Decree No. 99/2010/NĐ-CP On policies for payment for forest environmental services

DECREE

On the policy for payment for forest environmental services

_______________

THE GOVERNMENT

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

The Government issues this Decree on mechanisms and policies to encourage forest protection, encirclement and regeneration of forests, afforestation, development of non-timber forest products, and increased income in connection with policies to quickly reduce poverty, sustainably and to support ethnic minority groups during the period 2015-2020.

Pursuant to the Law on Biodiversity dated November 13, 2008;

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

DECREE:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the policy on payment for forest environmental services in Vietnam, including:

1. Types of forest environmental services that users pay money to providers of forest environmental services as prescribed in this Decree.

2. Providers and users of forest environmental services.

3. Management and utilization of payments for forest environmental services.

4. Rights and obligations of providers and users of forest environmental services.

5. Responsibilities of state management agencies at all levels and sectors regarding the implementation of payment for forest environmental services.

Article 2. Applicability

The objects of application include state agencies; organizations, households, individuals, village communities within the country; overseas Vietnamese, foreign organizations and individuals involved in providing, using, and paying for forest environmental services, and managing payments for forest environmental services.

Article 3. Explanation of Terms

In this Decree, the following terms shall be understood as follows:

1. Forest environment includes components of the forest ecosystem: plants, animals, microorganisms, water, soil, air, natural scenery. The forest environment has values for societal and human needs, known as the value of the forest environment, including: land protection, water regulation, upstream protection, coastal protection, disaster prevention, biodiversity, carbon absorption and storage, tourism, habitat and breeding grounds for species, timber and other forest products.

2. Forest environmental service is the provision of the values of the forest environment to meet societal and people's living needs, including types of services specified in Clause 2, Article 4 of this Decree.

3. Payment for forest environmental services is the relationship between users of forest environmental services who pay money to providers of forest environmental services as prescribed in Article 6 of this Decree.

Article 4. Types of forests and types of forest environmental services eligible for payment for forest environmental services

1. Forests eligible for payment for forest environmental services are areas of forest that provide one or more forest environmental services as prescribed in Clause 2 of this Article, including: protective forests, special-use forests, and production forests.

2. Types of forest environmental services prescribed in this Decree include:

"4. Compel signing contracts for payment of forest environmental services.

5. Compel declaration of the amount of money required to pay for forest environmental services.

6. Compel full payment of the cost of using forest environmental services and interest accrued from delayed payments (if any) corresponding to the amount and duration of delay.

7. Compel full payment of forest environmental service fees to forest protection contractors under signed contracts."

d) Service of supplying spawning grounds, natural food sources, and natural seedlings, utilizing water from forests for aquaculture.

3. The Ministry of Agriculture and Rural Development shall take the lead and coordinate with relevant ministries and sectors to submit to the Prime Minister for issuance of regulations on: beneficiaries, payment levels, and payment methods for carbon absorption and retention services of forests and services of supplying spawning grounds, natural food sources, and natural seedlings, utilizing water from forests for aquaculture, to be implemented in accordance with this Decree.

Article 5. Principles of payment for forest environmental services

1. Organizations and individuals benefiting from forest environmental services must pay for forest environmental services to forest owners of areas generating such services.

2. Payment for forest environmental services shall be made in cash through direct or indirect payment methods.

3. Payments for forest environmental services through the Forest Protection and Development Fund are funds entrusted by users of forest environmental services to the Fund to pay to forest owners providing forest environmental services.

4. Payments for forest environmental services are a component of the cost of products using forest environmental services and do not replace resource taxes or other statutory payments.

5. Ensure transparency, democracy, objectivity, fairness; compliance with Vietnamese legal systems and international treaties to which Vietnam is a party.

Article 6. Forms of Payment for Forest Environmental Services

1. Direct payment:

a) Direct payment is when the user of forest environmental services pays directly to the provider of forest environmental services.

b) Direct payment is applied in cases where the user of forest environmental services has the ability and conditions to pay directly to the provider of forest environmental services without going through intermediary organizations. Direct payment is carried out based on a voluntary agreement contract between the user and provider of forest environmental services in accordance with this Decree, wherein the payment amount is not lower than the level set by the State for the same type of forest environmental service.

