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)
_Unforgettable Chandigarh to Himachal Pradesh Tour Package.pdf
Niassa Anabela Rodriques Vernon Booth
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 contract
Expression 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. 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 features
Tender Evaluation Committee Tender Evaluation Committee Responsibilities
Position Responsibility Agree on evaluation criteria
Chairperson (Casting vote) Chairs the Evaluation Committee
meeting.
Open tender documents in presence of full
Evaluator (Voting member) Responsible for technical wildlife and committee
tourism aspects of tender
Evaluator (Voting member) Responsible for assessment of financial
Confirm that bidders have met all requirements in
package terms of guidelines
Evaluator (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 meetings
MITUR Representative (Voting Responsible for Government
member) compatibility Debate results of independent scores
Arbitrator/Audit firm Non-voting member. Responsible for
representative (Non-voting monitoring the tender evaluation Reach consensus on tender award
member) process.
Scoring system Scoring system: Fee Structure
Categories 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. 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 Mozambique
Company 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. 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 94 110 374
Awarding 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 ▪ Don't accept tender documents that don’t follow the guidelines
What 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