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Namibia: NWR Outsources Resorts Management
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New Era (Windhoek)
21 July 2008
Posted to the web 21 July 2008
Irene !hoaes
Windhoek
The commercial arm of the Environment and Tourism Ministry, the Namibia Wildlife Resorts (NWR), has stepped up its turnaround strategy by getting into partnerships with the private sector.
NWR entered into a number of public-private partnership (PPP) agreements for the upgrade and management of some of its resorts in central Namibia.
The resorts include Daan Viljoen, Von Bach, Reho Spa and the four campsites in the West Coast Recreation Area, as well as the management of all the petrol stations at the NWR camps.
All agreements involve a lease component varying from 10 to 50 years, with a monthly rent of N$10000 to N$26000, as well as a component of turnover or income sharing payable to NWR.
The signing fees for all these agreements amounted to N$7,4 million, while the overall investments amounted to N$558 million.
Prosperity Africa is the partner for the Daan Viljoen resort and it plans to set up a Wellness and Lifestyle mode offering accommodation, conference facilities and a health spa.
Pisces Investment Holdings Pty will take over Mile 14 and invest into an exclusive lodge as well as outdoor camping facilities.
Tungeni Investment Pty has taken over Miles 72, 208, Jakkalsputz and the Von Bach resort.
Von Bach is envisaged for a very big development worth N$450 million.
Reho Spa Resorts Pty in partnership with the Rehoboth Town Council will upgrade and manage the Reho Spa, with an investment of N$5 million.
DPF Energy and Minerals will take over the management of the nine fuel stations in the NWR properties and will invest N$7 million to upgrade the facilities.
The Managing Director of NWR, Tobie Aupindi, justifies the move as one that has been provided for in the NWR Act and one that forms a fundamental component of the turnaround strategy of the company.
"With so many facilities in its portfolio, it was not possible for the NWR to address the investment and intervention needs of all facilities at one go, thus PPP provided a mechanism for attracting investment into infrastructure as a means of unlocking the full potential of certain facilities, while bringing the standards of the infrastructure and service to levels consistent with current market demands," Aupindi explained.
NWR has since the initiation of its turnaround strategy upgraded a number of its key facilities at Okaukuejo, Halali, Namutoni, Waterberg and Terrace Bay as well as the new Sossus Dune Lodge in the Namib Naukluft Park and the Onkoshi Camp, currently under construction in the Etosha National Park.
"However, funding was not available to upgrade all facilities in the NWR portfolio and for this reason, the targeted use of PPP agreements was pursued," Aupindi added.
Minister of Environment and Tourism, Netumbo Nandi-Ndaitwah, also emphasised that the public-private strategic partnerships were needed to share the burden of investment. She said this will also create synergy and common interest among different players, as tourism has been considered as one of the sectors open to only a few.
Nandi-Ndaitwah warned that the broad principles of the NWR public-private partnership agreements prohibits any alienation of property that environmental protection must be adhered to and that the interests of the employees involved will be protected.
"This is particularly important, as the operations involved take place within the boundaries of Namibia's protected areas."
The minister added that the imperative is to ensure that the employees of these facilities, many of whom have worked for the company for many years, have security in their employment status and retain the same or better conditions of service.
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The signing occasion was marked by a glittering gala dinner, attended by a number of key stakeholders in the tourism industry.
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