In managing public forests, governments use various types of agreements, often referred to as contracts, permits or concessions, to establish the rights and responsibilities of both the forest user and the government. These contracts can be with private businesses, communities, individuals or public enterprises. Important social, environmental and economic goals can be advanced through the judicious use of well-crafted contracts (or concessions). Poorly prepared contracts can have the opposite effect and, at times, yield regrettable results.
This report thoroughly reviews the diverse types of contracts used in the management of public forests. Agreements for forest utilization are analyzed as well as contracts for the acquisition of goods and services. Secondly, the critical importance of an effective institutional and legal framework is underscored. Thirdly, the study details important elements to consider in awarding contracts, in their valuation and administration and in ensuring the fulfilment of the terms of the contract. Special attention is given to establishing transparency in the awarding and administration of contracts in public forests.
The intended audience is broad but it will be of special interest to those concerned with designing and administering forest utilization or procurement contracts. Communities, business and individuals will gain new insights into how the contracting mechanism can be used to broaden the benefits of forest management.
Overall, this publication examines factors considered critical in balancing and safeguarding the public and private interest in forest management. New approaches are identified for contractual arrangements in the provision of goods and services from public forests. Finally, a clear link is made between policies to advance sustainable forest management and the effective administration of contracts that contribute to transparency and accountability in the forest sector.
M. Hosny El-Lakany
Assistant
Director-General
Forestry Department
This publication was prepared in the framework of the programme of Forestry Policy and Institutions Branch (FONP) of the Forestry Policy and Planning Division in the Forestry Department of FAO. During its preparation it was dependent upon the collaboration and participation of many people and institutions. Merilio G. Morell, Forestry Officer (Institutions) of the Forestry Department of FAO was responsible for the technical supervision and coordination. In the discussions and preliminary analyses related to the commencement of the process Douglas McCleary, from the Forest Service of USA, participated. National consultants from various countries of Africa, Asia and Latin America prepared several case studies that served to define the scope and content of the publication. The first draft was produced by a team of the University of British Columbia, Canada, comprising Andrew F. Howard, Patrick Matakala, Peter H. Pearse and Sandra Schinnerl. The final version was prepared with the collaboration of John A. Gray and Arnoldo Contreras. The FAO wishes to thank all the staff of the Forestry Department and those from outside FAO, too numerous to mention here, who contributed with information and advice to the completion of the present study.
