Wild sandalwood contracts now open for tenders

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Image credit; www.fpc.wa.gov.au

Acting Forestry Minister Colin Holt announced that contracts for new processing, sales and marketing arrangements for wild Western Australian sandal wood are now open for tender.

Image credit; www.fpc.wa.gov.au
Image credit; www.fpc.wa.gov.au

The request for proposals was launched following a review and restructure of future commercial arrangements for the wild WA sandalwood industry.

According to the Minister, proposals are being sought in three areas, including: contract(s) of sale for the purchase of sandalwood suitable for oil extraction; service contract for a sales and marketing agent for sandalwood; and service contract(s) for the processing, warehousing and despatch of sandalwood.

“A modified industry structure has been developed through extensive industry and stakeholder consultation and ensures market stability, opportunities for new entrants and prioritising of regional investment,” Mr Holt said.

The Minister also maintained that the State Government is particularly interested in promoting involvement by Aboriginal and regional communities in the industry.

“Under the new industry structure, criteria weightings place emphasis on Aboriginal, regional and local content components of contract arrangements,” Mr Holt stated, adding that a briefing for potential participants will take place at 2pm on 29 January at the Department of Agriculture and Food WA’s head office in South Perth.

“Existing contract agreements for the processing, sales and marketing of wild WA sandalwood end on June 30, 2016.”

Proposals close on March 23 and will be assessed by an independently-chaired panel which will make recommendations to the Forest Products Commission.