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Key Findings
IntroductionForest sector planning and management policies can help ensure long-term yields of timber products while minimizing the environmental and social costs of logging and other development. However, in many countries the lack of transparency and accountability in the forest sector often prevents their application. For instance, until 1997, logging concessions in Cameroon were allocated on a discretionary basis that did not ensure either adequate rent capture by the government or logging companies’ technical and financial means to carry out their operations. The lack of these elements resulted in substantial loss of revenue for the government and unnecessary environmental damage.7 When Cameroon introduced groundbreaking forestry legislation reform in 1994, followed by an implementation decree in 1995, it became the first country in Central Africa to plan concession allocation through open competitive bidding. The first round took place in 1997, but reported irregularities have hampered the forestry sector ever since. In an effort to increase transparency, an independent observer was appointed by the Government following a transparent selection process to monitor future allocations.8 Five types of permits grant logging rights in Cameroon. Exploitation permits and Autorisation de récupération are short-term volume-based logging titles reserved for nationals. Ventes de coupe are 2,500-hectare permits allocated for 1-3 years. Concessions (subdivided in Unités Forestières d’Aménagement) are large long-term titles. Licenses are medium-size to large logging titles, but they are no longer allocated or renewed. Some licenses, predating the new forestry code, are still valid but will expire soon. Further, Cameroon is the first Central African country to introduce community forests. Community forests are forest blocks of up to 5,000 hectares whose management is entrusted to local communities, with benefits accruing to them. Cameroon's new forestry legislation is now being implemented by the recent allocation of new ventes de coupe, Unités Forestières d'Aménagement (UFA) and community forests. This document presents information on how these different logging rights were allocated in recent months and to whom. It is concurrent with the Global Forest Watch Cameroon mandate to make such information widely available to national and international audiences. Our assumption is that by promoting transparency and accountability in the forest sector, we can help ensure that Cameroon’s forest resources are managed in the public interest. About the Bidding Process
In all, 103 ventes de coupe were to be allocated in 1999, although less than one-half were actually distributed.10 Eighty-five were placed on the auction block in January 1999,11 and in October 199912 the government announced that 54 ventes de coupe had been allocated. Subsequently, seven were canceled because the bidding companies were unable to meet their financial obligations or failed to sign the final documents (see Table 1). Forty-seven ventes de coupe were therefore successfully allocated in 1999, leaving 5613 ventes de coupe from 1999 to be allocated in 2000 (see Figure 1). They were placed on the auction block in October 2000 (see Table 2). Delays and confusion concerning the nextc allocation of ventes de coupe may be the result of the preparation of a new arrêté14 that grants preemption privileges to community forest projects when they overlap with ventes de coupe.15
(a) 1996-97: The first round of UFA allocations In 1996, seven UFAs were allocated through a discretionary process, without being subjected to competitive bidding. In 1997, 26 UFAs were placed on the auction block for Cameroon's first competitive concession allocation, but the process was undermined by several irregularities. Among the 26, 2 were not allocated and one was ultimately revoked. Prior to June 2000, then, 30 UFAs with temporary logging contracts were scheduled to expire at the end of 2000. According to sources within the Ministry of the Environment and Forests (MINEF), several of them will probably not be renewed for a final long-term contract because many of the companies holding these UFAs failed to meet stipulations spelled out in their contracts. (b) June 2000: The second round of UFA allocations The Ministry of the Environment and Forests planned to allocate the following areas over the next three years, as spelled out in the 1999 planning document, Planification de l'Attribution des Titres d’Éxploitation Forestière:16
The second round of UFA allocations was originally announced in December 1999.18 Various procedural problemse delayed the start of the selection process until June 2000. Technical analysis of the bids was carried out until July. The financial bids opening session was public and the final results (see Table 3) were published by the Government in mid July 2000. An independent observer19 was appointed to document this allocation process. He reported that despite great improvements since 1997, the June 2000 UFA allocation suffered from:
