Concession allocation by competitive bidding is always fiercely resisted by the local forest industrialists, and sometimes even by members of the forest service. One will be told that “It can't be done”, “It is too complicated”, “It is too expensive” or some such thing. Of course people who benefit from arbitrary allocation will oppose a more objective, transparent and equitable mechanism. It is nonsense to say that it cannot be done, but it will only be done where there are considerable incentives, for example in the form of major grants or loans on favourable terms.The competitive bidding system proposed in this article can considerably increase the revenue of the forest owners, correcting the perennial problem of under-valuation, which not only reduces the revenues of the forest owners but also encourages over-cutting. Bidding can also reduce corruption, although it can of course also be — and often is — undermined by corruption.