information memorandum tsitsikamma zipline adventure ppp
Transcription
information memorandum tsitsikamma zipline adventure ppp
INFORMATION MEMORANDUM TSITSIKAMMA ZIPLINE ADVENTURE PPP OPPORTUNITY INFORMATION MEMORANDUM ISSUED BY SOUTH AFRICAN NATIONAL PARKS IN RESPECT OF THE PROPOSED TSITSIKAMMA ZIPLINE ADVENTURE PUBLIC PRIVATE PARTNERSHIP PROJECT FOR THE TSITSIKAMMA SECTION OF THE GARDEN ROUTE NATIONAL PARK SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park IMPORTANT NOTICE This Information Memorandum has been produced by South African National Parks (SANParks), in connection with the Treetop Zipline Adventure private partnership (PPP) opportunity available in the Tsitsikamma Section of the Garden Route National Park (“GRNP”). No representation or warranty, express or implied, is made, or responsibility of any kind is or will be accepted, by SANParks, with respect to the accuracy and completeness of this Information Memorandum, and any liability in connection with the use by any Interested Party of the information contained in this Information Memorandum is hereby disclaimed. This Information Memorandum has been provided to the recipient to assist in making its own appraisal of the opportunities presented herein. However, this Information Memorandum is not intended to serve as the basis for an investment decision on the opportunities, and each recipient is expected to make such independent investigation and to obtain such independent advice, as he or she may deem necessary for a decision. South African National Parks may amend or replace any information contained in this Information Memorandum at any time, without giving any prior notice or providing any reason. January 2016 Page 2 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park TABLE OF CONTENTS 1. INTRODUCTION .............................................................................................................................................. 5 2. SANPARKS’ VISION, MISSION AND KEY STRATEGIC OBJECTIVES................................................... 5 3. 2.1 SANPARKS’ VISION AND MISSION .................................................................................................................. 5 2.2 SANPARKS’ KEY STRATEGIC OBJECTIVES .................................................................................................... 6 ARTICULATION OF SANPARKS’ COMMERCIALISATION POLICY, OBJECTIVES AND STRATEGY ........................................................................................................................................................................... 7 4. 3.1 THE MOTIVATION FOR COMMERCIALISATION .................................................................................................. 8 3.2 THE STRATEGIC PLAN FOR COMMERCIALISATION 2006 ................................................................................ 9 SANPARKS LEGAL RIGHTS TO ENTER INTO PPP AGREEMENTS: .................................................. 10 4.1 NATIONAL ENVIRONMENTAL MANAGEMENT: PROTECTED AREAS ACT 2003 (ACT NO. 57 OF 2003) (“NEMPAA”) AS AMENDED BY THE NATIONAL ENVIRONMENTAL MANAGEMENT: PROTECTED AREAS AMENDMENT ACT (ACT NO 31 OF 2004)................................................................................................... 10 4.2 5. THE PUBLIC FINANCE M ANAGEMENT ACT 1 OF 1999 (“THE PFMA”) ........................................................ 11 A DESCRIPTION OF THE TOURISM PPP OPPORTUNITY FOR THE TSITSIKAMMA SECTION OF THE GARDEN ROUTE NATIONAL PARK ................................................................................................. 13 6. 5.1 A DESCRIPTION OF THE TREETOP ZIPLINE ADVENTURE PPP OPPORTUNITY .............................................. 13 5.2 ZIPLINE LAYOUT AND DESIGN .............................................................................................................. 13 5.3 ACCESS TO THE LAUNCH SITE: ...................................................................................................................... 16 5.4 SAFETY AND EQUIPMENT FOR THE ZIPLINE ACTIVITY ................................................................................... 16 5.5 BASE CAMP .................................................................................................................................................... 29 5.6 INFRASTRUCTURE ........................................................................................................................................... 29 5.7 ENVIRONMENTAL GUIDELINES ....................................................................................................................... 30 5.8 GARDEN ROUTE NATIONAL PARK ................................................................................................................. 31 5.9 THE TSITSIKAMMA SECTION OF THE GARDEN ROUTE NATIONAL PARK ...................................................... 32 5.10 THE SITE ......................................................................................................................................................... 33 ADDITIONAL ACTIVITIES IN THE TSITSIKAMMA SECTION OF THE GRNP: ..................................... 33 6.1 HIKING ............................................................................................................................................................. 33 6.2 CAMPING SITES AND ACCOMMODATION ........................................................................................................ 33 6.3 SNORKELLING, KAYAKING AND OTHER WATER BASED ADVENTURE ACTIVITIES .......................................... 34 6.4 GUIDED HORSE RIDES.................................................................................................................................... 34 6.5 FOREST TOURS ON SEGWAY PEOPLE TRANSPORTERS................................................................................ 34 6.6 BUNGY JUMPING............................................................................................................................................. 34 6.7 BOAT RIDES .................................................................................................................................................... 34 Page 3 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park 7. VALUE FOR MONEY OBJECTIVES ........................................................................................................... 34 8. FINANCIAL TERMS ...................................................................................................................................... 35 9. EMPLOYEE ISSUES TO BE CONSIDERED .............................................................................................. 36 10. MINIMUM PPP FEES .................................................................................................................................... 36 11. ACCESS ......................................................................................................................................................... 37 12. EXCLUSIVITY ................................................................................................................................................ 37 13. QUALIFYING CRITERIA............................................................................................................................... 38 13.1 REQUIRED QUALIFICATIONS TO OPERATE THE ZIPLINE ADVENTURE ................................... 38 14. SUMMARY PROJECT TIMETABLE ............................................................................................................ 39 Page 4 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park 1. 1.1 INTRODUCTION This Information Memorandum is issued by South African National Parks (“SANParks”) in accordance with the guidelines for Public Private Partnerships (“PPPs”) contained in National Treasury's Tourism PPP Toolkit, and in compliance with Treasury Regulation 16 issued in terms of the Public Finance Management Act 1999 (“PFMA”). 