SGDRN framework to award tenders                                                                        – SGDRN has a cont...
Tender Guidelines and Prospectus                                           Structure of Tender Document Guidelines    Tend...
Scoring system: Fee Structure                                                            Scoring system: Fee Structure  Ra...
Evaluating the scores                                                      Scoring system (Summarised):                   ...
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Niassa Anabela Rodriques Vernon Booth

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This presentation by Anabela Rodrigues and Vernon Booth was delivered at the 'Concessioning tourism opportunities in conservation areas and maximising rural development' workshop, held in Maputo between 19-22 March 2012 (Day 1, Session 3, Concessions processes)

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Niassa Anabela Rodriques Vernon Booth

  1. 1. SGDRN framework to award tenders – SGDRN has a contract with Government to manage and develop the Niassa National Reserve. This mandate includes the award long term contracts to Anabela Rodriques tourism development investors. Vernon Booth Any company entering into a contractual agreement must Tourism Concessions and Rural Development have 25% ownership by Mozambican citizen(s) or by a Meeting Mozambican entity (itself with majority Mozambican 19th March, 2012 citizen ownership). Maputo – The Government of Mozambique requires that companies must be legally registered in Mozambique Companies must be in possession of all necessary permits Sociedade para a Gestão e Desenvolvimento da Reserva do Niassa and licenses required to operate in the tourism industry in Mozambique.Steps in the tender process Documentation Advertise Expression of Interest Expression of Interest Vet Expression of Interest Advertise tender Invite bidders Set up Evaluation Committee Tender guidelines and Prospectus Appoint independent auditor and evaluators (3) Evaluation criteria Receive and register the tenders Scoring system Evaluate bids Letter of Engagement Recommendations to the Board Contract Award tender Negotiate and sign contractExpression of Interest Advertise tender – Objective: To attract genuine investors and establish profile of potential bidders – Placed in local Mozambique newspaper(s) (e.g. Noticias) Name – Use foreign media if feasible Corporate Structure Date of Foundation – Advertise in the electronic media (e.g. Indaba Base Location Newsletter with a worldwide circulation to over 50,000 subscribers in the tourism industry) Ownership / Shareholders Directors / Principal Officers – Email to potential investors (over 350 emails in the – Assess Past / Current Operations and Relevant NNR database). Experience – Determine Preferred Concession(s):
  2. 2. Tender Guidelines and Prospectus Structure of Tender Document Guidelines Tender guidelines provide a background summary ▪ Broad description of the management and development Guidelines developed for the Niassa Reserve activities that can be undertaken cover the following major sections: ▪ Duration, rights and conditions of the contract a. CORPORATE STRUCTURE: ▪ Tender submission date and Tender fees. b. GOVERNANCE, MANAGEMENT & EMPLOYEE STRUCTURES: c. COMMERCIAL OPERATIONS: The Prospectus provides more detailed d. MARKETING: information about each specific management unit e. CONSERVATION DEVELOPMENT & SECURITY: offered on tender. f. SOCIAL DEVELOPMENT: g. MANAGEMENT RELATED INFRASTRUCTURE DEVELOPMENT: ▪ Quota h. OTHER GENERAL MANAGEMENT ISSUES: ▪ Infrastructure i. FINANCIALS: ▪ Communities j. FEE PROPOSAL: ▪ Map with physical featuresTender Evaluation Committee Tender Evaluation Committee ResponsibilitiesPosition Responsibility Agree on evaluation criteriaChairperson (Casting vote) Chairs the Evaluation Committee meeting. Open tender documents in presence of fullEvaluator (Voting member) Responsible for technical wildlife and committee tourism aspects of tenderEvaluator (Voting member) Responsible for assessment of financial Confirm that bidders have met all requirements in package terms of guidelinesEvaluator (Voting member) Responsible for compliance with Niassa Management Plan and professional Record all details of tender submissions structure of tender proposal. Verify minutes of all meetingsMITUR Representative (Voting Responsible for Governmentmember) compatibility Debate results of independent scoresArbitrator/Audit firm Non-voting member. Responsible forrepresentative (Non-voting monitoring the tender evaluation Reach consensus on tender awardmember) process. Scoring system Scoring system: Fee StructureCategories Score %FEE STRUCTURE Points awarded as follows: 100 33%MOZAMBIQUE SHAREHOLDING ▪ Summarise the Fixed Fee, Variable Fee and Capital 25 8%PEOPLE Investment for each bid under each area. 20 7%CORPORATE 15 5%TOURISM PRODUCT ▪ Rank bids according to the highest Fixed Fee, Variable 24 8%INFRASTRUCTURE fee and Capex Investment 15 5%MARKETING 15 5%FINANCE ▪ Award points according to the following ranking 20 7%CONSERVATION DEVELOPMENT 25 8%COMMUNITY DEVELOPMENT 30 10%OTHER 10 3%
