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Lake Gariep Development Public Private Partnership

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Lake Gariep Development Public Private Partnership Lake Gariep Development Public Private Partnership Compiled by HBK Property Group & Amatenda Communications Contents Introduction 1 Gariep Dam 2 Vision & Mission 3 Executive Summary 4 Gariep Development Consortium 5 Site Map 6 Government Entities & Role Players 7 Government’s View 8 Projected BEE Profile 9 Current Status 10 Proposed Phase I Development 11 Proposal 12 Benefits 13 contents Conclusion 14 WhereIntroduction are we situated or the first time in South African history, a once in a lifetime opportunity presents itself through the proposed partnership between private sector and government, creating a development in excess of R3 billion on an inter-provincial basis! FA private initiative that originated in the nineties, combined with the government driven Lake !Gariep initiative, to be optimised through a synergistic approach. The Gariep Dam falls within the boundaries of the Free State, Eastern Cape and Northern Cape provinces. These areas have enormous growth potential, but is currently totally underdeveloped, underused and in great need of a capital influx. Considering the natural resources and infrastructure, only a fraction of the area’s potential is currently being tapped; and with much more benefit to the Lower Orange and other regions than the local community. The development will give an enormous economic injection during the implementation phase and the end product will ensure unrivalled sustainable economic activity. It is projected that 1 000 direct and close to 10 000 indirect job opportunities will be created. It will also create a platform to boost tourism. Never before has the time been more right to unlock the potential of Lake !Gariep and its natural resources. Page 1 WhereGariep are we Dam situated Historical Perspective The Gariep Dam, which was completed in 1971, is situated virtually in the centre of South Africa on the border between the Free State and Eastern Cape. The dam is bordered by the villages of Bethulie, Venterstad and Gariep Dam. The dam has a shoreline of 435km with a storage capacity of approximately 6 000 million m3 and a surface area of more than 370 km2. This magnificent feat of engineering was designed by a group of French and Italian engineers. Contrary to expectations, it reached full capacity within a few months after completion and by 1972 it represented the largest fresh water expanse in South Africa. Tapping its Potential As awareness of the magnitude of this natural resource and its significance became evident, it evolved into what is known today as Lake !Gariep (derived from the San explanation of Red Waters). It is an ideal inland holiday destination as well as a perfect stopover for tourists travelling between Gauteng & Cape Town. The dam is surrounded by 52 500ha of land that is under conservation. The reserve accommodates the largest population of springbok in the country and also features Cape mountain zebra, steenbok, black wildebeest, red hartebeest and ostrich. The need to escape from the rat race and to retreat to nature or endeavour in adventure tourism or physical recreation has become an ever growing industry. Lake !Gariep caters to these needs in the form of sailing, gliding, power boating, canoeing, skiing, angling and much more. The international tourism sector is also growing rapidly and here the Karoo heartland has much to offer in terms of its vast plains, unique ranteveld, diverse vegetation, indigenous wildlife, and of course, Lake !Gariep itself. Page 2 WhereVision are we& Missionsituated Vision Statement To establish a world class inter-provincial project based on a PPP; unlocking the vast conservation, tourism and investment potential of the Gariep area. Mission Statement A mutually beneficial partnership to be established through the proposed joint venture, ensuring: • Protection of biodiversity; • Unlocking and development of tourism potential; • Capital injection from private sector; • Training and skills development in the relevant sectors through job creation and Broad-Based Black Economic Empowerment (BBBEE); • Generating income through eco-tourism and adventure tourism; • Unlocking capital through a sustainable economic environment through the hospitality and property development industries. Page 3 WhereExecutive are we situated Summary ake Gariep offers an excellent development opportunity in the Gariep area, unlocking tourism potential and adding economic value that will impact favourably on the local community and be of international importance. LThis project is the collective brainchild of the Xariep Development Trust (XDT). It was a private initiative conceptualised during the nineties which could be optimised, through a synergistic approach, with the