Joint Circular No. 155/TT-LB on the content, subjects, and procedures for investment and construction of forestry infrastructure projects

JOINT CIRCULAR

Regarding the content, objects, and procedures for basic construction in forestry

Based on Decree No. 232-CP dated June 6, 1981 of the Council of Ministers promulgating the Regulations on Basic Construction Management, Resolution No. 166-HĐBT dated December 15, 1984 of the Council of Ministers on improving basic construction management, and Resolution No. 52-HĐBT dated February 23, 1985 of the Council of Ministers on improving state-owned forest farm management;
To bring forestry basic construction work into a regular pattern;
The Ministry of Forestry and the State Basic Construction Committee hereby stipulate as follows:

I. GENERAL ISSUES

1.1. The content of forestry basic construction includes the establishment of standing capital (i.e., creating a purposeful biological community: timber trees, understory plants, forest animals...) on forest land that has been planned for long-term development and stabilization.

For severely degraded land, before establishing standing capital, land improvement must be carried out to create forest land with conditions suitable for the survival and growth of forest trees.

With the above content, the main objects of forestry basic construction are: newly planted forests with specific purposes; natural forests requiring enclosure, maintenance, and improvement to enrich the forest and convert them into purposeful forests.

1.2. Types of forests in forestry basic construction

Classified by usage purpose, they are divided into:

1.2.1. Production Forests: Serving the production of timber, firewood, various forest products, specialties such as:

- Timber supply forests.

- Industrial raw material forests for paper, fiber, mine pillars.

- Specialty forests (essential oils, flavorings, medicinal herbs, etc.)

- Firewood supply forests.

- Seedling forests.

1.2.2. Special Purpose Forests: Serving cultural, scientific, defense, and natural conservation purposes such as:

- Scenic tourism forests.

- Protective forests for cultural, historical, and defense areas.

- National Parks, nature conservation zones.

- Scientific experimental and training zones.

1.2.3. Protective Forests: To counter harmful factors affecting production and living conditions, such as:

- Watershed forests.

- Sand-stopping forests, wave-blocking forests, coastal protection forests.

- Harmful wind-blocking forests, environmental pollution prevention forests.

Production forests have the nature of production works. Special purpose and protective forests have the nature of non-production works.

Each type includes both natural and planted forests and includes land that needs to be afforested.

1.3. Works, sub-works

1.3.1. Works: Forestry farms, forestry enterprises, research and experimental centers (collectively referred to as forestry farms) are considered construction works, the objects for investment and economic efficiency calculation. Forestry farms have many sub-works within a complete and synchronized technological system to implement forest construction, produce various forest products from forest capital, apply integrated agriculture-forestry methods to produce suitable agricultural and aquatic products according to local land and climate conditions.

Forestry farms have the following scale:

+ Large-scale timber business forestry farms, natural forests: about 20,000 hectares.

+ Small-scale timber business forestry farms and planting forests: about 10,000 hectares.

+ Specialty product business forestry farms: about 5,000 hectares.

+ Forest seedling enterprises and forestry farms: about 1,000-5,000 hectares.

+ Research and experimental centers, training facilities: about 1,000-3,000 hectares.

1.3.2. Sub-works:

- Forestry farms are divided into many forest compartments. Each compartment is a sub-work.

A forest compartment is the object for design budgeting, construction, and final settlement to evaluate the investment effectiveness of each part.

A compartment serves as the basis for rationally arranging a chain: forest resource exploitation - forest resource utilization consistent with scientific and technical requirements and production organization.

A compartment has clear boundaries on maps and in reality, named according to its number.

Each compartment has the following scale:

+ Large-scale timber production natural forests: about 1,000 hectares.

+ Small-scale timber production and planting forests: about 500-1,000 hectares.

+ Specialty forests: about 500 hectares.

+ Seedling forests: about 500 hectares.

+ Research and experimental forests, training forests: about 500 hectares.

