such changes must be submitted to the Concession Committee for approval, and thereafter all bidders must be notified formally of any changes. It is important that this occur some time before the tender process closes to allow bidders to accom modate changes and if necessary modify or recon sider their proposals. Accurate minutes of any such conference must be kept by the Concession Unit. 5.6 Submission of tenders A two-envelope system will be used, whereby the technical proposal and the financial proposals should be submitted in separate, unmarked, sealed envelopes. Documents must be hand delivered at the specified point, where the envelopes will be num bered, placed in a sealed Tender Box, and a receipt of documents issued. Bids may be received at any date before the deadline announced in the Tender documents. Tenders received by the specified dead line must be registered by the Concession Unit. 5. 7 Evaluation of tenders The evaluation of bids should follow the two enve lope system; the one being a technical evaluation (including empowerment and environmental con siderations), while the second would be the financial evaluation (fees offered). The bids will be opened at the time, date and location indicated in the Tender documents. Initially, only the technical proposals will be opened, and bidders assessed according to a predetermined compliance checklist to ensure that all required documentation is present and ac counted for. Technical bids must then be evaluated on a weighted point basis. It is recommended that the evaluation should be done on a pass-fail basis, with the total meeting a minimum point which would allow proceeding to the next phase (evaluation offi nancial proposals). Only the financial proposalscor 22 responding to the bidders that comply and meet min imum requirements will be opened in order to com plete the assessment. Technical bids would be evaluated by the Concession Unit against the RfP according to a scor ing system, with assessments of: whether or not the applicant is a Namibian citi zen; or where the applicant is a company or close corporation, the extent to which the com pany or close corporation is owned and man aged by Namibian citizens and formerly disad vantaged Namibians specifically, and the ex tent to which the offer will contribute to social and economic empowerment; the ability of the applicant to operate, or ac quire the resources to operate the concession in a sustainable, efficient and profitable man ner (including, where applicable, prior regis tration by the applicant to operate in tourism with the Namibia Tourism Board or to conduct hunting in terms of the Ordinance, and the track record of the applicant concerning such prior registrations and compliance with condi tions of such registration); to what extent the offer will benefit communi ties resident in, or adjacent to parks, especially those negatively affected by the presence of the park, e.g. through their participation in oper ating concessions or through joint ventures with concessionaires; to what extent will resident people or neigh bours be used to source products or services; the impact of the proposals on the environ ment, landscape, aesthetical qualities; financial viability, access or potential access to capital, comprehensiveness of the business plan, rates to be charged, expected occu pancy, the marketing plan, and the projected in come and expenditures over the lifespan of the concession. The finance plan should pro vide details on whether capital has been se cured, how capital will be secured or proof of sufficient own resources; whether the company is compliant with affir mative action regulations. These must all be assessed to ensure that the plan ning has been thorough and that the proposal is broadly workable. At this stage additional informa tion or clarification can be requested from the bid der. Once this stage of evaluation has been finalised, the successful bidders who passed the technical bid must be assessed on the financial offer. A Net Present Value (NPV) calculation will be done where a specific discount rate is used, to enable compari son amongst the projected cash flows of the differ ent proposals and their comparative economic value to the State. The bidder with the highest NPV, after any adjustments for empowerment or other fac tors based on the relative weighting of such factors agreed by the Committee, will be recommended to be awarded the contract. If any problems emerge with this bid, then the second bidder would be drawn on and so on and so forth. The outcome of the evaluation has to be compiled in a report and forwarded to the Concession Committee, who will consider the report, confirm or amend the evaluations, and thereafter forward its conclusions and recommendations to the Minister for final approval. Once a bid has been accepted and a contract has been signed, those bidders which have failed will have their bid (including the unopened financial of fer for those who failed the technical evaluation) re turned to them with written reasons for their failure. 6. Auction process 6.1 Process and requirements The RfP must indicate the qualifications to bid and specified documents that are required to be submit ted before and after the auction, and these require ments may include, as applicable e.g.: • The organisational structure of the bidding company, including any joint venture arrange ments or cooperative ventures with other par ties that would be involved in the proposal, and detail on the arrangements concerning such parties; • Empowerment plan where appropriate (in cluding information on capacity building or other forms of benefit sharing with a commu nity or other empowerment beneficiary group). • Compliance with affirmative action legislation where appropriate; • A bid guarantee if required; • A written undertaking by the bidder to ensure that any employees employed by the bidder for the purposes of performance in terms of the agreement that