Decision No. 166/2007/QD-TTg on issuing investment support policies and benefits for households, village communities, and organizations participating in the "Forest Development to Improve Livelihoods in the Central Highlands" project.

Pursuant to …;

Regarding the issuance of investment support policies and benefits for households, village communities, and organizations participating in the "Forest Development to Improve Livelihoods in the Central Highlands" project

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Land Law dated November 26, 2003;

Pursuant to the Forest Protection and Development Law 2004;

Pursuant to Loan Agreement No. 2269-VIE(SF) dated December 7, 2006 between the Socialist Republic of Vietnam and the Asian Development Bank (ADB) for the "Forest Development to Improve Livelihoods in the Central Highlands" Project”;

Pursuant to Decision No. 813/QĐ-TTg dated June 7, 2006 of the Prime Minister approving the Preliminary Feasibility Study Report on the Forest Development to Improve Livelihoods in the Central Highlands Project; Pursuant to Decree No. 131/2006/NĐ-CP dated November 9, 2006 of the Government promulgating the Regulations on Management and Use of Official Development Assistance Funds;

Pursuant to Decision No. 186/2006/QĐ-TTg dated August 14, 2006 of the Prime Minister on the issuance of the Forest Management Regulations; This document stipulates the support policy for investment and benefits for households, village communities, forest management boards, timber farms, forestry companies, small and medium enterprises assigned forests and forestry land (hereinafter referred to collectively as forest owners) to plant forests, protect forests, encircle and promote forest regeneration, integrate agriculture and forestry, and renovate mixed gardens under the Forest Development to Improve Livelihoods in the Central Highlands Project (FLITCH) in the provinces of Gia Lai, Kon Tum, Dak Lak, Dak Nong, Lam Dong, and Phu Yen.

Article 2. Sources of funding for investment support

Considering the proposal of the Minister of Agriculture and Rural Development,

DECISION:

Article 1. Scope of Regulation and Applicability

The funding for supporting investment activities in forest protection and development shall be sourced from the ODA loan capital of the Asian Development Bank (ADB) and the counterpart budget of the state; the funding for other technical support shall be sourced from the Trust Fund for Forestry (TFF) and the counterpart funds of the Vietnamese government allocated for the project.

Article 3. Investment Support Policy

Forest owners shall be supported with Vietnamese dong converted from equivalent US dollars (USD) at the exchange rate prevailing at the time of payment as follows:

1. For special-use forests

The project will assist high-priority biodiversity conservation areas to access funds from the Vietnam Conservation Fund to support costs for implementing conservation measures within and around these special-use areas according to the approved feasible investment plan; the budget estimate shall be approved by the provincial People's Committee.

2. For protective forests

a) Forest protection: average support level equivalent to 7 USD/hectare/year.

b) Encircling and promoting regeneration:

- Encircling and promoting regeneration without additional planting: average support level equivalent to 15 USD/hectare/year.

- Encircling and promoting regeneration with additional planting: average support equivalent to 200 USD/hectare for the first year for additional planting, 30 USD/hectare/year for the following two years, and thereafter 15 USD/hectare/year for subsequent years.

The specific levels of support and implementation periods for each item above shall be decided by the provincial People's Committee.

c) New concentrated forest planting: average support level equivalent to 500 USD/hectare.

Based on the current status of land in each area and the type of planted trees, the provincial People's Committee shall decide on the investment cost; the implementation period for each investment support item.

3. For production forests.

- For households and village communities: average support level equivalent to 500 USD/hectare for concentrated planting with fast-growing trees; 300 USD/hectare for integrated agriculture and forestry planting; 70 USD/hectare for renovation of mixed gardens.

- For organizations: average support level equivalent to 400 USD/hectare for concentrated planting with fast-growing trees.

The specific investment levels for each tree species and each area shall be decided by the provincial People's Committee.

- For organizations: the average support level is equivalent to 400 USD/ha for concentrated forest planting with fast-growing trees.

The specific investment level for each tree species and each area shall be decided by the People's Committee of the province.

Article 4. Policy on Benefit Enjoyment

2. For protective forests

The forest owner may reasonably utilize natural resources within special-use forests in accordance with the provisions of Decision No. 186/2006/QĐ-TTg dated August 14, 2006, issued by the Prime Minister on the management regulations for forests.

b) Encircling and promoting regeneration:

a) Protective forests are natural forests (including forests that have been fenced to promote regeneration).

The forest owner may exploit and harvest dead, diseased, broken trees, and trees in areas where density exceeds the prescribed limit. They may also extract non-timber forest products except those rare plant and animal species listed in Decree No. 32/2006/NĐ-CP dated March 30, 2006, on the management of endangered and precious plants and animals in forests. When the protective forest meets the protection standards, selective cutting can be carried out according to the provisions of Decision No. 186/2006/QĐ-TTg mentioned above. The forest owner shall enjoy the value of the extracted products in accordance with current regulations.

b) Protective forests are planted forests.

The forest owner may exploit intercropped trees, auxiliary trees, thinning, harvesting, utilizing timber, extracting non-timber forest products, and enjoy 100% of the product value. When the protective forest and the main planted trees meet the exploitation standards, selective cutting of the main planted trees can be carried out according to the provisions of Decision No. 186/2006/QĐ-TTg mentioned above. The forest owner shall enjoy the value of the extracted products in accordance with current regulations.

c) Technical requirements, procedures, formalities, and authorities for primary exploitation, utilization, and harvesting of natural and planted protective forests shall be implemented in accordance with current regulations of the Ministry of Agriculture and Rural Development.

3. For production forests which are planted forests.

Permission to utilize during the nurturing of planted forests is granted, and the forest owner enjoys 100% of the products. Once the forest reaches the harvesting age, the forest owner may carry out primary harvesting through clear-cutting or selective cutting methods and enjoy all products after making the following payments:

a) Households and village communities must return the value of the harvested products in Vietnamese currency equivalent to 150 USD/ha at the exchange rate applicable at the time of payment into the village development fund.

b) Organizations must return the value of the harvested products in Vietnamese currency equivalent to 250 USD/ha at the exchange rate applicable at the time of payment into the provincial budget or provincial forestry development fund (if available).

c) For areas under production projects supported by afforestation programs combining agriculture and forestry, or transforming miscellaneous gardens: households and village communities enjoy all products when harvesting.

d) Technical requirements, procedures, formalities, and authorities for primary exploitation and utilization of planted production forests shall be implemented in accordance with current regulations of the Ministry of Agriculture and Rural Development.

4. Other rights to benefits

Other rights to benefits shall be implemented in accordance with current regulations and the provisions in the feasibility study project documents approved.

Article 5. Obligations of Forest Owners Participating in the Project

1. Fully comply with commitments made in contracts signed with the project; use the assigned forest land for its intended purpose to ensure sustainable forest capital preservation and development. If there is a breach of commitment or damage to related parties, compensation must be provided in accordance with the law.

2. The forest owner must self-fund replanting or implement regeneration measures to regenerate the forest within one year after harvesting.

3. Participate in establishing the Forest Protection and Development Fund.

4. Fulfill other obligations in accordance with current regulations and the provisions in the feasibility study project documents approved.

Article 6. Responsibilities for Implementation

The Ministers of Planning and Investment, Agriculture and Rural Development, Finance, Governor of the State Bank of Vietnam, and Chairpersons of People's Committees of Gia Lai, Kon Tum, Dak Lak, Dak Nong, Lam Dong, and Phu Yen Provinces are responsible for implementing this Decision.

Article 7. Effective Date

This Decision takes effect fifteen days from the date of publication in the Official Gazette./.