Let the bidding begin!

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One month from now, bidders will be vying for new salmon production licenses via an online auction.

The Norwegian Ministry of Trade, Industry and Fisheries has established regulations on apportioning new salmon production licenses by way of an open auction. According to the Minister of Fisheries Per Sandberg, the auction is planned to kick off 18 june. 

Facts

Auction facts:
  • Allocation takes place through a clock auction. This is an open, simultaneous auction, where prices and winners in each production section are determined over several bidding rounds.
  • It is a relatively simple auction arrangement, in both a technical and strategic sense. This can be particularly important for participants with fewer resources to prepare themselves for the auction.
  • The manner in which the auction is conducted enables participants with different preferences to bid according to their own assessments.

Auction rules now established
“The new licenses will, as was decided earlier, be apportioned through an open auction, where prices and winners in each production section are determined over several bidding rounds. We have now established regulations based on responses received from a public hearing. One adjustment we have made in comparison with the hearing proposal concerns a bank guarantee for participation in the auction.

“After the hearing we decided to reduce the size of the bank guarantee to NOK 2 million, so that the cost of participating in the auction is reduced somewhat compared with that suggested in the hearing proposal,” Sandberg said in a press release issued Wednesday afternoon.

Meetings
The ministry will hold three information meetings for potential bidders before the auction. These are planned for 29 May (Bergen and Trondheim) and 30 May (Tromso). More detailed information about the meetings will be uploaded shortly on the Norwegian Directorate of Fisheries’ (NDF) website.

In order to participate in the auction a bidder must register through the NDF Internet-based registration solution no later than 04 June 2018, which includes confirming a bank guarantee of NOK 2 million.

Trial auction
The ministry will make public further details of the regulations in good time before the auction.

A trial auction is scheduled for 14 June where registered bidders will have the opportunity to try out the auction’s Internet-based solution.

The actual auction is planned for 18 June, the duration of which will depend on the outcome of the bidding rounds.