will be concluded should the bid be successful, are employed on terms and conditions not less favourable than those pro vided for in a collective agreement in that in dustry or those prevailing for similar work in the industry and the region in which the employees are employed, or, those prevailing in the near est appropriate region, if similar work is not per formed in the region (see section 136 of the Labour Act (Act 4 of2004); 23 • Certificate evidencing due registration with the Receiver of Revenue in respect of applicable taxes (noting that such a certificate, if not avail able already, could be submitted within the grace period); • In the case of companies or close corpora tions, certified copies of the founding docu ments including the most recent documentary evidence concerning the directorship and cur rent shareholding or member's interest, as the case may be (noting that such documents, if not available already, could be submitted within the grace period); • A certificate from the Social Security Commission evidencing that the bidder is a reg istered employer and has paid all contributions due by him or her (noting that such a certifi cate, if not available already, could be submit ted within the grace period); • Any other documents required by the process; • The requirement that all copies of certificates and other relevant documents should be duly certified; and • Rules specified by MET concerning the auc tion and where appropriate, estimated values of the opportunity. 6.2 Public announcement and advertising Once the Concession Committee has approved the documents, process and format, the concession op portunity or opportunities must be published 3 months in advance of the auction in national media, including at least 2 (two) newspapers in national cir culation (and where appropriate, international me dia), as well as announcements over the radio, indi cating where the RfP can be obtained. Information on any payment required for auction documents should be provided. Any amount payable should be pre-determined by the Concession Committee. Care should be taken with the timing and coverage of the advertising and announcement process, with the aim of ensuring that important investments and development opportunities are not missed through omission. 6.3 Site visit It may be appropriate under some circumstances to require all parties who wish to bid to attend a site visit, and such requirements should be stated in the RfP. In such cases MET staff will need to be avail able to escort people to the site or area so they can undertake their necessary surveys, but should not provide any additional information that would not be available to other bidders. All site visits should be at the costs and own risks of the bidder, and must be accompanied by MET staff. 6.4 Submission of documentation Interested parties which qualify for bidding as out lined in the RfP must provide documentary evidence substantiating their qualification in terms of the spec ifications outlined in the RfP. The specified docu mentation must be provided to the Concession Committee not less than two weeks before the an nounced date of the auction. 6.5 Registration of bidders All auctions must make provision for a formal regis tration of potential bidders at least 2 hours prior to the auction time on the day of the auction. Duly authorised representatives of the above-mentioned qualifying bidders may also register. 6.6 Auctioning Bids will be invited per concession, in numerical or der, and in Namibia Dollars only. 7. Alternative procedures Some concessions may require an alternative form of pro curement, especially in cases where such concessions would not be exclusive or present comparatively small business opportunities or where the value of the conces sion opportunity would not justify that the full tender procedure be followed. In such instances, e.g. the offer ing of guided tourism in a park in a situation where there is no need to limit such an operation to one operator only, MET will identify the opportunity, establish requirements, specifications, fees, and invite applications. Anyone who is able to satisfy these conditions could be awarded the concessions on a first-come first-served basis. An alternative form of the tender process may occasion ally be justified, for example in cases where strong com petition for a concession is anticipated. This alternative form consists of a request for qualifications prior to the standard RfP tender process. 8. Unsolicited proposals MET is under no obligation to consider any unsolicited proposal. The preferred process for solicitation will be a public invitation by the MET, open to all qualifying entities, and will be competitive, as outlined above. This process will not only help to ensure a transparent, objective and fair process, but will promote confidence in a fair market value for all parties. Unsolicited proposals will only be considered if they match the concession opportunities identified through this framework. In normal circum stances, the author of the proposal will be advised to respond when the MET invites concession proposals. If, however, the unsolicited proposal contains 'intellectual property' (e.g. an innovation or novel design or develop ment concept) that the MET would like to incorporate in 24 its invitation), one of two approaches will be followed. In the first, a two-step process will be initiated. First a RfP will be publicly advertised. If no other interest is received, then an evaluation of the value of the concession must be made, and negotiated with the proponent. If a mutually acceptable value is reached, the concession may be awarded to the proponent. If other proposals are received, then the MET will initiate an open competitive tender process with special provision that the unsolicited proponent will have the right to match the winning bid (technically and financially) in the event that the unsolic ited proponent did not win the bid outright. This provision will recognise the use of the 'intellectual property' of the original proponent. In the second, for unique and highly innovative propos als, the Minister may grant exclusive operating rights to the proponent for a limited period, and thereafter make such rights available through public competition. 