PPP opportunity: operate and commercialise cape morgan conference & hotel facility in eastern cape

The Eastern Cape Parks and Tourism Agency (ECPTA) is a public entity mandated to conserve

biodiversity, promote sustainable tourism, and unlock the socio‐economic value of provincial

tourism assets. As part of this mandate, ECPTA seeks to commercialize the Cape Morgan

Conference and Hotel Facility, located within the ecologically sensitive Cape Morgan Nature

Reserve, forming part of the broader East London Coast Nature Reserve.

The facility is currently under-utilized and requires an experienced private sector operator to

manage, maintain, market and optimize its performance in a manner that balances commercial

viability with conservation, heritage protection, and community beneficiation.

Previous open procurement processes, including Requests for Proposals and an Expression of

Interest, did not result in the appointment of a compliant and suitable operator. These Terms of

Reference therefore incorporate lessons learned from prior processes and are intended to secure

a capable, experienced and financially sound operator through a competitive long-term tourism

concession structured in accordance with Treasury Regulation 16 principles, in line with National

Treasury Regulation 16 and the Public Private Partnership (PPP) Toolkit for Tourism.

The purpose of this Terms of Reference is to invite suitably qualified and experienced operators

and/or investors to submit proposals for the long‐term operation, management and

commercialization of the Cape Morgan Conference and Hotel Facility under a Public‐Private

Partnership model.

2.1. Description of the facility

2.1.1 Location

The Cape Morgan Conference and Hotel Facility is situated approximately 5 km north‐east of Kei

Mouth and 3 km south‐west of Morgan’s Bay, within the Cape Morgan Nature Reserve on the

Eastern Cape’s Wild Coast.

The facility benefits from proximity to established tourism nodes, coastal attractions, hiking trails,

beaches, and cultural heritage assets, making it well positioned for leisure, conferencing, retreats

and eco‐tourism markets.

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2.1. 2 Facilities Overview

The facility comprises:

Accommodation

• 32 rooms (28 standard rooms and 4 executive rooms, including 1 universally accessible

room)

• Reception area and offices

• Launderette and linen rooms

• Rainwater harvesting infrastructure

• Access control and IT systems

Conference Centre

Main conference hall (80–120 delegates)

• Three breakaway rooms

• Offices, storerooms and staff facilities

• Audio‐visual and security

infrastructure

Restaurant and Kitchen

• Fully fitted commercial kitchen

• Cold and freezer rooms

• Dining area seating approximately 70

guests

• Bar and wooden deck

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2.2. Objectives of the concession/ PPP

Through this PPP, ECPTA aims to:

• Unlock the commercial potential of the Cape Morgan Conference and Hotel Facility through

innovative, sustainable and market-responsive uses;

• Enable revenue generation and long-term financial sustainability for both ECPTA and the

private partner;

• Encourage diverse, innovative and adaptive commercial concepts that align with ECPTA’s

conservation, tourism and socio-economic development mandate;

• Ensure the protection of biodiversity, heritage and the ecological integrity of the Cape Morgan

Nature Reserve;

• Promote inclusive economic growth through local employment, enterprise development and

skills transfer;

• Transfer appropriate operational, financial and market risks to the private sector while

retaining public oversight and accountability.

The PPP is intentionally concept-unbiased, provided that proposed uses are commercially viable,

environmentally responsible, socially beneficial, and aligned with ECPTA’s legislative mandate and

strategic objectives.

2.3. Roles and responsibilities of partners

2.3.1 Responsibilities of the Private Partner

The appointed private partner will be responsible for:

• Full operational management of the facilities

• Marketing, sales and branding of the facility;

• Staffing, training and human resource management;

• Day‐to‐day maintenance and asset care;

• Utilities, security, cleaning and waste management;

• Compliance with all environmental, health, safety and labour legislation;

• Payment of agreed Concession fees (rental, revenue share or hybrid model);

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• Implementation of approved capital improvements and refurbishments;

• Community development and local procurement initiatives;

• Submission of regular operational and financial reports to ECPTA.

2.3.2 Investment Implementation Milestones

The private partner will be required to implement the capital investment commitments outlined in its

proposal within agreed timeframes.

As part of the concession agreement, the private partner may be required to submit a detailed

development and investment implementation plan outlining:

• the scope of proposed upgrades, refurbishments or developments;

• the estimated capital investment for each component;

• implementation milestones and timelines; and

• reporting arrangements for monitoring progress.

ECPTA reserves the right to incorporate investment milestones and performance obligations into the

concession agreement to ensure that committed capital investments are implemented within

reasonable timeframes and that the long-term value of the facility is enhanced.

Failure to meet agreed milestones may result in remedial actions or contractual remedies as provided

for in the concession agreement.

2.3.3 Responsibilities of ECPTA

ECPTA will:

• Grant the operator the right to use and operate the facility for the contract period;

• Retain ownership of the asset;

• Provide oversight and contract management;

• Facilitate access to the site and alignment with reserve operations;

• Monitor compliance with environmental and conservation requirements.