A compartment is divided into several plots. Each plot averages 100 hectares and is further divided into several lots. Each lot averages 10 hectares. A lot is the unit for annual construction and settlement. Each year, one or more lots in a compartment may be constructed.

- Fire prevention sub-works for a forestry farm or a forest area, including: firebreak roads, watchtowers, canals, ditches, water reservoirs.

- Pest control sub-works for a forestry farm or a forest area, including forecasting stations, pest control teams, etc.

- Large-scale stable nurseries with a capacity of approximately 2 million seedlings per year or more.

In addition to the aforementioned sub-works, forestry farms also include industrial and civilian construction works such as: Ministry Forestry Farms, residential clusters, wood processing facilities, repair workshops, etc. These sub-works are subject to investment and basic construction management according to current state regulations.

1.4. Forestry stages:

1.4.1. For planted forests: The cycle from planting to biological or technological maturity is divided into two stages.

- Stage 1: Planting. Care

- Stage 2: Cultivation. Protection

Each stage is divided into two steps for ease of investment and management (details see annex).

1.4.2. For natural forests: Based on production planning and forest condition, enclosure, maintenance, and enrichment are carried out. From this, appropriate forestry stages are divided.

For areas undergoing plot-based rehabilitation, these are considered new plantations and the plantation regulations apply.

1.5. Investment in forestry basic construction:

Ensuring continuous and synchronized investment from the creation of seedlings, care, cultivation, thinning, and continuous protection until the forest produces products or meets the design requirements at the specified forestry stages.

1.5.1. For planted forests:

- Production forests: until the end of Stage 2.

- Special purpose forests: until the end of Step 1 of Stage 2 (for scientific experimental zones: until the end of Stage 2).

- Protective forests: until the end of Stage 1.

1.5.2. For natural forests: Until the design requirements are met (capacity).

1.6. Investment cost for forestry basic construction:

Calculated comprehensively all necessary factors to form a forest. The investment cost for forestry basic construction consists of two parts:

- Pure forestry investment cost (divided by forestry stages).

- Infrastructure construction investment cost (total for all stages).

1.7. Investment Plan for Forestry Infrastructure Construction:

Implement investment according to projects (categorized by individual forestry items) from start to completion as specified in Section 1.5 above.

Projects and project components are listed in specific detail in the long-term plan. Each year, a continuation plan is recorded if the project and its components are not completed within the planning year.

For forest farms that have been approved for economic and technical feasibility studies, if they are production forests, the main indicator is the area of mature technological forest (accompanied by specifications and quality standards, tons/ha). In other cases, the area of forest formation is used as the main indicator.³2.2. Preparation phase for construction:

Conduct surveys and investigations to establish economic and technical feasibility studies, including: land investigation, soil conditions, climate, biology. Agricultural land planning, forestry land planning, determining optimal crop structure, etc.

Economic and technical feasibility studies for forest farms are established according to the regulations of the Ministry of Forestry; for each small area, clearly specify the design capacity to be achieved during each forestry phase and the stable capacity after completing investment in the first rotation period (measured in cubic meters or tons of product).

Based on the approved design and budget estimate for the small area, construction is carried out over multiple years. Abandon the practice of preparing design and budget estimates annually or by construction stages.

Apply unified regional construction cost indices in the budget estimate. Provincial Construction Committees are responsible, along with relevant sectors, for establishing unified regional cost indices for forestry projects.³ An additional contingency reserve of 10% based on the budget value is recorded to cover replanting due to objective reasons. This reserve is managed by Party A and can be disbursed to Party B with the agreement of the local Investment and Construction Bank.

Approval levels for design and budget estimates:

The Minister of Forestry and the Chairman of the People's Committee of provinces directly approve the design and budget estimates for forest farms and high-yield intensive plantation areas larger than 500 hectares.

The General Director of the United Management Company, the Central Forest Department, approves the design and budget estimates for small areas and high-yield intensive plantation areas smaller than 500 hectares.

2.3. Installation Phase

2.3.1. Construction: Only commence construction after the design and budget estimates are approved, and construction should be carried out in lots, multiple lots, and individual small areas.