It should be noted that the June 2000 auction and the planned September 2000 auction differed from the plan set out in the original Plannification de l’Attribution des Titres d’Exploitation Forestière in terms of which and how many UFAs were to be allocated in 1999-2000.21 But the World Bank, which has been influential by helping Cameroon implement its new forest policy through structural adjustment lending, claims that these irregularities are insignificant so long as the overall areas allocated on a yearly basis fall within the range of the document's plans, which they do so far. The UFAs originally set out to be allocated in 1999-2000 were not selected to take into account the vulnerability of unallocated forestland. The June 2000 UFA auction attempted to rectify this situation by allocating UFAs that were easily accessible and, therefore, were at risk from illegal logging.22 (c) Forthcoming: The third round of UFA allocations In July 2000, the Ministry also announced that 21 new UFAs were available for allocation (see Table 4). This offer is open to all logging companies registered in Cameroon. The minimum bidding price is at 1,000 CFA francs per hectare. Applications, including a financial and technical proposal, were originally due by September 15, 2000,23 but as of December 2000, this auction had been postponed as a result of the Government's decision to fine-tune the technical criteria in light of the June 2000 allocation.24
Community forests are part of the nonpermanent forest domainf and are established through a management contract between the local community and MINEF. Under the terms of this contract, MINEF offers its technical expertise to help manage the forest resources in the interest of the community. This agreement is valid for 5 years and may be renewed.25 Requesting and obtaining a community forest may be a long and complex process, especially for distant rural communities that are often unfamiliar with urban bureaucratic procedures. In short, local communities must submit a proposal to MINEF. Once it has been accepted, a management plan must be elaborated and a contract is then signed. To date, MINEF has granted 2 community forests in 1997 and another 5 in 2000 26 (see Table 5) and has received proposals for an additional 74. Thirteen of these proposals are likely to be approved soon, 39 are reserved for communities finishing their management plans, 11 proposals are incomplete, and 11 were rejected because they were located in the permanent forest domain, where community forests are not permitted.27 It should be noted that there are no deadlines to request community forests and the numbers evolve constantly. The allocation of ventes de coupe and UFAs is determined by a governmental body called the commission interministerielle d'attribution des concessions forestières. It includes representatives from different ministries (e.g., Environment and Forests, Economy and Finance), specific departments of the Ministry of the Environment and Forests, unions, experts called on an individual basis, and an independent observer. The selection criteria and procedures are ruled by Arrêté 0293/MINEF dated March 21, 2000 (see Annex 1). These criteria considered the following: investments, financial capacity, technical capacity, and respect for both prior commitments and the environmental legislation. A technical score and a financial score were given. The financial score was calculated by the following formula: financial bid x 100 / highest financial bid offered for that particular UFA or vente de coupe.28
Technical scores were awarded out of a possible total of 120 points, and scores above 72 were required to qualify for the bidding process. The minimum bidding price was set at 2,500 CFA francs per hectare. The following formula was used to determine the winner for each vente de coupe: (technical score x 0.2) + (financial score x 0.8).29 The next allocation of ventes de coupe is open to all logging companies registered in Cameroon (in theory, some earlier allocations were to be reserved for Cameroonian nationals). The minimum bidding price is 2,500 CFA francs per hectare. According to MINEF, the selection scoring system is to be harmonized to match that of the UFAs.30
Technical notes were scored out of a possible 100, a score of 55 or below resulting in disqualification (see Annex 1 for details on technical criteria). In the past, companies were required to pay only a small fraction of their financial offers, but this time the government required them to pay their full offers within the first year. As an accompanying measure, the base price for the financial bid was reduced from 1,500 CFA francs per hectare to 1,000 CFA francs per hectare. The following formula was then used to determine the winner of the bidding process for each UFA: (technical score x 0.3) + (financial score x 0.7).31 The World Bank favors the 3:7 ratio for the technical and financial score although reportedly the government and the private sector would prefer a more balanced ratio whereby technical scores factor more heavily.32 The companies awarded UFAs had 45 days to pay the bidding price, but the deadline was extended at the request of bidders to September 30.33 If companies failed to meet this deadline, the concession was to be awarded to the second company on the bidding list. Allocation Results
The 47 ventes de coupe, awarded in October 1999, covered 117,500 hectares. The Est, Centre, and Sud provinces each encompass about one-quarter of the allocated ventes de coupe. Ventes de coupe represented less than 7 percent of the new concession area allocated between 1999 and 2000. The Cameroonian government theoretically received 506 million CFA francs (US$648,000) per year through the open auction allocation. The average winning bid was 4,296 CFA francs per hectare, ranging from 2,800 to 10,500.
