River Murray Forest Project: tendering for biodiversity and carbon sequestrationThe need to actThe South Australian government has invested $5.7 million to help create a River Murray Forest (RMF) through the revegetation of large areas of cleared land. The aim is to establish 3,400 hectares of native vegetation for long-term habitat and biodiversity purposes that will also deliver carbon sequestration outcomes. The project will also contribute to climate change adaptation by re-establishing and re-connecting large areas of native vegetation.
The RMF uses a competitive tender process and the project signifies the implementation of new arrangements in South Australia. These include a market-based approach to environmental plantings and new administrative arrangements relating to carbon sequestration from reforestation on private land.
The project began in 2006, with three public tenders for plantings on private land now completed. A total of approximately 2,450 hectares (ha) has been commissioned for planting along with planting on an additional 200 ha of public land.
Project areaThe RMF project runs along the full extent of the River Murray in South Australia, aligning with the River Murray–South East NatureLink Corridor.
The project area is a low annual rainfall mallee environment dominated by sandy soils. Annual rainfall over most of the area ranges between 250–350 mm, peaking at 450 mm in the southern-most portion of the project area near Meningie. The low rainfall and sandy soils pose considerable obstacles to revegetation.
How the River Murray Forest project worksPublic tenders were conducted in three stages to build market understanding, build project engagement and to enable the tender process to evolve based on market feedback. This is a reverse auction system where the South Australian Department of Environment and Natural Resources (DENR) was the purchaser of the revegetation contracts and private entities were the bidders.
As the bids were assessed based on the tender assessment metric, this process is more economically and environmentally efficient and effective than a traditional grant system.There was a considerable amount of work and planning behind developing a tender assessment metric, a tender brief and contracts and agreements. This process included input from the Victorian Government’s Carbon Tender and EcoTender project team, representatives of the carbon sequestration and forest offset industry, revegetation service providers, the Australian Greenhouse Office and DENR staff.
The Stage 1 tender in 2007 was used as a pilot to test the market and was restricted to the area from Morgan to the Victorian border. The Stage 2 tender in 2008 covered an expanded area from Tailem Bend to the Victorian Border. The Stage 3 tender saw full implementation of the project along the whole of the River Murray and Coorong in South Australia. This deliberate and progressive shift south was to offset risks associated with low rainfall and drought conditions in the north.
Map 1: River Murray Forest project area
Tenders were assessed on the following criteria:
- biodiversity values—including regionally native vegetation species, species diversity, patch size, and distance from nearest remnant vegetation
- plantings will be within 20 km of the river (but not on the river floodplain)
- plantings will be compliant with Kyoto carbon forest standards
- the allocation of carbon rights split between contractor, landholder and the South Australian government
- the project will operate on a cost-sharing basis of 2:1 (project:contractor)
- value for money.
The contractor’s role included obtaining access to the land, landowner consent and support for the plantings. While the contracts for planting are between the government and a contractor, each site has a number of stakeholders and parties such as the contractor, landholder, bank (for mortgaged properties), state government and any sub-contractors used. The plantings principally involve direct seeding rather than tube stock (i.e. seedlings), as this is the most cost-effective method of large-scale revegetation.
Six contracts were awarded in Stage 1 (212 ha), five in Stage 2 (580 ha) and four in Stage 3 (1,650 ha). Each contract involves plantings staged over several years to allow for seasonal conditions and seed availability.
Plantings from all contracts in Stage 1 and four of the five contracts in Stage 2 are now complete. Plantings for the remaining contract from Stage 2 and two of the four contracts from Stage 3 will be completed in 2011. Plantings for the final two contracts from Stage 3 will occur over several years due to their large size.
The public tenders coincided with a period of severe drought, adding significantly to the existing obstacles to revegetation in the project area. The drought conditions greatly reduced the availability and viability of seeds and the performance of the plantings, leading to postponement of planting programs. This added considerably to the risks and costs associated with the plantings and raised the price of bids.
Site protection and securing carbon rightsThrough the RMF project, the first Forest Property Agreements (FPA)—under the Forest Property Act 2000—have been developed in South Australia. These FPA provide for the distribution of carbon rights and other rights associated with the plantings in order to protect the trees and to assign obligations for planting, management and maintenance. The FPA are registered on the land title and provide protection for up to 90 years. In most cases the forest property rights are shared between the contractor, the landowner and the state government.
The plantings are also protected by a Land Management Agreement (LMA) established under the Development Act 1993. The LMA provides an instrument to protect the plantings if there are any issues with implementing the FPA.
Audit and monitoring processesProject sites are monitored during the contract delivery period according to contract payment milestones. These milestones are based on site planning and preparation, planting schedules, seed collection, pest (rabbits) and weed control, planting, and site maintenance. The final milestone payment for each contract is a survival payment based on the achievement of a target plant density of 350 stems/ha of eligible woody (over-storey) species. This is geared to the Kyoto requirement of 20 per cent canopy cover.
Current statusThe River Murray Forest Project is now focused on delivery and completion of the remaining five planting contracts. The project continues to require considerable management input due to the number and size of the contracts, the impacts of past drought conditions, and the complexity of staging plantings for individual contracts over several years.
