The Minister of Natural Resources, Local Government and the Environment, John Briceño, earlier this week signed two long-term Forest Licenses with local companies, putting into place a strategy designed to promote economic viability whilst maintaining the integrity of the forest as a national resource.
The long-term sustainable forest licenses, awarded to Thomas Gomez and Sons Ltd. and Mr. Bartholomew Young, cover 97,000 acreage of the Deep River Forest Reserve and 65,170 acreage of Swasey/Bladen Forest Reserve respectively and span a period of 40 years.
These licenses require long-term investment and, according to the government, are more likely to lead to sustainability contrary to the short-term licenses, which left minimal onus on the licensee and proved detrimental to the longevity of Belize’s forest resources.
“The two local companies were selected after demonstrating both the capacity and interest in venturing in this for the long haul,” explained Minister Briceño.
"It allows a partnership with the department to promote economic viability while still maintaining the integrity of the forest," he added.
Under each license, a sustainable forest management plan must be approved and implemented. The license agreements call for strict environmental practices, sustainable management of timber and non-timber production and meeting other obligations. As part of the agreement, the companies will continue to forge a partnership with the Forest Department on various activities.
In addition, the Department is working at approving several other new long term forest licenses including management plans for the Maya Mountain North Forest Reserve, Sittee River as well as the private lands of the Yalbac Area.
A comprehensive report in our Intelligence Report series examining tax-sheltering arrangements for investors, including Forest Finance, Film Finance and Venture Capital, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report5.asp
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