Título III. De las concesiones

INAB may grant concessions on State lands and for such purpose two categories are established:

1.Areas with forest.

2.Areas devoid of forest.

The INAB may grant in concession areas with forest to Guatemalan persons, natural or juridical, for the purpose of sustainable management of the forest being carried out. For this purpose, the Management Plan for the corresponding area shall obligatorily be in place.

INAB may grant under concession lands of forest vocation but devoid of forest to Guatemalan natural or juridical persons, for the purpose of such areas being reforested through regeneration. Every State entity, whatever its nature, is obligated to inform INAB about areas subject to its jurisdiction, and, once their forest vocation has been established but devoid of forest, INAB may grant them under concession to reforest them and to make sustainable use thereof, provided that the form of ownership permits this procedure.

The procedure for concession of the areas to which this article refers is subject to the prohibitions contained in Article 31 of this law.

Concessions on State lands, covered by or devoid of forest, shall be awarded by means of public bidding in accordance with the State Contracting Law and the prohibitions expressed in Article 31 of this law.

Concessions shall be granted under the following conditions and characteristics:

AREA: The area must have an extent that allows sustainable and productive management.

CONCESSIONAIRES: Only Guatemalan individuals or legal entities may be subjects of the award of a concession, provided that the latter have current legal representation.

COMMUNAL CONCESSIONAIRES: Under equality of conditions, INAB shall ensure that preference in the award of concessions is given to legally organized grassroots community organizations.

BOND: For the concession of land with forest, the concessionaire shall provide a bond underwritten by a national bonding company. The concessionaire may not carry out work in the concession until the corresponding bond has been received. The bond must cover the value of the standing forest of the species to be harvested in the next Five-Year Operational Plan to be developed, under the approved management plan, in accordance with Article 74 of this law. Another type of guarantee may be chosen, such as that established in subparagraphs b) and c) of numeral 1 of Article 56 of this law, provided that it covers the value of the bond.

In the event that, in accordance with this article, the concession is granted to legally organized grassroots community organizations, the bond may be a fiduciary bond from a non-governmental organization recognized by INAB, which in the documents granting the concession must appear as liable, joint and several and jointly, for compliance with the Forest Management Plan.

For the concession of land devoid of forest, provided it is for forestry use, establishment of the bond shall not be necessary.

NON-COMPLIANCE: In the event that it is proven that the concessionaire has failed to comply with the Concession Contract and has abused natural resources, the concession shall be terminated, with the bond being executed, without prejudice to the sanctions established by this law.

MONITORING: Upon granting a concession, INAB shall carry out periodic monitoring, which at a minimum shall be once a year, as well as a five-year evaluation.

OTHER CONDITIONS: The Regulation of this law must contain the procedure for the public offering, which must obligatorily be published in each case in at least the official gazette and in another of wider circulation, as well as on local radio in the area intended to be concessioned.

MANAGEMENT PLAN: INAB shall require in the terms of the public offering the Management Plan under which sustainable use of the area must be carried out; it shall form part of the concession contract. The Management Plan must include an environmental impact assessment and five-year operational plans.

TIME LIMIT: Up to fifty years, depending on the regeneration time of the forest.

VALUE OF THE CONCESSION: The regulation of this law shall establish the manner of determining the minimum value and form of payment of the concession for lands with forest. Of the amount obtained for each concession, fifty percent (50%) shall be delivered to the municipality or municipalities of the jurisdiction, as specific funds to be invested by the municipality or municipalities in forest control and surveillance programs; the other fifty percent (50%) shall go to the Private Forestry Fund of INAB.

In no case may the lands given in concession be subject, on the part of the concessionaires, to suppletory titling, usurpation or any other means or procedure aimed at acquiring the same in ownership.

Concessions shall be registered in the books that INAB shall authorize for such purpose and shall be entered in the respective Property Register.

The concession granted under the category of area devoid of forest shall pay twelve percent (12%) of the value of the standing timber of the established plantation, at the time of harvest, in accordance with Article 74 of this Law. This amount shall be distributed as fifty percent (50%) to the municipality or municipalities of the jurisdiction, as specific funds for forest control and surveillance. The other fifty percent (50%) shall pass to the Private Forestry Fund of INAB. The cost for the award of the concession shall be no other than that established in this Article.