2. Indirect payment:

a) Indirect payment is when the user of forest environmental services pays money to the provider of forest environmental services through the Vietnam Forest Protection and Development Fund or the provincial-level Forest Protection and Development Fund or organizations performing the functions of the provincial-level Forest Protection and Development Fund as decided by the People's Committee at the provincial level.

b) Indirect payment is applied in cases where the user of forest environmental services does not have the ability and conditions to pay directly to the provider of forest environmental services but instead goes through intermediary organizations as stipulated in point a, Clause 2, Article 7 of this Decree. Indirect payment involves intervention and support from the State, with the price of forest environmental services set by the State.

Article 7. Subjects and Types of Services Required to Pay for Forest Environmental Services

1. Hydropower production facilities must pay for services related to protecting land, reducing erosion and sedimentation in reservoirs and streams; regulating and maintaining water sources for hydropower production.

2. Facilities producing and supplying clean water must pay for services related to regulating and maintaining water sources for clean water production.

3. Industrial production facilities using water directly from water sources must pay for services related to regulating and maintaining water sources for production.

4. Organizations and individuals operating tourism services benefiting from forest environmental services must pay for services related to protecting natural landscapes and conserving biodiversity in forest ecosystems serving tourism services.

5. Subjects required to pay for forest environmental services for carbon absorption and retention services of forests; services providing breeding grounds, food sources, and natural seedlings, using forest water sources for aquaculture are defined in Clause 3, Article 4 of this Decree.

Article 8. Recipients of Payment for Forest Environmental Services

1. The recipients of payment for forest environmental services are the forest owners of areas providing forest environmental services, including:

a) Forest owners who are organizations assigned forests by the State for long-term stable use for forestry purposes and forest owners who are organizations investing their own funds to plant forests on assigned forestry land areas confirmed by the People's Committee at the provincial level upon the proposal of the Department of Agriculture and Rural Development;

b) Forest owners who are households and individuals assigned forests by the State for long-term stable use for forestry purposes; village communities assigned forests by the State for long-term stable use for forestry purposes; forest owners who are households and individuals, village communities investing their own funds to plant forests on assigned forestry land areas confirmed by the People's Committee at the district level upon the proposal of specialized forestry management agencies, with confirmation from the People's Committee at the commune level.

2. Organizations, households, individuals, village communities that have long-term contractual agreements for forest protection with state-owned forest owners (hereinafter referred to collectively as contracted households); the contract is established, signed by both parties and confirmed by the People's Committee at the commune level.

Chapter II

MANAGEMENT AND USE OF FUNDS FOR PAYMENT FOR FOREST ENVIRONMENTAL SERVICES

Section 1

MANAGEMENT AND USE OF FUNDS

IN THE FORM OF DIRECT PAYMENT

Article 9. Payment for Forest Environmental Services

1. The provider and user of forest environmental services shall negotiate on the type of service, payment amount, and payment method in accordance with the provisions of this Decree and other relevant laws.

In cases where the type of service has been defined in this Decree, the payment amount shall not be lower than the amount specified in Article 11 of this Decree.

Where the payment amount is not specified in this Decree, the provider and user of forest environmental services shall negotiate the payment amount.

2. The State encourages the application of direct payment methods for all cases if the provider and user of forest environmental services can agree on the payment amount.

Article 10. Use of Revenue from Forest Environmental Services

1. The provider of forest environmental services has the right to decide on the use of revenue from forest environmental services after fulfilling financial obligations to the State as stipulated by law.

2. In cases where the provider of forest environmental services is a state organization, the revenue from forest environmental services, after deducting reasonable costs related to organizing the implementation of the payment policy for forest environmental services at the unit, including payments to households contracted for forest protection, the remaining amount shall be recorded as a source of income for the unit and may be spent according to the financial regulations applicable to that organization.