government driven Lake !Gariep initiative. Role players will therefore implement the project on the basis of a PPP as it will add enormous value to the relevant sectors as set out in this proposal. It will offer a financial injection into an economy that is under performing and jump start government’s Broad-Based Economic Empowerment (BBBEE), Local Economic Development (LED) and Provincial Growth & Development Plan (PGDP) initiatives. Socio-Economic Study The results of the socio-economic research that was conducted by the GDC involving the three relevant provinces in the Gariep area, are as follows: • Economies are under performing; • LED initiatives do not address community needs; • Unemployment between 38,9% and 64%; • High poverty rate; • Low economic growth; • Insufficient basic services. Page 4 WhereGariep are we Development situated Consortium Private Entity The Gariep Development Consortium (GDC) constitutes three separate private entities: the Xariep Development Trust (XDT), the Eastern Cape Development Trust (ECDT) and the Northern Cape Development Trust (NCDT). The XDT was formed by an investment and development group to negotiate with government and to secure the private land on the Free State side of the Gariep Dam, while the ECDT was formed to secure the private land on the Eastern Cape side. The NCDT will focus on the Northern Cape side where existing land & activities will be integrated in the bigger picture. Facilitation HBK, a project facilitation and property consultancy group, was responsible for the private sector initiation of the project and will also be co-ordinating the project. The group successfully facilitated the procurement of the initial 22 farms to be incorporated in the development. HBK is currently aligning the private sector entities in one consortium (GDC) that will further negotiations with government. Amatenda, a political facilitation and BEE enterprise, will be responsible for the political and BBBEE facilitation as well as socio-economic studies. To date, they have successfully facilitated more than 350 companies and projects on BBBEE, joint ventures, PPP’s and political buy-in. Venue Experts Africa, with vast experience and expertise in the tourism, recreational and hospitality industries, will facilitate the tourism and hospitality components of the development. Through the group’s various subsidiaries – like VEA Commercial Services and VEA Ecological Services – a complete hospitality management solution is offered. Page 5 WhereSite areMap we situated Area Analysis Existing protected area 52 500ha LIMPOPO Private entity 41 475ha Polokwane Gariep Dam 36 000ha Nelspruit Pretoria JHB MPUMALANGA Area to be incorporated: NORTH WEST GAUTENG Private entity in conjunction with government (Phases I to III) 9 000ha Northern Cape area incorporated 1 500ha FREE STATE Kimberley Possibility of further expansion (Phases IV to VI) 28 834ha KWA Z ULU - Bloemfontein NA T A L Pietermaritzburg Total proposed area 169 309ha Durban NOR T H E R N C A P E Gariep Dam EASTERN CAPE WESTERN CAPE Port Elizabeth Cape Town Page 6 WhereGovernment are we situated Entities & Role Players he government entities involved are: Free State Provincial Government (Xhariep District Municipality, Kopanong Local Municipality); Eastern Cape Provincial Government (Ukhahlamba District Municipality, Gariep Local Municipality) and the Northern Cape Provincial Government (Pixly Ka T Sene District Municipality, Umsobomvu Local Municipality). The role players involved will be: • Private Sector (GDC); • Relevant government entities; • National PPP Unit; • National Treasury; • AsgiSA; and • Nature Conservation. Page 7 WhereGovernment’s are we situated View overnment has set itself quantified and sequenced targets in the areas of economic growth, employment creation, poverty eradication and income redistribution for the ten-year period 2004 to 2014. InG pursuit of these goals, government has had a drastic mind shift and is now outsourcing specialised projects and development initiatives through PPP’s to private sector entities with the necessary resources and expertise. A PPP is a contract between a public sector institution and a private party, in which the private party assumes substantial financial, technical and operational risk in the design, financing, building and operation of a project. Two types of PPP’s exist. The first is where the private party performs an institutional function and the second where the private party acquires the use of state property for its own commercial purposes or a combination thereof. The government’s tourism PPP toolkit, which focuses on tourism development, makes provision for a Large Cap enterprise to facilitate and develop a project of the nature of Lake Gariep. Economic Development Strategy Lake Gariep will play an integral part in both Local Economic Development
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