1.2 SANParks, as part of its Strategic Plan for Commercialisation, identified the tourism PPP opportunity for a Treetop Zipline Adventure Activity in the Tsitsikamma Indigenous Forest of the Tsitsikamma Section of the Garden Route National Park. 1.3 SANParks makes no guarantees about and takes no responsibility for the accuracy and completeness of this Information Memorandum and disclaims any liability for any interested party’s use of the information. 1.4 This Information Memorandum is not intended to serve as the basis for an investment decision. Each recipient is expected to make an independent investigation and to obtain the necessary independent advice for submitting a Bid. 1.5 SANParks may change or replace any information contained in this Information Memorandum at any time, without giving any prior notice or providing any reason. 1.6 In a typical PPP agreement in this sector, the private party is granted rights to finance, design, build, maintain and operate a tourism facility on state conservation land for a period likely to provide a fair return on investment. In return, the private party will meet agreed environmental, development, operating and broad-based BEE obligations, and pay a PPP fee to SANParks. At the end of the agreement term, the facility reverts to the institution. 1.7 SANParks is following the PPP feasibility and procurement processes set out in National Treasury’s PPP Toolkit for Tourism. The toolkit can be downloaded from www.ppp.gov.za. 2. 2.1 SANPARKS’ VISION, MISSION AND KEY STRATEGIC OBJECTIVES SANParks’ Vision and Mission Page 5 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park South African National Parks (SANParks) was established as a parastatal through an Act of Parliament in 1927. As per the Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), SANParks is a Schedule 3(a) “public entity” that functions under the ambit of the NEMA: Protected Areas Act, 2003 (Act 57 of 2003) read concurrently with the Biodiversity Act of 2004 and the Protected Areas Act. The core mandate of SANParks is the conservation and management of biodiversity and associated cultural heritage through a system of National Parks. SANParks is also involved in the promotion and management of nature-based tourism, and delivers both conservation management and tourism services through an authentic people centred approach on all its programmes. The organisation’s operations are totally guided by its vision statement (the word picture of the future) and mission statement (depicting the purpose of its existence). As a public entity, the organisation is committed to act in pursuance of transformation of South Africa’s society in support of entrenching South Africa’s democracy. In this regard the organisation has adopted a transformation mission to guide its efforts accordingly. VISION - National parks connects society. MISSION - To develop and manage a system of national parks that represents the biodiversity, landscapes, and associated heritage assets of South Africa for the sustainable use and benefit of all. TRANSFORMATION MISSION - To ensure effective transformation both within SANParks and the broader society and economy, through the implementation of broadbased Black Economic Empowerment in support of the Constitution of South Africa. 2.2 SANParks’ Key Strategic Objectives SANParks’ business operations are founded on three important core pillars: 2.2.1 Conservation The primary mandate of the organisation is the conservation of South Africa’s biodiversity, landscapes and associated heritage assets through a system of National Parks. Page 6 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park 2.2.2 Nature-based tourism The organisation has a significant role in the promotion of South Africa’s naturebased tourism, or ecotourism business targeted at both international and domestic tourism markets. The eco-tourism pillar of the business architecture provides for the organisation’s self-generated revenues from commercial operations that is necessary to supplement government funding of conservation management. A significant element of the ecotourism pillar is the Strategic Plan for Commercialisation (which through the implementation of Public Private Partnerships) has as its objective reducing the cost of delivery, improving service levels by focusing on core business and leveraging private capital and expertise as well as the objective of expansion of tourism products and the generation of additional revenue for the funding of conservation and constituency building. 2.2.3 Constituency building towards a people-centred conservation and tourism mandate SANParks is required to build constituencies at international, national and local levels, in support of the conservation of the natural and cultural heritage of South Africa. It has to ensure that a broad base of South Africans participate and get involved in biodiversity initiatives, and further that all its operations have a synergistic existence with neighbouring or surrounding communities for their socio-economic benefit. The core mandate of the organisation derives from its biodiversity conservation role, thus the conservation pillar is regarded as the basis upon which the other two subcore pillars’ programmes and activities are directed. In addition to the core and sub-core business pillars that provide SANParks with a level of uniqueness, the organisation has generic support functions of Finance, Human Resources, Corporate Communications, Corporate Support Services (including Information and Communications Technology), and Legal Services. The operational component of SANParks is delivered through the current twenty two (22) national parks – these being organised under two divisions namely, Kruger National Park and the Parks Division (which entails the remaining twenty one national parks). 3. ARTICULATION OF SANPARKS’ COMMERCIALISATION POLICY, OBJECTIVES AND Page 7 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park STRATEGY 3.1 The Motivation for Commercialisation “Global conventions and programmes alone are not enough to ensure the continued existence of, and sufficient funding for, protected areas. In times of fiscal austerity and tightening government budgets – especially in developing countries, which are home to much of the world’s biodiversity – traditional funding sources are increasingly under threat. Innovative alternatives to these traditional sources are needed in order to secure the long term viability of protected areas.” (IUCN, 1998) In order to encourage greater efficiency in the delivery of public services, the Cabinet in April 1997 approved the establishment of an interdepartmental task team chaired by the Department of Finance, to explore how public private partnerships could improve infrastructure and service delivery efficiency, and make more efficient use of underutilised state assets. The key objectives of this programme were to develop a package of cross-sectoral and inter-Institutional policies and legislative and regulatory reform. In September 1998, the Department of Environmental Affairs and Tourism articulated the need for SANParks to prepare for a lesser dependence on state funding, which would increasingly be aimed at funding the essential conservation requirements. This formed the basis of the Commercialisation Strategy adopted by SANParks in 2000 with its foundation in the economic theory which defines the State’s responsibility as one of performing a regulatory function and intervening in the market-place only where there is market failure. The objective was to reduce the dependence on state funding and improve existing operational efficiencies. This does not imply that SANParks has to be independent of the State but rather that the collective funding sources (i.e. state funding, private donations, NGO and international donations, SANParks’ tourism activities and commercialisation) must be able to “sustain” the total business of SANParks. Sustainable tourism development depends on a partnership and balance between the social, technological, economical, the environment and political values and benefits. Hence, should one source of funding be threatened, SANParks must be able to absorb such withdrawal without compromising its sustainability. The implementation of the Commercialisation Strategy 2000, resulted in the awarding of 11 (eleven) concession sites to private operators, seven of which are in Kruger National Park, two in Addo Elephant National Park, and two in the Table Mountain National Park. Page 8 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park In addition to the concessions, the Commercialisation Strategy 2000 also resulted in the awarding of 21 shops and 17 restaurants across all national parks to private operators. Facilities were upgraded by the operators and SANParks receives a PPP Fee from these operators. 