Section 2

MANAGEMENT AND USE OF FUNDS

IN THE FORM OF INDIRECT PAYMENT

Article 11. Payment Amount and Determination of Payment for Forest Environmental Services

1. For hydropower production facilities

a) The payment amount for forest environmental services applicable to hydropower production facilities is 20 dong per 1 kWh of commercial electricity. The electricity volume for calculating the payment for forest environmental services is the electricity volume of hydropower production facilities sold to the electricity buyer under the power purchase contract;

b) Determination of the payment amount for forest environmental services.

The payment amount for forest environmental services within the payment period (đ) equals the electricity volume within the payment period (kWh) multiplied by the payment amount for forest environmental services per 1 kWh (20đ/kWh).

2. For water purification and supply facilities:

a) The payment amount for forest environmental services applicable to water purification and supply facilities is 40 dong per 1 cubic meter of commercial water. The water volume for calculating the payment for forest environmental services is the water volume of water purification and supply facilities sold to consumers;³The payment amount for forest environmental services within the payment period (đ) equals the commercial water volume within the payment period (cubic meters) multiplied by the payment amount for forest environmental services per 1 cubic meter (40đ/1 cubic meter);

b) Determination of the amount payable for forest environmental services

The amount to be paid for forest environmental service in the payment period (d) equals the volume of commercial water in the payment period (m)³“b) A portion of the funds not exceeding 5% of the total amount entrusted and transferred to the Provincial Forest Protection and Development Fund, plus other legitimate sources of funding, may be reserved and used to support households, individuals, and village communities assigned or contracted for long-term forest protection in cases of natural disasters, droughts, and when the payment rate for forest environmental services per unit area is lower than the previous year’s rate.³ commercial water (40 d/1m³).

3. For industrial production facilities directly using water resources

The Ministry of Agriculture and Rural Development shall take the lead and coordinate with relevant ministries and sectors to submit to the Prime Minister for detailed regulations on the entities required to pay, payment amounts, and payment methods for this type of service.

4. For organizations and individuals operating tourism services benefiting from forest environmental services.

a) The payment amount for forest environmental services is calculated as 1% to 2% of the revenue realized during the period;

b) Determination of the amount payable for forest environmental services

The payment amount for forest environmental services within the payment period (đ) equals the revenue multiplied by the payment rate (from 1% to 2%).

c) The People's Committee of the province shall specify the entities required to pay, including travel agencies and accommodation providers operating in the province or centrally governed city. The payment amount for forest environmental services for these entities shall be implemented according to the provisions of point a, Clause 4 of this Article.

Article 12. Subjects Exempted or Reduced from Payment for Forest Environmental Services

1. Organizations and individuals specified in Article 7 of this Decree shall be considered for exemption or reduction of payment for forest environmental services stipulated in this Decree in cases of risk or force majeure.

2. The Ministry of Agriculture and Rural Development shall take the lead and coordinate with relevant ministries and sectors to guide the exemption and reduction of payment for forest environmental services.

Article 13. Entrusted Payment for Forest Environmental Services

1. The Forest Protection and Development Fund established under Decree No. 05/2008/NĐ-CP dated January 14, 2008 of the Government shall be the organization receiving entrusted payments for forest environmental services. For localities that do not have the conditions to establish a Forest Protection and Development Fund, the People's Committee of the province shall decide on the agency or organization to perform the duties of the provincial Forest Protection and Development Fund.

In provinces with large areas of forests and forestry land, the People's Committee of the province may consider allowing the establishment of branches of the Forest Protection and Development Fund at the district level to facilitate the entrusted payment for forest environmental services to the people.

2. In cases where the user of forest environmental services uses such services from forests within the administrative boundaries of one province or centrally governed city, the entrusted payment for forest environmental services shall be transferred to the Forest Protection and Development Fund of that province or the agency or organization performing the duties of the provincial Forest Protection and Development Fund decided by the People's Committee of the province (hereinafter referred to as the provincial Forest Protection and Development Fund).