  3. 3. Scoring system: Fee Structure Scoring system: Fee Structure Rank Fixed Fee Variable Fee Capex Total Assess income earning potential and award points 1 40 30 20 90 based on: 2 30 20 10 60 ▪ Highly realistic – 10 points 3 20 10 5 35 ▪ Probable – 8 points ▪ Unrealistic – 2 points 4 10 5 0 15 5 5 0 0 5 Potential maximum points = 100 (or 33% of Others 0 0 0 0 total) Company offering the highest Fixed + Variable Fee + Capex investment will be awarded 90 points. Scoring system (Example - Financial offer) Scoring System TOTAL OVER 5 YEARS Financial Score • Company registration: Fixed 25 points to wholly owned and registered MozambiqueCompany Income Capital Fee Variable Fee Capex Fixed Variable Total companies A 2,533,521 983,885 276,502 114,347 10 20 10 10 points to registered Mozambique partner/foreign 40 companies 0 points for unregistered foreign companies. B 2,046,140 637,755 221,000 97,500 5 10 5 20 • Community development C 1,890,250 231,500 317,550 137,500 - 30 20 50 10 points to any bid that contributes directly to community development and benefits D 4,500,000 435,000 559,000 - - 40 - Community trust 40 E 2,494,501 1,068,781 87,747 313,140 20 5 30 55 Scoring system (Assessment questions) PEOPLE Score each out of 5: 0 = poor 5 = excellent Relevance of Experience How relevant is the experience of the key people 4 behind the bid: a) to the bid and b) to Niassa context? Credibility of Experience How credible is the experience of the key people 3 The remaining criteria assessed against a series behind the bid? of specific questions and awarded points. Proposed Governance To what extent do the proposed governance 3 Structures structures give comfort that: (a) the experience of key people behind the bid will be actively and sustainably leveraged into the proposed Niassa operations and b) the proposed operations will be professionally managed? Proposed Employee To what extent do the proposed employee 3 Structure structures give comfort that the proposed Niassa operations will be professionally managed? Total score 13
  4. 4. Evaluating the scores Scoring system (Summarised): A B C • Each tender document is evaluate independently Combined Score out of 647 67% 46% 58% 436 296 374 and the scores aggregated 2 FEE STRUCTURE 100 48 48 26 26 63 63 3 MOZAMBIQUE SHAREHOLDING 25 25 25 0 0 10 10 Individual Individual Individual Scores • The scores are compared Section Scores Scores 1 2 3 1 2 3 1 2 3 • Wide differences are discussed and consensus reached 4 PEOPLE 20 17 17 14 48 13 8 14 35 13 13 11 37 5 CORPORATE 15 12 11 10 33 9 6 11 26 10 9 12 31 6 PRODUCT 24 19 19 18 56 13 12 16 41 16 14 18 48 • Chairperson can call bidders to make an oral 7 INFRASTRUCTURE 15 11 11 11 33 10 5 10 25 7 10 11 28 presentation to the Evaluation Committee in the 8 MARKETING 15 9 11 11 31 11 7 12 30 9 8 10 27 9 FINANCE 20 16 13 12 41 11 8 12 31 9 13 10 32 event that total scores are close 10 CONSERVATION DEVELOPMENT 25 17 20 19 56 10 5 13 28 14 13 13 40 11 COMMUNITY DEVELOPMENT 30 17 16 14 47 13 12 14 39 15 9 17 41 12 OTHER 10 5 7 6 18 5 4 6 15 4 5 8 17 Individual score out of 174 123 125 115 436 95 67 108 296 97 94 110 374Awarding the tender Lessons learnt Critical to retain transparency in the evaluation process • Submit recommendations to the Board ▪ Independent auditor and evaluators ▪ Security of tender documents ▪ Record of approved minutes • Letter of Engagement: Tender Guideline structure • Binds both parties to negotiate the final contract within a ▪ Categories and questions focused specified period based on the tender offer ▪ All tender documents standardised • Allows time to prepare the business plan Evaluation Committee ▪ Capacity to understand the process ▪ Independence of Evaluators • Contract: Hunting more attractive than photographic ▪ Negotiate and agree on the terms and conditions ▪ Don’t have to award large areas for photographic concessions ▪ Signature by the Board Chairperson and ratification by the Maintain control over submission Minister ▪ Dont accept tender documents that don’t follow the guidelinesWhat to avoid Opening the tender in absence of bidders ▪ Process is not affected, but it raises suspicions ▪ Not practical when bids received from outside of Mozambique Avoid bidders combining more than one block ▪ Affects evaluation Staggered tender process – a double edged sword ▪ Can be advantageous to secure all blocks, but high work load ▪ Can take advantage of favourable economic market Launch of tender ▪ Avoid height of tourism season ▪ Schedule to take advantage of tourism season Process could be quicker ▪ Managing the political process THANK YOU

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