Covane Lodge Paulo Massanhane geraldo palalane

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 logo

ASL-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


BACKGROUND OF COVANE COMMUNITY LODGE-MASSINGIR
PARTNERSHIP 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


FROM COMMUNITY BASED TOURISM TO JOINT FROM CBT TO JOINT VENTURE 2/2
VENTURE 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


RESULTS 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


IMPLEMENTATION 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


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

CONTRIBUTING TO THE WHOLE IS A KEY OF SUCCESS

Implementation of Partnership Agreement requires close involvement of different stakeholders. Clear
identification should be done and they should be engaged from the project inception
They have to share the same goals and objective

Definition of clear Roles and Responsabilities

USAID/SPEED logo Technoserve logo

Covane Lodge Paulo Massanhane geraldo palalane

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