3. In cases where the user of forest environmental services uses forest environmental services from forests within the administrative boundaries of two or more provinces or centrally governed cities, the entrusted payment for forest environmental services shall be transferred to the Vietnam Forest Protection and Development Fund.

Article 14. Basis for Allocation of Payments for Forest Environmental Services from the Vietnam Forest Protection and Development Fund

1. The Vietnam Forest Protection and Development Fund shall allocate payments for forest environmental services to each province or centrally governed city based on the following criteria:

a) The amount of money received from the users of forest environmental services;

b) The area of forests in each province or centrally governed city participating in providing forest environmental services, confirmed by the competent authority according to the guidance of the Ministry of Agriculture and Rural Development.

2. For the amount of money received from the users of forest environmental services but cannot be identified or has not been identified as the recipient of forest environmental service payments, the Vietnam Forest Protection and Development Fund shall allocate such funds to provinces with lower average forest environmental service payment rates per hectare than the national average in the year.

Article 15. Use of Payments for Forest Environmental Services

1. Use of Entrusted Payments for Forest Environmental Services at the Vietnam Forest Protection and Development Fund.

a) Up to a maximum of 0.5% of the total entrusted funds received from entities required to pay for forest environmental services can be used for the operational activities of the Fund related to the payment for forest environmental services, including administrative management costs of the office under the entrustment mechanism; costs for receiving funds and other financial management activities.

b) The remaining funds shall be transferred to the provincial Forest Protection and Development Fund or the agency or organization performing the duties of the provincial Forest Protection and Development Fund according to the area of forests in the province or centrally governed city participating in providing forest environmental services.

2. Use of Entrusted Payments for Forest Environmental Services at the Provincial Forest Protection and Development Fund:

The funds received from the Vietnam Forest Protection and Development Fund and directly from the payer of forest environmental services shall be considered as 100% and shall be used as follows:

a) Up to a maximum of 10% can be used for activities including: administrative management costs of the office under the entrustment mechanism, costs for receiving funds, settlement, inspection, supervision, auditing; support for activities related to forest acceptance and evaluation; support for technical monitoring activities related to the quality of forest environmental services; support for activities related to the payment of forest environmental services at the county, commune, and village levels;

b) A portion of the funds not exceeding 5% of the total entrusted funds transferred to the provincial Forest Protection and Development Fund, together with other legitimate sources of funding, can be reserved and used to support households, individuals, and community villages assigned or contracted to protect forests stably and long-term in case of natural disasters or drought.

The People's Committee of the province shall specify the detailed use of the funds stipulated in points a and b of Clause 2 of this Article.

c) The remaining funds shall be used to pay the provider of forest environmental services. This amount shall be considered as 100% and shall be used for the following two cases:

For forest owners who are households or individuals granted or leased forests by the State, and community villages granted forests by the State for stable and long-term use for forestry purposes, and households or individuals, and community villages that have invested in planting forests on forestry land, they shall enjoy the entire amount.

For forest owners who are state organizations implementing contracts for forest protection, they shall use 10% of the amount to carry out inspections, supervision, acceptance, and evaluation of the quality and quantity of forests for annual payment of forest environmental services. The remaining amount (90%) shall be used to pay the households contracted for forest protection.

In cases where the remaining forest area has not been contracted for forest protection, the payment for forest environmental services for that forest area managed by the forest owner shall be used according to the laws on finance applicable to different types of organizations.

Article 16. Payment for Forest Environmental Services by the Provincial Forest Protection and Development Fund

1. The recipient of payment is the forest owner.

a) The amount to be paid to a forest owner for one type of service is determined by multiplying the area of the forest provided by the forest owner with the average payment per hectare for that type of service and the corresponding payment coefficient (hereinafter referred to as coefficient K). A forest providing multiple environmental services will receive payments for each of those services.

b) The average payment per hectare is determined by dividing the revenue from the payment side for a specific type of forest environmental service, after deducting management fees and contingency funds as stipulated in points a and b, Clause 2, Article 15 of this Decree, by the total areas of different types of forests provided by all participating forest owners, then multiplying by the corresponding coefficient K for each type of forest area of the paying forest owner.