9. Contract development and management In all awards of a concession, a comprehensive contract is to be concluded between the beneficiary and the Minister. 9.1 Drafting a concession contract After the evaluation process, in the case of tender ing, the Concession Committee makes a recom mendation to the Minister for approval. The next steps are to inform the successful bidder and final ize the contract in consultation with the Office of the Attorney General. When a grace period has been granted, a letter to the successful bidder indicating such will be provided, to facilitate the process of pre paring to comply with all requirements. Once the grace period lapses, and provided that the success ful bidder comply with all requirements, the contract should be signed. If auctioning is applied as a way to grant conces sions, a short grace period may be granted to allow the successful bidder to provide the documentation as stipulated by the RfP. The same applies for auc tioning as for tendering, once the grace period lapses and the successful bidder complies with the requirement, the contract should be signed. In the case of a direct award of a concession, the concession contract should be discussed with the beneficiary and thereafter signed within a specified period. The concession contract must be drafted using as far as possible a standard template, including ap propriate annexes such as environmental and so cial parameters (see Annex 3), the bidders proposal etc. The contract should contain the following pro visions as common terms. The terms will vary from each concession and the items below should be seen as a guide only: Purpose and Description of the concession: Explain the intention of the parties and a general description of the project. Definitions and Interpretations: includes all defined terms used in the contract and issues that need clarifica tion. Rights of the Concessionaire: The rights (activities and usage) given to the concessionaire are stipulated in this section (e.g. exclusive or non-exclusive, type of activities, the rights to sublease or not, etc.). The agreement must deal explicitly with the nature of the rights acquired by the concessionaire in respect of the concession area. Rights of the Ministry: MET will still have the control au thority in the concession areas and thus retain cer tain rights in the area. The section should indicate those rights (e.g. enter the area at any time, carry out studies to determine the impacts, monitor com pliance with the contract, right to terminate the con tract in case of breach etc.). Rights of third parties: The Ministry of Lands and Resettlement or the Communal Land Board might wish to impose specific conditions or requirements on the use of such land, such as e.g. that leaseholds be registered. It also might be necessary to register any such rights acquired with the Communal Land Board. Concession area: The contract should provide a legal de scription of the defined area (e.g. as demarcated on map, as gazetted, as defined by GPS waypoints, etc.). Duration of the agreement:This section of the agreement should specify the starting and ending dates and what will happen at the end of the concession pe riod; whether the Concessionaire will be given the option to renew, in which case the fees and the con ditions be renegotiated or the concession may be re-awarded. (The following aspects could deter mine the duration of the agreement: the level of in vestment; the expected economic life of the devel opment; debt service period, or compliance with any restriction imposed by the Minister of Lands or the relevant Communal Land Board). The conces sion contract should clearly state that MET is not re sponsible for any actions transacted beyond the timeframe of the concession by the concession holder. 25 Concession fees: The contract should contain a clear statement of all required fees, the manner, timing and place of payment. Duties and obligations of the Concessionaire: The obliga tions of the concessionaire should be clearly stipu lated in this section (e.g. operational and manage ment responsibilities; performance obligations; em powerment; environmental management; auditing; transfer of improvements and property; insurance and liabilities; etc.). Duties and obligations of the Ministry: In the execution of the agreement the MET will also have some obliga tions which should be clearly spelled out to prevent any misunderstanding (e.g. control over conserva tion, ensure that no tourism and conflicting land uses occurs, etc.). Ownership of permanent infrastructure: It should be clearly stipulated that all permanent infrastructure erected by the Con-cessionaire in a park or on other State land will become the property of the State on termination of the concession. If permanent infra structure is erected on communal land, it should be stipulated whether at termination a new concession will be granted to a community who will take over the running of the tourism enterprise in the conces sion area or whether the permanent infrastructure is transferred to the community. Agreements with third parties and the transfer of owner ship or management to a third party by the Concessionaire: a clear statement is required that the approval of the Minister would be required con cerning third party agreements or the transfer of ownership or management to a third party. Copies of such agreements (including joint-venture agree ments) should be provided. Termination: This part of the agreement should deal with conditions of the termination of the agreement, in other words how the agreement can be ended be fore the expiration date and