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2.4. Concession structure and tenure

• The PPP will be structured as a long‐term operating concession.

• Ownership of the facility will remain with ECPTA throughout and revert fully upon expiry or

termination of the agreement.

• Bidders may propose an appropriate concession period required to support their investment

and operational model. However, ECPTA anticipates that the concession term is likely to fall

within a range of 15 to 30 years, depending on the level of capital investment proposed.

• ECPTA reserves the right to terminate the agreement. Accordingly, provisions for early

termination will be included in the final concession agreement to ensure a fair balance

between investor protection and ECPTA’s mandate.

• Bidders should take note of the following principles that will guide early termination:

a) Circumstances for Early Termination

The concession agreement will provide for early termination under conditions that may

include:

• Material breach of contractual obligations by either party

• Insolvency or financial distress of the concessionaire

• Persistent failure to meet performance or environmental obligations

• Extended force majeure events that render the project unviable

• Termination by ECPTA in the public interest

b) General Approach to Termination Consequences

The final concession agreement is expected to include provisions relating to notice and cure

periods, lender step-in rights, asset handover requirements, and a compensation framework

aligned to the cause of termination, taking into account the extent of approved capital

investment.

3. Evolution of concept and future-proofing

3.1 Concept Evolution and Adaptability

ECPTA recognizes that market conditions, tourism trends, visitor preferences and commercial

opportunities may evolve over the duration of a long-term PPP agreement. Accordingly, the appointed

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private partner shall be permitted to refine, adapt or evolve the approved commercial concept over

the PPP term, subject to the following conditions:

• Any proposed evolution or modification must remain consistent with ECPTA’s mandate,

conservation objectives, and the protected-area status of the Cape Morgan Nature Reserve;

• The evolved concept must remain commercially viable, environmentally responsible and

socially beneficial;

• No material change may fundamentally alter the approved nature of the PPP without prior

written approval from ECPTA;

• Proposed changes may be subject to additional regulatory approvals, environmental

authorizations or feasibility assessments, where applicable;

• Concept evolution shall not diminish ECPTA’s financial returns, community benefits, or asset

integrity.

This provision is intended to future-proof the PPP, encourage innovation and adaptability, and allow

the facility to respond to changing market dynamics while maintaining public-interest safeguards.

4. Eligibility and minimum requirements

Interested parties may include operators, investors, developers or consortia proposing innovative

commercial uses for the facility. Proposals are not limited to traditional hospitality operations and may

include, but are not limited to:

• Conference, events and business tourism operations;

• Eco-tourism, nature-based or experiential tourism concepts;

• Wellness, retreat, education or training-oriented facilities;

• Mixed-use commercial models incorporating accommodation, conferencing, learning or

experiential components;

• Other commercially viable uses compatible with a protected area and ECPTA’s mandate.

All interested parties must demonstrate:

• A commercially sound and operationally feasible concept;

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• Alignment with conservation, environmental sustainability and heritage protection

requirements;

• Adequate technical, operational and management capability relevant to the proposed

concept;

• Sufficient financial capacity and access to funding;

• Compliance with applicable legislation, including environmental, labour and health & safety

laws;

• Commitment to transformation, local economic development and community participation.

5. Financial Capacity Requirement

Bidders must demonstrate adequate financial capacity to support the proposed capital investment

and operational requirements of the project.

Evidence of financial capacity may include:

• audited financial statements for the past three years;

• proof of access to funding or financing arrangements;

• letters of support from financial institutions or investors;

• evidence of equity participation by consortium partners; and

• any other documentation demonstrating the bidder’s ability to finance the proposed

investment.

ECPTA reserves the right to request additional financial information to verify the financial standing

and bankability of bidders.

Proposals that fundamentally conflict with ECPTA’s conservation, tourism or public-interest mandate

will not be considered.

6. Proposal submission requirements

Bidders must submit proposals covering the following components. To ensure clarity, comparability

and consistency in submissions, bidders are required to structure their proposals in accordance with

the sections outlined below.

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The proposal should clearly indicate whether the bidder is acting as an operator, investor, developer,

or a combination thereof.

6.1 Team Composition

Bidders must provide details of the proposed project team and governance arrangements, including:

• Organisational structure or organogram;

• CVs of key personnel demonstrating relevant expertise;

• Management, governance and decision-making arrangements.

The proposed investment will be considered as part of the financial evaluation and value-for-money

assessment of proposals.

ECPTA reserves the right to require the preferred bidder to provide appropriate performance

guarantees or security to ensure that committed capital investments are implemented within agreed

timelines.

The Agency may priorities proposals that demonstrate meaningful capital investment that enhances

the long-term value, sustainability and competitiveness of the Cape Morgan facility.

