Circular No. 47/2001/TT-BNN/CS guiding the implementation of Decision No. 141/2000/QĐ-TTg dated December 11, 2000 and Decision No. 28/2001/QĐ-TTg dated March 9, 2001 of the Prime Minister on investment policies and benefits for households, individuals, and communes participating in forestry projects and management of protective forests in the upper reaches in Thanh Hoa, Quang Tri, Phu Yen, and Gia Lai provinces under Credit Agreement No. 1515-VIE (SF).

CIRCULAR

Guidelines for implementing Decision No. 141/2000/QĐ-TTg dated December 11, 2000 and Decision No. 28/2001/QĐ-TTg dated March 9, 2001 of the Prime Minister regarding investment policies and benefits for households, individuals, and communes participating in the forestry project and management of upstream protective forests in Thanh Hoa, Quang Tri, Phu Yen, and Gia Lai provinces under Credit Agreement No. 1515-VIE (SF).

Credit Agreement No. 1515-VIE (SF)

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The Prime Minister has issued Decision No. 141/2000/QĐ-TTg dated December 11, 2000 on investment policies and benefits for households, individuals, and communes participating in the forestry project and management of upstream protective forests in Thanh Hoa, Quang Tri, Phu Yen, and Gia Lai provinces under Credit Agreement No. 1515-VIE (SF) and Decision No. 28/2001/QĐ-TTg dated March 9, 2001 amending and supplementing Decision No. 141/2000/QĐ-TTg dated December 11, 2000. The Ministry of Agriculture and Rural Development provides guidance on certain matters below for the project provinces to uniformly implement:

I- ON THE FOREST STRUCTURE:

1- For areas with very critical and critical protective forests: In addition to large timber trees, intercropping of industrial crops, fruit trees, specialty trees with canopy cover like forest trees may be planted; these trees will be counted as primary protective trees.

2- For production forests (including less critical protective forests): Select high-value economic tree species (short-cycle forest trees for quick harvest, long-term industrial trees, fruit trees, specialty trees, medicinal plants...with canopy cover like forest trees).

Based on the above structure and project regulations, the provinces need to study and select specific tree species suitable for the local ecological zones, encouraging the planting of multi-purpose trees to generate annual income for households participating in the project.

II- ON INVESTMENT AND INVESTMENT SUPPORT

1- For Protective Forest Areas (critical and very critical):

1.1- Protecting forests, encircling and regenerating without additional planting:

- Allocation amount for households and individuals is 50,000 VND/ha/year for a period of 5 years.

- Design fee is 16,000 VND/ha

1.2- New planting and encircling regeneration combined with supplementary planting of forest trees:

The investment cost is determined by the Provincial People's Committee based on the technical procedures of the Ministry of Agriculture and Rural Development (Decision No. 637/QĐ/BNN-KHCN dated February 26, 1999 promulgating the temporary procedure for landform survey and map preparation; guidelines for new forest planting and promoting forest enrichment; provisions for steps in new forest planting and forest enrichment), local economic-technical norms, and Decision No. 2318/QĐ/BNN-PTLN dated June 25, 1999 of the Ministry of Agriculture and Rural Development approving the capital investment quota for 1 ha of new forest planting and promoting forest enrichment applicable to the four provinces of Thanh Hoa, Quang Tri, Gia Lai, and Phu Yen under the ADB Forestry Area Project and Upstream Protective Forest Management Project.

2- For production forests (including less critical protective forests):

2.1- Support of 2 million VND/ha for households self-financing the planting of special rare hardwoods with a cycle over 30 years, prioritizing species belonging to Groups IA and IIA as stipulated in Decree No. 18/HĐBT dated January 17, 1992 of the Council of Ministers;

2.2- Planting forest trees (concentrated forest planting, scattered planting, and agroforestry integration), the State supports initial investment not exceeding 1.9 million VND/ha; the Provincial People's Committee decides on specific investment levels for forest tree planting projects based on agreements with ADB as follows:

2.2.1- Concentrated forest planting on land allocated to households and individuals: Support not exceeding 1.9 million VND/ha;

2.2.2- Agroforestry integration planting: planting forest trees, green hedges, soil improvement trees in agricultural areas using integrated farming methods: Support not exceeding 1.5 million VND/ha.

2.2.3- Scattered planting (2,000 trees equivalent to 1 ha of concentrated forest planting): Support not exceeding 1.2 million VND/ha.

3- Planting to improve mixed gardens: Support of 1 million VND/ha, with a minimum support level of 0.3 million VND per household garden.

4- Improving and constructing infrastructure works (small irrigation systems, clean water supply, village-to-village roads, primary schools, and commune health stations): The State invests 90% of the total budget estimate approved by the competent authority, the remaining 10% is contributed by beneficiaries.

5- Agricultural and forestry extension activities: The State funds 100% for activities such as experimental model construction, demonstration models (including community and household grazing area improvements), field meetings, and expenses for commune-level agricultural and forestry extension staff.

6- Other costs:

6.1- Forest planting and production design fees, implemented according to the design fee standards set out in Decision No. 2318/QĐ/BNN-PTLN dated June 25, 1999 of the Ministry of Agriculture and Rural Development approving the capital investment quota for 1 ha of new forest planting and promoting forest enrichment applicable to the four provinces of Thanh Hoa, Quang Tri, Gia Lai, and Phu Yen under the ADB Forestry Area Project and Upstream Protective Forest Management Project.

6.2- Direct works serving forest protection: firebreak roads, warning signs, boundary markers, forest watchtowers, pest control materials: invested according to the approved budget estimate by the competent authority.

III- ON THE CAPITAL INVESTMENT MANAGEMENT MECHANISM

The capital investment management mechanism and support are carried out according to Circular No. 26/1999/TT-BTC dated March 10, 1999 of the Ministry of Finance guiding the financial management mechanism for the Forestry Area Project and Upstream Protective Forest Management Project funded by ADB.

IV- IMPLEMENTATION

1- This circular takes effect from January 1, 2001.

2- Based on the contents stipulated in Decisions No. 141/2000/QĐ-TTg dated December 11, 2000 and No. 28/2001/QĐ-TTg dated March 9, 2001 of the Prime Minister regarding investment policies and benefits for households, individuals, and communes participating in the Forestry Area Project and Upstream Protective Forest Management Project in Thanh Hoa, Quang Tri, Phu Yen, and Gia Lai provinces under Credit Agreement No. 1515-VIE (SF) and the above guidance, the project management boards and provincial people's committees have the responsibility to guide the implementation of these projects at the grassroots level.