Viet Nam: Improving Payment for Forest Ecosystem Service Implementation

Sovereign Project | 47180-001 Status: Active


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Project Name Improving Payment for Forest Ecosystem Service Implementation
Project Number 47180-001
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8592-VIE: Improving Payment for Forest Ecosystem Service Implementation
Japan Fund for Poverty Reduction US$ 1.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Agriculture, natural resources and rural development - Forestry

Gender Equity and Mainstreaming Effective gender mainstreaming
Project Rationale and Linkage to Country/Regional Strategy
Impact Ecosystem service payments improve rural livelihoods and environmental quality in the 3 target provinces by 2020

Project Outcome

Description of Outcome Ecosystem service values and payments assessed, collected, and disbursed following a consistent approach in the 3 target provinces by 2016.
Progress Toward Outcome No substantial outcome has appeared in the initial stages of the TA implementation from September to November 2014
Implementation Progress
Description of Project Outputs

1. Economic evaluation of environmental services standardized at the provincial level

2. Mechanisms for PFES valuation, management and distribution piloted and institutionalized

3. National and provincial policymakers have the capacity to value ecosystem services and integrate them in economic development planning

4. Best practices and lessons learned captured and shared

Status of Implementation Progress (Outputs, Activities, and Issues)

1. The existing documentations on the studies and the pilot ativities are being reviewed to design the study for the development of the standardized methodologies of environment service assessment.

2. Issues/problems relating to develop gender sensitive regulatory framework were confirmed. Data/information were collected to develop the guidelines for improved PFES implementation.

Among 06 PFES pilots, only cold water aquaculture in Lao Cai is being implemented based on the results of TA study. The study of PFES aquaculture under mangrove forest area in Ca Mau has been finalized but has not been put in operation due to Ca Mau People Committee has also been supported by GIZ for implementing similar pilot. Other 04 PFES pilot studies, ecotourism and aquaculture in Thua Thien - Hue and industrial water supply and ecotourism in Lao Cai are being finalized and will be consulted with stakeholders, scheduled within February March 2016, before submitting them to respective People Committees for decision of implementation

3. Training need assessment (TNA) for capacity development of the government staffs is currently prepared. The questionnaires for TNA has been finalized by the experts.

4. Assessment of communication and knowledge management is currently prepared. Documentation of the TA activities using various media was proposed.

Issues/problems to be addressed in the TA were identified through collecting the updated data/information in CPMU and three target provinces. Draft Inception Report was prepared in the mid of November.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design

In addition to formal reconnaissance and fact-finding mission meetings, the project consulted with both Viet Nam Forest Protection and Development Fund, Ministry of Agriculture and Rural Development and the Institute of Strategy and Policy for Natural Resources and the Environment and the Biodiversity Conservation Agency under the Ministry of Agriculture (the implementing partners) through frequent face-to-face meetings and email during project design. Coordination with civil society development partner initiatives including but, not limited to: GIZ on PFES for aquaculture; the FORMIS project on forest data management, JAXA and JICA to promote the use of satellite data for forest monitoring; the World Bank's WAVES Program which is developing a road map for natural resource accounting at a national level; Viet Nam informal coordination group on PFES comprising ADB, CIFOR, Forest Trends, GIZ, IUCN, RCFEE, SNV, USAID, Winrock, World Bank and WWF Viet Nam (membership of this group is open to any academic, civil society or development organization with interest in PFES).

MARD has appreciated TA achievements to the date, especially initiatives for extending PFES payment and technical guidelines. These achievements are Decision No. 4273/QD-UBND of Lao Cai Provincial People Committee on extending cold water PFES aquaculture pilot, Decision No. 86 5085/QD-BNN-TCLN of MARD's Minister on extending project for establishment of information system for VNFF and Decision No. 5301/QD-BNN- TCLN of MARD's Minister on Implementation of PFES Financial Guidelines, which are the results of TA studies. However, up to 31 December 2015, 15 months (63%) of TA implementation, the TA disbursement was only about $ 479,000 (31 %) of TA budget. The Mission found the main reasons for delay were unforeseen change of some positions in the consultant team, delay in developing PFES methodologies and delay in obtaining endorsement from provincial government for implementation of PFES pilots. In addition, there were unrealistically planned activities, such as several work items assigned to one expert being scheduled at the same period that exceed his/her capacity, and timeframe of some work items being set without paying due attention to the interlinked activities. The consultant has requested 03 month extension to TA implementation in order to provide enough time for (i) a necessary period of PFES pilot implementation; (ii) obtaining approval for the policy guidelines to be issued as a circular at the national level; and (iii) producing documentations of the best practices and lessons. MARD strongly supported and requested ADB to extend the TA since they found that the TA results could provide innovation for PFES implementation in the country. During Steering Committee, MARD committed to contribute VND 700 million in cash (around $ 32,000) in 2016 budget plan for CPMU and support PPMs to secure provincial fund for TA administration.

During Project Implementation ADB will circulate all milestone reports to the Forest Sector Support Partnership, the international development coordination body for the sector.

Business Opportunities

Consulting Services

The project consists of four distinct outputs, and supporting activities will be executed by a firm that will be under the quality- and cost-based selection process, with a quality cost ratio of 80:20. It is estimated that 10 person-months of international consultant services and 142 person-months of national consultant services will be required. Consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time), and disbursements under the TA will be done in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). The firm to be recruited will also be responsible for delivering training programs and procuring equipment.

The TA requires 10 person-months of international and 142 person-months of national consultant support.

Procurement Equipment such as forest patrol equipment (e.g., helmets, walking sticks, uniforms), monitoring equipment (e.g., binoculars, cameras), Geographic Information System data, software licenses, and office furniture will be procured under the consultants contract in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). All equipment shall be turned over to Vietnam Forest Protection and Development Fund, Institute of Strategy and Policy on Natural Resources and Environment and Forest Protection and Development Fund upon TA completion.

Responsible Staff

Responsible ADB Officer Phuc Pham
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Ministry of Agriculture and Rural Development
Mr. Le Van Minh, Director General, ICD
Room 305 Building A15 10 Nugen Cong Hoan Street Ba Dinh District, Hanoi, Vietnam


Concept Clearance 07 Jun 2013
Fact Finding 29 May 2013 to 04 Jun 2013
Approval 16 Dec 2013
Last Review Mission -
Last PDS Update 31 Mar 2016

TA 8592-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Dec 2013 05 Sep 2014 05 Sep 2014 30 Apr 2016 30 Sep 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,500,000.00 150,000.00 0.00 0.00 0.00 1,650,000.00 16 Dec 2013 754,191.72
Title Document Type Document Date
Improving Payment for Forest Ecosystem Service Implementation Technical Assistance Reports Dec 2013

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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