A four (4) Stage evaluation process will be employed. In Stage one (1), all bids received will be

evaluated on Compliance Screening. Only bidders who meet the stage 1 requirements will

proceed to Stage two (2) for assessment of Technical Compliance. Only bidders meet the

technical compliance requirements will proceed to Stage three (3) where bids will be assessed

for Price and Specific Goals in accordance with the Preferential Procurement Regulations of

2022 utilizing 80/20 or 90/10 preference point system based on the financial return offered. In

Stage four (4) bids will be assessed on Risk Rating and Bankability.

Stage 1 – Compliance Screening

• Completed proposal submission
• Company registration documentation
• CSD Registration
• Signed declaration of interest
• Alignment with Concept Acceptability Matrix

Stage 2 – Technical Compliance

• Strategic Fit and Concept Quality
• Company Profile and Experience
• Financial Sustainability of the Concept

Stage 3: Price and Specific Goals

Price and specific goals points will be calculated as described in the Preferential Procurement

Regulations of 2022. SBD 6.1 form must be used to claim points for specific goals for the company.

A copy of CSD report, Medical Certificate and Proof of Address must be submitted as proof of

specific goals. When the above documentation is not provided as proof the company will

automatically score zero points for specific goals.

Table 3: Preferential Procurement Points

Criteria Points Available Points available

Bid Price 80 90

Specific Goals 20 10

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Total 100 100

Part a sbd 1

Invitation to bid

You are hereby invited to bid for requirements of the eastern cape parks & tourism

Agency

Bid number: RFP 01/26/27 closing date: 28 july 2026 closing time: 11:00am

The appointment of a private partner to commercialise and operate the cape morgan

Description facility

Bid response documents may be deposited in the bid box situated at (street address)

17-25 Oxford Street,

Cnr. Oxford and Fleet Street

East London, 5200

Bidding procedure enquiries may be

Directed to technical enquiries may be directed to:

Contact contact

PERSON Ms. U Zinganto PERSON Mr. B Silangwe

Telephone telephone

Number 043 492 0871 number 043 492 0868

Facsimile facsimile

Number number

E-MAIL ADDRESS [email protected] E-MAIL ADDRESS [email protected]

Supplier information

Name of bidder

Postal

Address

Street

Address

Telephone

Number code number

Cellphone

Number

Facsimile

Number code number

E-mail address

VAT

Registration

Number

Supplier tax central

Compliance compliance supplier

Or

Status system pin: database

No: MAAA

Are you the are you a

Accredited foreign based

REPRESENTATIVE SUPPLIER FOR Yes No

IN SOUTH AFRICA Yes No THE GOODS

For the goods /services [if yes, answer the

/Services [if yes enclose proof] offered? Questionnaire below]

Offered?

Questionnaire to bidding foreign suppliers

Is the entity a resident of the republic of south africa (RSA)? yes

NO

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Does the entity have a branch in the RSA?

Yes NO

Does the entity have a permanent establishment in the RSA?

Yes NO

Does the entity have any source of income in the RSA?

Yes NO

Is the entity liable in the RSA for any form of taxation?

Yes NO

If the answer is “NO” to all of the above, then IT is not a requirement to register for

A tax compliance status system pin code from the south african revenue service

(SARS) and if not register as per 2.3 Below.

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Part b

Terms and conditions for bidding

1. Bid submission:

1.1. Bids must be delivered by the stipulated time to the correct address. Late bids

Will not be accepted for consideration.

1.2. All bids must be submitted on the official forms provided (not to be re-typed)

Or in the manner prescribed in the bid document.

1.3. This bid is subject to the preferential procurement policy framework act, 2000

And the preferential procurement regulations, the general conditions of

Contract (gcc) and, if applicable, any other special conditions of contract.

1.4. The successful bidder will be required to fill in and sign a written contract

Form (sbd7).

2. Tax compliance requirements

2.1 Bidders must ensure compliance with their tax obligations.

2.2 Bidders are required to submit their unique personal identification number

(Pin) issued by SARS to enable the organ of state to verify the taxpayer’s

Profile and tax status.

2.3 Application for tax compliance status (tcs) pin may be made via e-filing through

The SARS website www.SARS.GOV.ZA

2.4 Bidders may also submit a printed tcs certificate together with the bid.

2.5 In bids where consortia / joint ventures / sub-contractors are involved; each

Party must submit a separate tcs certificate / pin / csd number.

2.6 Where NO tcs pin is available but the bidder is registered on the central

Supplier database (csd), a csd number must be provided.

2.7 NO bids will be considered from persons in the service of the state, companies

With directors who are persons in the service of the state, or close

Corporations with members persons in the service of the state.”

Nb: failure to provide / or comply with any of the above

Particulars may render the bid invalid.

Name of the signatory ...........................................................

Signature of the bidder ............................................................

Capacity under which this bid is signed: ............................................................

(Proof of authority must be submitted e.g. company resolution)

Date: ...........................................................

