Difficulties, Problems, and Obstacles in the Implementation Process


* Results of revenue mobilization

By the end of 2016, Nghe An Provincial Forest Protection Fund had collected : 271,249 million VND, of which: 2012: 43,281 million VND, 2013: 44,336 million VND

SITUATION OF DVMTR MONEY COLLECTION OVER THE YEARS


69,261

70,000

64,963

60,000

50,000

40,000

30,000

20,000

10,000

0

43,281

44,336

49,408

Total revenue

Year Year Year Year 2012 2013 2014 2015 2016

(Year)

Million Dong

VND, 2014: 49,408 million VND, 2015: 69,261 million VND, 2016: 64,963 million VND. This revenue will be doubled in the coming years due to the unit price being adjusted according to the provisions of Decree 147/2016/ND-CP dated November 2, 2016 of the Government amending and supplementing a number of articles of Decree 99/2010/ND-CP. At the same time, expand revenue from industrial production establishments using water sources, tourism services benefiting from DVMTR, services providing spawning grounds, food sources and natural seeds, aquaculture, etc.


Chart 4.1. Revenue mobilization results over the years


* Disbursement results

Accumulated to the end of the 2016 disbursement plan, the BVPTR Fund has disbursed a total of 224,091 million VND. The disbursement results over the years are as follows: 2012: 17,564 million VND, 2013: 20,494 million VND, 2014: 27,336

million VND, 2015: 78,120 million VND, 2015: 80,576 million VND


TOTAL DVMTR EXPENDITURE OVER THE YEARS


90000.0

80000.0

Million Dong

70000.0

60000.0

50000.0

40000.0

30000.0

20000.0

10000.0

-


2012


2013


2014


2015


2016


Total cost


78120.209

80576.201

20494.018

27335.536

17563.501

Year


Chart 4.2. Disbursement situation over the years

* Impact on forest protection and development

In fact, along with the drastic solutions of the Government, the Provincial People's Committee and relevant parties, the policy of paying for forest environmental services has been effective, having a very positive impact on forest management, protection and development. Forests are better protected, violations of legal regulations on forest protection, development, forest fire prevention and fighting have gradually decreased over the years. In 2011, the number of forestry law violations in the province was 1,366 cases, in 2012 it was 1,267 cases, in 2013 it was 1,141 cases, in 2014 it was 856 cases, in 2015 it was 695 cases, in 2016 the number of violations decreased to only 275 cases (Data provided by Nghe An Forest Protection Department) .


NUMBER OF VIOLATIONS IN MANAGEMENT AND PROTECTION OVER THE YEARS


1,500


Number of cases

1,000


500


-


2011 2012 2013 2014 2015 2016


Number of violations


1,366

1,267

1,141

856

695

275

Year


Chart 4.3. Number of forestry law violations over the years


The policy has gradually contributed to stabilizing and ensuring forest area, maintaining forest cover, improving forest quality and contributing to improving the quality of the ecological environment. The area of ​​BVR contracted tends to increase rapidly every year, affirming the expectations and trust of forest owners and people in the benefits that the policy brings specifically: In 2013, it was 47,034.72 ha, in 2014, it was 95,112.57 ha, in 2015, the total area of ​​BVR contracted that had been recorded and paid was 228,106.85 ha (according to the results of the BR TKKT dossier approved by competent authorities and the area accepted) , by 2016, the total area of ​​BVR contracted with records was: 274,600.97 ha


SUMMARY OF SERVICE PROVIDING AREA

OVER THE YEARS


274,600.9

228,106.85

95,112.57

47,034.72 47,034.72

300,000.00

Area (ha)

250,000.00

200,000.00

150,000.00

100,000.00

50,000.00

Chart 4.4. Area of ​​DVMTR supply over the years

* Improve the livelihoods of forest workers

The results from the implementation of the forest environmental service payment policy have not only gradually raised the sense of responsibility of forest owners, increased the number of households contracted to protect forests, but also mobilized a large human resource for regular forest patrolling and protection. The number of forest owners benefiting from forest environmental service payments has increased each year, while the number of organizations, households and individuals participating in forest protection contracts has increased. Specifically: In 2012, the number of forest owners benefiting from forest environmental service payments was 3 forest owners who were organizations with 765 contracts; By 2016, the number of forest owners was 6,351 and the total number of contracts was 1,756, including 11 forest owners who were organizations, 51 commune People's Committees, 6,289 households, individuals and communities with long-term land allocation.

Thanks to the implementation of the policy, the average real income of households and individuals contracted to protect forests has gradually improved. As in the water basin


Hua Na/Cua Dat power plant, in 2015, each household contracted to protect 30 hectares of forest, the income from forest environmental services reached 12,000,000 million VND/household/year . Along with other income, forest environmental services have contributed to creating jobs, reducing poverty, improving livelihoods, helping people feel secure in their attachment to the forest, contributing to stabilizing political security, social order and safety in localities in mountainous and border areas.

