Call for Expressions of Interest for
Iwokrama Timber Harvesting Operations

25 October 2004

Introduction

• This call seeks expressions of interest from companies wishing to work in partnership with the Iwokrama International Centre for Rain Forest Conservation and Development in the establishment of a sustainable timber harvesting and processing operation in the Iwokrama Forest, Guyana, South America

Background

• The Iwokrama International Centre for Rain Forest Conservation and Development is an international programme working in Guyana to show how to sustainably use and conserve tropical rain forests. The Centre has embarked on partnerships for businesses in tourism and training and is working with several conservation organizations to develop effective monitoring and management programmes in the Iwokrama Forest in central Guyana
• The Iwokrama Forest is located in Region 8 approximately 340 km from Georgetown and is accessible by the Georgetown – Lethem road, 72 km of which, passes directly through the Iwokrama Forest.

Purpose and Preferred Option

• Iwokrama will develop a sustainable (social, ecological, cultural and economic) timber harvesting operation within the Iwokrama Forest
• This operation will provide models for the development of sustainable harvesting systems in Guyana and the world’s tropical rain forests
• Consequently, the operation will follow international best practices for minimizing social, environmental and cultural impacts and will be designed to be economically sustainable
• The preferred option for the proposed timber operation would entail the location of an operation in the Iwokrama Forest that harvests, mills, dries and dresses timber but prospective partners are encouraged to put forward other options.

Business Structure and Fees

• To develop the harvesting operation, Iwokrama will work in partnership with national and/or international private sector companies and local communities
• The Centre envisages entering into joint ventures or direct concessions under strict operational controls, but interested parties are encouraged to propose other forms of business relations. Initially, the centre is interested in a single partner to develop the timber project but may be engaging several other partners in the future

• The partnership is intended to bring together the distinct capacities of private sector, local communities and Iwokrama to produce a best practice model for timber harvesting which concentrates on adding value locally
• The operations will involve local communities in general operations an d ensure benefits and responsibilities are equitably shared with local people and so minimize negative social and cultural impacts
• The private sector partner is expected to bring harvesting and processing expertise and equipment, access to markets, and investment and working capital to the partnership
• Iwokrama expects to charge fees that may include an annual fee, stumpage fees and technical services fees; the final financial arrangements will depend on the structure of the business relationship and Iwokrama will consider other benefits sharing options including profit sharing.

Technical Information

• The Centre expects to harvest of up to 15,000 cubic metres of logs annually but it is expected that the operation will initially harvest 6,000 cubic metres of logs to be processed using mobile mills.
• Iwokrama has already developed a draft Management Plan and a draft Environmental Impact Assessment and is currently finalizing operational harvest inventories for the first 600 ha block of forest. In addition, a preliminary 5 year road plan for the harvesting operation has been completed.
• Preliminary inventory results indicate:

 

• The new timber operations will be managed under a GFC approved forest management Codes of Practice and regulations and the guidelines contained in the approved EIA and accompanying permits.
• The timber operations will also be certified under the national forest certification programme consistent with the Forest Stewardship Council and the guidelines of the International Tropical Timber Organization.

Timescales and Contacts

• Expressions of interest should be submitted either by e-mail to Dane Gobin or three copies by mail by 6th December 2004 to:

“Expression of Interest - Timber”

Dane Gobin

Director of Finance and Operations

77 High Street

Georgetown , Guyana

• Queries relating to this call can be resolved through discussion either with Mr. Dane Gobin or Dr. Graham Watkins at:

592-225-1504 (Tel.)

592-225-9199 (Fax)

gwatkins@iwokrama.org

dgobin@iwokrama.org

Format for Expression of Interest

• Expressions of Interest must be written in English, should not exceed ten pages and should include the following information:
• Complete contact details of the potential partner
• Description of the proposing organization, including
• Type of business – sole proprietorship, partnership, corporation etc
• Brief history of the organization
• Current activities of the organization - timber volumes harvested and processed, size of current concession, products and markets
• Description of the proposed partnership including value adding activities and the location of any proposed or existing manufacturing facility
• Description of any certification activities currently being undertaken or completed
• A preliminary financial plan for the partnership including available initial investment funds, cost structures, and key assumptions
• A preliminary time frame for the development of the partnership
• Iwokrama undertakes to use its best endeavours to maintain confidentiality of any information submitted and will contact selected companies after reviewing the expressions of interest for more detailed discussions and proposal development
• Expressions of interest will be considered by the Iwokrama Management Committee and feedback will be provided by 20th December 2004.
• Final proposals for business relations will be considered at the January Board of Trustees meeting in Guyana.

Additional Documents

• For further details and information please visit these links:
• Environmental Impact Assessment (revised 12th December 2004; .pdf 4MB )
• Iwokrama Business Plan (.pdf, 25 MB)
• Iwokrama Summary Report 1998 ~ 2002
• Iwokrama Summary Report 2002 ~ 2003