Covane Lodge Paulo Massanhane geraldo palalane

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This presentation by Paulo Massanhane and Geraldo Palalane was delivered at the 'Concessioning tourism opportunities in conservation areas and maximising rural development' workshop, held in Maputo between 19-22 March 2012 (Day 2, Session 4, Concessions Contract Management)

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Covane Lodge Paulo Massanhane geraldo palalane

  1. 1. STRUCTURE OF THE PRESENTATION •ASL-MOZAMBIQUE PROGRAM BACKGROUND •GEOGRAPHIC CONTEXT Managing & Monitoring •PARTNERSHIP CONCEPT Concession Contract •BACKGROUND OF COVANE COMMUNITY LODGE-MASSINGIR •FROM CBT TO JOINT VENTURE Presented by Paulo Mussanhane and Geraldo Palalane •RESULTS TO DATE The Case of Covane Community Lodge •IMPLEMENTATION OF THE CONTRACT Canhane Community •CHALANGES & RECOMMENDATION www.covanelodge.com •CONTRIBUTING TO THE WHOLE IS A KEY OF SUCCESS USAID/SPEED logo Technoserve logo USAID/SPEED logo Technoserve logoASL-MOZAMBIQUE PROGRAM BACKGROUND GEOGRAPHIC CONTEXT • ASL Mozambique in collaboration with TechnoServe Mozambique supports 4 pilot lodges to maximize benefits to Located in Gaza local communities – through linkages and partnerships – and create a positive force for change within the industry Provínce, e Niassa Cabo Delgado Massingir District Nampula • Program established in Mozambique in late 2005 Canhane Community Tete zia be – on the shore of Za m • Program working with pilot lodges 2006-2008 Massingir Dam Sofala Manica 4 hours drive • Ford Foundation agreed to support program until 2011 from Maputo Inhamba Covane ne Community Lodge Gaza Maputo USAID/SPEED logo Technoserve logo USAID/SPEED logo Technoserve logo BACKGROUND OF COVANE COMMUNITY LODGE-MASSINGIRPARTNERSHIP CONCEPT www.covanelodge.com OPERATE (including Marketing) and TRANSFER back to 200O-2003 2004-2005 2006 2007-2012 community • Helvetas (NGO) • Lodge open • 2006- decrease • Negotiation with Additional conducts and gets in tourist arrivals potential partners Professional Funds Management consultation & operational and revenues • Ongoing Fund Community Owned Lodge zoaning of suport from • Helvetas/Lupa raising Community Land Canhane Helvetas (www.lupa.org. • Procurrements (DUAT) mz) looks for and begining of • USAID – strategic the construction Package of Benefits to the Community: Finance the support • On-going •Valueble assets worth US$750,000 to US$900,000 •Rental Payment development of • With assistance construction •Local Employeement community of TNS/ASLF a • Deliver of water •Local Purchase based initiative bidding process •Percentage of bed nights project •Skills develoment selects a •Conservation of natural resources professional •Much more operator USAID/SPEED logo Technoserve logo USAID/SPEED logo Technoserve logo
  2. 2. FROM COMMUNITY BASED TOURISM TO JOINT FROM CBT TO JOINT VENTURE 2/2VENTURE 1/2 Due to decrease in tourist flow and limited access to international What was done? market the Lodge had to look for professional operator to partner in the business - launched an open bidding process that resulted in 20 Discussed with the Private Operator and Canhane Community and Years Partnership Agreement with Private Operator (TFPD) agreed to cancel the agreement. Immediately contacted potential/interested partner without a tender. 2 years later TFPD withdrew from the Partnership for the following Negotiate new contract with more clear terms on the financial reason: benefits Mix of construction and operation activities with no clear 10+10 year s Operate and Transfer Agreement was negotiated reporting system and signed Complexity on the procurement process Construction company was selected via public tender to build the infrastructure with close assistance from the Community Partner Delays on construction Community members were employed into the construction Miss communication raised tension in the relationship with the project community Joint Management committee was setup to link both the Plan opening with new operator in July 2012 community and the construction company USAID/SPEED logo Technoserve logo USAID/SPEED logo Technoserve logoRESULTS TO DATE (1/2) RESULTS TO DATE (2/2) 10 years Partnership Contract (Operate and Transfer) with Barra Resorts Acquired USD$750,000 raised from Ford Foundation and World houseboats Bank/Government of Mozambique (MITUR) to finance infrastructure development and acquisition of houseboats Social investment at ~USD$20,000 for water project to Canhane community from the Government of Mozambique. Secure local employment during the construction phase Ongoing construction Build skills at local level USAID/SPEED logo Technoserve logo USAID/SPEED logo Technoserve logoIMPLEMENTATION OF THE CONTRACT (1/2) IMPLEMENTATION OF THE CONTRACT (2/2) Lessons Learned Lessons Learned Rural communities lack knowledge and experience to manage tourism business Rural communities need more time to understand the Partnership Process and Donors or financial institution support with low or zero interest rate loans are be able to participate actively. fundamental to secure integrated community participation in tourism investment Delays in the implementation of the project results in additional costs to project – a conservative approach is required when making financial projections Need for commitment from different stakeholders and share the same goal and Well organized and functional Joint Management Committee provides more objectives makes the implementation of the agreement more effective. confidence transparency in the implementation process Clear communication framework is required to avoid miss-understanding or possible Short term or small social investment should be delivered in short to mid term conflicts. Facilitators are required to help structuring the agreements and provide on going support during the implementation process USAID/SPEED logo Technoserve logo USAID/SPEED logo Technoserve logo
  3. 3. CHALANGES & RECOMMENDATION (1/2) CHALLANGES & RECOMMENDATION (2/2) Recommendations Challenges Do not construct and operate at the same time. Complexity of the procurement process reduces the opportunity for the locals to Simplify contracts and payment terms maximize the economic impacts (eg.: most of them trade informally) Capacity building in different levels and sectors is a must- conduct training Low level of understanding of the tourism Industry by local communities needs’s assessment. Subordinated or different (construction) contracts should be developed to Community expectations are high and difficult to manager accommodated activities or objectives that may conflict with the Partnership Agreement Donors support should continue to be delivered to rural communities in order to secure their participation in the capital investment Short term or small social investment should be delivered in shot to mid term USAID/SPEED logo Technoserve logo USAID/SPEED logo Technoserve logoCONTRIBUTING TO THE WHOLE IS A KEY OF SUCCESSImplementation of Partnership Agreement requires close involvement of different stakeholders. Clearidentification should be done and they should be engaged from the project inceptionThey have to share the same goals and objective Definition of clear Roles and Responsabilities USAID/SPEED logo Technoserve logo

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