Consultancy to develop an economic-financial study for the implementation of a future Law on the Prevention and Mitigation of Forest Fires in Chile

Description

The Inter-American Development Bank (IDB) is calling on consulting firms to develop a comprehensive study to measure the execution costs, budgetary impacts, and economic and social benefits of the future Law on the Prevention and Mitigation of Forest Fires in Chile. The analysis must follow standards compatible with the evaluations required by the Budget Directorate (DIPRES) and the Finance Commission of the National Congress.

1. Cost sizing and preventive typologies
- Cost Modeling (OECV): Estimation of implementation and maintenance costs for Plant Fuel Disposal Works, disaggregated by region, commune, topography and urban-rural interface.

- Protection strips: Determination of unit and scaled costs for three critical typologies:

- Firebreak belt (FC): Total removal of vegetation to the mineral soil.

- Short fuel belt (FCC): Reduction of plant continuity through pruning and thinning.

- Vegetation-free strip (FLV): Elimination of trees and shrubs in critical areas.

- Modern approaches: Integration of disaster risk management variables, nature-based solutions (NBS), climate adaptation, and green infrastructure.

2. Impact on owners and financial incentives
- Evaluation of producers: Analysis of the economic impact on small and medium-sized forest owners, including opportunity costs, loss of vegetation cover and productivity.

- Promotion mechanisms: Design of economic and financial incentives to make mandatory measures viable, such as direct subsidies, bonuses and payment for environmental services (PES) schemes.

- Blended financing: Proposal of public-private or tiered financing tools that reduce resistance to the adoption of regulations.

3. Efficiency analysis and fiscal scenarios
- Social and economic evaluation: Development of a cost-benefit and cost-effectiveness analysis that quantifies the damage avoided, the reduction of firefighting costs and the protection of critical infrastructure.

- Multi-year projection: Preparation of short-, medium- and long-term fiscal scenarios that consider economies of scale and a gradual expansion of territorial coverage.

- Fiscal sustainability: Delivery of financial sensitivity matrices that ensure the viability of the proposed budgetary instruments in the face of resource constraints.

Note: Interested companies should review the requirements on the BEO Bidder Portal.