the conditions attached to termination. Such conditions should include the eventuality that a partner is used to qualify for and obtain the concession, but thereafter plays no fur ther part in the operations of the concession. Breach: This section should make provision for the can cellation of the agreement if parties fail to comply with conditions as set out in the contract and the pro cess that has to be followed in such a case. Miscellaneous Provisions Liaison between Parties: The agreement should specify the mechanisms of communication between the par ties. Performance guarantee: The agreement should make provision for the inclusion of a guarantee of perfor mance based on what was projected in the tender of fer. Indemnity: The agreement should contain a disclaimer that MET can not be held liable for any natural, polit ical or economic event or impact in the concession area or damage to or destruction of improvements. The indemnity should also be extended to any injury sustained from whatsoever cause whilst the con cessionaire, its employees or agents and or the guests or visitors are in the area. Such a provision should also require the concessionaire to indemnify the Government (including its employees, agents, etc.) against any claim from a third party regarding the activities of the concessionaire in the area. Jurisdiction and dispute resolution: The agreement should specify procedures to be followed when a dispute arises. Amendments and indulgence: The agreement should specify that all variations, amendments, additions and relaxations shall only be binding if in writing and signed by both parties. Force majeure: The agreement should make provision for the consequence offorce majeure. Reporting requirements: Specify the nature (e.g. number of tourists accommodated, number of animals hunted) and frequency of reports, if any, which MET would require to be submitted by the Concessionaire. Notices: This section should indicate that all correspon dence should be in writing in English and the means of delivery. The addresses of the parties should be specified. Entire agreement: Refer to the attachments and the rep resentation thereof to the entire agreement and serve as proof of the processes followed and com mitments made (e.g. tender or auction procurement documents, tender submitted, minutes of meeting between tenderer and MET, management plan, etc.). No representations: A provision should be included which confirms that the concessionaire has freely entered into the agreement and that no representations of any form were made which induced him/her/it into concluding the agreement. Warranties: It may be advisable to include certain spe cific warranties by the concessionaire, including that all information provided during the tendering 26 process and in support of the bid is accurate. Similarly, the signatories of the agreement should warrant that they have the appropriate authority to enter into the agreement on behalf of the conces sionaire. This is particularly appropriate where the concessionaire is a company or close corporation. In the latter instances (i.e. a company or close cor poration), it may also be prudent to require that a comany /members resolution approving the enter ing into of the agreement, be submitted. Incorporation by reference: It may be desirable to incor porate certain submissions made by the bidder into the agreement by reference. Same should be clearly and properly identified and should ideally be appended as annexes to the final agreement. 9.2 Treasury authorization MET should obtain all necessary Treasury approv als for receipt of revenue in accordance with the State Finance Act. 1991 (Act 31 of 1991), after each contract has been negotiated and signed. In some instances, MET may propose to direct all or part of concession revenues through other funding mech anisms than the Central Revenue Fund (e.g. Game Products Trust Fund or Environmental Investment Fund) to enable MET to cover certain costs associ ated with the protected area and concession man agement and monitoring. 9.3 Contract management Awarding the contract brings the RfP process to an end and initiates the contract management phase. Specific components of MET should be designated to monitor compliance and performance of conces sion agreements, evaluate reporting required from the Concessionaire and report results to the Concession Unit. This must become one of the du ties of such staff, and appropriate training should be provided. In addition to reviewing reports from park level, the Concession Unit has to establish mea sures to monitor the payment of fees, issue notifica tions required under agreements, and meeting MET obligations under agreements. These measures in clude establishing a single pay point for the pay ment of concession fees, and allocating a reference number for each concession that will be reflected on receipts. Periodic reporting to the Concession Committee is required. In the case of non-com pi iance with the contract, sti p u lations in the contract concerning the breach of contract have to be implemented in consultation with the Office of the Attorney General. ANNEX 3: Environmental and development checklist Design and construction parameters Visual impact . Requirements for particular architectural style, building materials etc. to reduce visual impact should be included in the initial documentation. This should take into account potential future users of the area. . Visual impact of support services should also be considered . Construction Activities Site definition . The site for development must be clearly defined so the assessment can be made within this area. . During construction the site must be well marked, possibly by pegging, so that the limits are clearly understood by all. Environmental management plan . In the case of new developments an environmental scoping should be carried out prior to the concession being granted. Following the initial acceptance of