3.2 The Strategic Plan for Commercialisation 2006 Following the implementation of the Commercialisation Strategy 2000, there have been significant developments in SANParks’ approach to PPP initiatives. SANParks accordingly developed the Strategic Plan for Commercialisation 2006 to accommodate and benefit from: (i) The experience and specialist skills acquired; (ii) The lessons learnt from implementation and management of PPPs; (iii) Legislative requirements; and (iv) The extended scope of projects identified to enable SANParks to improve its infrastructure towards 2010 and beyond, generate revenues, promote BEE and create employment. The objective of the strategy is to ensure that SANParks has the fundamentals including capacity in place for managing existing, and for entering into new PPPs successfully. In addition, SANParks has a responsibility towards creating tourism infrastructure on a longer term as compared to a tourism organisation run by a private company. Such infrastructure will enable South Africa to compete with global tourism destinations like Brazil, Thailand etc. Commercialisation through Public Private Partnerships provides SANParks the opportunity to achieve this goal. High-level commercialisation objectives for SANParks include any or all of the following: • Revenue Generation; • Loss minimisation or savings on existing operations; • Optimal use of under-performing assets; • Job creation; • Broad based Black Economic Empowerment; • Infrastructure upgrades; • Upgrade/development of historical and/or cultural sites; • Tourism promotion; and Page 9 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park • 4. Further biodiversity protection and conservation. SANPARKS LEGAL RIGHTS TO ENTER INTO PPP AGREEMENTS: 4.1 National Environmental Management: Protected Areas Act 2003 (Act no. 57 of 2003) (“NEMPAA”) as amended by the National Environmental Management: Protected Areas Amendment Act (Act No 31 of 2004) 4.1.1 Protected Environment NEMPAA provides for: • the protection and conservation of ecologically viable areas representative of South Africa’s biological diversity and its natural landscapes and seascapes; • for the establishment of a national register of all national, provincial and local protected areas; • for the management of those areas in accordance with national norms and standards; • for intergovernmental co-operation and public consultation in matters concerning protected areas; • for the continued existence, governance and functions of South African National Parks; and • 4.1.2 for matters in connection therewith. Section 50 (1) Section 50 (1) of NEMPAA allows SANParks to: (a) carry out or allow— (i) a commercial activity in the park, reserve or site; or (ii) an activity in the park, reserve or site aimed at raising revenue; (b) enter into a written agreement with a local community inside or adjacent to the park, reserve or site to allow members of the community to use in a sustainable manner biological resources in the park, reserve or site; and Page 10 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park (c) set norms and standards for any activity allowed in terms of Section (a) or (b). (2) An activity allowed in terms of subsection (1)(a) or (b) may not negatively affect the survival of any species in or significantly disrupt the integrity of the ecological systems of the national park, nature reserve or world heritage site. (3) The management authority of the national park, nature reserve or world heritage site must establish systems to monitor— (a) the impact of activities allowed in terms of subsection (1)(a) or (b) on the park, reserve or site and its biodiversity; and (b) compliance with— (i) any agreement entered into in terms of subsection (1)(b); and (ii) any norms and standards set in terms of subsection (1)(c). (4) Any activity carried out lawfully in terms of any agreement which exists when this section takes effect may continue until the date of termination of such agreement, provided that the agreement may not be extended or varied so as to expire after the original intended expiry date without the consent of the Minister. (5) No development, construction or farming may be permitted in a national park, nature reserve or world heritage site without the prior written approval of the management authority. 4.2 4.2.1 The Public Finance Management Act 1 of 1999 (“the PFMA”) SANParks is a Schedule 3A public entity for the purpose of the PFMA. As such, SANParks is bound to the provisions of the PFMA which regulates the financial management of all national and provincial governments and agencies; ensures that all revenue, expenditure, assets and liabilities of those governments are managed efficiently and effectively; provides for the responsibilities for those entrusted with financial management in those governments, and governs all matters connected therewith. 4.2.2 Section 50 of the PFMA deals with a number of fiduciary duties placed on the accounting authorities of public entities which are subjected to the provisions of the Page 11 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park PFMA, and inter alia requires the accounting authority for a public entity to: 4.2.2.1 exercise the duty of utmost care to ensure reasonable protection of assets and records of the public entity; 4.2.2.2 act with fidelity, honesty, integrity, and in the best interests of the public entity in managing the financial affairs of the public entity; 4.2.2.3 seek, within the sphere of influence of that accounting authority, to prevent any prejudice to the financial interests of the state. 4.2.3 Section 51 deals with a number of general responsibilities of accounting authorities and provides that the accounting authority for a public entity must ensure that a public entity has and maintains inter alia effective, efficient and transparent systems of financial and risk management and internal control as well as an appropriate procurement and provisioning system which is fair, equitable, transparent, competitive and cost – effective. 4.2.4 This is taken further in Regulations 16A7.4 and 16A7.5 of the National Treasury Regulations promulgated in terms of Section 76 of the PFMA in Government Gazette Notice No. R 225, Government Gazette No. 27388 dated 15 March 2005, and amended by Government Gazette Notice No. R 146, GG 29644 dated 20 February 2007, which Regulations state that: • Reg. 16A7.4 The letting of immovable state property must be at market – related tariffs, unless the relevant treasury approves otherwise. No state property may be let free of charge without the prior approval of the relevant treasury. • Reg. 16A7.5 The accounting officer or accounting authority must review, at least annually when finalizing the budget, all fees, charges, rates, tariffs or scales of fees or other charges relating to the letting of state property to ensure sound financial planning and management. 