Table 1 shows the outcome of the 1999 ventes de coupe allocation. Most companies obtained only one vente de coupe, but eight companies received two. Notable among the eight was the Société Forestière Hazim (SFH), which made the highest bid per hectare at 10,500 CFA francs per hectare. SFH was excluded from the June 2000 UFA auction because it had been sanctioned by the government for illegal logging.34 Table 6 shows how Cameroonian companies fared compared to foreign companies. The latter were awarded 47 percent of the ventes de coupe area. On average Cameroonian company bids were slightly higher than those of foreign companies, except for the Lebanese and the Belgian-owned corporations. Seven of these ventes de coupe were originally reserved for Cameroonians but were eventually allocated to foreign companies.35
Forty-nine companies entered the auction during which 28 UFAs were scheduled to be allocated,36 but 4 UFAs received no bids, and 3 UFAs were bidden on by companies that were ultimately disqualified. 20 companies received 21 UFAs,37 covering almost 1.7 million hectares or 638 percent of Cameroon’s 22.8 million hectares of primary and secondary forests. Today, 17 percent of these forests are under a valid logging concession, and an additional 15 percent are planned for allocation in the next two to three years.39 Abandoned, current and planned concessions cover at least 71 percent of Cameroon’s forests.40 As a result of this bidding process, the Government of Cameroon is expected to generate more than 5.1 billion CFA francs (US$6.6 million) per year from the winning bids.41 In 1997, it received only 1 billion CFA francs (US$1.6 million)42 from the first UFA allocation. In 1997, the bids ranged from 400 to 5,000 CFA francs per hectare, but the range was 1,100-7,500 in 2000. The winning bids averaged 3,438 CFA francs per hectare up from 1,026 CFA francs in 1997, indicating logging companies’ high interests in access to forest resources. The fiscal law for 2000-2001 stipulates that bidding revenues are to be shared among the government (50 percent), communes (local administrative units) (40 percent), and local communities (10 percent).
Table 3 details the bidding process for all the UFAs allocated at the June 2000 auction (also see Map 1 [PDF download]). Companies awarded contracts are highlighted in yellow. Almost one-quarter of the UFAs allocated had only one bidding offer. As of October 10, 2000, three companies had failed to fulfill their bid obligations and "their" UFAs were allocated to the second highest bidder. INC was replaced by SCTCB for UFA 08.008, Ingénierie Forestière by SFIW for UFA 10.022, and Sofopetra by SN Cocam for UFA 09.015. The three new companies had until October 15, 2000, to pay.43 As of December 2000, all the companies appear to have fulfilled their financial obligations and secured temporary contracts with the government for their newly acquired UFAs. Ingénierie Forestière made the largest bid per hectare, accounting for the largest financial offer in this bidding round, and claimed the fifth biggest area (see Figure 1 and Figure 2 and Table 7). This company was created in 1998 and was mainly involved in log transport until this year. Ingénierie Forestière retracted its offer for UFA 10.022, which was subsequently awarded to SFIW, allegedly a partner of the Société Forestière Hazim. Reportedly, SFH will conduct logging operations for SFIW in UFA 10.022 and for Ingénierie Forestière in UFA 10.020.44 If so, SFH, which was barred from obtaining new concessions in 2000 because of its documented illegal practices, may still be operating in new concessions this coming year. Given the size of Ingénierie Forestière's current holdings, ownership information on this company is relevant. Government records show Ingénierie Forestière under the ownership of a Mr. Mataga and Mr. Rocher. But according to several sources within the Cameroonian NGO and the donor community, Ingénierie Forestière is ultimately controlled by a high-level political figure, who may have had previous ties to the timber industry, reportedly owning shares in another logging company, COFA. (As Table 8 indicates, the government recently fined COFA for logging outside its annual cutting area and prohibited its participating in the June 2000 UFA auction).45 Ingenierie Forestière has denied such links.46 The largest area allocated in this bidding round, 146,000 hectares, went to Cambois, a subsidiary of the French Rougier group. With its other subsidiaries, Rougier received almost 329,000 hectares of concession area during this auction. It leads in terms of total area allocated to a multinational group in June 2000, followed by Thanry, and Bolloré (see Figure 3). All three are French groups with a long history in the region. However, several experts have indicated that VicWood, a Hong Kong corporation, may now be among the largest shareholders of the Cameroonian subsidiary of the Thanry group.47 The top three concession owners in Cameroon are now Thanry (792,000 hectares), Rougier (400,000 hectares), and Bolloré (354,000 hectares), totaling almost 40 percent of Cameroon’s concession area (see Table 9). If SFH’s alleged partnerships with Ingénierie Forestière, SFIW, and SFDB are true, in terms of companies actually engaged in timber extraction (subcontracting as well as owning concessions), Société Foretiére Hazim may now have access to the fourth largest concession area (350,000 hectares) in Cameroon.
