The purpose of this publication is to provide guidance to those involved in the design of contractual arrangements for the management of public forests and public forest lands; guidance in the process and procedures for awarding forest contracts, whether by auction, negotiation or other means; and guidance on the administration of forest contracts, monitoring, supervision, inspection and enforcement of contracts. It covers contractual arrangements both for the utilization of public forest lands (for timber and non-timber products, non-consumptive uses and preservation) and for the provision of goods and services in managing public forests and the protection of public forest lands.
Considerable knowledge and experience has been gained in the design, implementation and administration of forest contractual arrangements in many countries around the world, both developed and developing. Some of the experience with forest contracts has been successful, but much of it has been disappointing. However, important lessons can be learned from these failures, as well as from the successes. The failures highlight what to avoid, and underline the importance of well planned contract design, proper procedures for awarding contracts, and proper contract monitoring, supervision and enforcement. This publication seeks to provide a guidebook to forest contract design, implementation, monitoring, supervision and enforcement that draws on this knowledge and experience.
The management of public forest lands is becoming more and more challenging as the pressures on such lands increase. The world’s forests are shrinking, yet many countries still have significant areas where public forest resources exist. As the world’s forests become scarcer, forests are becoming increasingly more valuable and worth managing.
Public forests in these countries serve many functions to many interests, people and communities. It is the role of governments to ensure that these functions be sustained and all forest users served. Governments in many countries look towards their forests as a basis for stimulating economic and community development through the exploitation of both timber and non-timber resources. Governments also recognize the importance of forests in providing essential goods and services such as watershed management, flood and erosion control, foods, medicines, wildlife, maintaining environmental quality and biodiversity. These diverse uses of public forests often generate conflicts between economic development and conservation objectives. It is the responsibility of governments to find the strategies for achieving an appropriate balance among these, and other, objectives.
Economic development and conservation objectives can both involve the use of contractual arrangements in management of public forest lands. Two things are critically important for successful contracts. The first is the ability to properly design and negotiate contractual arrangements. The second is the capacity to administer, monitor and enforce the contracts. These then are the subject of the present study.
The study deals with the use of forest contracts, both forest utilization contracts and procurement contracts, in the management of public forests and public forest lands. The study focuses on the management of public forest land, which includes lands owned and administered by federal, state or provincial, municipal governments, or other levels of government, government organizations and agencies. Forest management of private forest lands, common property and communal forest lands are not considered, although the contract arrangements discussed here could equally be applied by communities in the management of community forest lands.
The scope of the study is intended to be comprehensive. It covers all aspects of public forest contractual arrangements. Major topics covered include the legal system and public policy background to contractual arrangements, how the legal system relates to the design and administration of specific contractual arrangements, and the role forest contractual agreements play in public policy and forestry policy. The study also addresses the design and modification of institutional structures and organizations and how they affect the capacity of governments to successfully administer contracts. Organizational arrangements to manage and administer contracts or to contract out some of these functions are considered. A full range of options for awarding or granting contracts is also reviewed. The study devotes a full chapter to the design of individual contract agreements. Another chapter is devoted to the process of awarding forest contracts. The study then reviews government responsibilities associated with both monitoring and supervising contracts and forest impacts, and the inspection and enforcement of legal, financial and environmental contract provisions.
The study is structured in three sections. Part I consists of this chapter and Chapter 2. Together they introduce the role of contractual arrangements in the management, development and conservation of public forests.
Part II, which consists of Chapters 3, 4 and 5, provides a review of the institutional framework and managerial conditions required for the design, awarding and administration of contractual arrangements. It is important that the institutional framework provide a solid foundation for contractual arrangements if forest contracts are to function successfully. Chapter 3 surveys the forestry policy framework, Chapter 4 the legal framework, and Chapter 5 the institutional framework for contract design and administration.
Part III, which consists of Chapters 6 to 10, discusses in detail how to design, develop, implement and enforce forest utilization and procurement contracts. Chapter 6 surveys the various types of forest contract, property rights, tenure and use rights. Chapter 7 discusses the design of contracts and contract administration systems. Chapter 8 reviews forest pricing issues, forest fees and revenue collection. Chapter 9 discusses the process of awarding forest contracts, bidding and negotiation. Chapter 10 discusses contract administration and enforcement.
Each chapter follows a similar structure. At the beginning of the chapter the reader is presented with an overview of “what the chapter covers”, a listing of key topics. Following sections and subsections cover these topics. A summary of key points is presented at the end of the chapter, along with chapter references.
The intended audience is broad. The study should be of interest to individuals at several levels involved in managing public forests, and especially to those involved in designing and administering forest utilization or procurement contracts. The study should also be of interest to senior policy makers and legislators involved in forestry policy and legislation, and to those in contract enforcement. Those in environmental organizations, non-government forestry organizations, forest community and indigenous forestry organizations interested, or involved, in forest management and forestry policy will find the study useful in understanding issues, problems and potentials of forest contracts. Finally, the study will be of interest to those in the private sector involved, or interested, in forest utilization or procurement contracts.
