Singita Game Reserves has entered into an agreement with South African National Parks (SANParks) to re-tender for a 20-year extension of its private concession in the Kruger National Park.
Singita has operated two lodges in the area, Singita Lebombo and Singita Sweni, within the 15 000-hectare N’wanetsi Concession since 2003, the first public/private partnership (PPP) within South Africa’s national parks.
This PPP has since been considered a very successful venture by both parties, particularly as a valuable asset to the country’s international profile and showcase of its upscale tourism offering.
According to a press statement released by Singita Game Reserves, tightening market conditions have challenged the financial structure, which in its current format is not sustainable. SANParks has agreed to review the agreement but has stressed that stringent Treasury PPP regulations apply, which demand that processes be fair and transparent.
This process is currently unfolding and is viewed by SANParks and the Treasury as a test case that will enable other public entities to apply the same model, should it be required in the future. Both parties have agreed to follow a re-tender process during which all stakeholders will be kept fully informed.
