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TECHNICAL WORKSHOP ON CONCESSIONING

AND INVESTMENT IN TFCAs IN SADC

THE PROCESS OF PACKAGING PROJECTS

Presented by: Michael Wright Consulting Engineers Project Managers Environmental Consultants Town and Regional Planners

A PROFESSIONAL TEAM DELIVERING CREATIVE PROJECT SOLUTIONS

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E: michaelw@sivest.co.za T: +27 31 581 1573 C: +27 83 670 1436 W: www.sivest.co.za

TFCAs: The Process of Packaging Projects

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1. Due Diligence

2. Development and Operating Rights

3. Concept Plan

4. Development Plan

5. Business Plan

6. Feasibility Study

7. Meeting Potential Funders

8. Company Structuring

9. Project Implementation

10.Project Operation

CONTENTS

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SiVEST We deliver creative project solutions and add

value in the disciplines of: civil, structural

mechanical, and electrical engineering; project

management; environmental consulting; town

and regional planning; and quantity surveying.

Has operated for 62 years with 6 offices in South

Africa and 1 in Zimbabwe. We have worked in

19 African countries, Asia-Pacific and Europe.

Michael Wright • Ecotourism and Environmental Consultant for

12 years and worked in 7 SADC countries.

• BSc (Hons) Agribusiness & Wildlife Science

• Candidate Natural Scientist with SACNASP

• Member of IAIAsa

• Nature and bird guide for 3 years

• Estate agent (for shared vacation ownership)

• Owner and director of 3 safari lodge/resort

developments and operations in Kruger,

Pilanesberg and Tembe in South Africa.

WHO ARE WE

TFCAs: The Process of Packaging Projects

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• Site visit

• Property title deeds

• Agreements

• Encumbrances

• Authorisations

• Stakeholders

• Existing asset base

• Protected area managing agent

• Natural features

• Wildlife stock

DUE DILIGENCE

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• Tender by Park Agency

o Concession

o Public private partnership

o Lease

• Unsolicited bid

• Purchase of a going concern

• Contract award

• Reporting on project progress

DEVELOPMENT AND OPERATING RIGHTS

TFCAs: The Process of Packaging Projects

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6 CONCEPT PLAN

• Site visit and assessment

• Identification of potential project/s

• Site selection

• Resource requirements

•Community involvement opportunities

• Activities

•Concept maps / layouts

• Investment structures

• Timing

TFCAs: The Process of Packaging Projects

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7 DEVELOPMENT PLAN

• Tourism trends

• Regional service infrastructure

• Regional attractions

• Planned regional developments

• Interview stakeholders

and municipalities

• Boundaries

• Community support

TFCAs: The Process of Packaging Projects

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8 BUSINESS PLAN

• Legal requirements

• Business structuring

• Marketing study

• Development cost estimation

• Develop a concept and product offering

• Financial feasibility

• Shared vacation ownership model (optional)

• Competitor analysis

• SWOT analysis

• Possible linkages and networks

• Operator identification

• Human resources plan

• Guest experience / activity plan

• Skills development plan

• Corporate social investment plan

• Timing

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9 FEASIBILITY STUDY

• Professional team selection

• Site visit and ground-truthing

• Pre-feasibility studies: Environmental, engineering, municipal

• Preliminary architectural design and renderings

• Preliminary services designs and reports

• Risk analysis

• Cost estimation (Bill of Quantities)

• Environmental authorisation

(Duty of Care, Basic Assessment, or Scoping and Environmental Impact Assessment)

• Specialist studies

• Environmental management plan

• Water use licence

• Result: Bankable business plan

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• Project promotion

• Seed funding

• Funder due-diligence – DFIs and private

entities

• Source of equity – minimum 35%

• Source of debt – maximum 65%

• Debt : equity ratio

• Negotiation of terms and conditions

• Term sheet contracting

MEETING POTENTIAL FUNDERS

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• Organisational structuring

• Equity shareholding

• Shareholder’s agreement

• Company secretarial functions

• Operator negotiation and selection

• Operator management and

marketing agreement, or lease

agreement

COMPANY STRUCTURING

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• Environmental authorisation

• Development and project management

• Pre-project requirements

• Project initiation and briefing

• Concept and feasibility

• Design development and costing finalisation

• Park construction and operating procedures

• Tender documentation and procurement

• Construction documentation and management

• Environmental and Health & Safety monitoring

• Operator staffing and training

• Project close out

PROJECT IMPLEMENTATION

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• Environmental close out audit

• Site handover

• Pre-opening

• Grand opening

• Certification

o Tourism grading certification

o Sustainable and responsible ecotourism certification

o Dark-sky certification

PROJECT OPERATION

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TFCAs: The Process of Packaging Projects