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Terms of reference / specification

A four (4) Stage evaluation process will be employed. In Stage one (1), all bids received will be

evaluated on compliance screening. Only bidders who meet the stage 1 requirements will

proceed to Stage two (2) for assessment of technical compliance. Only bidders meet the

technical compliance requirements will proceed to Stage three (3) where bids will be assessed for

Price and Specific goals in accordance with the Preferential Procurement Regulations of 2022

utilizing 80/20 or 90/10 preference point system based on the financial return offered. In Stage

four (4) bids will be assessed on risk rating and bankability.

Proposals received in response to these Terms of Reference will be evaluated through a structured

multi-stage evaluation process aligned with:

• National Treasury Regulation 16 (Public Private Partnerships)

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• The PPP Toolkit for Tourism

• ECPTA Supply Chain Management Policy

• Best practice in tourism concession evaluation used by national protected area authorities.

The evaluation process will consist of the following stages:

1. Stage 1 – Compliance Screening

2. Stage 2 – Technical Compliance

3. Stage 3 – Price and Specific Goals

4. Stage 4 – Risk Rating and Bankability

Only proposals that successfully pass each stage will proceed to the next stage of evaluation.

Stage 1 – Compliance Screening

All proposals will first be assessed for compliance with the submission requirements.

Requirement Outcome

Completed proposal submission Pass /

Fail

Bidders must submit a clear and well-motivated concept proposal that:

• Describes the proposed use(s) of the facility;

• Demonstrates commercial viability and market demand;

• Explains how the concept aligns with ECPTA’s conservation, tourism and

development mandate;

• Identifies target markets and revenue streams;

• Demonstrates compatibility with the location within a nature reserve;

• Highlights innovation, adaptability and long-term sustainability.

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Requirement Outcome

Company registration documentation Pass /

Fail

• Bidders must submit copies of company registration documents. Joint Ventures

must submit a Joint Venture Agreement and individual company registration

documents.

CSD Registration Pass /

Fail

• Bidders must submit copies of a full CSD Report printed in the month of the bid

closing date.

• Bidders in a Joint Venture must submit their individual full CSD Reports printed

in the month of the bid closing

Signed declaration of interest Pass /

Fail

• Bidders must fully complete the Declaration of Interest (SBD 4) contained in

the bidding documents

• Bidders in a Joint Venture must complete individual SBD4 documents

Alignment with Concept Acceptability Matrix Pass /

Fail

• Bids will be assessed against the acceptability matrix detailed below.

8. Concept acceptability matrix

To provide clarity to prospective bidders while preserving flexibility and innovation, ECPTA has

developed the following Concept Acceptability Matrix. This matrix is indicative and non-exhaustive

and will be used as a guide during evaluation. ECPTA reserves the right to assess all proposals on

their individual merits.

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8.1 Concept Acceptability Matrix

Category A: Readily Acceptable Concepts

Concepts that clearly align with ECPTA’s tourism, conservation and Commercialization mandate and

are generally compatible with protected area operations. Likely acceptable, subject to detailed

Category Description Evaluation Position

Conference, Conferencing, training centers, business tourism, ✓

meetings & retreats

events facilities

Eco-tourism & Lodges, experiential tourism, guided activities, ✓

nature-based interpretation centers

tourism

Hospitality & Hotels, lodges, mixed-use accommodation ✓

accommodation supporting tourism

Cultural & Cultural centers, storytelling hubs, heritage ✓

heritage tourism interpretation

Wellness & Wellness retreats, mindfulness, eco-wellness, ✓

retreat tourism non-clinical retreats

Category B: Conditionally Acceptable Concepts

Concepts that may be acceptable subject to additional approvals, impact assessments, or alignment

conditions. These concepts will require further due diligence and may be subject to additional

regulatory or governance approvals.

Concept Type Description Evaluation Position

Education, training & Environmental education, Conditionally acceptable – subject to

research facilities leadership academies, approvals

training institutes

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Concept Type Description Evaluation Position

Mixed-use commercial Blended accommodation, Conditionally acceptable – subject to

models conferencing, learning or approvals

experiential uses

Wellness or health- Preventative wellness, Conditionally acceptable – subject to

adjacent facilities rehabilitation retreats (non- approvals

institutional)

Creative or innovation Innovation labs, creative Conditionally acceptable – subject to

hubs retreats aligned to tourism approvals

or conservation

Category C: Non-Permissible Concepts

Concepts fundamentally misaligned with ECPTA’s mandate, protected area regulations, or public-

interest objectives. Proposals falling within this category will not be considered.

Concept Type Description Evaluation

Position

Institutional healthcare Hospitals, inpatient medical facilities, Not permissible

facilities correctional facilities

Heavy commercial or Manufacturing, warehousing, logistics hubs Not permissible

industrial use

High-impact or extractive Mining, quarrying, or environmentally Not permissible

activities destructive uses

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Residential-only Permanent residential housing not linked to Not permissible

developments tourism

Religious/ Faith-based Not permissible

institutions

Proposals that fail compliance screening will not proceed to technical evaluation.

