n view of recent media coverage raising questions about the Public Private Partnership agreements entered into by NWR, the company has deemed it appropriate to inform the public of the facts related to this matter.Namibia Wildlife Resorts was created through an Act of Parliament (Act No. 3 of 1998). Section 7(2)(b) of the NWR Act provides for the company to establish subsidiary companies or acquire an interest in any other company or cooperative society or enter into a partnership or joint venture with any person.
At its retreat in December 2005, Cabinet made recommendations regarding the use of Public Private Partnerships (PPP) as a mechanism for attracting investment into NWR infrastructure and eliminating loss-making operations. These included a directive for NWR to submit NWR's PPP policy to Cabinet Committee on Overall Policy and Priority for approval, and to include options in NWR's turnaround plan for the use of PPPs to redevelop some identified resorts namely: Reho Spa, Shark Island Luderitz, Hardap Resort, Daan Viljoen Resort, Von Bach Resort and Gross Barmen Resort.
In June 2006, Cabinet approved the Business Plan and Turnaround Strategy (TAS) for Namibia Wildlife Resorts. The Turnaround Strategy was aimed at turning the company from a loss-making to a profit-making enterprise, using a range of strategies. As funding was not available to upgrade all facilities in the NWR portfolio, the targeted use of Public Private Partnership agreements was included as part of the turnaround strategy, to address the investment and development needs of certain facilities within the NWR portfolio. By finding suitable partnerships, the burden of investment, redevelopment and training of staff to meet industry service standards could be shared, and NWR could be immediately relieved of the burden of absorbing losses from some of the facilities while starting to earn an income from those very facilities. In September 2006, the Cabinet Committee on Overall Policy and Priorities endorsed the Public-Private Partnerships Policy for Namibia Wildlife Resorts.
It must be remembered here that the NWR collapsed in 2005 because of deficiencies that faced the company. These included infrastructural, managerial, operational, technological, educational, financial deficiencies amongst others. Things were so bad that a strategic analysis done prior to the commencement of the turnaround strategy found that the company was not even audited from 2004 - 2006. There was financial backlog dating back in years and the time the company was in arrears with its V.A.T payments and pay as you earn to the receiver of revenue. The challenges were many and they will not be solved overnight.
PPP opportunities were advertised during August 2007, inviting expressions of interest from both local and international investors interested in becoming development and management partners. Some advertisements were placed in local media, while others were advertised on the NWR website. The advertisement was clear on a number of issues: that there would be no alienation of state assets; that the interest of current NWR employees at these facilities would be safeguarded; and that Black Economic Empowerment involvement was a pre-requisite.
A number of expressions of interest were received and each was invited to present their proposal to a management committee, following which a recommendation was submitted to the NWR Board for consideration and approval. This was followed by a process of negotiation, during which agreements were drafted with the involvement of the Company Secretary and an external legal representative, as well as legal representatives from the potential partners. Once all negotiations were finalized, NWR forwarded the report to the Honourable minister of Environment and Tourism. The Honourable Minister of Environment and Tourism in return submitted the PPP report to Cabinet through a Memorandum which outlined in detail the negotiated conditions for each of the PPP agreements, and Cabinet gave the go-ahead to proceed.
The PPP agreements were publicly signed during a gala dinner on the 17th July 2008, witnessed by the Hon. Minister of Environment and Tourism, the NWR Board of Directors, a number of invited guests and the media. Details for each of the agreements were made available during this event.
All partnership agreements involve a lease component with a monthly rent and a component of turnover or income sharing. The PPP model does not involve any transfer of assets to the partner - and thus no change in ownership. Henceforth the assets will continue to belong to the Government through its company NWR. Each contract defines the property in question (that already used by, and earmarked for transfer to NWR) and makes it clear that the agreement excludes the rest of the park which is within the jurisdiction of the Ministry of Environment and Tourism. Each agreement also contains clauses regarding sound environmental management, the need for obtaining environmental clearances from the Ministry of Environment and Tourism, and the need to adhere to all relevant laws, by-laws, ordinances, proclamations and regulations. Through the partnership agreements, mechanisms are in place to safeguard the interests of Government, as the sole shareholder.
Thus the whole process of entering into the Public-Partnership Agreements was undertaken with the full involvement of the Board of Directors of NWR, the Ministry of Environment and Tourism and Cabinet, keeping in mind the best interest of the Shareholder, the Government of the Republic of Namibia. Any allegations to the contrary are unfounded.
Since the inception of the NWR Turnaround Strategy, the company has refurbished its existing facilities in Etosha National Park; Namutoni Camp, Halali Camp and Okaukuejo Camp - and in so doing turning them into industry standard facilities. The company has also responded to market demand and built two new up-market lodges; Onkoshi Camp in Etosha National Park and Sossus Dune Lodge in Namib Naukluft Park, with the latter being the first lodge ever built inside the vast Namib Naukluft Park.
The Board and management has also identified the importance of its human capital and the role its people component play in this industry and has invested heavily in training and mentorship programmes. To date the Camps are equipped with young Namibians bearing the attributes of excellence, passion, integrity and customer service.
The company has also succeeded in internalizing and improving operational practices such its IT and Reservations system, components deemed crucial in the tourism industry. To date the company has reservations offices in Windhoek, Swakopmund and Cape Town all linked to the central NWR server. The company has also improved marketing efficiency, effectively using the website as a tool.
These successes have not gone unnoticed with the company being awarded the Tourvest Award for African Inbound Operators at the annual INDABA Tourism and Trade Fair held in Durban in May 2009.
The company has had its fair share of challenges during the implementation phase of the Turnaround Strategy, the most obvious being the difficulty to replicate refurbishment successes of some establishments at other NWR facilities. This is an area well known to NWR and its stakeholder; and it has been acknowledged that the transformation is a process aimed at laying the foundation for sustainability and stability.
The participation of the Namibian public is central to this transformation process and NWR will continue to design special holiday packages as part of its commitment to advance and promote domestic tourism. Namibian citizens, permanent residents and Diplomats stationed in Namibia will continue to benefit from a 25% discount on all NWR facilities. Pensioners will benefit from a 35% discount. Additionally, the company will continue to grow the NWR brand and expand its services by offering its corporate partners quality conferencing facilities.
As a State owned enterprise, the company welcomes the whole notion of public scrutiny, and in fact always intends to use these merely for the purposes of adding value to its services and to constantly improve upon its standing in the market, all for the benefit of Namibians.
As a State agency bound by the national development goals embedded in Vision 2030 and National Development Plan 3, NWR has dedicated its resources to protecting Namibia's unique biodiversity, a cornerstone of the country's tourism industry. The company's game guides are all expert Nature conservationists with a penchant for nature interpretation.
With the NWR Enviro-Kidz programme; an initiative geared towards empowering children of school-going age from disadvantaged backgrounds with knowledge on conservation and crucial life skills, NWR remains committed to sustainable knowledge management and development.