This report reviews the types of contracts used in the management of public forests. Agreements for forest utilization are analysed along with contracts for the acquisition of goods and services. The study illustrates the importance of an effective institutional and legal framework. The key elements to consider when awarding contracts are detailed, along with valuation, administration and ensuring the terms of the contract are fulfilled. Special attention is given to the importance of awarding contracts through a transparent and competitive process.

If sustainable management of tropical forests is to be accomplished and deforestation brought under control, the on-the-ground performance of existing forest concessions, along with the allocation of new concessions, will have to be strengthened. This study examines the failures of forest concessions and the loss of tropical forests due to mismanagement during the last two decades. It also emphasizes the potential gains resulting from strengthening the allocation, management, and supervision of concessions by concentrating on improving procedures, introducing performance incentives, and monitoring key performance elements.