Michaela Pawliczek

Maputo, 20th March 2012

Concession Management in

Madagascar

1. Legal context for concessions

• Law: „Code des Aires Protégées“ (Protected

Area Law);

• Concession project defined as „zone de

service“ (service zone);

• Legal base for concession development:

„Lettre de politique“ (2008):

• Land in National Parks

belongs to State;

2. Content of Policy Letter

• Context of Concession policy: Madagascar Action Plan;

• Objectifs of ecotourism concession development;

• Orientation & strategy:

– Revision of investment stategy and creation of favorable investment climate;

– Support of tourism development strategy;

– No privatisation or desengagement of Government;

• Political aspects:

– High value/low impact ecotourism development;

– Definition of actors in the process;

…• Procedures:

– Categorised under public-private partnership law;

– Request for proposal;

– Mise en comptabilité des Investissement avec Environnement (MECIE) & EIA;

• National Procurement procedures: no obligation to use;

• Definition of documents to deliver from investor for manifestation of interest;

• Public bidding, short-list procedure possible;

• Transfer of concession contract under some conditions;

• All infrastructure constructed during concession time become property of State;

• Concession contract no longer than 30 years, renewable;

3. Actors in charge/ Commission

• Ministry of Environment: decision agency;

• Ministry of Tourism: role unclear;

• Economic Development Board of Madagascar:

overlooking process, promoting sites;

• ANGAP/Madagascar National Parks: manager;

• Local community: unclear, no experiences;

• Technical support staff;

4. Some details

• Contract signed by:

– Ministry of Environment;

– EDBM;

– MNP;

– Private investor;

– Ministry of Tourism???;

• Royalty fees: not yet specified; only stated that

one part should „systematically transferred to

comunities and surroudining communities“;

5. Content of Contract

• Nature and type of construction;

• Services provided;

• Exclusivity;

• Rights and obligations of concession holder;

• Property rights and further obligations of both parties;

• Renumeration and redevance to pay to authority;

• Right of authority to follow construction/ services;

• Administrative standard of reports/information of activity;

• Right of authority to examine and approve principle contracts of concession holder following request for proposal;

• Procedures in case of failing of project;

6. Recent concession projects

A) Min Env/MNP/KfW: NP Ankarafantsika:

• Inside park Ankarafantsika;

• Extension of existing bungalow complexe (15 bungalows);

• 18 years concession previewed;

• Short-list procedure for Malagasy Nationals;

• Concession fees: Bed nights and percentage of annual revenue;

• Royalty fee sharing: 5% Min Env/15% loc pop/ 80% MNP (not park directly);

• concession contract between private investor/MNP/ Ministry of Environment;

• Interrupted by political crisis;

…

B) Min Env/MNP/IFC:

• Site selection (parks and concession sites);

• Support of update of legal framework (investment law, request for proposals, example contract);

• concession contract between private investor/MNP/ Ministry of Environment; overlooked by EDBM;

• Investment promotion and marketing of sites;

• Interrupted by political crisis;

7. Current situation Madagascar

• Ongoing crisis;

• Downturn of economy (loss of US$ 600 Mio);

• Loss of investors and no new interest;

• Social problems and corruption increasing;

• Tourism development 2012 regaining;

8. What is necessary on the way forward?

• Elections approved by int. community;

• Stable political climate;

• What is ecotourism?

• Concessions: do we want it – or not?

• Review and reform of legal context including public-

private partnership law, investment code, tourism

code;

• Clarification of roles and responsabilities of actors

(Minstry level, MNP, EDBM, communities);

• Streamlined investment promotion;

Thank you very much!

Questions?