Investment
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Vol 2 No. 1 March 2004


New Wetlands Wire Website

The Wetlands Authority has a website called www.wetlandswire.org.za which contains our Newsletters and News Flashes. The Authority is currently setting up its own comprehensive website. All information on the investment process will be then be loaded onto it as it becomes available.

Major redevelopment for holiday makers and tourists

Following an open tender process that was undertaken in accordance with the Public Finance Management Act (No. 1 of 1999) and associated regulations, a concession was granted for the management of the Cape Vidal Site.

Bidder Name: Lubombo Hotels
Operator Name: Hyatt Group
Black Economic Empowerment: 95% BEE ownership
Mandatory Partner: Bhangazi Trust
Number of direct jobs: 550
Number of Beds: 600
Capex: R236 million

Project Description
The project concept maintains present levels of public access and presents a combination of camping, 2 - and 5 –star accommodation. Additional facilities include a swimming pool, restaurant, and artificial reef for diving. Costs to the public for the camping facilities have been linked to the current camping rates (ie. fixed price beds). Day visitor access will be continued at the current levels. Activities such as boating, fishing, snorkelling will continue. There will be no extra charge for entrance to Cape Vidal other than the standard Park entrance fee at the Croc Farm gate.

Next Steps
The concessionaire will now be required to obtain environmental authorisation in accordance with the Environmental Conservation Act. This includes a full public participation process as required in law. The Environmental Impact Assessment (EIA) will determine the final size, location and design of the facility as well as the recreational facilities that will be provided. Following approval of the EIA, the concessionaire will be required to complete an environmental management system (EMS) consistent with ISO 14001 that will guide the activities of the concessionaire during construction and operation. Furthermore, the Wetlands Park Authority is required in terms of the World Heritage Convention Act regulations to monitor and audit environmental compliance on an ongoing basis and penalties for inappropriate environmental conduct are payable in terms of the concession contract including contract termination.


The Cape Vidal area is a limited development node consistent with the Wetlands Authority’s policy to cluster development wherever possible within the Wetlands Park, in order to concentrate impacts to enable the sharing of infrastructure and to reduce disturbance of the natural environment.

The Cape Vidal Beach Site is located close to the Cape Vidal Bhangazi and the Cape Vidal Heritage Investment Sites that are approximately 2 km apart. The Cape Vidal Beach Concession Area extends inland from the beach (high-water mark) across forested coastal dunes and is approximately 93ha in extent. The “building envelope” within the concession area is approximately 32ha and is consistent with the footprint of the existing Cape Vidal facility which presently caters for approximately 527 overnight visitors (including campers). The site is serviced by bulk infrastructure including a tar road from St Lucia Town, electricity and piped municipal water.

Cape Vidal Beach is a regional tourism site that has the potential to support other businesses within and outside the Wetlands Park. The development concept for Cape Vidal Beach is a resort-style, beach-orientated facility with a upper limit of 600 visitor- and 80 staff-beds. 100 of the visitor beds must be “discounted beds” to maintain affordable overnight public access to this popular resort. In addition, provision must be made for a public access beach facility catering for at least 600 people and comprising full day visitor and public boat launching facilities. Sub concessionaire areas for outside operators have also been provided for. The total carrying capacity for the beach has been set at 1 200 people, below the existing carrying capacity of 1 500.

Key environmental considerations include: water supply (a daily limit of 600 litres per person per day has been set), waste water treatment and disposal, solid waste disposal, dune erosion, vegetation damage from salt spray, habitat preservation (particularly breeding sites of rare or threatened species, such as the Samango Monkey, Red Duiker and Turtles), maintenance of “sense of place”, optimisation of socio-economic benefits, respect for and the proper dealing with archaeological finds, and the identification and mitigation of potential cumulative impacts.

