Gauteng opens its largest nature reserve to private operators

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The Gauteng government has dangled the Suikerbosrand Nature Reserve before the private sector, in a move that might see the facility operated by tourism and hospitality groups for at least 25 years.This is as the government becomes more amenable to private sector custodianship of state-owned assets.The department of environment in the province on Friday issued a request for proposal, inviting bids from entities wishing to operate the about 18,000ha nature reserve, situated between the East Rand towns of Heidelberg and Alberton.The nature reserve, situated just off the N3, was in 2009 valued at R3bn.The winning bidder is granted the right to develop, operate, and manage the Suikerbosrand Nature Reserve concession, the province’s largest nature reserve, which is managed by the provincial environment department.The mooted concession will see the state retain the title to the land and assets, with the private sector set to pay a monthly lease fee, which the department said cannot be less than R80,000.“The department will generate revenue through public-private partnership fees paid to it by the private party, while enabling it to focus on its core activity of conservation,” the request for proposal reads.“It is intended that the private party will develop (upgrade, refurbish and maintain), operate and finance the concession area with strict compliance with the department’s environmental standards, protected areas conservation guidelines, existing environmental authorisations, permits and operating licences.“At the end of the agreement term, the facility reverts to the department,” it said, adding that concessionaires will not have an automatic right of renewal at the end of the concession term.“At the end of the concession period, the concession may be put up for retender to interested bidders. The incumbent concessionaires will be entitled to bid.”The nature reserve has been on the receiving end of criticism by revellers, who have pointed out its dilapidated state. The reserve’s main revenue-generating activities are now limited to hiking, cycling and occasional game sales, with its hotel and other tourist facilities lying dormant.The DA last year called on the provincial government to pour more investments into unlocking the reserve’s full potential.Most of the tourism accommodation facilities, including those presently operational, are in a state of disrepair due to, among other things, lack of maintenance. The reserve accommodation and conference facilities can accommodate about 1,900 people.With the public purse stretched by competing interests, the provincial government, led by premier Panyaza Lesufi, has opted to woo private capital to invest in the nature reserve, which is among five owned by the state.Some of the tourism facilities at Suikerbosrand include:Self-catering accommodation via 29 units for guests at three separate locationsA full-service caravan park with 240 stands.A conference centre with capacity for 120 delegates across a variety of meeting rooms.Cycling routes.Facilities for day-visitors, which include a restaurant, swimming pools, picnic spots and children’s playgrounds.Hiking trails with overnight huts/accommodation.Most of the facilities are either in a state of disrepair or not operational. Companies that show interest in investing in the nature reserve will be required to include “indigenous landowner communities” in their bids.“The department has a mandate to promote and give priority to indigenous landowner communities to participate in equity ownership interests in the commercial opportunities within the reserve.”To achieve this mandate it said it will ensure that potential concessionaires offer the communities the opportunity to secure shareholding on commercial terms in public-private partnership concessions.“Where the department has identified opportunities for participation for the indigenous landowner communities, it is required to specify the equity set aside for participation of indigenous landowner communities in the procurement documentation for that commercial activity.”Business Day