4.2.5 These National Treasury Regulations first came into operation on 25 May 2002 and have applied to the business of SANParks since that date. Hence, there is sufficient responsibility placed on SANParks under the PFMA to manage and to lease out all state assets placed under its management and control in the Garden Route National Park in a manner that is fair and equitable to all, is transparent and competitive, and occurs on a basis that is market – related and supports sound financial Page 12 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park planning and management within SANParks. 5. A DESCRIPTION OF THE TOURISM PPP OPPORTUNITY FOR THE TSITSIKAMMA SECTION OF THE GARDEN ROUTE NATIONAL PARK 5.1 A Description of the Treetop Zipline Adventure PPP opportunity SANParks Strategy for Commercialization identifies various Tourism PPP Activities within the Garden Route National Park. One of these activities is the Treetop Zipline Adventure Activity that is earmarked for the Tsitsikamma Forest that is within the Tsitsikamma Section of the Garden Route National Park. A Tourism PPP investment opportunity exists within the Tsitsikamma Section of the Garden Route National Park for a Treetop Zipline Activity. This is a famous Costa Rican concept, where scientists devised a method that could be used for people to access the forest canopy to do research. Historical evidence proves that this ziplines were used by researchers, woodcutters, soldiers to transverse via treetop canopies as part of doing their jobs. The concept involves traversing from one platform to the next along a steel cable that is suspended up to 30 Metres above the forest floor. This concept was modified over the years and it is has become a very sought after adventure activity which is enjoyed in various centres across the globe. Some of these are: 1. Zipline Seatle Canopy Tours in the USA 2. The Ceres Zipslide Adventures which is 114 Km from Cape Town 3. The Induna Zipline which is just outside of Hazyview 4. The Tsitsikamma Falls Canopy Tours, which is 8 km away from the Tsitsikamma Section of the Garden Route National Park. 5.2 ZIPLINE LAYOUT AND DESIGN There are many Zip Line Adventure activities inside and outside of the country. Each of offers something different than the other. • Some activities have steeper slopes then others; Page 13 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park • Some zipline adventure activities fly over spectacular rivers and gorges whilst others happen to fly over treetops in the forest. The idea is to create a spectacular and exciting adventure activity. The Tsitsikamma Zipline Adventure Opportunity is situated inside the Tsitsikamma Indigenous Forest and runs for a stretch of 8.86 Hectares. The area is fortunate to have a number of very large Yellow wood trees that are ideal for this adventure opportunity. The platforms can be tied at treetop canopy levels. The distance between the trees varies between 30m to 150m whilst the height goes up to 30m. Normally these cables can be are tied from one tree to the next at a slight downward angle. This allows a person, who is wearing a climbing harness attached to a pulley, to slide along the cables through the Forest Canopy from one platform to the next. This is an activity that can be enjoyed by both young and old. The duration of one session could be up to 4 hours depending on the number of platforms that would be erectedThe diagrams below give an illustration of a typical Zipline adventure activity layout, Diagram 1: A simple Zipline Activity Diagram 2 : A Typical Commercial Zipline Activity with platforms Page 14 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park Research points towards the fact that Zipline activities can come in different layouts as follows: • Some are in a straight line shape – from one compartment to the next in a straight horizontal line; • Some are run in a zig – zag trajectory from one platform to the next; • Some happen in a circular shape from one platform to the next but starts and ends almost on the same spot. It all depends on the creativity of the designer and how best the site space can be utilized to yield the best results to the potential market out there. Diagram 3: A map indicating the layout of the Tsitsikamma Zipline Adventure Activity Site Page 15 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park The above diagram gives a clear picture of where the Zipline site is situated. It is situated about 3 KMs from the Stormsriver Village. The roads to the site in the forest is very accessible (albeit it being a gravel road). 2Km to the site one has to traverse private owner’s land (the former MTO and now know as Cape Pine land). A private negotiation would have to take place between the bidders and the private landowners. SANParks will facilitate such negotiations. 5.3 Access to the Launch site: The road to the Stormsriver Village, which is off the N2 between the Tsitsikamma Plaza Toll Gate and the Stormsriver Bridge, is in good contidition and well maintained. However, all vehicles are parked at the village and access to the launch site is gained via the gravel road that transverse the MTO Land, now called Cape Pine Plantations. Due to the conditions of the road and to add to the excitement people are ferried via a specialized vehicle to the area where the actitivity takes place. 5.4 Safety and Equipment for the Zipline Activity The safety aspect is very important at all stages of the project. From the design of the project, the equipment used to the transporting people back and forth the launch site. Page 16 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park Trained guards are essential for the project and these guides, amongst all other training, needs to have done safety, first aid and emergency rescue training courses successfully. Ropes Challenge Course and Tour Guide Training is also very essential. Expert engineers and technicians are essential for the design and construction of the platforms and cables of the project. An assessment of the height and weight of the trees, distance between trees and the steepness of each slope needs to be done by these experts. This would give an indication of the speed at which the participant will slide through from each tree. It will also indicate if brakes need to be installed. The steeper the slope the faster the slide and this would require brakes. If the slope is gentle there may be no brakes needed. The kind of brakes required is dependent on the slope of the project. A braking system is recommended if the zipline’s slope is 6% of the length and if one is going to use a low friction-bearing pulley. 5.4.1 There are different kinds of braking systems and these are some of the popular ones on the market: 5.4.1.1 The Bungee Brake: Consist of a high-density plastic block that is assembled on the cable but is free to slide up and down the cable. A bungee cord is then connected from the block to an anchor point (usually a tree) off to the side of the zipline near the end. When the participant comes zipping in on the cable the pulley will make contact with the block and push it down. As the block is pushed, the bungee chord tightens and stretches causing a gentle resistance that causes a gentle stop at the end of the slide. The diagrams below shows the Bungee brake system (loose and assembled) Page 17 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park 5.4.1.2 The Zipstop Zipline Magnetic Brake uses a self-regulating, eddy current, magnetic braking technology to slow down zipline riders in a gentle controlled comfortable manner. The system is the best in stopping riders sliding at high velocities. This system adjust according to the weight and speed of the rider. See the diagram below 5.4.1.3 The Brakehawk Zipline Handbrake: Although it is fun and exciting it does raise safety concerns. It is a safer handbraking system then the traditional hand-glove braking system. This one ensures that the riders hands are kept off the steel Page 18 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park cable. It fits easy to a variety of zipline trolleys Like the Petzel Tandem Speed, the Petzel Tandem Cable, Fusion Zipline, the Petzel Trac P-24 and the Petzel Trac P-24 Plus. This form of braking system is suspect when wet. The participants’ needs to, at all times, anchored at least two places, which is the tree and the steel cable. This ensures that should something happen to the one of these the other provides backup. The guides need to be trained guides and it is only them that can handle all the attachments and ensuring that the participants are correctly attached before commencement. 