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A key environmental issue facing many NRM organisations is how to create ‘corridor effects’ or linked parcels of land across multiple properties. Following a successful national MBI pilot program, the Desert Uplands Landscape Linkage Auction was implemented in Queensland. The purpose of the tender was to develop linked protection of biodiversity values across several properties.
Design of the tender drew on research undertaken during the pilot program. A metric was developed to assess bids against a number of criteria including biodiversity and land condition. However, the design of the tender and assessment methodology differed from other tenders as:
- it included a significant weighting (44%) on linkages between bids, and
- three bidding rounds were used to allow land managers to:
- learn about and develop confidence in the bidding process
- provide an opportunity for feedback from each round to be absorbed by land managers and for them to adjust their subsequent bids accordingly, for example to align their bids with their neighbours’ bids
- maintain competitive efficiencies.
The implementation of the Landscape Linkage Auction was similar to other tender programs. An information and awareness campaign was followed by formal expressions of interest by land managers. Property visits were then conducted.
Where the Landscape Linkage Auction was unique is that it involved three bidding rounds designed to increase the likelihood of complementary bids being submitted. Following the property visits, the three bidding rounds were run in quick succession, about every two months. Key elements of the multiple bidding process were as follows:
- the first-round bids were assessed and land managers were provided with information on all areas offered in the first round; information on the cost-effectiveness of their bid (reported buy quartile); and information to assist in enhancing subsequent bids.
- in the second round, land managers had an option to maintain their current bids, or amend their bids to reflect information and feedback from the first round; and updated feedback was then provided, covering the same issues as the first round.
- in the third round, land managers finalised and submitted formal bids.
Bids were formally assessed and successful land managers notified. Contracts were exchanged, clearly stipulating the actions to be undertaken, the monitoring requirements and payments schedules. The contract period was two years and was limited by the funding stream available.
Key results from the Landscape Linkage Auction include:
- twenty-six land managers participated, around 23% of all eligible land managers
- twenty-seven bids were received from 22 land managers, and
- fifteen bids were successful and a total of $343,000 (at about $2.00 per hectare per annum) was distributed to protect and manage a total of almost 85,000 hectares, most of it with significant environmental values.
Key lessons from the auction include:
- the inclusion of linkages as part of the assessment and three bidding rounds was an effective incentive to achieve ‘corridor’ effects. Eleven of the 15 successful bids formed part of a corridor.
- multiple bidding rounds resulted in land managers reducing their bid amounts over subsequent rounds, enhancing the cost-effectiveness of the outcomes.
- prices for bids varied considerably, indicating the approach used was able to effectively deliver cost-effective outcomes.
- land managers accepted the tender process. A survey of participants indicated that:
- most land managers thought the tender process was reasonable
- 71% of land managers would have preferred a longer-term contract, and
- 84% of land managers would participate in any similar scheme.
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A key environmental issue facing many NRM organisations is how to create ‘corridor effects’ or linked parcels of land across multiple properties. Following a successful national MBI pilot program, the Desert Uplands Landscape Linkage Auction was implemented in Queensland. The purpose of the tender was to develop linked protection of biodiversity values across several properties.
Design of the tender drew on research undertaken during the pilot program. A metric was developed to assess bids against a number of criteria including biodiversity and land condition. However, the design of the tender and assessment methodology differed from other tenders as:
- it included a significant weighting (44%) on linkages between bids, and
- three bidding rounds were used to allow land managers to:
- learn about and develop confidence in the bidding process
- provide an opportunity for feedback from each round to be absorbed by land managers and for them to adjust their subsequent bids accordingly, for example to align their bids with their neighbours’ bids
- maintain competitive efficiencies.
The implementation of the Landscape Linkage Auction was similar to other tender programs. An information and awareness campaign was followed by formal expressions of interest by land managers. Property visits were then conducted.
Where the Landscape Linkage Auction was unique is that it involved three bidding rounds designed to increase the likelihood of complementary bids being submitted. Following the property visits, the three bidding rounds were run in quick succession, about every two months. Key elements of the multiple bidding process were as follows:
- the first-round bids were assessed and land managers were provided with information on all areas offered in the first round; information on the cost-effectiveness of their bid (reported buy quartile); and information to assist in enhancing subsequent bids.
- in the second round, land managers had an option to maintain their current bids, or amend their bids to reflect information and feedback from the first round; and updated feedback was then provided, covering the same issues as the first round.
- in the third round, land managers finalised and submitted formal bids.
Bids were formally assessed and successful land managers notified. Contracts were exchanged, clearly stipulating the actions to be undertaken, the monitoring requirements and payments schedules. The contract period was two years and was limited by the funding stream available.
Key results from the Landscape Linkage Auction include:
- twenty-six land managers participated, around 23% of all eligible land managers
- twenty-seven bids were received from 22 land managers, and
- fifteen bids were successful and a total of $343,000 (at about $2.00 per hectare per annum) was distributed to protect and manage a total of almost 85,000 hectares, most of it with significant environmental values.
Key lessons from the auction include:
- the inclusion of linkages as part of the assessment and three bidding rounds was an effective incentive to achieve ‘corridor’ effects. Eleven of the 15 successful bids formed part of a corridor.
- multiple bidding rounds resulted in land managers reducing their bid amounts over subsequent rounds, enhancing the cost-effectiveness of the outcomes.
- prices for bids varied considerably, indicating the approach used was able to effectively deliver cost-effective outcomes.
- land managers accepted the tender process. A survey of participants indicated that:
- most land managers thought the tender process was reasonable
- 71% of land managers would have preferred a longer-term contract, and
- 84% of land managers would participate in any similar scheme.
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