Decision No. 25/2000/QĐ-TTg approves the Feasibility Study Project for the Protection and Development of Coastal Wetlands in Southern Vietnam in the provinces of Cà Mau, Bạc Liêu, Sóc Trăng, and Trà Vinh.

 Pursuant to …;

Approving the Feasibility Study Project for the Protection

and Development of Coastal Mangrove Wetlands in Southern Vietnam

Joint Stock Companyin the Provinces of Ca Mau, Bac Lieu, Soc Trang, and Tra Vinh

---------------------

PRIME MINISTER 

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Investment and Construction Management Charter issued pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government;

Pursuant to the minutes of negotiations between the Socialist Republic of Vietnam and the World Bank from October 18-20, 1999, and the Report on the Negotiations Results regarding the Project for the Protection and Development of Coastal Mangrove Wetlands in Southern Vietnam of the State Bank of Vietnam No. 1127/CV-NHNN8 dated November 17, 1999;

Considering the proposals of the Ministries of Agriculture and Rural Development (in Circular No. 3242 BNN/HTQT dated September 9, 1999, Circular No. 4033 BNN/HTQT dated November 4, 1999, and Circular No. 474/BNN-HTQT dated February 17, 2000), Planning and Investment (Circular No. 64/BKH-VPTĐ dated January 5, 2000), Finance (Circular No. 5338/TC dated October 22, 1999), Science, Technology, and Environment (Circular No. 2182/BKHCNMT-Mtg dated August 18, 1999), and the State Bank of Vietnam (Circular No. 103/CV-NHNN8 dated February 1, 2000),

DECISION:

Article 1Approves the Feasibility Study Project for the Protection and Development of Coastal Mangrove Wetlands in Southern Vietnam with the main contents as follows:

1. Project Name: Protection and Development of Coastal Mangrove Wetlands in Southern Vietnam.

2. Project Managing Authority: Ministry of Agriculture and Rural Development.

3. Project Implementation Authority: People's Committees of the provinces of Ca Mau, Bac Lieu, Soc Trang, and Tra Vinh.

4. Project Implementation Period: 6 years from 2000 to 2005

5. Objectives:

- Protecting and developing mangrove forest areas, restoring mangrove ecosystems along the coast to sustainably conserve coastal protection functions and regenerate marine resources.

- Developing buffer zones to support the protection of vulnerable coastal defense areas and natural conservation zones.

- Promoting forestry production, aquaculture, agriculture, and related industries, creating jobs, improving the livelihoods of people in the project area and adjacent regions, and establishing a long-term safe zone for the protection and development of coastal mangrove forests.

6. Project Scope:

- The coastal land strip within the four provinces of Ca Mau, Bac Lieu, Soc Trang, and Tra Vinh. The total project area according to the planning is 44,400 hectares (of which 27,053 hectares are vulnerable coastal defense areas and 17,347 hectares are less vulnerable areas) as determined in Article 2 of Decision No. 116/1999/QĐ-TTg dated May 3, 1999 of the Prime Minister approving the planning for the restoration of mangrove forests (project area) in the provinces of Ca Mau, Bac Lieu, Soc Trang, and Tra Vinh.

7. Investment Content Includes the Following Items:

- Management, protection of ecosystems, and planting of mangrove forests.

- Economic and technical support for households in buffer zones.

- Social development for poor communes (including ethnic minority poor communities).

- Applying state policies to establish specific regulations for the effective implementation of the project.

- Resettlement of people living in vulnerable coastal defense areas.

- Monitoring and evaluating land use in coastal areas, water quality, fishery productivity, biodiversity, economic and social conditions.

- Coordinating and managing the project.

8. Total Project Cost Is: 65,673,445 US dollars including:

- Preferential loan from the World Bank (WB): 31,863,445 US dollars.

- Non-reimbursable aid from Denmark (DANIDA): 11,300,000 US dollars.

- Counterpart funds of the Vietnamese Government: 12,347,000 US dollars.

- Agricultural and Rural Development Bank credit according to commitments with the World Bank (WB): 10,163,000 US dollars.

The preferential loan will be allocated to the project provinces, Central Project Office, and contingency as follows:

- Tra Vinh Province: 3,075,995 US dollars

- Soc Trang Province: 9,048,667 US dollars

- Bac Lieu Province: 3,200,138 US dollars

- Ca Mau Province: 10,497,005 US dollars

- Central Project Office: 2,744,946 US dollars

- Unallocated: 3,296,694 US dollars

Total: 31,863,445 US dollars

Article 2. Implementing organization.

