2005/2006 - SANParks

ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 20062006South African National Parksof R3,2 million was achieved. All planned deliverables will be achievedwith the current status of 15 564 cubic meters of rehabilitation done,21 684 person days worked and 2 072 training days.Acquisition of Property, Plant and EquipmentDuring the year South African National Parks acquired land at a costof R51,47 million (2005 - R40,12 million) for the purpose of expandingland under conservation and the system of national parks.Recognition of Fauna and FloraAs part of its mission, South African National Parks is responsible formanaging a wide range of bio-diversity, encompassing fauna, fl ora,geological structures and unique scenery. The exact quantity and valueof these assets can not be measured with reliable accuracy. South AfricanNational Parks, therefore does not refl ect the value of these assets in itsfi nancial statements.CommercialisationThe South African National Parks Commercialisation Strategy (whichthrough the implementation of Public Private Partnerships (PPPs)) hasas its objective reducing the cost of delivery, improving service levels byfocusing on core business and leveraging private capital and expertise aswell as the objective of expansion of tourism products and the generationof additional revenue for the funding of conservation and constituencybuilding.The Commercialisation Strategy (2000) resulted in the award of 11(eleven) concession sites to private operators, seven of which are inKruger National Park, two in the Addo Elephant National Park, and twoin the Table Mountain National Park. In addition an agreement has beenentered into to manage the one hotel that South African National Parkshas in its portfolio - the Brandwag hotel in the Golden Gate NationalPark. Of the twelve sites, ten are fully operational with the two sites inthe Table Mountain National Park busy with their Environmental ImpactAnalysis.In addition, 21 shops and 17 restaurants across all national parks wereoutsourced to private operators. Facilities were upgraded at the operator’sexpense whilst South African National Parks receives a guaranteed monthlyannuity income from these operators. During the current fi nancial year, thecontract with the Kruger National Park restaurant operator was terminateddue to unacceptable service levels. An interim management agreementwas concluded with Compass Group to enable uninterrupted service tothe guests of the KNP. A solicited tender process for the procurement ofa replacement operator will be concluded towards the end of 2006.95