This sub-section also builds on sub-section 8.1 because that is where the FMUs will:
• Identify, and to the extent possible, quantify key multiple benefits (products/resources and ecosystem services) from forests and trees that may contribute to community livelihoods, the local economy and the environment
• Propose how the key identified benefits above can be produced or made available for others, especially forest dependent communities and local actors (private or civil society) to produce them in line with the management objectives of these forests
• Propose how key identified ecosystem services from forests and trees can be maintained and or enhanced – and their impacts demonstrated - in accordance with the acceptable national guidance for maintaining, enhancing and demonstration of impacts of ecosystem services (demonstration of impact based on indicators)
• Attach, to the extent possible, total/full economic value (for all the material and non-material i.e. products/resources and ecosystem services) and determine the lots for licencing
• Use these values and determined lots to estimate the revenue potential from the use of licensing forest products to mobilise resources for the implementation of forest activities
Section 42 of the Forestry Act requires that a RB shall give licenses through a fair, open and competitive process prescribed by regulations. Accordingly, the Forestry Regulations prescribes that RBs shall develop principles for the sale of forest produce and services. The principles shall ensure that:
• there is transparency and accountability in the transaction process;
• transaction costs are minimal;
• there are no direct or indirect subsidies;
• market-orientated pricing systems are applied;
• market forces can operate freely;
• costs of management and/ or planting are built in the price;
• distribution of forest benefits is fair and equitable; and
• Sustainable use of forest resources is facilitated.
Instruction 369: Regulations 89 – 99 of the Forestry Regulations go into detail regarding the process of licensing, management of licenses, and collection of revenue and taxes. This process shall be adhered to by Government FMIs.
Once the inventory in Section 3.5 has revealed the quantities of harvestable forest produce, the standard practice for licensing forest products harvesting to mobilise resources for implementation of forest management activities is given in the instructions below:
Instruction 370: The following aspects are cardinal in licensing harvesting of forest products. They shall be taken into account when designing a harvesting license
• Use the up-to-date inventory report and data to prepare a harvesting plan (in case it was not prepared by the inventory team). See Section 4.2.2 for preparation of a harvesting plan
• Use the harvesting plan to prepare coupes or lots for auction
• Use the licensing schedule to determine the value of each coupe or lot
• Use the prescriptions contained in the PPDA Act (2003), as amended, and the associated Regulations and Guidelines to accomplish the disposal of the coupes and lots through licenses
• Forest dependent communities adjacent to the forest shall receive special consideration in the procedure for obtaining licenses for harvesting
• Ensure clear payment schedules for the licensed produce or service
Land use which can be licensed to the private sector and other actors wishing to invest in FR lands include tree growing, management of ecotourism, and management of natural forests, among others.
Instruction 371: The following aspects are cardinal in licensing land use in CFRs. They shall be taken into account when designing the land use license
• Use the up-to-date inventory of land availability report and data to prepare a list of FRs that may be put up for bidding under the public procurement procedures
• Use the Guidelines for Land Allocation in Central Forest Reserve (2005) to prepare blocks for potential CFR land development such as commercial tree plantation development[1]
• Use the tourism strategy to prepare a list of CFRs and blocks within these CFRs where ecotourism development could be licensed
• Forest dependent communities adjacent to the forest shall receive special consideration in the procedure for obtaining land in CFRs
NFA, 2005. Guidelines for Land Allocation in Central Forest Reserve (2005) ↩︎