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South African National Parks Contract Management Giju Varghese


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This presentation by Giju Varghese 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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South African National Parks Contract Management Giju Varghese

  1. 1. Presentation Objectives Contract Management Basis Objectives of contract management SANParks’ Approach Knowledge, skills and attributes Management Framework Concession Operations Manual Communication Channels Concession Contract Management & Monitoring Benefits RisksContract Management Basis Contract ManagementPPP Project Life Cycle What is Contract Management? Contract engagement is a critical process; A process designed to enable state institutions and Accuracy, compliance etc are extremely critical concessionaires to meet their respective obligations Short process High exposure / focus Objectives of Contract Management Contract Management: To manage the partnerships and establish good working Relationship management relationships Longer process/periods To define roles, responsibilities and protocols; Mundane / lower exposure To measure outputs against required objectives and regulate But, the most important part where value is extracted from partnership performance; Contract end To enable administrative processes required for effective Planned processes management;“Contract Management requires structure as in the other 2 phases” To react timeously, manage variations and settle disputesSANParks Approach SANParks Approach High risk projects with large capital investment Formal and systematic monitoring system: Repeated measurement of selected variables to detect changes; Small, strong contract management function with specialist (legal, ECO) where necessary for contentious issues Comparison of actual performance / conformance against preset levels and standards; Contract Management elevated in the organization with established mandates Provides early indications of progress or lack thereof in the achievement of commercialization objectives. Responsibilities and accountability identified Resources are established at inception stages to ensure management in a Management framework is established – allows for consistency in our highly effective, efficient and professional manner. approach to all PPP projects
  2. 2. Knowledge / Skills / Attributes Management Framework Combination of project management, legal, analytical, financial, business Management mechanisms are supported by legal framework acumen, market evaluation, environmental / heritage, infrastructure and (Contract); support skills; Comprehensive guidelines Understand tourism industry management and tourism industry o Environmental management and economic realities of concession operations; o Financial Knowledge of organizational policy o Legal / technical Ability to interpret and implement PPP legislation; o Empowerment Negotiation and contract management skills Performance Bond and Penalty SystemsConcession Operations Manual Communication Channels Used for the day-to-day management of the contract Managing Communication is critical to success To inform SANParks and concession staff main contractual elements and to Operational Issues measure performance. Matrix communication structure Defines the roles, responsibilities and protocols to promote positive and Day-to-day management and communication between SANParks and effective working relationships Operator at functionary level Supplement to legal framework Policy Issues Most importantly it covers Issues not covered by legal framework or existing policies Communication structures, Mgt principles and guidelines, reporting requirements & administrative Management. Communication channels to corporate Electronic copies are availableBenefits Risks Effectively enforcing legal mechanism Risk of organizational strategy shift Good understanding, focus and consideration of complexities Functionary level staff not in support of the strategic objectives of organisation Consistency in approach Institutional capacity problems at project level of appropriately trained and Limiting continual scope creep experienced staff in terms of the tourism and commercial aspects of Ability to be firm but fair-minded and flexible where necessary projects Overall integrity of the process has been maintained securing investor Weaknesses within institution will be exploited by the private sector mobilization Organizations require increased institutional training at functionary level for the effective implementation of the concession operations manual
  3. 3. Financial Re-Modelling Seamless Replacement Business – Dynamic Environment KNP Restaurants Soon after / mockery of teder /Pvt sector can take advantage – pressure through Cook / BEE / Banker / Needed to go / SANParks capacity for restaurants various bodies Muscle Pull Lodge Concessions: Rand / $, Swine Flu, Mugabe, etc Fidentia / trade union / etc Often / way of doing business / collective / Different dynamics Initiate liquidation / first on hypothec / in charge of process No market failure / situation still needs to be managed Interim Contract Mgt during process Bundling model vs unbundling Risk transfer / residual values / retender Appointed / Punda Maria to Bergendal Guarantees / Min % T/O / Min Rental / Risk transferred Nat Treasury etc, as good model / Eased material aspects renegotiation THANK YOU Giju Varghese Head: Business Development South African National Parks Tel: +27 12 426 5276, Mobile: +27 82 906 1979 Fax: +27 12 343 3849 E-mail: