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Read more >>> Decree No. 99/2010/ND-CP, dated 24 Dec. 2010, on Payment for Forest Environmental Services
DECISION on
The Pilot Policy
for
Payment for Forest
Environmental Services
THE PRIME MINISTER
Based on the Government
Organization Law
dated on December
25, 2001;
Based on the Decision number 18/2007/QD-TTg dated on February 05, 2007 by the
Prime
Ministry on approving the Strategy for Forestry Development in
Viet
Nam to 2020; Considering the suggestion from
the
Minister of Agriculture
and Rural Development,
DECIDES
Chapter I
GENERAL STIPULATION
Article 1. Purpose
To establish
the basis for the development of the legal framework for
a national policy on payment for forest environmental services to be applied in the whole country, where the
responsibilities and benefits of the payers and payees of
forest environmental services (here
after referred to as forest environmental services: FES) are clearly defined and to socialize the forestry sector, gradually
establishing sustainable economic basis for protecting the environment and ecosystems, improving quality of service provision, especially ensuring
water supply for electricity production, for clean water production, and ecotourism
business activities.
Article 2. Scope of stipulation
1. This decision stipulates
the
types
of forest
environmental
services; norms of payment for use of services; the management of the money
collected from FES provision;
rights and responsibilities of
the payees and payers of
forest environmental services, and the responsibilities of the government agencies to the implementation
of the policy on payment for forest
environmental services.
2. The time frame for the application of the pilot policy
for payment for forest environmental services is 02 years, starting
from the date this Decision comes into force.
The pilot policy is to be applied within the areas of Lam
Dong, Son La, Dong Nai, Hoa
Binh, Binh Thuan, Ninh Thuan and Ho Chi Minh City .
Article 3. Target
of stipulation
1. The organizations using services and
having
to
pay
for forest environmental
services in this decision including:
a) The Dai
Ninh Hydropower
plant in Binh Thuan
province;
b) The Da Nhim Hydropower
plant in Ninh Thuan province;
c) The Hoa Binh Hydropower
Plant of the Vietnam General
Electricity Company;
d) The Suoi Sap
Hydropower Plant
situated in Phu Yen district of Son
La province; đ) The Water Supply Company of Ho Chi Minh City (SAWACO)
e) The Water Supply Company of Bien Hoa City of Dong Nai Province;
g) Phu Yen and Moc Chau Branches of the Son La Water Supply Company, Son La
Province;
h) Organizations and
individuals conducting ecotourism business in the areas
of the special use forests and protection
forests within
the administrative boundaries of Lam
Dong and
Son
La provinces.
2. All forest owners
in the headwaters areas
of the Dong Nai and Da river watersheds
within the administrative boundaries
of Lam Dong and Son La.
3.
Governmental agencies relevant to the collection,
submission, management, and
use of money collected from payment
for forest environmental services having headquarters
based in Lam Dong, Son La, Dong Nai, Ninh Thuan, Binh Thuan, and Hoa Binh provinces
and Ho Chi Minh City.
Article 4. Terminologies
In this decision,
the following terminologies
are
understood as:
1. Forest Environmental Service is the
provision and sustainable
use of values of forest environment (water regulation, soil protection and avoidance of sedimentation of
reservoir, protection
against flood and
flash flood, biodiversity conservation/ aesthetic value,
etc. ).
2. Forest owners
stipulated in this document includes those specified in the Forest
Protection and Development Law; the organizations, households, and individuals directly manage,
protect, and develop forest; the
organizations,
households, individuals, rural communities allocated long-term forest protection by the representatives of the government’s forests.
Forest owners are eligible to
apply
this PES pilot policy include:
a) The Management Boards of protection forests, the Management Boards of Special
Use Forests;
b) Economic organizations;
c) Households
and individuals within the country;
d) The village communities.
3. Payment
for forest environmental services is an economic relation
where the users
of FES pay to the providers
of FES according to the government’s stipulations in this
decision.
4. The norm for payment for forest environmental services (unit price of services) is the amount of money that a user of FES has to pay
to a
provider of FES per one unit of use of
FES
or per one unit of corresponding product according to
the stipulations of the government
or according to the agreement
between the two parties.
