TWG Forestry and Environment Meeting

1. TWG Forestry and Environment Meeting Forestry Administration 29 August 2005

2. Management of production forest outside Forest Concession and protection Forest.

3. FORESTRY LAW… Article 21 of the Forestry Law stated “The division chief of FA has the duty to prepare and submit management plans for production forest not under concession located in their jurisdiction to the Head of FA for review and approval…

4. Individual, legal entity or community (except government official) may submit an application under public bidding procedures for the annual forest product harvest right within a production forest outside forest concession. • Legal procedures for acquiring annual forest products rights within production forest outside forest concession, shall be determined by Prakas of MAFF.

5. On 18 July 2005,MAFF issued Prakas No 316 Rbk . ksk onLegal procedures for acquiring annual forest product-by product right within production forest out side concession areas.

6. This Prakas, defined the legal procedures for acquiring annual forest product-by product right within production forest out side concession areas base on public bidding coups. According to article 20 of forestry law, the product harvest from these bidding coups will mainly supply to domestic use or export.

7. The main process in this procedure divided in 2 stages : - Forest inventory & tree marking and prepare management plan -Public bidding procedure

8. Forest inventory & tree marking and preparation of management plan FA will conduct the technical process follow the procedure stated in the forestry law and manuals. The technical in this process are: • Define the coup areas • Pre-logging Inventory / Tree marking and • Prepare Forest management plan.

9. -The Division chief of FA has the duty to prepare and submit to the head of FA for review and approval of the management plan for production forest out side concession areas located under their jurisdiction.

10. Public bidding procedure • Public notice of the time and place which the bids must be tendered by place advertised at office of FA, Inspectorate, cantonment, Division and the provincial government office or through media, 15 days prior to the bidding start. • The information to be notice at least give the information about :

11. Public bidding procedure… • Name & Location of Coup • Quantity of forest product to be harvested • Basic price of forest product for bidding • Temporary deposit payment or Bank guarantee ( 10% of basic price ) for the right to joint the bidding process • Times and Places for bidding

12. Public bidding procedure… • The bidding procedure must be administrated by a joint Committee and will conduct at the Cantonment office. The Committee consist : . Head of FA or his representative Chief .Provincial Governor or his representative Deputy .Chief of Inspectorate or his representative Deputy

13. Public bidding procedure… . Chief of provincial Treasury or his representative Member . Chief of provincial Economy & Finance or his representative Member

14. FA Cantonment chief Member • FA Division Chief Secretary

15. Individual, legal entity or community may submit an application under public bidding procedures for the annual Forest products & by-product harvest rights within a production forest outside concession.

16. All tenders should submit the Bidding Document to the Committee at lease 7 days before opening of the bid. The document required by the committee are • Application form • Copies of ID, CV of the bidder certified by Commune Authority - Declaration of means, tools for conduct forest harvesting, Financial and professional skill of the bidder and their team.

17. Receipt of deposit payment (10% of basic price) • . Contract to pay the additional amount to reach 10% of their bidding price within 10 days of confirmation decision. • Contract to give to the RGC with deposit payment above , in case that she/he fail to sign the minute of bidding or fail to pay additional amount to reach 10% of their bidding price within 10 days of confirmation decision.

18. -Letter from FA Certified to the bidder that in the last 2 years, the bidder have good compliance record with absent of serious technical violation in the bidding process or jurisdictions in which it has been engaged in forestry operation.

19. Not allowed to any person, legal entity or community to submit an application under public bidding procedures for the annual Forest products harvest rights within a production forest outside concession in the period 2 years for : • Use to violations to the technical & agreement in the previous bidding process

20. - Violate to the jurisdictions in which it has been engaged in forestry operation.

21. The Bidding procedure & method 1- The committee verified all bidding documents and declare the tenders who accepted to open bid. 2- The committee Declared the name, location, the amount of forest product to be harvest, and the basic price for start of the bid. 3-The first stage of opening of bids will be conducted verbally. The additional amount must be in thousands Riels.

22. 4-The second stage of bidding are close method ( Written bid price in sealed envelope). The additional price must be higher than the basic price and the process will last until the committee select the one who give the highest price. -The committee temporary declare success bidder.

23. For the bidders who unsuccessful in any bidding process, they have right to bid for the other coups at any place follow the procedure above. • .

24. The winner in bidding process who have right to harvest forest product shall pay additional amount to reach 10% of their bidding price within 10 days of confirmation decision. This payment will be deposited to assure the technical compliance

25. The bidding document and minute of each bidding coup and the receipt of deposit shall submit to MAFF for approval. • MAFF make decision and provide the decision for approval within 30 days. • If the successful bidder fail to sign or fail to pay the additional amount within 10 days of the confirmation, the deposit shall be forfeited to the RGC. • Upon the confirmation of the successful bidder, deposit shall be returned to the unsuccessful bidders.

26. The invalid bidding • The opening bid without notice or contrary with the information. • Have evident that the bidding process not transparence and collusion for lower price. • If the successful bidder fail to pay the additional amount within 10 days of the confirmation.

27. Base on the minute of bidding of the bidding committee, confirming that coup have no bidder or no one bid higher than the basic price, Head of FA may propose to MAFF to sell that coup in reasonable price.

28. The successful bidder have right to harvest forest product inside forest bidding coup. He/She could not give, transfer, or rent that forest coup to the third party, except they have the approval from head of FA and he/she must be responsible on the act of the third party. • After having the approval from MAFF, FA will issue the forest harvesting permit to successful bidder.

29. The successful bidder should pay the additional premium on the exact amount of their harvest base on article 52 of forestry law. • The successful bidder could not transfer or sell the forest products to the third party, before he/she pay royalty and premium to the RGC.

30. Public bidding procedure Annual Forest Harvesting Plan prepared by Forest Field Office Public Notice for Bid and Receiving bid Application Form Deposit 10% of based price started bidding Bidding Process Successful bidder shall pay additional MAFF Approve on the amount to reach 10% of bidding result of bidding Forestry Administration issued harvesting permit Harvesting Operation

31. THANK YOU

32. B- FA Proposal for annual bidding coupes Domestic timber supply There are Three sources of timber supply to domestic use: -Forest concession -Annual bidding coups -Confiscate illegal timber by court decision -The forest concession harvesting was suspended from the first of January 2002 by the Prakas of Minister of Agriculture, Forestry and Fisheries (Dec. 2001).

33. For solve this problem, FA start to seek another sources for supply timber to the local market. • Selling the timber which confiscated by the decision from the Court. • Set up annual bidding coups out site forest concession that allowed by the forestry Law 2001

34. B- FA Proposal for annual bidding coupes • In 2005-2006, FA will arrange 4 bidding coupes, estimate harvesting yield around 47,500 m³. • Siemreap Cantonment 7,500 m³ • Rattanakkiry Cantonment 30,000 m³ • Kratie Cantonment 5,000 m³ • Stung Treng cantonment 5,000 m³

35. A- Old log Transportation

40. B- FA Proposal for annual bidding coupes

44. Define the coup areas • Pre-logging Inventory / Tree marking • ESIA • Planning Document • These 4 Process done by Division level and approve by FA. • Define the coup areas, conduct pre-logging inventory & tree marking and developed forest harvesting planning by of division . • Division chief submit forest harvesting plan to Head of FA for approval.