Technical scores of companies participating in the June 2000 auction averaged 80 out of 100. One-half of the winning bidding companies scored below average, with scores ranging from 64 to 99. The highest technical score of bidding companies averaged 87 out of 100, ranging from 78 to 99. Only four of the winning bidding companies scored 87 or better. When there were multiple bids on a concession, most winning companies ranked low on the technical score. (Only two winning bidding companies ranked first technically, and six were last or second to last when there were at least three bidders). Eight companies48 with active sawmills or sawmills in construction received a concession during this round. In the wake of instituting the first log export ban in Central Africa, Cameroon’s government is actively trying to promote its national timber processing industry. However, there are some indications that in doing so, Cameroon may be risking the creation of a processing capacity higher than what can be legally and sustainably harvested given the limited number of species in commercial demand.49
The five community forests allocated in 2000 cover 16,532 hectares. According to the Soutien au Développement Durable de Lomié project,50 it costs approximately 500,000 CFA francs for local communities to prepare a proposal requesting a community forest. The five communities awarded forests this year spent a reported combined amount of 4.5 million CFA francs, which also included the elaboration of management plans and basic maps.51
Table 10 shows both the five communities awarded community forests in Cameroon in 2000 and the first two community forests granted in 1997. Progress in Implementing Concession Allocation GuidelinesMINEF plans on developing a permanent forest domain of 7 million hectares.52 The area under a valid logging contract in 2000-2001 increased to 4.1 million hectares, up from 4 million hectares in 1998/99.53 Note that the net area increase is small owing to the fact that new concession allocation was balanced out by official expiration of several logging titles (ventes de coupe and licenses). The concession area dropped to 2.6 million hectares in 1999-2000 because, following the controversial 1997 allocation, no UFAs were allocated until a clearer mechanism was put in place in 2000. The vast majority of forest concession area is under an Unité Forestière d’Aménagement, and community forests represent less than 1 percent of the total (see Table 10). It should be pointed out that the areas discussed in this document account only for formal agreements between logging operators and the Cameroonian government regarding areas open to logging over time, not to areas that are currently logged. Some concession land may never be exploited because of poor access or excessive costs. In addition, this study does not account for areas illegally harvested by small- to large-scale operators and, as such, underestimates the actual extent of logging in Cameroon. Considerable progress has been made in implementing logging concession allocation regulations since the new law was passed in 1994. The first UFA auction held in 1997 resulted in 21 concessions that were not awarded to the highest bidder.54 Following complaints from donor organizations, from within the Cameroonian government, by the private sector, and by NGOs, more clearly defined guidelines were applied during the 1999 allocation of ventes de coupe. The independent observer’s report showed that the technical criteria were still open to misinterpretation. The rules were revised once again to ensure that no ambiguities remained. At first glance, the 2000 UFA allocation seems to have respected the allocation guidelines, demonstrating Cameroon’s ability to implement a complex market-based auction aimed at increasing rents captured from logging. Several unanswered questions about the June 2000 UFA allocation remain:
In addition to these questions, other issues indicate that Cameroon’s forests may still be at risk from questionable enforcement of the law. For instance, there is evidence that SEFAC and SEBAC are interested in obtaining and logging UFAs 10 008 and 10 00960 and that SAB and SEBC are interested in UFAs 10 005 ands 10 017.61 The government of Cameroon found these companies to be involved in illegal activities and barred them from participating in the June auction round. However, three of these UFAs were not scheduled to be allocated in June 2000.62 According to "Décision ministerielle fixant les modalités d'évaluation des engagements antérieurement pris," SEFAC, SEBAC, SAB and SEBC should be allowed to participate in future allocation rounds one year after their fines are paid. Hence, some may question the practicality of punishing these companies by excluding them from bidding on UFAs that they are probably not interested in anyway.63 Despite these lingering questions, the Government of Cameroon has demonstrated a commitment to enforcing legislation on concession allocation in the face of corporate pressure and lost revenues. Two examples illustrate this point:
ConclusionCameroon is moving ahead rapidly with the allocation of remaining unprotected and productive forestlands. In recent allocations (covering 1999-2000), the government has demonstrated a commitment to implementing elements of its new forest policy, in particular, those provisions relating to an open auction system whereby concessions were awarded to the highest bidder, with technical capacity as a factor. Unlike the first UFA allocations of 1997, which were fraught with irregularities, the June 2000 UFA allocations appear to have respected guidelines set out to regulate the process. In addition, similar guidelines are now being applied to smaller ventes de coupe, which were previously granted outside the auction system. These steps can help generate higher government and local communities revenues for forest resources. The effectiveness of these policies is borne out by the fact that the June 2000 UFA allocations generated approximately three times more revenue per year per hectare of forest concessions than the 1997 round of allocations. The recent allocation process raised questions about the ability (and willingness) of some recipient companies to implement management regulations—to be good stewards of the forest—given their track records. As noted above, although some companies sanctioned for past illegal logging were excluded from the bidding process, others were allowed to participate. In addition, allocation regulations do not preclude companies with a track record of violating laws from subcontracting out to successful bidders in order to harvest their concessions. Although several new players have emerged as major operators in the logging sector (notably Ingénierie Forestière), a small group of largely French-owned parent companies continues to dominate the industry. However, Cameroonian companies hold a slim majority of newly allocated ventes de coupes, and local populations are now empowered to manage their own forests, however small, with five new community forests allocated in 2000. Annex ICriteria for the technical ranking of bidding companies used for the June 2000 UFA allocation. (From Arrêté 0293/MINEF/DU fixant les critères de sélection et les procédures de choix des soumissionnaires des titres d'exploitation forestière.) ARTICLE 12 - (1) La répartition de la cotation affectée au critère ayant trait aux investissements existants ou programmés pour les ventes de coupe et pour les concessions forestières est fixée ainsi qu'il suit: Pour les concessions forestières:
ARTICLE 13 - La répartition de la cotation affectée au critère ayant trait aux capacités financières est fixée ainsi qu'il suit Pour les concessions forestières:
ARTICLE 14 - La répartition de la cotation affectée au critère ayant trait aux capacités techniques et professionnelles est fixée ainsi qu’il suit: Pour les concessions forestières:
ARTICLE 15 - La répartition de la cotation affectée au critère ayant trait au respect des engagements antérieurement pris est fixée ainsi qu’il suit Pour les concessions forestières:
Annex 2This document was given to Nels Johnson for WRI's internal review and to the following external reviewers: Alain Chaudron, Yvan Cusson, Laurent Debroux, Louis Djomo, Klaus Mersman, Parfait Mimbini, Roger Ngoufo*, Dieudonne Nguele, Filip Verbelen* and Ursule Zang. An asterisk denotes a reviewer who was unable to comment on the document. The external reviewers are associated to donor agencies, Cameroon’s government, and civil society, but acted in their personal, not institutional capacity. The external reviewers’comments were submitted by email to the authors or during meetings held in Cameroon with the authors. Overall, the paper was well received in its original format. Most comments helped reshape the structure of the document, provide more accurate factual information on the concessions allocated, and consolidated the conclusion. Unfortunately, the reviewers, despite comments that our map was still incomplete provided no new geographic information on the location of concessions to us. We expanded our geographic data set through recent digitizing work by one of Global Forest Watch Cameroon’s partner, Cameroon Environmental Watch, and through new World Conservation Monitoring Centre data. Reviewers felt the document lacked a few details important for people not familiar with Cameroon’s forest sector. In response, the authors provided more general explanations on the history and the mechanisms of today’s concession allocations. A "key findings" section was also added. Reviewers noticed some inaccurate information regarding the size, the owners and the numbers of logging permits allocated in 1999 and 2000. In response, the authors obtained new documents and updated the information presented. In cases, where inconsistencies still remained, individual reviewers were contacted for additional clarification. Overall, the data presented here tries to reconcile a series of official documents that are, at times, conflicting. Reviewers felt some of the "unanswered questions" in the conclusion were incomplete, not objective, or had answers. In response, the authors modified the conclusion deleting some unanswered questions and providing more details on others to present a more objective perspective. New text was drafted to prevent the document from ending on open questions, and to provide more general concluding statements. Notesa A type of logging
permit. 1 This 6 percent
represents 1.4 million hectares, but is actually an
underestimation because the calculation only accounts for
mapped UFAs. A few UFAs and all ventes de coupe were
not counted in this calculation. In addition, the area
calculation is based on spatial (GIS) data whereas the areas
discussed in this document are based on reported area by the
government.
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