More information:
Request for Proposal Document (RFP)
Site Specific
Concessionaire Contract

THE WAY FORWARD

JILL GOWANS

When the first Cabinet of the new democratic South Africa turned down mining of Lake St Lucia’s Eastern Shores in favour of eco-tourism, they made it very clear this had to bring real benefits to the Park’s impoverished rural neighbours.
Much has already been accomplished to lay these foundations. This includes fast-tracking of removal of commercial plantations which is fast opening up new vistas within the Park and creating wetlands where once there were trees; improved infrastructure like upgrading of roads, fences and signage, and the introduction of game like elephant and cheetah.
A number of new and existing tourism nodes was identified and following a careful Treasury-approved tender process, eight of these have now been awarded in imaginative private/public sector partnerships which include a strong black empowerment component.
It is inevitable that there should be concern from those who favour peripheral tourism development; those who fear their access to places like Cape Vidal will be curtailed, and those who fear that upmarket lodges will be too expensive for ordinary South Africans.
There are also environmental concerns about some of the sites, like at Perriers Rock.
But it is vital that everyone who loves the Park understands that each site will be subject to an environmental impact assessment which includes public participation. This is when all these issues will be under the spotlight. This is your chance to be part of the process, to air your concerns, and to contribute to the Park’s mandate to balance the needs of people via tourism development with conservation of the unique qualities which made it SA’s first World Heritage Site.

Prior to 1950 records indicated that the estuary only closed on one occasion during the long and sustained drought in the 1930's.
No 'closed mouth' record seemed to exist prior to or after this date (1930's) until 1950 when a dramatic change was effected in the management of the surrounding drainage in the Monzi Flats. Prior to 1950 the Monzi Flats had operated as a filtering system to remove silt from the Umfolozi Flood waters, which entered the St. Lucia Estuary at Honeymoon Bend.
With the growth in the sugar industry preference was given to sugar cane rather than the vitally important de-silted Monzi Flats water flowing into the St.Lucia Estuary.
Prior to 1950 the Umfolozi River split into hundreds of tiny channels of very slow flowing water, and the reeds in these slow flowing channels trapped and removed the silt. By the time the Umfolozi water reached the St Lucia Estuary a fairly large proportion of the silt had been removed.
The new Unmfolozi canal then dumped unfiltered water into the St. Lucia Estuary. Immediately this situation became a problem and the huge silt load in the Umfolozi water started to deposit silt and sand in the slower moving estuary waters.
The St Lucia estuary mouth was rapidly silted-up.
A costly dredging operation was started, but proved ineffective. So, the next plan of action after years of dredging the estuary mouth area, was to prevent the Umfolozi River from entering the St Lucia estuary.
The Umfolozi River was then canalised straight out to sea at Mpalane, a coastal resort just south of the St Lucia River mouth. The impact of this decision is still felt today. Often this silt plume from the Umfolozi River is blown by strong south winds as far as Sodwana Bay.
Cape Vidal is also in jeopardy affecting the coral reefs and the good snorkelling generally experienced in this area. But the greatest impact has been noted on the St. Lucia Estuary and the lake area as well.

 

 

St Lucia Wetland Park Tender sets a precedent for transformation

The Greater St Lucia Wetland Park has set a challenge for all other tourism PPPs (Public Private Partnerships). On average the representation of black empowerment companies in participating tourism bids in the Park was 80%. Three of the five consortia that have been awarded preferred bidders status have over 95% black empowerment. This is a milestone in tourism which is struggling to transform itself.

The empowerment partners represented in the bid include established BE companies and neighbouring communities. One of the conditions of the bid was the inclusion of the “mandatory local community partners” in the bid on an equity basis. It is expected that at least 900 jobs will be created during operations of the lodges. Targets for procurement during operations have been set at 40% across the board. Priority is given to the mandatory partner for jobs and procurement. Where the skills do not exist locally the concessionaires may source the skills from other parts of the country. Concessionaires will still have to meet set minimum targets and provide training and capacity building programmes.