Wild Coast: Request for Proposals – Mzamba Development Node Community Private Partnership Project

There are 117 households (around 680 people) that make up the Mgungundlovu Communal Property Association (MCPA) community. The MCPA’s restituted land is located at Mzamba – the gateway to the Wild Coast from KwaZulu Natal.

The total area of this land is 639 hectares. The northern part has already been developed into the Wild Coast Sun Resort and Casino, whilst the southern part of the site (The Mzamba Development Zone) is essentially undeveloped and measures about 248 hectares.

The MCPA and its Transaction Advisory team are of the opinion that the Mzamba Development Zone is well suited to the establishment of mid- to up-market eco-tourism and/or resort facilities which could, if implemented in an integrated and sustainable manner, deliver a range of long-term benefit flows for the MCPA and the private sector partner(s). At the time of writing, and subject to the investor proposals and related ‘due diligence’, the MCPA is planning to develop up to 300 beds of tourist accommodation (permanent facilities) in this area.

Based on experience elsewhere in South Africa, it is anticipated that it will take from 36 to 60 months until such a substantial facility is operational. As a result, and in order to generate economic activity and the associated benefits as quickly as possible on the development site, the MCPA intends to develop a 40- to 60-bed Temporary Beach Lodge in the Mzamba Development Zone (Temporary Facilities). The MCPA has made budgetary provision to invest its own capital (as a part contribution) into the construction of the supporting infrastructure and facilities in the Mzamba Development Zone.

The overall objective of the MCPA is to optimise the inherent development potential of the Mzamba Development Zone portion of the MCPA land to derive a variety of socio-economic benefits for the MCPA and its community. More detailed objectives are defined in the RFP documentation. The MCPA has identified the Community/Private Partnership as the preferred business model to underpin the development and operation of the tourism facilities in the Mzamba Development Zone.

The MCPA has in the RFP defined specific ‘selection criteria’ that will be applied in selecting an investor partner. In this regard bidders must be able to demonstrate their existing financial and technical capacity, as well as a proven track record in similar developments and operations.

Interested parties are invited to submit their proposals by no later than February 28, 2019. Related details are included in the RFP documentation.

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