5.4.2 The right equipment is necessary for ensuring a safe and enjoyable zipline adventure experience. Below are some of the most essential equipment that is recommended by experts in this line of business: 5.4.2.1 The Velocity Zip Line Tandem Trolley This professional dual pulley trolley with ball bearings is the heart of a zip line system. If you have everything else and just need a good pulley to bring your zip line to life, this is it. The trolley has in- line stainless steel sheaves (a trolley must have hardened steel sheaves to work on wire cable instead 5.4.2.2 Winged Zip Line Tandem Page 19 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park The Wing introduces a new level of safety to zip lines with an elegant pivot locking mechanism. This system makes attaching participants to cable faster and easier. It also ensures the Wing cannot detach from the line while it is loaded. Features efficient steel bearings for high-speed adventure and stainless steel sheaves for durability. Thermoplastic guards prevent accidental entanglement from clothing and hair. The sheaves are fitted with sealed ball bearings for high efficiency. Breaking strength on this trolley is about 3,372 LBF. Maximum recommended working speed is 20 meters per second (over 40 MPH). For use on 1/4 inch thru 3/8 inch steel cable. 5.4.2.3 The Heavy Duty –Zip Line Trolley This professional dual pulley trolley with ball bearings is the heart of a zip line system. If you have everything else and just need a good pulley to bring your zip line to life, this is it. The trolley has in-line stainless steel sheaves(a trolley must have hardened steel sheaves to work on wire cable instead of the typical steel and aluminium sheaves found on most pulleys)and fixed side plates for added stability. This also provides for optimal load distribution. A tandem pulley is also desirable on ziplines due to the pulley creating a trolley effect vs a swinging effect that a single pulley. The side plates are spilt apart so that it will easily fit over the top of the cable without the need to unhook the cable. The sheaves are fitted with sealed ball bearings for high efficiency. Breaking strength on this trolley is about 14,000 pounds. Maximum recommended working speed is 20 meters per Page 20 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park second (over 40 MPH). For use on 1/4 inch thru 1/2 inch steel cable. 5.4.2.4 The Blackbird Zip Line Trolley: The Blackbird cable pulley represents the most advanced design work using state of the art engineering techniques to build the safest and finest trolley for the ropes course industry. The 304 stainless steel frame is .101 thick for superior strength and trouble free use. Unlike the competition it is assembled using machined 304 stainless axles which may cost more but gives the Blackbird unparalleled structural integrity. Safety is always a primary objective and the Blackbird uses an additional back-up axle should there be a catastrophic failure of the sheaves during use. This third axle also gives the Blackbird superior stability. The sheaves are 2" in diameter and case hardened to 56-58 Rockwell and ride on sealed ball bearings to provide excellent wear characteristics in challenging outdoor environments. Built for 3/8" and 1/2" diameter cable. Second safety tether hook-up point provided on rear of pulley. Independent test rated to 19,000 lbs /84kn; Exceeds A.N.S.I., 5.4.2.5 The Bat Line Zip Line Trolley The BAT cable pulley represents the most advanced design work using state of the art engineering techniques to build the safest and finest trolley for the ropes course industry. The 304 stainless steel frame is .101 thick for superior strength and trouble free use. Unlike the competition it is assembled using machined 304 stainless axles which may cost more but gives the BAT unparalleled structural Page 21 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park integrity. Safety is always a primary objective and the BAT uses two additional back-up axle should there be a catastrophic failure of the sheaves during use. These two extra axles also gives the BAT superior stability. The sheaves are 2" in diameter and case hardened to 56-58 Rockwell and ride on sealed ball bearings to provide excellent wear characteristics in challenging outdoor environments. Built for 1/2" and 3/4" diameter cable. Second safety tether hookup point provided on rear of pulley. Other attachment points provided for haul or drag lines make this pulley the ultimate in rescue operations. Independent test rated to 11,500 lbs / 50k. Exceeds A.N.S.I., OSHA, and NFPA class G standards. For use on 1/2 inch thru 3/4 inch steel cable. 5.4.2.6 The Canopy Zip Line Trolley This professional dual pulley trolley with ball bearings is the heart of a zip line system. If you have everything else and just need a good pulley to bring your zip line to life, this is it. The trolley has in-line stainless steel sheaves(a trolley must have hardened steel sheaves to work on wire cable instead of the typical steel and aluminum sheaves found on most pulleys)and fixed sideplates for added stability and optimal load distribution. The Canopy trolley is the same base as our HD Trolley, with the added benefit of an upper attachment point. This is ideal for those that would like to run a secondary safety line above their main zipline. A tandem pulley is also desirable on ziplines due to the pulley creating a trolley effect vs a swinging effect that a single pulley will create. The side plates are split apart so that it will easily fit over the top of the cable without having to unhook the cable. The sheaves are fitted with sealed ball bearings for high efficiency. Breaking strength on this trolley is about 14,000 pounds. Maximum recommended working speed is 20 meters per second (over 40 MPH). For use on 1/4 inch thru 1/2 inch steel cable. 5.4.2.7 Professional Zipline Trolley Page 22 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park This professional dual pulley trolley with ball bearings is the heart of a zip line system. If you have everything else and just need a good pulley to bring your zip line to life, this is it. The trolley has in-line stainless steel sheaves(a trolley must have hardened steel sheaves to work on wire cable instead of the typical steel and aluminium sheaves found on most pulleys)and fixed sideplates for added stability and optimal load distribution. This professional grade trolley incorporates its own built in handles (Warning! Handles are for orientation purposes only. They are not designed for life support usage! Do NOT hang on handles! Riders weight MUST be supported by connection strap.) and 3 attachment points to help you configure your zipline according to how you want it. A tandem pulley is also desirable on ziplines due to the pulley creating a trolley effect vs a swinging effect that a single pulley will create. The side plates are split apart so that it will easily fit over the top of the cable. The sheaves are fitted with sealed ball bearings for high efficiency. Breaking strength on this trolley is about 14,000 pounds. Maximum recommended working speed is 20 meters per second (over 40 MPH). For use on 1/4 inch thru 1/2 inch steel cable. 