A lot is the smallest unit of a project that allows for signing contracts for construction handover. Additionally, piecework construction methods can be applied, assigning tasks to cooperatives, collectives, or individuals.

2.3.2. Inspection - Payment - Handover

- Internal inspection: Conducted after the completion of each construction stage, performed by the construction unit itself (with possible participation of Party A) to calculate wages within their own unit.

- Inspection, payment, and handover

Using the smallest unit, the lot, to inspect each period according to the following rules:

For newly concentrated planted forests: Three inspections (periods):

+ First: Completion of Stage 1 (closed canopy or defined shape).

+ Second: End of Step 1 of Stage 2.

+ Third: End of Step 2 of Stage 2.

Based on the forest planting process, planting standards, and regulations for forest inspection, conduct one, two, or all three inspections.

Intermediate inspections serve as the basis for payments between Parties A and B, known as inspection and payment. The final inspection serves as the basis for concluding investment in each lot and handing it over to the user unit, known as inspection and handover.

Inspection and handover documents are implemented according to a unified model issued by the Ministry of Forestry.

- Inspection team composition:

+ For inspection and payment:

Party A: Serves as the Chairman of the Inspection Board.

- Party B.

- Design unit.

- Local Investment and Construction Bank.

+ For inspection and handover:

Members:

Party A: Serves as the Chairman of the Inspection Board.

- National Forest Inspector (Department or District Office depending on the project).

- County Forest Management Station.

III. OTHER ISSUES

3.1. Rewards: Record a reward expense of 3% of the budget value for units achieving quality, progress, and cost as stipulated in the signed contract. This amount is managed by Party A and can be deducted immediately after each inspection period. The total expenditure of all periods must not exceed 3% of the approved budget value.

Members:

Party A: Serves as the Chairman of the Inspection Board.

3.2. Penalties: After each inspection and payment, if the survival rate does not meet the standard and sufficient quantity due to objective reasons, immediate replanting is required. Funding comes from the contingency reserve specified in Article 2.2 of this Circular. If the final inspection and handover shows failure to form a forest as prescribed, the construction unit must pay a penalty of 1% of the budget value and replant using their own funds.

(Survival rates and forest formation standards will be specifically defined by accompanying guidance circulars).

- County Forest Management Station.

IV. SCOPE OF APPLICATION

This Circular applies to the construction of forestry infrastructure projects carried out by state-owned forces under the forestry sector. For cooperatives, appropriate parts may be applied (the Ministry of Forestry will provide further guidance).

Based on this Circular, the Ministry of Forestry will issue subsequent guidance circulars.

During implementation, if there are difficulties requiring supplementation or modification, units should report to the State Construction Committee and the Ministry of Forestry for resolution.

FORESTRY STAGES FOR PLANTED FORESTS

I. Stage I:

Planting and care from planting until the forest closes canopy or takes shape. Duration 3-5 years. Divided into two steps:

1. Step 1: Planting, including: Seedling production - land preparation - replanting - care - erosion control - protection.

ANNEX

Minimum duration 12 months.

2. Step 2: Care and protection until the forest closes canopy or takes shape. Includes: replanting - care - soil enrichment - pest control - prevention of human and livestock damage. II. Stage II:

Cultivation and protection: From closed canopy to biological or technological maturity.

Duration 6-30 years (possibly 5 years for specialty forests, 40 years for large timber forests).

Divided into two steps:

1. Step 1: Thinning (no harvestable products) Includes: thinning - care - cultivation - protection.

The period is from 6 to 30 years (it may be 5 years for specialty forests, and 40 years for large timber forests).

It is divided into two stages:

Stage 1: Thinning (no full harvest of products)

Including: thinning - care - nurturing - protection.

The period of 2 to 5 years.

2. Step 2: Intermediate thinning: from the end of clear cutting to the final thinning. Includes: density adjustment thinning - forest sanitation - protection.

Depending on the type of forest and the age of the trees, this step may or may not be present.