4.1.3. Difficulties, problems and obstacles in the implementation process

- The implementation of the responsibility of declaring and paying the trust money of some facilities using DVMTR is still slow and not timely according to the prescribed schedule, affecting the accounting and unit price calculation.

- The large difference in payment prices between basins in the province has a significant impact on policy implementation. The payment prices for forest environmental services in some basins are very low (Khe Bo, Sao Va, Nam Pong, Nam On, Chi Khe...), leading to forest owners' hesitation and comparison. For basins with low payment prices, it is difficult to encourage people to actively protect and develop forests.

- The collection of fees for converting forest use to other purposes according to Decree No. 05/2008/ND-CP from 2012 and earlier still faces many difficulties. At the same time, Circular 26/2015/TT-BNNPTNT dated July 29, 2015 stipulates that replacement forest planting can only be arranged for protective and special-use forests, which is very difficult, affecting the progress of replacement forest planting.

4.1.4. General assessment and lessons learned

4.1.4.1. General assessment

- On the activities of the BVPTR Fund

The Fund for Protection and Development of Forests has implemented the policy of payment for forest environmental services well in the province. However, the organizational model and operation methods are not unified and synchronized from the central to local levels, so some contents are directed by many agencies at the same time, so there is sometimes overlap in direction and management. In addition, the implementation of the autonomy mechanism is not unified and there is no similarity between financial autonomy and autonomy in organization and operation, so the role of the Fund has not been fully promoted.

- About DVMTR payment policy

After 5 years of implementation, the Payment for Forest Environmental Services Policy in Nghe An province has achieved many positive results and valuable lessons learned during the process.


implementation process. The implementation results show that this is a correct policy and consistent with the practice of forest protection and sustainable forest development in Nghe An in particular and the whole country in general. The policy has gradually entered life, linking the interests of forest environmental service users and forest protectors, creating a sustainable economic link between users and suppliers of forest environmental services. Most of the cadres and people in the area receiving payment for forest environmental services have a deep understanding of the meaning and importance of implementing the policy, seeing the responsibilities and rights of service providers through forest protection and the increasingly improved forest protection work.

4.1.4.2. Lessons learned

- The role of local authorities and people's cooperation are very important in implementing the policy of payment for forest environmental services;

- Propaganda work to raise awareness of the significance of the policy on payment for forest environmental services is very necessary and plays a very important role in determining the success in organizing the implementation of the task of collecting and spending money for forest environmental services. Therefore, it is necessary to promote propaganda, dissemination and fully disseminate the policy content to relevant agencies and organizations, especially those who have the right and obligation to implement the policy on payment for forest environmental services;

- The statistical classification of subjects that must pay for forest environmental services, determining forest area and forest status for each forest owner who is paid for forest environmental services is a very important step in implementing the policy of paying for forest environmental services. In order to have a basis for paying for forest environmental services to forest owners and subjects providing forest environmental services quickly, the work of reviewing and preparing design documents for forest protection contracts must be implemented promptly and accurately;

- There needs to be synchronous and drastic coordination between all levels and sectors in assigning tasks and organizing the implementation and synchronous deployment of the payment mechanism and system for forest environmental services at all levels from province, district, and commune to suit the conditions of each locality, which is necessary to carry out the payment for forest environmental services;

- It is necessary to strengthen inspection and supervision of payment activities, forest protection organization, mechanisms, management and use, and content related to the payment policy for forest environmental services;

- As a new operating model and new policy, it is necessary to regularly research and advise on amending and supplementing regulations and instructions to suit local realities.


(Attached with Appendix 01: Summary of policy implementation indicators in Nghe An province).

4.2. Current status of payment for forest environmental services in Que Phong district, Nghe An province

4.2.1. Procedure for implementing payment for forest environmental services

To implement the policy, the People's Committee of Que Phong district has established a Steering Committee to deploy and implement the policy of payment for forest environmental services in the district, headed by the Chairman of the People's Committee of the district. Along with the provincial forest environmental service payment system, in Que Phong, forest environmental services are paid by the provincial Forest Protection Fund through 2 focal points:

- Payment through forest owners who are organizations: Pu Hoat Nature Reserve Management Board makes payments to forest protection contracted units, organizations, households, and household groups for the area under the management of the Management Board.

Protected forests

- Payment through district-level payment organization: Assign Que Phong Forest Protection Department as the focal agency for payment of forest environmental services at district level to make payment for the forest area managed by households, individuals, village/hamlet communities and the Commune People's Committee.


Company using DVMTR

Central Fund for Protection and Development

Forest owner is an organization

Company using DVMTR

Provincial Fund for Forest Protection and Development

District level payment organization (District Forest Protection Department)

Contracted households

Forest owners are households, individuals, village and hamlet communities.

