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questions and answers on forest concessions

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president of the republic luiz inácio lula da silva vice-president of the republic josé alencar gomes da silva minister of the environment carlos minc executive secretary izabella mônica teixeira brazilian forest service director-general antonio carlos hummel brazilian forest service s board of directors antonio carlos hummel cláudia de barros e azevedo-ramos josé natalino m silva luiz carlos de miranda joels thais linhares juvenal graphic design and layout development raruti comunicação e design photography brazilian forest service archives bento viana edited by ministry of the environment brazilian forest service

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public forests always public forever forests this handbook was developed by the brazilian forest service team based on queries that have been submitted to us by people who are interested in learning more about forest concessions it gathers the 25 most frequently asked questions which we attempted to answer clearly and directly this material is not intended to clarify each and every doubt over the topic of concessions on the contrary we expect this handbook to be used above all to expand channels of communication with the brazilian forest service our team s efforts are towards conciliating the sustainable use and the conservation of brazilian public forests we are aware however that we will only succeed in such commitment if we maintain mechanisms of transparency in our actions and effective popular participation information is the key for this process brazilian forest service

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credits president of the republic luiz inácio lula da silva vice-president of the republic josé alencar gomes da silva minister of the environment carlos minc executive secretary of the ministry of the environment izabella monica teixeira brazilian forest service director-general antonio carlos hummel photography bento vianna arquivo serviço florestal brasileiro arquivo ift instituto floresta tropical graphic design and layout development raruti comunicação e design 2

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questions and answers on forest concessions sumary 1 what is the difference between forest concession and forest privatization 2 which economic activities may be included in a forest concession 3 which economic activities are not allowed in a forest concession contract 4 what is forest management 5 what is the difference between management unit and concession lot 6 what criteria are involved to establish the size of the management units 7 is it possible to suggest areas for forest concession 8 how can traditional communities based in the outskirts of concession areas have ensured access to traditionally used forest resources 9 how are the forest resources traditionally used by neighboring communities acknowledged 10 what is the provision for direct socially responsible activities outside the forest concession area 11 what are the guarantees that the local population will be trained as a source of human resources for job posts generated by the forest concession 12 how can society interfere in the forest concession process 13 is there a differentiated treatment for small companies or cooperatives in the bidding process for forest concessions 14 during the bidding process for concessions how is the division between technical and price criteria established 15 what are classifying eliminating and bonus-granting indicators in the bidding process of a forest concession 16 what is the maximum reduction in forest concession prices concessioners may obtain through bonuses 17 what is the basis to define prices for resources or services obtained from concessions and how are they readjusted throughout the term of contract 18 how are the resources obtained from forest concessions shared 19 what can resources from concessions be used for and how can society interfere and monitor such use 20 why are the terms of forest concession contracts so long up to 40 years 21 when are the security deposits pledged by concessioners used and what happens to them at the end of the contract 22 why are timber and non-timber products and services included in the same call for tenders 23 in order to participate in the bidding process is it possible to form a consortium are there limits for the number of companies in each consortium 24 are concessioners allowed to build sawmills and other processing facilities within conservation or management units 25 como será feita a fiscalização das concessões para garantir a qualidade da floresta que será entregue ao final do processo de concessão florestal 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 20 22 24 25 27 28 29 29 30

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1 what is the difference between forest concession and forest privatization forest concession is the right the federal or state government grants to individuals upon a tendering and/or bidding process known as licitação in portuguese to exploit products and services in a certain public forest upon payment for the use of such products and services and with the duty to practice sustainable forest management under rules established by the government and for a period of time clearly defined in contract the forest concession does not imply the transfer of ownership of the land in this case the forest remains a public asset forest privatization is the process of selling a public area that belongs to the government to an individual who becomes the owner of the land property and of all the rights to exploit the forest in this case the forest becomes a property of the one who purchased it 4

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questions and answers on forest concessions 2 which economic activities may be included in a forest concession some of the resources that may be exploited are trees to produce timber non-timber products oils fruits resins ornamental plants medicinal plants etc and residual lumber material from exploitation activities forest services such as ecotourism including accommodation visits sightseeing wildlife watching and adventure sports may also be explored in each management unit only the activities established in contract may be carried out in the forest concession area 5