The Ministry of Agriculture and Rural Development shall lead and coordinate with the Ministry of Finance and relevant ministries and sectors to guide the calculation method for the average payment per hectare as specified in point b, Clause 1 of this Article.

2. The recipient of payment is the household contracted for forest protection.

a) The amount to be paid to the contracted household for forest environmental services is determined by multiplying the average payment per hectare with the area of the forest to be paid (hectares) and coefficient K;

b) The average payment per hectare (VND/hectare) is determined by dividing the remaining total amount as stipulated in point c, Clause 2, Article 15 of this Decree by the total areas of different types of forests to be paid at the time of verification and confirmation by the responsible authority, then multiplying by the corresponding coefficient K for each type of forest area to be paid.

3. Coefficient K is determined based on the following factors:

a) The state of the forest (its ability to provide forest environmental services);

b) Type of forest (special purpose, protective, productive);

c) Origin of the forest formation (natural forest, planted forest);

d) Degree of difficulty and convenience for forest protection (social and geographical factors).

For the forest owner as the recipient of payment, the People's Committee of the province shall determine coefficient K based on the specific conditions of the locality.

For the contracted household as the recipient of payment for forest protection, the contracting party and the contracted party shall calculate coefficient K according to the regulations of the competent authority and include it in the contract.

Article 17. Tasks of the Provincial Forest Protection and Development Fund

1. Coordinate with the user of forest environmental services (the party entrusting payment to the Forest Protection and Development Fund) to determine the amount to be paid for each service user according to the payment period within the territory.

2. Represent the provider of forest environmental services to sign contracts with the users of forest environmental services who entrust payment to the Provincial Forest Protection and Development Fund, define the responsibilities of each party in the payment and use of forest environmental service funds, serving as the basis for monitoring, inspecting, and handling responsibilities of each party in the payment and use of forest environmental service funds.

3. Receive entrusted funds from the user of forest environmental services transferred by the Vietnam Forest Protection and Development Fund and direct payments from the user of forest environmental services transferred directly to the Provincial Forest Protection and Development Fund.

4. Implement the payment of forest environmental service funds to forest owners based on the quantity and quality of forests confirmed by the Department of Agriculture and Rural Development (for organizational forest owners), confirmed by the forestry specialized agency at the district level designated by the District People's Committee (for household, individual, and village community forest owners), and pay funds to the contracted households for forest protection upon the request of the forest owners confirmed by the Commune People's Committee.

5. Serve as the intermediary to assist state agencies with the authority to organize inspections of forest owners in the provision of forest environmental services, payment to contracted households for forest protection, and inspection of the submission of payment by the user of forest environmental services.

6. Report annually to the People's Committee of the province and the Vietnam Forest Protection and Development Fund on the income and expenditure of forest environmental service funds in the locality.

7. For provinces and centrally-administered cities that have not yet established a Forest Protection and Development Fund, the agency or organization performing the tasks of the Provincial Forest Protection and Development Fund shall be responsible for implementing the tasks stipulated in this Article.

Article 18. Tasks of the Vietnam Forest Protection and Development Fund

1. Coordinate with the People's Committee at the provincial level to identify the objects that must pay for forest environmental services and entrust the money to the Vietnam Forest Protection and Development Fund as stipulated in Clause 3, Article 13 of this Decree; determine the amount of payment for each service user according to the payment period.

2. Represent the provider of forest environmental services to sign contracts with users who must entrust payment to the Vietnam Forest Protection and Development Fund; define the responsibilities of each party in the payment and use of forest environmental service funds, which serve as the basis for monitoring, inspecting, and handling the responsibilities of each party in the payment and use of forest environmental service funds.

3. Receive payments from service users and transfer them to the provincial-level Forest Protection and Development Fund.

4. Allocate the funds collected from service users to the provincial-level Forest Protection and Development Fund.

5. Serve as the intermediary to assist the Forestry General Department in organizing inspections on the submission of payments by service users to the Fund, the use of funds transferred by the Vietnam Forest Protection and Development Fund to the provincial-level Forest Protection and Development Fund in accordance with their intended purpose and designated recipients.