5.4.2.8 The Locking Safety Clip This professional locking zip line safety kit will allow you to add additional accessories and safety straps to your zip line kit. Its auto-locking feature makes it almost impossible for this clip to open accidently, yet the simple mechanism lets you open it with one hand. Strength of this Steel locking safety clip: 50 kN Page 23 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park long axis. 5.4.2.9 Deluxe Safety Locking Clip This professional locking kit will allow you to add additional accessories and safety straps to your zip line kit. Its auto-locking feature makes it almost impossible for this clip to open accidently, yet the simple mechanism lets you open it with one hand. Strength of this aluminium locking safety clip: 23 kN long axis, 8 kN gat open, 10 kN short axis 5.4.2.10 Zip Line Swivel Heavy-duty zip Line swivel with sealed ball bearings offers a smooth and reliable rotation. Connect between the trolley and handle or other attachment. Great addition to your zip line installation to allow you to spin like a circus performer as you zips along the cable. Recommended only for advanced zip line riders age 12 and older. Weight 5.6 oz Breaking strength of 9,000 pounds Compliant with NFPA 1983 (2001 edition) Note: You will need two safety clips to integrate this swivel into your zip line system (pulley-clip-swivel-clip-attachment). 5.4.2.11 Zip Line Handle Page 24 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park Zip line handle features a quality chrome finish for durability, contoured grips for comfort and full knurling for maximum grip areas. Originally designed for professional weight lifting equipment, its solid one-piece steel construction bar helps ensure your safety. Replaceable rubber knobs at each end keep your hands from slipping off the ends of the bar. This 20" handle is included with both deluxe and heavy-duty zip line kits. 5.4.2.12 Zip Line Seat New black phosphate Quick Tension™ buckles, the same design that is used on parachute harnesses, allow speedy adjustment. They bind securely without the need for rethreading, and are linear pull tested to 2000 pounds (8.9kN). Features a bright red tie-in point and buckle adjustment tabs, an important safety feature. Fits waists from 28 to 52 inches. Exceeds UIAA test specs 3550# 5.4.2.13 Deluxe Padded Zip Line Seat Comfortable and affordable padded harness for beginners and groups. One size Page 25 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park fits all up to 47 inches. Features single color-coded tie-in point and auto-locking buckles to minimize user error. Four gear loops (Not to be used as a tie-in point for Zip Lines). Sizes: Waist - 28.5-47 in | Leg - 20.5-31.5 in. 5.4.2.14 Zip Line Full Body Harness Simple and lightweight full body harness. Made from 45mm webbing. One size fits most. Sizes: Chest - Max 44 in | Leg - Max 35 in. 5.4.2.15 Zipline Connector Strap – Rabbit A 22-inch anchor strap, crafted of 1 3/4" polyurethane coated nylon webbing for the best wear resistance of any anchor strap on the market. Steel D-rings on each end. • MBS: 8,000 lbs •Weight: 10.4oz •Color: Red •Resistant to abrasion and aging. 5.4.2.16 Zip Line Connector Strap –Adjustable Page 26 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park Made of robust polyester webbing and zinc plated carbon steel components. •Fully adjustable anchor webbing, strength 19kN. •Certified as temporary anchor device En795/B. •Length adjustable up to 60". 5.4.2.17 Zipline Connector Strap –Static A 31-inch anchor strap, 1 3/4" Polyester webbing. Steel D-rings on each end. • 80 cm long • 300 g weight • 35 kN load capacity 5.4.2.18 Zip Line Connector Strap –HD Trolley Lanyard Page 27 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park The Heavy Duty Trolley Lanyard makes ziplining a cinch. A rider with a dual attachment trolley should have two separate lanyards attached to the trolley for a safe and secure ride. This usually requires two separate straps which can be a headache. Our new trolley lanyard solves that problem by using two sewn runners that are sewn together to provide the rider with both a main lanyard and backup lanyard in one compact unit. Using two different color webbings makes checking for lanyard wear easy. Colors will vary. 5.4.2.19 Zip Line Gloves The Leather is put in all the right places where it is required. On the palms, Both side of the thumbs, index fingers and knuckles. 5.4.2.20 Zip Line Delux Gloves Enjoy more safety with these Kevlar lined gloves. We sew a full Kevlar lining (stronger by weight than steel!) into a sturdy, premium leather palm work glove, all the way to the end of the cuff. Yor wrists, palms, fingers and backs of hands are sheathed in the protective lining. An excellent glove for safety 5.4.2.21 Zip Line Helmet Page 28 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park Delivers a precise fit, superior protection and a striking look all at a great value. Molded thermoplastic shell with side ventilation. Fast and secure adjustment system makes the helmet ready to use on any adventure. Head-lamp compatible. These items are available from most outdoor adventure retail outlets within and outside the country. 5.5 Base Camp A base camp is essential for the successful implementation of the project. This area is used for: 5.5.1 Storage of equipment and clothing; 5.5.2 Training base for the guides; 5.5.3 Preparation before a group is taken for Zip Line activities; and 5.5.4 De-briefing sessions when a group returns from doing the Zip Line activity 5.6 Infrastructure The current concessionaire that is running the Canopy Tours opportunity on the site is required to remove the existing infrastructure, in the event that they are not the successful bidder. This means that the successful bidder will have to acquire the equipment brand new or could opt to buy it from the current concessionaire at a price negotiated between themselves. The current Infrastructure includes some of the equipment list as per point 5.4 (Safety and Equipment for the Zip Line Adventure Activity) and the following: Page 29 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park 5.6.1 12 Platforms attached to the Yellowwood trees provided by SANParks 5.6.2 Steel Cables and ropes 5.6.3 The operation happens entirely in the forest and there is no other infrastructure except the platforms and cables. The Stormsriver Village offers all the other support infrastructure like: 5.6.3.1 Parking space 5.6.3.2 Restaurants and Retail Outlets for buying refreshments and other necessities. 5.6.3.3 Accommodation: SANParks has accommodation establishments in the Stormsriver rest camp which is about 5 km from the Stormriver Village. Howevert, there are also various other accommodation establishments in and around the Stormsriver Village. 5.6.4 Water: There is no fresh running water available on site and it is recommended that the participants take along fresh water from the village. Bottled water is available from the retail outlets. 5.6.5 There are no ablution facilities on site 5.6.6 Mobile Phone Connectivity: The opportunity takes place within the forest and mobile phone reception is poor. 5.7 Environmental Guidelines The Environmental guidelines that the bidders would need to take into consideration include the following: 5.7.1 Ensuring that no trees are damaged during and after construction as well as during the operational stage of the project. 