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Free, open competitive bidding procedure

by Florence Wickramage

The Government has approved a Forest Department programme for private sector participation in harvesting timber on state-owned commercial forest plantations.

Conservator General of Forests Sarath Fernando explained this is the initial step to assess the interest and efficiency of the private sector in managing state owned forest plantations. Participation will be through a free and open competitive bidding procedure for areas of standing timber plantations under government supervision, he said.

The State Timber Corporation's (STC) monopoly of harvesting from state owned plantations would be phased out over three years. Fernando said the free and open competitive bidding procedure will be introduced in 2003 while guaranteeing a special allocation to the STC up to year 2004.

At the end of 2004, STC's special allocation of harvesting rights will be reviewed to enhance private sector participation. The STC will have to face a competitive environment with the private sector at the conclusion of the grace period.

As a pilot project, the Forest Department will offer 600 hectares of Dry Zone teak plantations in 2003 and 2004 to the private sector. These plantations will be reforested immediately after harvesting. Based on the success of this procedure, all future harvesting operations will be subjected to free and transparent competitive bidding from 2005.

The programme will be initially implemented in Anuradhapura, Kurunegala and Puttalam districts, Fernando said.

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