Commune People's Committee

Protected forests


Figure 4.2. Payment diagram for forest environmental service entrustment


4.2.2. Conditions for implementing the DVMTR payment policy

4.2.2.1. Determining the subjects that must pay and the level of payment for DVMTR

Up to now, Que Phong district has identified the subjects that must pay for forest environmental services, including hydropower plants inside and outside the province that use forest environmental services in the area, including 05 plants that have signed contracts to entrust payment for forest environmental services, of which Chau Thang hydropower plant has completed construction and has a plan to generate electricity in the first quarter of 2017, and 06 facilities are under construction. This is a very favorable condition for implementing the policy of paying for forest environmental services in Que Phong district.

Table 4.2. List of hydropower plants using DVMTR in Que Phong district


TT

Factory name

Management and operation company

House Construction Site

machine

Plant capacity (MW)

DVMTR payment time

I. Hydropower plants have signed contracts to entrust payment of forest environmental services


1


Cua Dat Hydropower Plant


Vinaconex Energy Investment and Development Joint Stock Company

Xuan Cam Commune, Thuong Xuan District, Thanh Hoa


100


2013

2

Hydroelectric

Hua Na

Joint Stock Company

Hua Na Hydropower Plant

Dong Van Commune,

Que Phong

180

2013

3

Hydroelectric

Ban Coc

Hydropower Joint Stock Company

Que Phong

Chau Kim Commune,

Que Phong

18

2011

4

Hydroelectric

Sao Va

LLC

Sao Va Hydropower Plant

Muong Noc Commune,

Que Phong district

3

2011

5

Hydroelectric

Chau Thang

Prime Joint Stock Company

Que Phong

Chau Thon Commune,

Que Phong district

14

Quarter II/2017

III. Hydroelectric plants under construction in the district

1

Hydroelectric

Quang River

Development Corporation

Son Vu Energy

Chau Thon Commune,

Que Phong district

12

Under construction

build

2

Hydroelectric

Village

Development Corporation

Son Vu Energy

Chau Thon Commune,

Que Phong district

27

Under construction

build

3

Hydroelectric

Crane Label

Za Hung Joint Stock Company

Que Son Commune,

Que Phong district

59

Under construction

build

4

Hydroelectric

Dong Van

Hydropower Joint Stock Company

Dakrong

Dong Van Commune,

Que Phong district

28

Under construction

build

5

Tien Hydropower

Wind

Prime Joint Stock Company

Que Phong

Tien Phong Commune,

Que Phong district

6

Under construction

build

6

Hydroelectric

Nam Giai

Hydropower Joint Stock Company

Nghe An Oil and Gas

Nam Giai Commune,

Que Phong district

4

Under construction

build

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Difficulties, Problems, and Obstacles in the Implementation Process

Source: Department of Industry and Trade, Nghe An Province Forest Protection and Development Fund)


4.2 .2.2. Determining the amount of DVMTR payment over the years

By the end of 2016, there were 04 facilities using forest environmental services in Que Phong district that signed contracts to entrust and pay for forest environmental services, with a total revenue of 80,033,549,286 VND, an average of 20 billion VND per year (accounting for over 30% of the total revenue of the whole province) . This amount will increase nearly 2 times in 2017 and the following years and will increase steadily over the years due to the emergence of new facilities using forest environmental services and the increase in the unit price of commercial electricity for hydropower production facilities to 36 VND/KWh, and commercial water for clean water production and supply facilities to 52 VND/m3 according to the provisions of Decree 147/2016/ND-CP.

dated November 2, 2016 of the Government. This is a stable and sustainable source of funding for forest management, protection and development in the area.

Table 4.3. Summary of commission payments from facilities using DVMTR


TT

Hydropower Name

Total revenue

2013

2014

2015

2016

1

Hua Na

48,556,426,980

5,183,742,000

12,851,856,000

17,455,446,320

13,065,382,660

2

Dat Door

25,860,000,000

3,000,000,000

5,900,000,000

10,460,000,000

6,500,000,000

3

Sao Va

810.394.210

190,842,950

193,830,940

173,886,560

251,833,760

4

Ban Coc

4,806,728,096

1,162,653,090

1,313,682,560

1,064,542,560

1,265,849,886


Total


80,033,549,286


9,537,238,040


20,259,369,500


29,153,875,440


21,083,066,306

Source: Nghe An Provincial Forest Protection and Development Fund) The data in the table above shows that after 4 years of implementing the policy of paying for forest environmental services in the district (2013-2016), in general, the facilities using forest environmental services have fully paid to the Forest Protection and Development Fund. However, in the first years of implementing the policy, some facilities using forest environmental services have not had a high awareness of the responsibility of enterprises to society, while there are no sanctions for implementation, so there is still a situation of procrastination and arrears lasting over the years. To date, the Government has issued Decree No. 40/2015/ND-CP dated April 27, 2015 amending and supplementing a number of articles of Decree No. 157/2013/ND-CP dated November 11, 2013 of the Government regulating administrative sanctions for violations of forest management, forest development, forest protection and forest product management. Including the content of sanctioning violations of regulations on payment of DVMTR, so by the end of the 2015 and 2016 planning years, there is no longer any basis.

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