5. Fee for tourism
visit in this decision is the amount
of money tourists
have
to pay for the Management Boards of Special
Use Forests, the Management Boards of Protection Forests,
and other forest owners.
Article
5. Types of forest
environmental services
Types of
services applied in
this pilot policy include: a) Services of water
source regulation and
provision
b) Services of soil protection, reduction of erosion, protection against sedimentation of
reservoirs;
c) Services of ecotourism
services.
Article 6. Forms
of payment
for
forest environmental services
a)
Direct payment for
forest environmental services: is that users of FES (payers) pay
directly to providers
of services (payees).
b) Indirect payment for forest
environmental services: is that users of FES pay indirectly to providers of FES through a government organization as stipulated at Item 2,
Article 10 of
this decision.
Article 7. Principles of
payment for forest environmental services
1) The direct payment for FES is carried out by the payers and the payees based on the
agreed
upon contracts between the two parties following the
market
principles.
2. Norm of payment for use of the forest environmental services is stipulated by the
Government, is publicly disclosed, and is adjusted when
necessary.
3) Organizations and individuals using forest environmental services have to pay
for use of the forest environmental services to payees of the forest environmental services and the
payment does not substitute the water resource tax or other charges according to the
stipulations of the laws.
4) The payments for use of forest environmental services are added to the production
costs of products of users of
the forest environmental
services.
Chapter II
DETERMINING THE NORMS OF PAYMENT FOR FOREST ENVIRONMENTAL
SERVICES
Article 8. Norm of payment
for
use of forest
environmental services
1. For hydropower plants
The
norm of payment for forest environmental services, applied for hydropower production establishments subject to the regulation at points a,b,c, and d of Item 1 of
Article 3
of this decision for
the pilot timeframe, is 20 VND/kwh
of commercial
electricity.
2. For the water production
and supply establishments
The norm of payment for the forest environmental services applied for the domestic
water production and supply establishments subject to the regulation
at point đ, e, and g, Item
1 of Article 3 of this
decision for
the pilot timeframe
is 40 VND/m3 of commercial
water.
3. For organizations and individuals conducting
tourism business stipulated at point h,
Item 1 of Article
3 of
this decision, the norm for payment for
use of the forest environmental services is 0.5-2.0% of the tourism
revenue of the period.
The People’s Committees of Lam Dong and Son La are assigned to consider and stipulate
the specific percentage
of tourism revenue that each tourism business has to pay.
4. Charging the visiting fees for
Protection Forests and Special
Use Forests.
a) Management Boards of Protection Forests and Management Boards of Special Use
Forests (hereafter referred to as Forest Management Boards may charge tourists
for visiting fees.
b) The People’s Committees of Lam Dong and Son La Provinces are assigned to
approve and adjust visiting fees appropriately for each time
period per authority.
Article 9. Determining the payment
for forest environmental services.
1. For the case of direct payment: the amount of money a payer has to pay for FES is paid
directly to the payee,
based
on the agreed upon contract
between
the two parties.
2. For the case of
indirect payment
a) For
the case of hydropower
production establishments:
The money
for use of FES that must be paid for the payment period (VND) is the product
between production of commercial electricity
of the payment perdiod (kwh) and the norm of
payment for FES per 1 kwh (20 VND/kwh).
b) For the domestic water production
and supply establishments
The money for use of FES that must be paid for the payment period (VND) is the product
between the production of
commervial water
of the
payment period (m3) and the
norm of payment per 1m3 of commercial water (40 VND/1m3)
3. For organizations
and individuals conducting tourism business
The amount of money
for
payment for use of the forest environmental services is the percentage of the tourism revenue of the tourism business (including value-added tax) in the payment period
(year,
quarters) according to Item 3 of Article 8 of this decision.
4. Payment periods
are
year and quarter.
Chapter III
MANAGEMENT AND USE OF MONEY
COLLECTED FROM FOREST
ENVIRONMENTAL SERVICES
Article 10. Arrangement
for payment for
forest environmental services
1. For the case of direct payment:
Payees of forest environmental services organize the collection of money for use of forest environmental services from organizations and individuals using FES according
to contracts or through visiting fees.