6. Summarize and report to the Ministry of Agriculture and Rural Development annually on the collection and expenditure of forest environmental service funds nationwide.

Chapter III

RIGHTS AND OBLIGATIONS OF THE SERVICE USER AND PROVIDER

AND THE PROVIDER OF FOREST ENVIRONMENTAL SERVICES

Article 19. Rights and obligations of the service user

1. Powers:

a) Be informed by the competent forestry authority about the situation of forest protection and development within the scope of forests providing forest environmental services, including the quantity and quality of forests currently providing such services.

b) Be notified by the Forest Protection and Development Fund about the results of payments for forest environmental services to forest owners.

c) Participate in the inspection and supervision activities conducted by state agencies in the work of protecting and developing forests within the scope of forests providing forest environmental services.

d) Request the competent authority to review the adjustment of payment amounts for forest environmental services in cases where the service provider fails to maintain the correct forest area or reduces the quality of the forest while the service user has already paid the corresponding amount.

2. Obligations:

a) Declare the amount of forest environmental service fees to be entrusted to the Forest Protection and Development Fund.

b) Fulfill the full and timely payment of forest environmental service fees to forest owners (in direct payment cases) or to the Forest Protection and Development Fund (in indirect payment cases) as stipulated in the contract.

c) In case of violation of the provisions in point a and b of Clause 2 of this Article, penalties will be imposed according to the nature and severity of the violation as prescribed by law.

Article 20. Rights and obligations of the service provider

1. Powers:

a) Demand payment for the use of forest environmental services from the service user (in direct payment cases) or from the provincial-level Forest Protection and Development Fund (in indirect payment cases) as stipulated in this Decree.

b) Receive information about the values provided by forest environmental services.

c) Participate in the inspection and file management of state agencies in the implementation of forest environmental service payments.

2. Obligations:

a) Forest owners must ensure that the forest area providing services is protected and developed according to its designated function as specified in the approved forest protection and development plan by the competent authority.

b) Households contracted for long-term forest protection must ensure that the forest area providing services is protected and developed according to the signed contract with the forest owner.

c) State organizations acting as forest owners must use the received payment in accordance with the provisions of this Decree.

d) Not engage in illegal deforestation or unauthorized change of land use for forests.

e) In case of violation of the provisions in points a, b, c, and d of Clause 2 of this Article, penalties will be imposed according to the nature and severity of the violation as prescribed by law.

Chapter IV

IMPLEMENTATION

Article 21. Responsibilities of Relevant Ministries and Sectors

1. The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Ministry of Natural Resources and Environment, the Ministry of Finance, and related ministries and sectors to implement the following tasks:

a) Submit to the Prime Minister for approval the project to implement the Government Decree on policies for paying for forest environmental services.

b) Coordinate with the People's Committee at the provincial level to determine the forest areas providing forest environmental services in two or more provinces and cities directly under the Central Government, approve and organize the implementation of this Decree.

c) Annually inform the People's Committee at the provincial level about the forest areas providing forest environmental services in two or more provinces, specifying the forest area of each province eligible for payment of forest environmental service fees.

d) Take the lead and coordinate with relevant ministries and sectors to mobilize financial and scientific and technological resources from domestic and foreign organizations and individuals to implement this Decree.

e) Take the lead and coordinate with the Ministry of Finance and related ministries and sectors to submit to the Prime Minister for approval the payment levels for forest environmental services for hydropower plants equipped with energy storage systems.

2. The Ministry of Natural Resources and Environment

Take the lead and coordinate with the Ministry of Agriculture and Rural Development and related ministries and sectors to submit to the Prime Minister for issuance of mechanisms and policies for allocating and leasing forest land to promote the implementation of policies for paying for forest environmental services.

3. Ministry of Information and Communications

Guide and instruct news agencies and media to publicize and raise awareness and responsibility among agencies, organizations, and the people regarding forest protection and development and the implementation of policies for paying for forest environmental services.