For further information please contact Glen Gale at
glenn.gale@sa.gov.auSourceSouth Australian Department of Environment and Natural Resources
River Murray Forest Project: tendering for biodiversity and carbon sequestrationThe need to actThe South Australian government has invested $5.7 million to help create a River Murray Forest (RMF) through the revegetation of large areas of cleared land. The aim is to establish 3,400 hectares of native vegetation for long-term habitat and biodiversity purposes that will also deliver carbon sequestration outcomes. The project will also contribute to climate change adaptation by re-establishing and re-connecting large areas of native vegetation.
The RMF uses a competitive tender process and the project signifies the implementation of new arrangements in South Australia. These include a market-based approach to environmental plantings and new administrative arrangements relating to carbon sequestration from reforestation on private land.
The project began in 2006, with three public tenders for plantings on private land now completed. A total of approximately 2,450 hectares (ha) has been commissioned for planting along with planting on an additional 200 ha of public land.
Project areaThe RMF project runs along the full extent of the River Murray in South Australia, aligning with the River Murray–South East NatureLink Corridor.
The project area is a low annual rainfall mallee environment dominated by sandy soils. Annual rainfall over most of the area ranges between 250–350 mm, peaking at 450 mm in the southern-most portion of the project area near Meningie. The low rainfall and sandy soils pose considerable obstacles to revegetation.
How the River Murray Forest project worksPublic tenders were conducted in three stages to build market understanding, build project engagement and to enable the tender process to evolve based on market feedback. This is a reverse auction system where the South Australian Department of Environment and Natural Resources (DENR) was the purchaser of the revegetation contracts and private entities were the bidders.
As the bids were assessed based on the tender assessment metric, this process is more economically and environmentally efficient and effective than a traditional grant system.There was a considerable amount of work and planning behind developing a tender assessment metric, a tender brief and contracts and agreements. This process included input from the Victorian Government’s Carbon Tender and EcoTender project team, representatives of the carbon sequestration and forest offset industry, revegetation service providers, the Australian Greenhouse Office and DENR staff.
The Stage 1 tender in 2007 was used as a pilot to test the market and was restricted to the area from Morgan to the Victorian border. The Stage 2 tender in 2008 covered an expanded area from Tailem Bend to the Victorian Border. The Stage 3 tender saw full implementation of the project along the whole of the River Murray and Coorong in South Australia. This deliberate and progressive shift south was to offset risks associated with low rainfall and drought conditions in the north.
Map 1: River Murray Forest project area
Tenders were assessed on the following criteria:
- biodiversity values—including regionally native vegetation species, species diversity, patch size, and distance from nearest remnant vegetation
- plantings will be within 20 km of the river (but not on the river floodplain)
- plantings will be compliant with Kyoto carbon forest standards
- the allocation of carbon rights split between contractor, landholder and the South Australian government
- the project will operate on a cost-sharing basis of 2:1 (project:contractor)
- value for money.
The contractor’s role included obtaining access to the land, landowner consent and support for the plantings. While the contracts for planting are between the government and a contractor, each site has a number of stakeholders and parties such as the contractor, landholder, bank (for mortgaged properties), state government and any sub-contractors used. The plantings principally involve direct seeding rather than tube stock (i.e. seedlings), as this is the most cost-effective method of large-scale revegetation.
Six contracts were awarded in Stage 1 (212 ha), five in Stage 2 (580 ha) and four in Stage 3 (1,650 ha). Each contract involves plantings staged over several years to allow for seasonal conditions and seed availability.
Plantings from all contracts in Stage 1 and four of the five contracts in Stage 2 are now complete. Plantings for the remaining contract from Stage 2 and two of the four contracts from Stage 3 will be completed in 2011. Plantings for the final two contracts from Stage 3 will occur over several years due to their large size.
The public tenders coincided with a period of severe drought, adding significantly to the existing obstacles to revegetation in the project area. The drought conditions greatly reduced the availability and viability of seeds and the performance of the plantings, leading to postponement of planting programs. This added considerably to the risks and costs associated with the plantings and raised the price of bids.
Site protection and securing carbon rightsThrough the RMF project, the first Forest Property Agreements (FPA)—under the Forest Property Act 2000—have been developed in South Australia. These FPA provide for the distribution of carbon rights and other rights associated with the plantings in order to protect the trees and to assign obligations for planting, management and maintenance. The FPA are registered on the land title and provide protection for up to 90 years. In most cases the forest property rights are shared between the contractor, the landowner and the state government.
The plantings are also protected by a Land Management Agreement (LMA) established under the Development Act 1993. The LMA provides an instrument to protect the plantings if there are any issues with implementing the FPA.
Audit and monitoring processesProject sites are monitored during the contract delivery period according to contract payment milestones. These milestones are based on site planning and preparation, planting schedules, seed collection, pest (rabbits) and weed control, planting, and site maintenance. The final milestone payment for each contract is a survival payment based on the achievement of a target plant density of 350 stems/ha of eligible woody (over-storey) species. This is geared to the Kyoto requirement of 20 per cent canopy cover.
Current statusThe River Murray Forest Project is now focused on delivery and completion of the remaining five planting contracts. The project continues to require considerable management input due to the number and size of the contracts, the impacts of past drought conditions, and the complexity of staging plantings for individual contracts over several years.
For further information please contact Glen Gale at
glenn.gale@sa.gov.auSourceSouth Australian Department of Environment and Natural Resources