2. For the case of indirect
payment
a) Payees of the forest environmental services are responsible to declare by themselves
the amount of money for payment for the forest environmental services and submit the money to where they open their accounts
to transfer to Forest Protection and Development Fund of Lam Dong and Son La provinces. Organizations and individuals, who have to pay for FES,
based in Lam Dong and Son La provinces, are responsible for making declaration and
submitting the payment for FES to the local Forest Protection and Development Fund who will
be responsible for paying directly to
the
payees.
b) Forest Protection and Development Fund of Lam Dong and Son La Provinces open
their separate
sub-accounts for payment for forest environmental services.
c) Fund for Forest Protection and Development of Lam Dong province and the Fund for
Forest Protection and Development of Son La province can use the money collected from FES based on the percentage of forest area at headwaters area
of Lam Dong within the Dong Nai watershed and the Da river water shed as stipulated by the Ministry of Agriculture and Rural
Development.
d) The Forest Protection and Development Fund of Lam Dong and the
Forest Protection and Development Fund of Son La are responsible for paying directly to the payees
of services stipulated at Article 13 of this Decision;
Article
11. Use of money collected from payment for forest environmental services.
1. For the case of direct
payment
For the money collected
from payment
for forest environmental
services,
after
fulfilling the financial duties according to the stipulations of the laws, the payees have all the right to decide on the use of this money for investing into forest protection and development,
improving quality of
forest environmental services,
and improving livelihoods.
2. For the case of
indirect payment
a) The collected money
from
payment for forest environmental services could be used
as followed:
- Leaving 10% for the Forest Protection and
Development
Fund
- 90% will be paid for
forest protection activities of the payees of the forest
environmental services.
If the payees of forest environmental services are state organizaions, they can use 10%
the total for management costs and 80% will be used to pay for the contracts for forest protection
to the contracted households
and individuals and rural communities..
Article 12: Payees
of forest environmental services
1. Forest owners
stipulated at Item 2, Article 3
of this decision.
2. The list of specific types of forest owners who are organizations is considered and
decided by the Provincial People’s Committee per recommendation from the People’s
Committee at district level after being appraised by the Department of Agriculture and Rural
Development.
3. The list of forest owners who are
households, individuals, and rural communities is considered and decided by the People’s Committee at district level per recommendation by the agency specialized
in forestry at district
level.
Article 13: Determining
the norm of payment to
payees of forest environmental
services
1. Basis for determining the norm of payment
a) The total of payment for FES collected from the those having to pay is stipulated at
Article
9 of this Decision (VND);
b) The total forest area (special use forest, protection forest, and production forest) of the river basin at the time of being monitored/checked and confirmed as basis to pay for forest environmental services
(ha);
c) Forest area, current status and origin of forest and forest quality at the time of being monitored/checked and confirmed as
basis to pay for forest
environmental services (ha);
2. Determining
the amount of payment
to forest
owners
The amount
of payment to
the payee of FES in
a year
(VND):
The amount of
payment to the payee of FES in a year (VND) = Norm of payment for one hectare of
forest (VND/ha) * Area of
forest managed and used by payees of FES (ha) * Coefficient K
a) Norm of payment for 01 hectare of forest (d/ha) is determined by the total amount
of payment for forest environmental services collected (after subtracting the reasonable
management costs as stipulated at Article 11 in this decision) divided by
the
watershed’s total forest area at the time of being monitored/checked and confirmed as basis to pay
for
forest environmental services
(ha)
People’s Committees
of
Lam
Dong and
Son La
stipulate the forest
area
of
the
watershed that applies this pilot policy.
b) Forest area used and managed by payees of the forest environmental services: is the area allocated, leased, contracted
for a long term the forest use right at the time of declaration
for payment.
c)
Coefficient K: depends on the forest type (protection forest, special use forest,
production forest); status of forest (rich, average, poor, regenerating
forests); origin of forest
(natural, planted) specifically stipulated by
the People’s Committee of Lam Dong and Son La based on the forest checking results confirmed by responsible authority agency.
Article 14 Responsibilities and rights of
the provincial Fund for Forest Protection
and
Development in paying for forest environmental services to forest owners.