1. Entrust the Ministry of Agriculture and Rural Development:

- Establish the Central Project Steering Committee. Members include: a Deputy Minister of Agriculture and Rural Development as Chairperson, and members representing: the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Science, Technology, and Environment, the Ministry of Fisheries, the Land Administration General Department, the Ethnic and Mountainous Areas Committee, the State Bank of Vietnam, the Agricultural and Rural Development Bank, representatives of the People's Committees of the provinces of Ca Mau, Bac Lieu, Soc Trang, and Tra Vinh; and representatives of relevant departments and agencies under the Ministry of Agriculture and Rural Development.

- Coordinate with ministries, sectors, and provincial People's Committees to organize management and operation of the project. Develop and issue guidelines on resettlement procedures, mangrove planting, and appoint independent auditing companies as stipulated in the Development Credit Agreement.

- Direct the provinces to implement the project in accordance with the objectives, schedule, and content specified in the Development Credit Agreement and project documentation.

- Coordinate with the provincial People's Committees in the project area to draft technical procedures and financial standards for activities such as mangrove planting and resettlement, and establish accounting systems for the project to ensure that the Development Credit Agreement becomes effective three months after signing.

2. Entrust the provincial People's Committees in the project area to coordinate with the Ministry of Agriculture and Rural Development:

- Direct the implementation of the project within their respective provinces, ensuring the objectives and schedule as approved in the project documentation.

- Annually, based on the objectives and content of the Project as directed by the Ministry of Agriculture and Rural Development, provinces shall develop annual counterpart capital plans within the scope of their provincial budgets. If the Project's counterpart capital exceeds the province's balancing capacity, the provincial People's Committee shall submit to the Government for supplementary funding (in accordance with Circular No. 06/1999/TTLT-BKH-BTC dated August 14, 1998, guiding the management mechanism for counterpart capital for Programs and Projects using Official Development Assistance - ODA sources).

3. The Ministry of Planning and Investment shall take the lead in coordinating with the Ministry of Finance to ensure the allocation of the counterpart capital and tax amounts in the State budget plan annually for the Ministry of Agriculture and Rural Development and the provinces involved in this Project to implement over six years.

4. The Ministry of Finance shall manage the financial resources of the Project and prepare the repayment plan for the World Bank (WB) when due.

5. The Land Administration General Department shall coordinate with the Ministry of Agriculture and Rural Development and the People's Committees of the provinces within the Project area to complete the procedures for land transfer and forest assignment to households in buffer zones to implement the Project according to schedule.

6. The support funds for households relocated according to the planned resettlement to implement the Project shall be applied in the manner provided for projects borrowing from the World Bank (WB) and agreed upon during the negotiation period from October 18 to 20, 1999.

7. To ensure the progress of the Project in the first year, the Project is allowed to purchase five four-wheel-drive cars with six seats and five high-speed boats with 60 horsepower out of the total of fifteen vehicles and thirty-one high-speed boats (one vehicle and one boat for each province in the Project area and one vehicle and one boat for the Central Project Office/On-site Coordination Board) through the United Nations multi-lateral procurement agency and must comply with current national tax regulations.

The source of funds for purchasing the vehicles, boats, and speedboats mentioned above shall be drawn from the loan funds as agreed upon in the Project content.

8. Financial Management: Allow the opening of five special accounts (one special account for each Project province and one special account for the Central Project Office/On-site Coordination Board).

Article 3. This Decision replaces Decision No. 540/QĐ-TTg dated May 12, 1999.

Based on the approved feasible Project, the Minister of Agriculture and Rural Development shall approve the components of the Project content consistent with the annual implementation plan of the Project already agreed upon with the World Bank (WB).

Article 4. This Decision shall take effect from the date of signing.

The Ministers of Agriculture and Rural Development, Planning and Investment, Defense, Finance, Fisheries, Science, Technology and Environment; the Chairman of the State Bank of Vietnam, the Director of the Land Administration General Department, the Chairmen of the People's Committees of the provinces: Ca Mau, Bac Lieu, Soc Trang, Tra Vinh, the General Director of the Agricultural and Rural Development Bank, the Heads of relevant agencies are responsible for implementing this Decision.