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3 which economic activities are not allowed in a forest concession contract concession contracts shall never include access to genetic heritage for research and development bio-prospecting or collectionbuilding purposes use of water resources above the limits considered insignificant pursuant to law no 9,433 of january 8 1997 exploitation of mineral resources exploitation of fishing resources or wild animals trade of credits arising from avoided carbon emission in natural forests these activities comply with respective specific regulation traditional and subsistence products used by local communities shall also be excluded from the forest concession 6

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questions and answers on forest concessions 4 what is forest management forest management is the use of forests in a planned manner in order to obtain economic social and environmental benefits respecting its recovery and functional capacities sustainable management includes the use of multiple products and byproducts from timber and non-timber sources as well as the use of other natural forest products and services causing the least possible impact in forest management there is no clearing of forest areas under any circumstances forest exploitation complies with cutting or exploitation cycles whose purpose is to conserve the forest capacity for recovery or rehabilitation in environmental terms good management contributes to maintaining forest form and function as close as possible to their original state hence the forest continues to perform essential ecological services such as protection of the soil against erosion conservation of water quality maintenance of biodiversity among others 7

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5 what is the difference between management unit and concession lot the management unit is a perimeter located in a public forest subject matter of a forest management plan which may comprise degraded areas for purposes of recovery or rehabilitation by planting forest within a forest management unit there can only be a single concessioner concession lot is a set of management units to be granted as an ensemble upon a bidding process the units may be adjacent or otherwise in a forest concession lot there will always be multiple concessioners 8

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questions and answers on forest concessions 6 what criteria are involved to establish the size of the management units the establishment of management unit sizes involves technical social and cultural economic and environmental criteria defined by specialists who consider the needs of the forest industry regional traits and structure of production chains local infrastructures and access to the markets in order to grant small and medium enterprises access to concessions lots shall comprise management units with different sizes the format and distribution of the units are discussed in public hearings before the call for tenders is made public 9

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7 is it possible to suggest areas for forest concession yes that is possible however it is necessary to verify if the area is in federal state or municipal public domain if it is a municipal or state area the suggestion to include it for forest concession must be submitted to the responsible state or municipal authority such authority will then consider the inclusion of the suggested area in its state or municipal annual forest concession plan paof planejamento anual de outorga florestal only the public forests included in such paofs can be subject to forest concessions during the period of effectiveness of the relevant plan if the area is in the federal domain suggestions can be submitted to the brazilian forest service at any time but that is advisable especially during the stage of development and public consultations on the paof in the first half of every year 10

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questions and answers on forest concessions 8 how can traditional communities based in the outskirts of concession areas have ensured access to traditionally used forest resources one of the basic principles that underpinned the elaboration of he public forest management law law no.11,284/2006 is the respect to the local population s right ­ especially local communities ­ to have access to public forests and to the benefits arising from their use and conservation hence in a concession area if there are products that are traditionally explored by the neighboring communities the continued right to collect and use such resources is ensured in this case the grantee of the concession must ensure the population access to the area so that they can continue carrying out their activities on the other hand communities must comply with the rules of access to the area especially the ones related to the safety of workers the concession contract specifies the products of local community use that are either excluded from the list of products the concessioner is allowed to explore or that have special restrictions of use 11

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9 how are the forest resources traditionally used by neighboring communities acknowledged before any area can be offered in a public bidding process a series of preliminary surveys takes place both to identify the existence of traditional populations in the area and the use these populations make of the forest these surveys are carried out in a participative manner in the case of conservation units protected areas such traditional use is usually indicated upon development of the unit s management plan if the community understands that a product was not identified as of traditional use they may request that it is included in the list of such products and that restrictions are imposed or even that the concessioner is excluded from using the product in question such request may be submitted during the public consultations that occur before the call for tenders is published all demands will be thoroughly assessed by the brazilian forest service 12

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questions and answers on forest concessions 10 what is the provision for direct socially responsible activities outside the forest concession area the forest service proposes to foster the synergy between forest activities in concession areas and community activities this interaction enables the consolidation of a strong forest economy able to generate job posts income and development allied to the conservation of forest resources thus whenever there are communities near concession areas activities to support forest management by these communities are also developed 13

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