1. Responsibilities:
a) Reperesenting those getting
paid for forest environmental services, making draft budget and payment for forest environmental services then submitting to the Provincial People’s Committee for approval after getting appraisal document from the Department of
Agriculture and Rural Development and Department of Finance.
b) Monitoring, supervising
the implementationof forest environmental services;
c) Making payments
directly to payees for forest environmental services.
In case
the payee of forest environmental services has contracted agreement of
forest protection and development, payment will be
based on the acceptance checking documents
of the contracted
agreement.
- In case the payees of FES have been granted with a
long-term contract for
forest
protection with a
document authorizing the forest owner
(the Management Boards of forests, the Forest Management Units representing government’s ownership of forests),
the Forest
Protection and Development Fund shall pay
to the forest owner who will then transfer to the
payees
of FES.
2. Rights
Having the right to reduce the payment or refuse making payment if the forest
environmental services
do
not
meet the standards,
quantity and
quality per
contracted agreement. In case there is no contracted agreement, basing on the stipulation of
the People’s Committee at
provincial level;
Chapter IV
RESPONSIBILITIES
AND
RIGHT OF PAYERS AND PAYEES OF
FOREST
ENVIRONMENTAL SERVICES
Article 15. Responsibilities and rights of payers of forest
environmental services.
1. Responsibilities
a) Paying for forest environmental services sufficiently and promptly to the forest owner according to contract (for the case of direct payment) or submitting money
to the
Provincial Forest Protection Fund (in
case of indirect payment)
b) If failing
to fulfill their responsibilities as contracted or stipulated by
the Provincial People Committee, then making
compensation payment directly to forest owners or via Forest Protection
Development Fund.
2. Rights
Having the right to request the People’s Committee
at
provincial level or through the
Forest Protection and Development Fund to reconsider the
payment for the
forest
environmental services in
case the forest owners
fail to meet the requirements
for quantity and quality of the forest environmental services
provided.
Article 16.
Responsibilities and Rights of the payees of forest environmental services.
1. Duties
a) Make sure forests are protected in term of quality and quantity and developed as per plans and
planning schemes;
In case there are external factors that are likely to cause negative impacts on the provision of the forest environmental services, forest owners have to notify
the the forest
environmental services
users and
actively carry
out
appropriate
measures to prevent or
mitigate
impacts.
b) Having
to use the amount of payment collected as stipulated in Item 2 Article 11 in
this decision;
c)
Forest owners who own
planted forest and are paid for the forest environmental
services, within 12 months after harvesting
the forests, must replant forests according to
the stipulations of the laws.
d) Having no right to destroy the forest or change the user purpose of the forest
illegally.
2. Rights
a) Having the right
to request the contracted forest environmental service users (for the
case of direct payment) or the provincial Forest Protection and Development Fund to pay for the forest environmental services according to the stipulations of this decision (for the case of
indirect payment).
Chapter V. IMPLEMENTATION ARRANGEMENT
Article 17. Responsibilities of the relevant
Ministries and agencies
1. The Ministry of Agriculture
and Rural Development shall take lead and collaborating with the Ministries: The Ministry of Investment and Planning, Ministry of Finance, Ministry of Natural Resource and Environment, Ministry of Industry and Trade, and the relevant Ministries
and agencies
a)
To conduct research on scientific
basis and international experiences of
the development
of payment for forest environmental service
policy.
b) To provide guidelines
to the provinces for making plan and implementing
the pilot policy, developing the projects within
the pilot policy as stipulated
at
Item 1, Article 18 of this Decision.
c) After 02 years of pilot implementation
since date of the policy coming into force, the Ministry of Agriculture and Rural Development takes lead and collaborates with the ministries and agencies and the
local areas involved in the
pilot implementation
to evaluate, refine, and finalize the policy
for
payment for forest environmental services to submit to the
Prime Minister for issuing a national
policy to be applied to the whole
country.
2. The Ministry of Information and Communication:
Propagandizing to raise
awareness of people
on
the
practical meaning and
the
importance of the responsibilities
of the people
in
contributing money and labor to the protection of the living environment of the community
in order to implement the policy on payment for
FES.
