Overview of the issues in planning a corridor tender process

A major project is being undertaken in Queensland to design how a market-based instrument in the form of a tender system can be applied to establish vegetation linkage zones across a biogeographic region. Broadscale tree clearing has contributed to the fragmentation of wooded areas in the Desert Uplands region of central-western Queensland. There is potential for one or more east-west vegetation linkage zones to be established in the southern Desert Uplands. This would require the voluntary involvement of landholders to manage relevant parts of their properties for both beef cattle and biodiversity outputs in return for financial payments. About 12 properties might be involved in a single linkage zone proposal. Under the tender process, landholders could submit proposals for their property in return for specified payment levels. The use of a tender process to call for linkage zone proposals is more complex than the standard use of tenders or auctions for biodiversity protection on individual properties. This is because landholders need to collaborate to form linkage zone proposals, but in ways that do not encourage collusive behaviour or holdout bids. As well, the bid assessment process, payment mechanisms, contracts, and monitoring and enforcement processes are all more complex when interdependence among landholders is considered. Other complexities relate to the difficulties of getting landholders involved in the bid submission process, and the mechanisms needed to support them. In this report, a summary of the issues involved in the design of a linkage zone proposal is presented, together with an overview of the process that will be undertaken to complete the project.