8.2 Stage 2 – Technical Compliance (100 Points)

The technical evaluation assesses the quality, feasibility and alignment of the proposed concept with

ECPTA’s strategic objectives.

Minimum qualifying score: 70 out of 100 points.

Evaluation Category Scoring Matrix Maximum

Points

Strategic Fit and Concept Quality

• Alignment with Organizational 35

Strategy = 5 points

The bidder’s proposal must contain the

• Concept Innovation and Creativity

following factors:

= 5 points

• Alignment with Organizational
• Feasibility and Practicality= 5

Strategy points

• Concept Innovation and Creativity
• Commercial Viability= 5 points
• Feasibility and Practicality
• Environmental and Social Impact
• Commercial Viability = 5 points
• Environmental and Social Impact
• Quality of Proposal Presentation =
• Quality of Proposal Presentation 5 points
• Community Development and
• Community Development and

Transformation Transformation = 5 points

NB: The proposal must contain all the

above factors in order to be eligible for

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Evaluation Category Scoring Matrix Maximum

Points

scoring. Bidders must clearly align their Where

proposals with the factors listed above. 5 = Excellent

4 = Good

3 = Satisfactory

2 = Poor

1 = Very Poor

0 = non-responsive

Operational Capability and Experience 50

Company Profile and Experience

• 10 years’ experience and above =

50 points

Bidders must provide information on their

organisational background and relevant

• 7-9 years’ experience = 40 points

experience, including:

• 4-6 years’ experience = 30 points

• Company background and
• 1-3 years’ experience = 20 points

ownership structure.

• Less than 1 year experience = 0
• Relevant operational and project

experience related to the proposed

concept.

• References and a portfolio of similar

or comparable projects.

NB: Reference letters must be

submitted on the letterhead of current or

previous clients, or bidders may submit

the reference forms attached to the bid

document, duly completed by current or

previous clients. The reference

letters/forms must clearly indicate the

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Evaluation Category Scoring Matrix Maximum

Points

description and period of service

rendered.

Financial Sustainability of the Concept

• Excellent (11–15): Fully aligns with 15

strategy, highly innovative, feasible,

and commercially strong.

• Good (6–10): Generally aligned

and feasible with minor

shortcomings.

• Average (3–5): Partially aligned

with limited innovation or weak

implementation approach.

• Poor (0–2): Weak strategic

alignment and insufficient concept

detail or viability.

Total 100

Only bidders achieving the minimum technical threshold will proceed to the next stage.

Stage 3: Price and Specific Goals

Price and specific goals points will be calculated as described in the Preferential Procurement

Regulations of 2022. SBD 6.1 form must be used to claim points for specific goals for the company.

A copy of CSD report, Medical Certificate and Proof of Address must be submitted as proof of specific

goals. When the above documentation is not provided as proof the company will automatically score

zero points for specific goals.

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Table 3: Preferential Procurement Points

Criteria Points Available Points available

Bid Price 80 90

Specific Goals 20 10

Total 100 100

Points for specific goals

Specific Goals Weighting (of Number of Weighting (of Number of Acceptable

Category 10 Points) points 20 Points) points Evidence

Locality 30% 3 35% 7 Valid Proof of

(Enterprises Address.

located in the Municipal

Eastern Cape Council Letter

Province) Or

Lease

Enterprises Agreement/

located outside 0 0 Or

of Eastern Cape Statement of

Account

Proof must be

valid at the time

of submission

>51% Women 20% 2 25% 5 CSD report

Ownership Or

10-50% Women 1 2.5 CIPC certificate

Ownership & ID Copy

<10% Women 0 0

Ownership

>51% Historically 20% 2 15% 3 CSD report

Disadvantaged Or

Individuals Ownership CIPC certificate

(South African citizen & ID Copy

• who, had no

franchise in national

elections prior to the

introduction of the

Constitution of the

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Points for specific goals

Republic of South

Africa, 1983 (Act ) or the

Constitution of the

Republic of South

Africa, 1993, (Act )) 1 1.5

10-50% HDI

Ownership 0 0

<10% HDI Ownership

>51% Youth 20% 2 15% 3 CSD report

Ownership Or

10-50% Youth 1.5 CIPC certificate

Ownership 1 & ID Copy

<10% Youth

Ownership 0 0

>51% Disability 10% 1 10% 2 Medical

Ownership certificate

10-50%

Disability 0,5 1

Ownership

<10% Women

Ownership 0 0

Total 100% 10 100 20

The nature of the bid is revenue generating. Financial proposals that comply with all the bidding

conditions and are evaluated on price and specific goals will be assessed accordingly. The financial

proposal that offers the highest financial return to the ECPTA will score the maximum points allocated

for price (80 or 90 points, as applicable), while the scores of the other bidders will be calculated on a

pro-rata basis using the prescribed formula.