5.7.2 All waste material needs to be collected and removed for disposal; 5.7.3 Little or no damage to surrounding vegetation; 5.7.4 Tour parties and guides must adhere to access routes and pathways constructed; Page 30 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park 5.7.5 The maintenance and rehabilitation of these access routes and pathways is essential; 5.7.6 No damage to surrounding recreational sites and activities; 5.7.7 Making of fire is prohibited; It is important to stress that regular inspections will be done by SANParks’ staff and Rangers to ensure that everything is done in a manner that is compatible to the environment as well as the different SANParks policies. 5.8 Garden Route National Park The Department of Environmental Affairs (“DEA”) has declared the establishment of the new Garden Route National Park (“GRNP”). The establishment of the new park is part of a long-term strategy to expand the areas in South Africa under formal protection from 6% to 8% of the total area of the country. The Garden Route is one of the most important conservation areas in South Africa and one of South Africa’s crown jewels in terms of biodiversity and its attraction of both foreign and local tourists. The diverse biomes in the Garden Route include indigenous forests, the Knysna estuary, the Wilderness lake areas, marine protected areas, lowland fynbos and mountain catchment areas of national importance. SANParks is the second largest employer in the region and its total economic contribution to the region is estimated to be almost R95m per annum. The formation of the GRNP have a number of beneficial results. These include allowing the sharing of resources and management experience and the integration of current management units, allowing greater economies of scale to be achieved. The formation of the GRNP facilitates the regional implementation of important programmes like fire management and alien clearing and enable land consolidation. The park management will be able to take advantage of the potential of integrated landscape management, which will improve the protection of important ecosystems. The total size of the GRNP is approximately 121 000 hectares. It consist of about 52 500 hectares of newly proclaimed land as well as 68 500 hectares of the Wilderness and Tsitsikamma National Parks. The individual parks will retain their identity and become camps in the greater GRNP, known as Tsitsikamma and Wilderness. Page 31 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park The GRNP will straddle two provinces – the Eastern and Western Cape – two district municipalities -- Eden and Cacadu – and four local municipalities – George, Knysna, Bitou and Koukamma. The tourist facilities in the GRNP includes camping decks, chalets, mountain biking trails, hiking trails, canoeing, diving and history and adventure activities. 5.9 The Tsitsikamma Section of the Garden Route National Park The Tsitsikamma Section of he Garden Route National Park and it is on the N2. It is approximately 598 Kms from Cape Town in the West and 182 Kms from Port Elizabeth in the East. The town of George is approximately 158 Kms from the Tsitsikamma. The Tsitsikamma Coastaland Forest National Parks were proclaimed in 1964 (Knobel 1989, Robinson 1989) to establish South Africa’s first marine protected area and conserve the associated coastal forests of the region. The size of the park has changed over the years, with the following proclamations: The seaward boundary of the park between the Groot (east) - and the Bloukrans riverswas extended to three nautical miles offshore (Government Gazette No 8871, Notice 125, 3 September 1983). De Vasselot Nature Reserve was added to the coastal park (Government Gazette No 11068, Notice No 2814 & 2815, 18 December 1987) The small Tsitsikamma Forest National Park was deproclaimed in 1989 (Government Gazette 1989), and the name of the coastal park was shortened to the Tsitsikamma National Park (Government Gazette No 17298, Notice 1077, 28 June 1996). In October 1991 a 30 year lease was signed with Rand Mines Properties Limited to contractually manage the Soetkraal area, and in 1997 Soetkraal was proclaimed a contractual park in terms of theNational Parks Act, 1976 (Government Gazette No 17728, Notice 100. 17 January 1997, National Parks Act, 1976 (Act No. 57 of 1976). 5. The seaward boundary of the De Vasselot section was extended 0.5 nautical miles (0.9 km) offshore (Government Gazette No 17073, Notice 538, 4 April 1996), and in December 2000 the marine section of the park (excluding the above De Vasselot marine area) became the Tsitsikamma National Park Marine Protected Area (Government Gazette No. 21948, Notice 1429, 29 December 2000, Marine Living Resources Act 1998 (Act No. 18 of 1998). 6. In 1995 Erven 382, 444 and the Remainder of Erf 434, Nature’s Valley were proclaimed as a contractual section of the park (Government Gazette No Page 32 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park 16293, Notice 368, 10 March 1995), followed in 1996 by (Buitenverwachting) Portion 1 of Farm 299 and Portion 3 of the farm Matjies River 295 (Government Gazette No 16927, Notice 30, 19 January 1996) 5.10 6. The Site ADDITIONAL ACTIVITIES IN THE TSITSIKAMMA SECTION OF THE GRNP: There are various other activities in this Section of the GRNP that can complement the Zipline Adventure activity and these are set out below: 6.1 Hiking There are numerous hiking trails within the Tsitsikamma Section all having varying degrees of difficulty and offering its unique experiences. However, the ones that stand out are, • World famous Otter Trail and the • Equally impressive Dolphin Trail 6.2 Camping Sites and Accommodation The Tsitsikamma Section has the most campsites and accommodation facilities with the entire GRNP. This includes the Stormsriver Camping site and the well renowned Natures Valley Camping sites. Page 33 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park 6.3 Snorkelling, Kayaking and other water based adventure activities These are some of the exciting activities that are offered inside the Stormsriver camp. It is being run by a private concessionaire and caters for people of all ages 6.4 Guided Horse Rides Two of the concessionaires on the books of the GRNP offers guided horse rides and bookings could be made from the park. 6.5 Forest Tours on Segway People Transporters The park also offers exciting forest tours on Segways. These are also outsourced to a private concessionaire. 6.6 Bungy Jumping Although this is not offered in the parks itself, this world famous bungy jump site is about 10 minutes from the park. It could add to a wonderful time one has at the park. 6.7 Boat Rides SANParks offers boat rides to guests that resides within the camp as well as to day visitors. These boat rides visit some of the most spectacular areas within Tsitsikamma and a person has the pleasure of seeing some of the most amazing landscapes from the boat. Some of the most amazing water creatures can also be spotted from the boat and these includes seals, whales etc. 7. VALUE FOR MONEY OBJECTIVES The value-for-money objectives for the projects are aligned with SANParks’ strategic objectives included in the Strategic Plan for Commercialisation. Setting these objectives at the inception phase are vital as they provide the benchmarks for the feasibility and procurement phases. During the management of the PPP agreement, they are used to measure the success of the projects. The Value-for-Money Objectives for the Tsitsikamma Zipline Adventure PPP Opportunities are: Page 34 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park 7.1 Revenue generation for SANParks; 7.2 BEE, job creation and community development; 7.3 Tourism promotion; 7.4 Optimisation of prime state land; and 7.5 Biodiversity protection and conservation. 8. FINANCIAL TERMS 8.1 Under the PPP Agreement, the PPP fee income to SANParks shall be the higher of: 8.1.1 the Minimum PPP Fee set by SANParks increased annually by 8%; or 8.1.2 the Variable PPP Fee (the bidder percentage of actual gross revenue earned by the Private Party in each project year). 