Forestry Commission Introduces Competitive Bidding for the Allocation of Timber Resource

Revenue Optimisation

With respect to revenue optimisation, comparison of pre-bidding price indices of the resource and the bidding price offers from the industry show that the process has succeeded in eliciting the true value of the resource from the industry.  The per cubic metre (m³) pre-bidding price of the teak for instance was (¢375,000.00).  The average price the industry has indicated that they are willing to pay (as per the competitive bidding) is more than one million, one hundred thousand cedis (¢1,122,982.00).

Also worth mentioning is the pre-determined monetary value of the allocated resource and the system of payment by the industry.  Under the new system, twenty-five (25%) percent of the plantation utilization contract fee will be paid up-front, fifty (50%) percent mid-term of the operational period and twenty-five (25%) at the end of the operational period.  This provides a good basis of planning and developing budgets at the MDA level and the national level on the contribution of forestry to the national budget.

	Introduction
	Brief on the Process
	Benefits of the Competitive Bidding System
	Promotion of Sectoral Good Governance
	Retention of Most Competitive Timber Firms in the Business
	Bid Winners

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