Guidelines on Financial Proposal (Price)

Bidders must submit a detailed financial proposal that entails the following

i. Financial return to ECPTA (lease and revenue share)

ii. Minimum Capital Investment Commitment

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Bidders are required to indicate the level of capital investment they propose to commit towards the

refurbishment, upgrading, enhancement or development of the Cape Morgan facility. The proposed

investment must include:

a. The total capital investment amount.

b. A description of the planned upgrades, refurbishments or improvements to the facility.

c. The timeline for implementation of the proposed investment; and

d. The sources of funding for the proposed capital investment

iii. Bidders must submit a financial proposal that clearly outlines the proposed commercial

structure for the concession. The financial proposal should include:

a. The proposed concession financial model

b. Proposed revenue-sharing or rental structure payable to ECPTA;

c. Financial sustainability projections and key assumptions supporting the proposed

concept.

iv. Normalized Financial Value Assessment

Where bidders propose different concession periods, ECPTA may apply a normalized financial

value assessment to enable fair comparison of financial offers. This approach evaluates the total

financial value of the proposal to ECPTA over the proposed concession period, taking into

account:

a. proposed lease and revenue-sharing payments;

b. proposed capital investment commitments;

c. the duration of the proposed concession term; and

d. the overall long-term financial value to ECPTA.

v. Where necessary, ECPTA may normalize financial offers on an annualized or net present

value basis to ensure that proposals requesting longer concession periods are assessed fairly

against proposals with shorter concession terms.

vi. This assessment will support the value-for-money determination and the recommendation of

the preferred bidder.

Stage :4 Risk Rating and Bankability

In addition to the evaluation scoring, ECPTA may conduct a Bidder Risk Rating and Bankability

Assessment to determine the financial and operational credibility of shortlisted bidders.

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This assessment ensures that the preferred bidder is capable of delivering and sustaining the

proposed concession over the duration of the Concession Agreement.

Bidder Risk Rating Matrix and Bankability

Risk Category Risk Indicators Risk Rating

Financial Capacity Strength of balance sheet and access to capital Low / Medium /

High

Funding Certainty Confirmed funding sources and financial backing Low / Medium /

High

Operational Capability Demonstrated experience in hospitality or Low / Medium /

tourism operations High

Delivery Risk Ability to implement required upgrades or Low / Medium /

investments High

Environmental Compliance Environmental management and compliance Low / Medium /

Risk record High

Reputational Risk Governance record and litigation history Low / Medium /

High

Community Impact Risk Ability to deliver local economic development Low / Medium /

commitments High

Bankability Assessment Matrix

Bankability Factor Assessment Focus

Capital Investment Feasibility Ability to finance proposed investments

Financial Model Credibility Realistic financial projections

Revenue Sustainability Market demand and long-term revenue potential

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Risk Allocation Appropriate transfer of operational and financial risks

Debt Service Capacity Ability to service debt obligations

Investment Return Reasonable return for private partner

The outcome of this assessment may be used to inform the preferred bidder recommendation,

particularly where competing proposals achieve similar evaluation scores.

ECPTA reserves the right to invite shortlisted bidders to present or clarify aspects of their proposals

prior to final evaluation.

Evaluation of Proposed Concession Term

Bidders may propose an appropriate concession period required to support their proposed capital

investment and operational model.

While ECPTA anticipates that the concession term is likely to fall within a range of 15 to 30 years,

bidders may propose alternative durations where justified by the scale of investment and commercial

model.

In evaluating proposed concession periods, ECPTA will consider whether the requested term is

reasonable and proportionate to the level of investment and financial return offered to ECPTA.

The objective of this assessment is to ensure that the concession structure provides fair value to

ECPTA while allowing sufficient time for the private partner to recover its investment and operate

sustainably.

Concession Term Evaluation Criteria

Evaluation Factor Considerations

Level of capital Whether the proposed concession period is justified by the level of

investment investment

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Financial return to Lease payments, revenue share or hybrid financial model

Ecpta

Payback period Whether the concession term reasonably reflects investment recovery

Long-term value to Overall economic benefit over the duration of the concession

Ecpta

ECPTA reserves the right to negotiate the final concession term with the preferred bidder during the

contract finalisation stage.

Bidders shall take note of the following bid conditions:

• The Eastern Cape Parks & Tourism Agency Supply Chain Management Policy will apply

• Bidders must be registered with the National Treasury Central Supplier Database (CSD) and

submit a full copy of CSD report for the month of bid closing.

• Eastern Cape Parks & Tourism Agency does not bind itself to accept the highest bid or any

other bid and reserves the right to accept the whole or part of the bid.

• The ECPTA reserves the right to request any additional information for the purpose of

evaluation and adjudication of this bid. Such requests shall be made solely for the

discretion of ECPTA

• Bids which are late, incomplete, unsigned, or submitted by facsimile or electronically, will not

be accepted.

• Bids submitted are to hold good for a period of 150 days.

• Companies that bid as joint venture must submit an official signed business agreement by

both parties. If the service provider does not meet this requirement, it will be automatically

disqualified.