8.2 Irrespective of which these elements determine the final amount payable in any given Project Year, the payment schedule will be as follows: 8.2.1 The Minimum PPP Fee shall accrue and be payable by the Private Party to SANParks within 7 (seven) Business Days following the end of each month, free of deduction or set-off; 8.2.2 The Variable PPP Fee, shall be calculated by the Private Party for the Project Year in question on the basis of the Private Party’s unaudited accounts within 30 (thirty) Business Days of the end of the Project Year. If this figure is higher than the Minimum PPP Fee, it shall be the total amount payable by the Private Party to SANParks for the Project Year in question. The difference between the Variable PPP Fee thus determined and the aggregate of amounts already paid under the Minimum PPP Fee, will be payable 60 (sixty) Business Days after the end of the Project Year in question. 8.2.3 No PPP Fees shall be payable prior to the Effective Date of the PPP Agreement. Page 35 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park 9. EMPLOYEE ISSUES TO BE CONSIDERED SANParks is committed to use its PPP projects to create new as well as maintaining existing job opportunities. Therefore, all the staff in the employ of the existing Concessionaire will be transferred to the employment of the winning bidder. The Winning Bidder undertakes to recognize the all previous years of service. This transfer will have to maintain the existing conditions of service. This is in line with the provisions of Section 197(1) of the Labour Relations Act, 1995 (Act No 66 of 1995), (as amended). This transfer will take into consideration issues of post- retirement medical aid contribution benefits. The financial and administrative aspects of executing this benefit will be the obligation of the Winning Bidder. The current operator will have to provide actuarially valued balances of all employees retirement fund (it could be a provident fund or another fund) and this will be transferred in the normal course to the Winning Bidder’s pension fund immediately after the commencement date. This will also take into consideration surplus or accumulated benefits. The Winning Bidder have the right to verify the actual value of each member’s share of the retirement fund from which the funds are transferred. The bidder will need to provide a detailed audit of the number of employees in the employ of the current operator. 10. MINIMUM PPP FEES 10.1 Feasibility studies were concluded for the Tsitsikamma Zipline Adventure PPP Opportunity in the Tsitsikamma Forest of the Tsitsikamma Section of the GRNP, to assess the viability of the projects from a Private Party perspective as well as to determine the affordability and value for money to the institution. 10.2 Based on the feasibilities, the Minimum PPP Fees for the PPP Opportunity will be as follows: 10.2.1 Tsitsikamma Zipline Adventure Minimum PPP Fee TSITSIKAMMA ZIPLINE ADVENTURE MINIMUM PPP FEE Adventure Opportunity Per Annum Year 1 63,546 Year 2 83,395 Page 36 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park TSITSIKAMMA ZIPLINE ADVENTURE MINIMUM PPP FEE Adventure Opportunity 10.3 Per Annum Year 3 104,244 Year 4 114,688 Years 5 135,517 Year 6 138 992 Year 7 145 942 Year 8 152 891 Year 9 156 366 Year 10 161 578 SANParks retains the right not to award any of the Bids in the unlikely event that only one Bid for the opportunity is received and the PPP Fee Offer does not meet SANParks’ minimum requirements. 11. ACCESS 11.1 SANParks shall ensure that, for the duration of the PPP Agreement, the Private Party, its guests, employees, agents and invitees have reasonable access to the Project Site, subject to the provisions of the PPP Agreement, SANParks Rules and other regulations, or legislation, which may be in place from time to time. 11.2 In addition the standards, quality and nature of the access routes and control points, in place at the time of the agreement being entered into, will remain the same during the PPP Term. 12. EXCLUSIVITY The SANParks Zipline Adventure Activity PPP project will take place in urban settings, with open public access and no exclusivity. The Area must continue to be accessible to the public, Page 37 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park although the specific use will be determined by the PPP Agreement. 13. QUALIFYING CRITERIA 13.1 REQUIRED QUALIFICATIONS TO OPERATE THE ZIPLINE ADVENTURE In order to participate in the bidding process, bidders are required to meet the following qualification criteria; 13.1.1 13.1.1.1 Financial capacity Given the fact that both projects are of a high value and may entail risk to both the preferred bidder and SANParks, it is important that interested parties demonstrate financial strength. In this regard the minimum asset value of the interested parties for the SANParks Zipline Adventure Concession must be R2,0000,000 (“Two Million Rands”). 13.1.1.2 As the preferred bidder must be a SPV, it must demonstrate financial strength with reference to the asset value of its shareholders in proportion to their shareholding. The interested party must also demonstrate, to SANParks’ satisfaction, that its shareholders are solvent. Audited financial statements, along with a letter confirming that the asset value exceeds the stipulated amount and that the shareholders are solvent, must be provided to illustrate any assertion made by an interested party in this regard. 13.1.2 Zipline and Tourism Industry experience The projects are likely to require interested parties with substantial experience and expertise in the Treetop Zipline and in other similar adventure activities. A minimum five year experience in operating such an activity will be required. This coupled with a minimum of two years’ experience in the tourism industry will be required. Interested parties are therefore required to provide examples of similar or related projects conducted by them. The interested bidder must have either: 13.1.2.1 An extensive experience of five years in operating a zipline adventure activity coupled with registration with the relevant accreditation bodies as well as the relevant Licences. Page 38 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park 13.1.2.2 The Zip Line adventure activities are currently not regulated because there is no umbrella body that performs this function. However, there is a movement towards establishing such a body. Role players in the sector are in a process of developing guidelines and other standards to ensure that this body is established. 13.1.2.3 Accreditation by at least 2 of the recognised Tourism bodies. 13.1.2.4 The bidder must also demonstrate exceptional knowledge and expertise pertaining to safety and emergency standards required to operate such kind of adventure tourism operations. 13.1.2.5 A minimum of 2 years’ experience in the tourism industry. This criterion may be met with reference to one of the Bidding Company’s parent shareholders or partners, provided that the parent involved holds at least 20% of total company equity or interest; 14. SUMMARY PROJECT TIMETABLE SUMMARY PROJECT TIMETABLE Event Date Public Advertisements 21st January 2016 Due Diligence Site Visits 4th February 2016 Question and answers (Response to all questions) Bid Submissions Bid Evaluation Announcement of Preferred and reserve bidder Negotiations Ratification by the SANParks Executive Management 9th February 2016 29th February 2016 2nd & 3rd March 2016 7th March 2016 8th -9th March 2016 22nd -24th March 2016 Page 39 of 40 SANParks Information Memorandum Zipline Adventure Activity PPP Opportunity in the Tsitsikama Section of the Garden Route National Park SUMMARY PROJECT TIMETABLE Event Signature of PPP Agreement Date 29th March 2016 Page 40 of 40