Since 2006, the Government of Liberia has undertaken a comprehensive review of its forestry sector, aiming to achieve a world standard for transparency, good governance, equitable sharing of forestry benefits, respect for local communities and sustainable development. New forest use mechanisms have been introduced and companies were cleared in 2009 to operate under these arrangements.
The purpose of this evidence-based policy assignment was to offer advice on the appropriateness of the current fiscal framework for forestry, and determine what, if any, reforms would enable the sector to develop. The LTS economic and policy analysis had a particular focus on up-front payments of Land Rental Bid Premium and provided the Government with options and scenarios that to inform the President on the final decision on the Bill passed by the National Legislature. LTS undertook a benchmarking of Liberia’s fiscal regime against those of Ghana, Gabon, Cameroon, Democratic Republic of Congo and Central African Republic and conducted scenario modelling to develop economic and financial models to evaluate Liberian forest projects and investments.