4. Other related ministries and sectors

Within the scope of their management functions, other ministries and sectors shall proactively coordinate with the Ministry of Agriculture and Rural Development to implement this Decree.

Article 22. Responsibilities of the People's Committee at the provincial level

1. Organize publicity and dissemination of policies for paying for forest environmental services

2. Direct the Department of Agriculture and Rural Development to take the lead and coordinate with relevant departments and agencies to develop and submit to the Provincial People's Committee for approval proposals and projects related to the implementation of policies for payment for forest environmental services, including:

a) Reviewing the implementation of land allocation and forest allocation;

b) New land and forest allocation;

c) Long-term stable forest protection contracts;

d) Investigating, classifying, and statistically summarizing service providers and users of forest environmental services;

đ) Management and utilization mechanisms for payment for forest environmental services.

3. Establish a Steering Committee for the Implementation of Policies for Payment for Forest Environmental Services, chaired by the Chairman of the Provincial People's Committee.

4. Lead and coordinate with the Vietnam Forest Protection and Development Fund to direct the Department of Agriculture and Rural Development and provincial functional agencies to determine the list of entities required to pay for forest environmental services within the province, as stipulated in Clause 3, Article 13 of this Decree. Notify the list to the entities required to pay for forest environmental services and report the list to the Ministry of Agriculture and Rural Development for monitoring and urging the implementation of this Decree.

5. Coordinate with relevant ministries and sectors to direct and inspect the payment for forest environmental services by organizations and individuals within their jurisdiction as prescribed in this Decree.

6. Be responsible for approving and ensuring the stability of area and function of forests supplying environmental services in land use planning and forest protection and development planning.

7. Confirm the list of forest owners who are organizations supplying forest environmental services to specific service users upon request from the Department of Agriculture and Rural Development.

8. Assign the Department of Agriculture and Rural Development to organize the acceptance, evaluation of quantity and quality of forests, and confirmation for forest owners who are organizations as a basis for payment for forest environmental services; organize inspections and supervision of forest owners who are organizations in implementing rights and obligations as stipulated in Article 20 of this Decree.

9. Direct the People's Committees at the district level to perform the following tasks:

a) Organize the dissemination, implementation, and enforcement of policies for payment for forest environmental services according to the contents of this Decree;

b) Confirm the list of forest owners who are households, individuals, and community residents providing services to specific service users upon request from forestry management agencies at the same level with confirmation from the People's Committee at the commune level;

c) Assign forestry management agencies to organize the acceptance, evaluation of quantity and quality of forests, and confirmation for forest owners who are households, individuals, and village communities as a basis for periodic payment for forest environmental services.

Organize inspections and supervision of forest owners who are households, individuals, and village communities in implementing rights and obligations as stipulated in Article 20 of this Decree.

d) Participate in inspections and supervision of the implementation of policies for payment for forest environmental services within their jurisdiction;

đ) Direct the People's Committees at the commune level to implement the provisions of this Decree, confirm the list of households contracted for forest protection with state-owned forest owners to receive payment for forest environmental services.

Article 23. Budget

The budget related to the organization and implementation of this Decree includes:

1. The budget for agencies, organizations, and units responsible for implementing projects and programs related to the implementation of payments for forest environmental services, guaranteed by the state budget according to the current budget classification.

2. Support and aid from domestic and foreign organizations and individuals.

3. Other sources of funding.

Chapter V

IMPLEMENTING PROVISIONS

Article 24. Effective Date

1. This Decree takes effect from January 1, 2011.

2. The provinces of Lam Dong and Son La and the entities currently implementing the pilot policy on payments for forest environmental services as stipulated in Decision No. 380/QD-TTg dated April 10, 2008 of the Prime Minister shall continue to implement the pilot until December 31, 2010, after which they will switch to implementing this Decree's provisions.

Article 25. Responsibilities for Implementation

The Minister of Agriculture and Rural Development and relevant ministries and sectors; the Chairpersons of People's Committees of provinces and centrally-administered cities are responsible for enforcing this Decree.