Covane Lodge Paulo Massanhane geraldo palalane

USAID/SPEED logo Technoserve logo

Managing & Monitoring

Concession Contract

The Case of Covane Community Lodge

Canhane Community

www.covanelodge.com

Presented by Paulo Mussanhane and Geraldo Palalane


STRUCTURE OF THE PRESENTATION

•ASL-MOZAMBIQUE PROGRAM BACKGROUND

•GEOGRAPHIC CONTEXT

•PARTNERSHIP CONCEPT

•BACKGROUND OF COVANE COMMUNITY LODGE-MASSINGIR

•FROM CBT TO JOINT VENTURE

•RESULTS TO DATE

•IMPLEMENTATION OF THE CONTRACT

•CHALANGES & RECOMMENDATION

•CONTRIBUTING TO THE WHOLE IS A KEY OF SUCCESS


ASL-MOZAMBIQUE PROGRAM BACKGROUND

• ASL Mozambique in collaboration with TechnoServe Mozambique supports 4 pilot lodges to maximize benefits to local communities – through linkages and partnerships – and create a positive force for change within the industry

• Program established in Mozambique in late 2005

• Program working with pilot lodges 2006-2008

• Ford Foundation agreed to support program until 2011


GEOGRAPHIC CONTEXT

� Located in Gaza Provínce, e Massingir District Canhane Community – on the shore of Massingir Dam

� 4 hours drive from Maputo

Cabo

Delgado

Nampula

Niassa

Zamb

ezia

Tete

Gaza

Inhamba

ne

Sofala

Manica

Maputo

Covane Community Lodge


PARTNERSHIP CONCEPT

OPERATE (including Marketing) and TRANSFER back to

community

Community Land

(DUAT)

Community Owned

Lodge

Package of Benefits to the Community:

•Valueble assets worth US$750,000 to US$900,000•Rental Payment•Local Employeement•Local Purchase•Percentage of bed nights•Skills develoment•Conservation of natural resources•Much more

Professional

Management

Additional

Funds


BACKGROUND OF COVANE COMMUNITY LODGE-MASSINGIR www.covanelodge.com

2004-20052004-2005 20062006 2007-20122007-2012

• Helvetas (NGO) conducts consultation & zoaning of Canhane

• USAID –Finance the development of community based initiative

• Lodge open and gets operational suport from Helvetas

• 2006- decrease in tourist arrivals and revenues

• Helvetas/Lupa (www.lupa.org.mz) looks for strategic support

• With assistance of TNS/ASLF a bidding process selects a professional operator

• Negotiation with potential partners

• Ongoing Fund raising

• Procurrements and begining of the construction

• On-going construction

• Deliver of water project

200O-2003200O-2003


FROM COMMUNITY BASED TOURISM TO JOINT VENTURE 1/2

� Due to decrease in tourist flow and limited access to international market the Lodge had to look for professional operator to partner in the business - launched an open bidding process that resulted in 20 Years Partnership Agreement with Private Operator (TFPD)

� 2 years later TFPD withdrew from the Partnership for the following reason:

� Mix of construction and operation activities with no clear reporting system

� Complexity on the procurement process

� Delays on construction

� Miss communication raised tension in the relationship with the community

� Plan opening with new operator in July 2012


FROM CBT TO JOINT VENTURE 2/2

What was done?

� Discussed with the Private Operator and Canhane Community and agreed to cancel the agreement.

� Immediately contacted potential/interested partner without a tender.

� Negotiate new contract with more clear terms on the financial benefits

� 10+10 year s Operate and Transfer Agreement was negotiated and signed

� Construction company was selected via public tender to build theinfrastructure with close assistance from the Community Partner

� Community members were employed into the construction project

� Joint Management committee was setup to link both the community and the construction company


RESULTS TO DATE (1/2)

� 10 years Partnership Contract (Operate and Transfer) with Barra Resorts

� USD$750,000 raised from Ford Foundation and World 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

� Build skills at local level


RESULTS TO DATE (2/2)

Acquired houseboats

Ongoing construction


IMPLEMENTATION OF THE CONTRACT (1/2)

Lessons Learned

� Rural communities lack knowledge and experience to manage tourism business

� Donors or financial institution support with low or zero interest rate loans are

fundamental to secure integrated community participation in tourism investment

� Need for commitment from different stakeholders and share the same goal and

objectives makes the implementation of the agreement more effective.

� Clear communication framework is required to avoid miss-understanding or possible

conflicts.

� Rural communities lack knowledge and experience to manage tourism business

� Donors or financial institution support with low or zero interest rate loans are

fundamental to secure integrated community participation in tourism investment

� Need for commitment from different stakeholders and share the same goal and

objectives makes the implementation of the agreement more effective.

� Clear communication framework is required to avoid miss-understanding or possible

conflicts.


IMPLEMENTATION OF THE CONTRACT (2/2)

Lessons Learned

� Rural communities need more time to understand the Partnership Process and

be able to participate actively.

� Delays in the implementation of the project results in additional costs to project

– a conservative approach is required when making financial projections

� Well organized and functional Joint Management Committee provides more

confidence transparency in the implementation process

� Short term or small social investment should be delivered in short to mid term

� Facilitators are required to help structuring the agreements and provide on

going support during the implementation process

� Rural communities need more time to understand the Partnership Process and

be able to participate actively.

� Delays in the implementation of the project results in additional costs to project

– a conservative approach is required when making financial projections

� Well organized and functional Joint Management Committee provides more

confidence transparency in the implementation process

� Short term or small social investment should be delivered in short to mid term

� Facilitators are required to help structuring the agreements and provide on

going support during the implementation process


CHALANGES & RECOMMENDATION (1/2)

Challenges

� Complexity of the procurement process reduces the opportunity for the locals to

maximize the economic impacts (eg.: most of them trade informally)

� Low level of understanding of the tourism Industry by local communities

� Community expectations are high and difficult to manager

� Complexity of the procurement process reduces the opportunity for the locals to

maximize the economic impacts (eg.: most of them trade informally)

� Low level of understanding of the tourism Industry by local communities

� Community expectations are high and difficult to manager


CHALLANGES & RECOMMENDATION (2/2)

Recommendations

� Do not construct and operate at the same time.

� Simplify contracts and payment terms

� Capacity building in different levels and sectors is a must- conduct training

needs’s assessment.

� Subordinated or different (construction) contracts should be developed to

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

� Do not construct and operate at the same time.

� Simplify contracts and payment terms

� Capacity building in different levels and sectors is a must- conduct training

needs’s assessment.

� Subordinated or different (construction) contracts should be developed to

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

Definition of clear Roles and Responsabilities

Implementation of Partnership Agreement requires close involvement of different stakeholders. Clear

identification should be done and they should be engaged from the project inceptionThey have to share the same goals and objective

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