• The ECPTA Bid Committee and the Supply Chain Management Unit may, before a bid is

adjudicated or at any time during the bidding process, oblige a bidder to substantiate any

claims it may have made in its bid documents.

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• No bids will be considered if the bidder did not fully complete and sign all the relevant pages

in the bid document. If the bidder does not meet this requirement, it will be automatically

disqualified.

• The ECPTA reserves the right to request any additional information for the purpose of

evaluation and adjudication of this bid. Such requests shall be made solely for the discretion

of the ECPTA.

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Bid Checklist 3

Bid Advert/ Tender Notice 4 – 5

Invitation to Bid (SBD 1) 6 - 8

Terms of Reference/ Specification 9 - 16

Evaluation Criteria 16 – 30

General Conditions of bid 31 - 34

General Conditions of Contract 35 – 47

CSD Report 48 – 49

Pricing Schedule (SBD 3.1) 50

Bidders Disclosure - SBD 4 51 - 53

Preference Points Claim Form -SBD 6.1 54 – 59

Evaluation Criteria 60 - 74

Joint Venture Disclosure Form 75 – 84

Joint Venture Agreement 85

Company details 86

Proof of Insurance and Liability Cover 88 – 88

Authority to sign Bid Documents 89 - 90

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• Grant the operator the right to use and operate the facility for the contract period;

• Retain ownership of the asset;

• Provide oversight and contract management;

• Facilitate access to the site and alignment with reserve operations;

• Monitor compliance with environmental and conservation requirements.

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2.4. Concession structure and tenure

• The PPP will be structured as a long‐term operating concession.

• Ownership of the facility will remain with ECPTA throughout and revert fully upon expiry or

termination of the agreement.

• Bidders may propose an appropriate concession period required to support their investment

and operational model. However, ECPTA anticipates that the concession term is likely to fall

within a range of 15 to 30 years, depending on the level of capital investment proposed.

• ECPTA reserves the right to terminate the agreement. Accordingly, provisions for early

termination will be included in the final concession agreement to ensure a fair balance

between investor protection and ECPTA’s mandate.

• Bidders should take note of the following principles that will guide early termination:

a) Circumstances for Early Termination

include:

• Material breach of contractual obligations by either party

• Insolvency or financial distress of the concessionaire

• Persistent failure to meet performance or environmental obligations

• Extended force majeure events that render the project unviable

• Termination by ECPTA in the public interest

b) General Approach to Termination Consequences

periods, lender step-in rights, asset handover requirements, and a compensation framework

aligned to the cause of termination, taking into account the extent of approved capital

investment.

guarantees or security to ensure that committed capital investments are implemented within agreed

timelines.

value assessment to enable fair comparison of financial offers. This approach evaluates the total

financial value of the proposal to ECPTA over the proposed concession period, taking into

account:

a. proposed lease and revenue-sharing payments;

b. proposed capital investment commitments;

c. the duration of the proposed concession term; and

d. the overall long-term financial value to ECPTA.

v. Where necessary, ECPTA may normalize financial offers on an annualized or net present

value basis to ensure that proposals requesting longer concession periods are assessed fairly

against proposals with shorter concession terms.

vi. This assessment will support the value-for-money determination and the recommendation of

the preferred bidder.

Stage :4 Risk Rating and Bankability

The Eastern Cape Parks and Tourism Agency (ECPTA), established and mandated in terms of the

Eastern Cape Parks and Tourism Agency Act (), is responsible for the management of certain

protected areas in the Eastern Cape. In order to achieve its management objectives, the Agency requires

the services of an experienced service provider for THE APPOINTMENT OF A PRIVATE PARTNER TO

• A commercially sound and operationally feasible concept;

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• Alignment with conservation, environmental sustainability and heritage protection

requirements;

• Adequate technical, operational and management capability relevant to the proposed

concept;

• Sufficient financial capacity and access to funding;

• Compliance with applicable legislation, including environmental, labour and health & safety

laws;

• Commitment to transformation, local economic development and community participation.

environmentally responsible, socially beneficial, and aligned with ECPTA’s legislative mandate and

strategic objectives.

2.3. Roles and responsibilities of partners

2.3.1 Responsibilities of the Private Partner

• Full operational management of the facilities

• Marketing, sales and branding of the facility;

• Staffing, training and human resource management;

• Day‐to‐day maintenance and asset care;

• Utilities, security, cleaning and waste management;

• Compliance with all environmental, health, safety and labour legislation;

• Payment of agreed Concession fees (rental, revenue share or hybrid model);

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• Implementation of approved capital improvements and refurbishments;

• Community development and local procurement initiatives;

• Submission of regular operational and financial reports to ECPTA.

