The Rainforests of Cameroon - PROFOR

APPENDIX 4Bidding Systemfor Harvesting RightsThe bidding process involves two stages, the first of which is the technicalevaluation. Financial offers are considered only from bidders thatmeet or exceed the minimum technical requirements. The formulafor determining the winning bid is (technical score × 0.3) + (financialscore × 0.7).There has been sharp debate on the effects of the 70:30 weightingratio given to financial and technical scores. Two arguments favor assigninga heavy weight to the financial offer. First, adequate thresholds inthe technical qualification criteria ensure that all operators participatingin the auction are fully technically qualified. Second, the comparison offinancial values is simple and straightforward, offering the best guaranteesof objectivity.Would a weighting ratio that gives more importance to technical criteriaresult in lower financial offers? It probably would not, because bidderswould still try to maximize their chances of success by making higherfinancial offers.In that case, would the weighting system favor wealthier and non-Cameroonian firms? Yes. There is a trade-off between efficiency and wideraccess to the resource. Delivered Even by so, The a number World Bank of e-library domestic to: operators have hadThe World Bankwinning bids in the auctions, IP and : 192.86.100.34 some UFAs are earmarked for biddingby Cameroonian firms only. Mon, Medium-size 09 Nov 2009 17:06:18 domestic firms also appear tohave formed more partnerships with larger foreign firms to deal with thehigher costs and meet the requirements for participating in the auctions.145(c) The International Bank for Reconstruction and Development / The World Bank