a proposal, an environmental screening should be conducted, and thereafter if necessary a full environmental impact assessment should be carried out, and this should lead to an environmental management plan (EMP), which will incorporate the issues in this checklist. . An Environmental Control Officer (ECO) should be appointed to oversee developments and ensure compliance with the EIA and EMP. Issues during construction . The EMP should clearly detail what level of disturbance to surrounding areas is permitted and what may be removed or altered (e.g. large trees etc). . Penalties should be determined for violations of the EMP, including off-site impacts and trees or features that may be defaced or destroyed. Irreplaceable and/or critical features must be clearly marked. . The EMP should specify how construction workers are to be accommodated, and what ablution facilities and other waste management are to be allowed. . Give guidelines on use of resources, especially local building supplies. If this is permitted it should be spelt out how such use should be carried out and regulated and whether there should be any fee for it. . There may need to be restrictions on the maximum size of vehicle used for construction, and access to the park may need to be restricted to certain times, for control purposes and to reduce impact on other users. . It is possible that there may be chance cultural, historical and/or archaeological finds. A procedure for dealing with these should be detailed in advance. Buildings and structures . In the case of concessions where there are existing buildings it must be specified what changes to them would be permitted and whether a deposit or guarantee is required before structures are 30 damaged, altered or removed. . There may be existing 'immovable' assets (pumps, borehole equipment, etc) that fall within the concession area. It should be specified what will happen to these, what use may be permitted, who will maintain them and in what condition they must be in at the end of the concession agreement if the concessionaire uses them. . If new structures are to be erected, there may be some restrictions on the types of buildings allowed, including their location within the concession areas. . It should be made clear whether fixed structures will be permitted or only temporary structures, and if so how this is defined. Depending on the circumstances and sensitivity of the area it may be necessary to be specific on guidelines such as area, style, height, building material, colour, number of guests and staff, services etc. These are often highly subjective issues, but they must be limited firstly by environmental and cultural factors (water, sewerage, habitat etc) but also on the visitor carrying capacity for the park and the market niche to be catered for. These issues must be broadly defined in the management plan. Roads and Tracks . A concession, particularly one covering a substantial area, is likely to require roads and tracks. The road network must reflect the type of product offered and the expected visitor usage. Some of these will be pre-existing, while others may need to be developed. It must be clear who is responsible for maintaining these roads, and if new roads may be constructed, how these will be approved and what type is permitted (single track or built up road). These should all require an EIA that must address the location and the sourcing of any building material from quarries. . The cost implications to the MET must be considered if the MET is to maintain the road network since this cost may escalate with increasing usage. . It should be specified whether 'off-road driving' may be permitted and if so under what circumstances. Support infrastructure Electricity/energy . Depending on the site, it may be necessary to impose limitations on the type of energy source which may be used and on reticulation to and on the site (for instance whether this can be overhead or should be underground). This will be dependent on noise, air and fuel pollution from diesel or other power generation systems, the visual impact of the power supply and the costs of these systems. It must be clear who will pay for the power supply. Water . Water is often a major limiting factor in any development and although the risks for finding and supplying this must rest with the concessionaire, the MET should conduct an initial feasibility study to ensure that water is present and is likely to meet the specifications expected for the site. MET must define what may be used by the concessionaire, both in terms of the quantity and source. If information is available on water quality and quantity, this should be supplied, but the concessionaire should conduct tests to verify this before investing. . It should be defined who carries the risk if water dries up or quality deteriorates. . Meters may need to be fitted, and if so it should be specified at whose cost this will be done, who will read them and what penalties will be applied for overuse. . If water resources are to be shared with other users, this will need 31 to be specified, and agreement sought with the other users. Communications . Type of communications systems allowed and standards required for safety. . Use of overhead lines, masts and towers . Waste Management Liquid waste and by products . Standards may need to be applied for disposal of sewage and wastewater. These will be dependent on the sensitivity of the area, availability of water, and possibility of ground water contamination. . Specific conditions may be applied to storage of liquid fuels/solvents/cleaning materials, and there may be limits on type or quantity or storage and containment structures. . Conditions should be established for the use of toxic products, including a list of any banned and how will they be handled and managed on the site and transported. . Indicate whether there is a policy regarding the use of environment friendly products. Solid Waste . System for disposal of solid waste. . Policy over reduction at source, recycling and sorting . . Storage prior to removal, including specifications and how long it may be stored before it is disposed of in an appropriate site. . Transport of waste. Permitted types of containers and preferred route. Air emissions . Permission for use of incinerators and standards to be applied. Environmental Parameters Carrying capacity . Number of guests and staff permitted to use the area. Determination of carrying capacity is often highly subjective, if it is not clearly defined by environmental constraints. . Other users. If they increase as a result of the added marketing and awareness, can the park infrastructure and management accommodate this additional use? Fauna and flora . If there are any rare, endangered or endemic species or habitats that require special attention, conditions to safeguard these organisms or habitats may be required. . Policy with regard to introductions of additional species, and/or removal of existing exotics. . Water holes and feeding of animals/birds. Is this permitted in any form and if so what are the special conditions which may apply? The general policy regarding water for game in the park should be addressed in the management plan. . Responsibility for dealing with problem animals, especially those presenting a risk to visitors, should be specified. . If capture, culling or hunting of wildlife may be carried out in the area it is important to bring this to the attention of the concessionaire and include it in the contract. Footpaths and trails . Who will provide these and to what standard? Who will provide and maintain these and to what standard? . Who will be responsible for erosion control? Landscaping and gardening . Species not permitted and any restrictions in this regard. 32 . Specific issues relating to landscaping (water features etc) . . Use of pesticides, herbicides and fertilizers . Permitted Activities . Provide a list of permitted activities with definite restrictions if necessary, for example, no off-road driving on gravel plains, protocol for driving in sand sea, rivers and on coast. . Detail what may be done, such as hunting, fishing, walking, aircraft safaris etc. Disabled access . Requirements to make some or all facilities available for disabled access. Archaeological/cultural and historical . Known sites which require special treatment. . Policy if chance find is encountered . . Any relevant legislation to be brought to the attention of the concessionaire. Management issues Access and exclusivity . Regulation and control over access to the park and the site. . Will the concessionaire be the only user of the area or will others also have access and use, possibly during concession period? . Will the general public be allowed access to the area or will all other visitors be excluded? Specify how the regulatory aspects will be dealt with regarding access by the public/ visitors/ tourists to the areas. Gates . Responsibility for control of gates. . Responsibility of concessionaire for dealing with trespassers in area. Signage . How will the concessionaire provide directions to the site? . Restrictions on type, colour, logos of signage . Domestic Stock . Domestic stock, such as horses, elephants or camels for visitor use. . If so any restrictions on enclosures, feeding, importing feed into the Park and removal of waste should be specified. Fire . Is fire management likely to impact on the concessionaire? . Precautions to be taken by the concessionaire . . Policy on combating wildfires in the Park . . Measure for protecting property and life, including firebreaks, and responsibility for maintenance. . The need for insurance of buildings . . Will the concessionaire be provided with alternative areas if their entire concession area is burnt in a single season? Aircraft and airstrips . Are these permitted? If so under what conditions? . Construction of strip, approach and take-off, other tourist interference, aerial safaris. . Special species in flight paths . Resource use . May local materials be used for any purpose? If so under what conditions and restrictions, and is any payment required? . Is hunting or fishing allowed? Does it take place in the park currently? Are other users permitted to undertake these activities? . Will they impact on the concessionaire? 33 Guest activities, staff safety and accommodation . Emergency procedures, including any special conditions people must be made aware of (heat, dehydration, dangerous game etc). . Staff accommodation, location and standards. Special protection measures such as fencing. . Requirement for concessionaire to enforce park rules on guests and staff. . Any guiding standards or qualifications required, minimum requirements for vehicles or buildings to meet special requirements etc. Marketing . Can logos and reserve names be used in marketing? . Joint marketing of reserve and product. Supervision and monitoring . Who will do this, and who is responsible for what? . Are regular meetings required? . How will concessionaire be managed? . If there are other concessionaires it may be useful to create a forum to agree jointly on operations? . Code of conduct and site development manual. General compliance with responsible tourism development . Has the proposal taken sufficient account of the following elements: Avoid waste and over-consumption; Use local resources sustainably; Maintain and encourage natural, economic, social and cultural diversity; Be sensitive to the host culture; Involve the local community in planning and decision-making ; Assess environmental, social and economic impacts as a prerequisite to developing tourism; Ensure communities are involved in and benefit from tourism; Market tourism that is responsible, respecting local, natural and cultural environments; Monitoring impacts of tourism and ensure open disclosure of information; Safety and security of employees and clients. 34 GEF