2.3.2 Investment Implementation Milestones

opportunities may evolve over the duration of a long-term PPP agreement. Accordingly, the appointed

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private partner shall be permitted to refine, adapt or evolve the approved commercial concept over

the PPP term, subject to the following conditions:

• Any proposed evolution or modification must remain consistent with ECPTA’s mandate,

conservation objectives, and the protected-area status of the Cape Morgan Nature Reserve;

• The evolved concept must remain commercially viable, environmentally responsible and

socially beneficial;

• No material change may fundamentally alter the approved nature of the PPP without prior

written approval from ECPTA;

• Proposed changes may be subject to additional regulatory approvals, environmental

authorizations or feasibility assessments, where applicable;

• Concept evolution shall not diminish ECPTA’s financial returns, community benefits, or asset

integrity.

Education, training & Environmental education, Conditionally acceptable – subject to

research facilities leadership academies, approvals

training institutes

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• Concept Innovation and Creativity
• Commercial Viability= 5 points
• Feasibility and Practicality
• Environmental and Social Impact
• Commercial Viability = 5 points
• Environmental and Social Impact
• Quality of Proposal Presentation =
• Quality of Proposal Presentation 5 points
• Community Development and
• Community Development and

Transformation Transformation = 5 points

NB: The proposal must contain all the

above factors in order to be eligible for

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development and investment implementation plan outlining:

• the scope of proposed upgrades, refurbishments or developments;

• the estimated capital investment for each component;

• implementation milestones and timelines; and

• reporting arrangements for monitoring progress.

description and period of service

rendered.

Financial Sustainability of the Concept

• Excellent (11–15): Fully aligns with 15

strategy, highly innovative, feasible,

and commercially strong.

• Good (6–10): Generally aligned

and feasible with minor

shortcomings.

• Average (3–5): Partially aligned

with limited innovation or weak

implementation approach.

• Poor (0–2): Weak strategic

alignment and insufficient concept

detail or viability.

Total 100

envelope with the bid name and number (as given above) clearly written in an envelope. All bids must

be deposited in the Tender Box, at the offices of the Eastern Cape Parks and Tourism Agency at

No. 17-25 Oxford Street (Corner of Fleet Street & Oxford Street), by not later than 11h00 on

Tuesday, 28 July 2026, at which time the bids will be opened in public.

For all enquiries regarding the bid document please contact Ms. Unathi Zinganto at 043 492 0871,

e-mail: [email protected] or Contact Mr. Bulelani Silangwe for technical enquires at 043 492

0868 during working normal hours, email: [email protected]

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Evaluation Criteria

A four (4) Stage evaluation process will be employed. In Stage one (1), all bids received will be

evaluated on Compliance Screening. Only bidders who meet the stage 1 requirements will

proceed to Stage two (2) for assessment of Technical Compliance. Only bidders meet the

technical compliance requirements will proceed to Stage three (3) where bids will be assessed

for Price and Specific Goals in accordance with the Preferential Procurement Regulations of

2022 utilizing 80/20 or 90/10 preference point system based on the financial return offered. In

Stage four (4) bids will be assessed on Risk Rating and Bankability.

Stage 1 – Compliance Screening

• Completed proposal submission
• Company registration documentation
• CSD Registration
• Signed declaration of interest
• Alignment with Concept Acceptability Matrix

Stage 2 – Technical Compliance

• Strategic Fit and Concept Quality
• Company Profile and Experience
• Financial Sustainability of the Concept

Stage 3: Price and Specific Goals

a capable, experienced and financially sound operator through a competitive long-term tourism

concession structured in accordance with Treasury Regulation 16 principles, in line with National

Treasury Regulation 16 and the Public Private Partnership (PPP) Toolkit for Tourism.

2. Scope of service

• Organisational structure or organogram;

• CVs of key personnel demonstrating relevant expertise;

• Management, governance and decision-making arrangements.

scoring. Bidders must clearly align their Where

proposals with the factors listed above. 5 = Excellent

4 = Good

3 = Satisfactory

2 = Poor

1 = Very Poor

0 = non-responsive

Operational Capability and Experience 50

Company Profile and Experience

• 10 years’ experience and above =

50 points

organisational background and relevant

• 7-9 years’ experience = 40 points

experience, including:

• 4-6 years’ experience = 30 points

• Company background and
• 1-3 years’ experience = 20 points

ownership structure.

• Less than 1 year experience = 0
• Relevant operational and project

experience related to the proposed

concept.

• References and a portfolio of similar

or comparable projects.

NB: Reference letters must be

submitted on the letterhead of current or

previous clients, or bidders may submit

the reference forms attached to the bid

document, duly completed by current or

previous clients. The reference

letters/forms must clearly indicate the

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SBD 3.1 (Pricing Schedule)

Bidders Disclosure (SBD 4)

Preference Claim Form (SBD 6.1)

• Describes the proposed use(s) of the facility;

• Demonstrates commercial viability and market demand;

• Explains how the concept aligns with ECPTA’s conservation, tourism and

development mandate;

• Identifies target markets and revenue streams;

• Demonstrates compatibility with the location within a nature reserve;

• Highlights innovation, adaptability and long-term sustainability.

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