2. Responsibilities of
the relevant ministries and agencies
Within the scope
of function, responsibilities and authorities, the Ministries and agencies actively
collaborate with the Ministry of Agriculture and Rural Development to implement the decision by the Prime Minister, and at the same time commanding the subordinate agencies to implement the decision by the Prime Minister on the pilot policy
for payment
for forest environmental services.
Article
18.
Responsibilities of the people committees at provincial level.
1. Responsibilities
of the Provincial People’s
Committees
of Lam Dong and Son La.
a. Propagandize the pilot policy and formulate a detailed
plan for implementing
the Decision by the Prime Minister on the policy
for payment for forest environmental services in Quarter II,
2008;
b. Identify
specific sites for the pilot implementation of payment for forest environmental services.
c. Instruct Department of Agriculture
and
Rural Development to take
a lead and and collaborate with
Department of Natural Resources and Environment and Department of Finance to develop and submit the following
proposals, projects based on the agreement of Ministry of Agriculture and Rural Development, Ministry
of Natural Resources and Environment and Ministry of
Finance:
- land/forest allocation
- forest protection contract
- defineing value of
forest
environemtal services
- management and
use mechanisms
of payment for forest environmental services
- conducting surveys and categorizing and listing
payees, payers of forest
environmental services
in the pilot area
d) Establish Provincial Forest
Protection Fund
according to the Decision number
05/2008/ND-CP dated
on January 14, 2008 by the Government;
đ) Organizing the evaluation of the implementation of the pilot policy of payment for forest
environmental services
in the area.
2. Responsibilities of the People’s Committees of the provinces of Dong Nai, Ninh
Thuan,
Binh Thuan, Hoa Binh and
Ho Chi Minh City.
a) Raising
awareness of the inhabitants in implementing pilot policy
of forest environmental services
b) Collaborating
with related ministries, agencies to give command and checking
the submission of money for payment for forest environmental services of the businesses in the
area according to the stipulations
at Article 3 of this Decision;
Article 19. Responsibilities of the people’s committees at district and commune levels in
the areas implementing
the
pilot policy.
1. Organizing the studying sessions, raising awareness and implementing the pilot policy
on payment for forest environmental services for those directly implementing this pilot
policy.
2. Making a list of households eligible for receiving payment for forest environmental
services.
3. Participating in the supervision of the implementation
of
the
pilot policy for payment for the forest environmental services in the area according to
the command and guidelines
by
the Provincial People’s Committee.
Article
20. Responsibilities
of organizations, households, individuals and inhabitant communities at the district and village
levels..
Organizations, households,
individuals, and
village
and commune
communities subject to the regulation of the pilot policy on payment for FES are responsible for strictly observing the stipulations on responsibilities, duties, and rights of their own and are liable before the law
for
the
implementation
of the pilot
policy for FES as
stipulated
in
this Decision.
Article 21. Reporting
requirements
On
6 month basis, the relevant Ministries,
agencies, and
the Provincial People’s Committees of Lam Dong and Son La must report to Ministry
of Agriculture and Rural Development the
status of the implementation
of their government
management responsibilities within the scope of their assignment in the implementation of the pilot policy for
payment for forest
environmental services to
synthetise
and report to the Prime Minister.
Article 22: Budget for the pilot implementation of the policy
1. The Ministry of Investment and Planning and the Ministry
of Finance shall allocate
support fund for the development of the projects stipulated at Articles 17, 18, and 19 of this Decision.
2. Ministry of Agriculture and Rural Development, in collaboration with relevant ministries and agencies will solicit
the financial support, techques and experiences from the other countries, international organizations (Winrock, GTZ…), individuals inside
and
outside the country to implement the pilot policy on PES, at the same time, making estimated budget for the Ministry of Agriculture and Rural Development’s activities in implemeting the content of this decision
to submit to the Prime Minister for approval.
3. The Provincial People’s Committees of Lam Dong and Son La are assigned to prepare a plan and a
budget estimate for the
development of proposals and projects and other activities to implement pilot the policy
in the province, submitting to the Prime Minister for approval after the appraisal
from Ministry of Agriculture and
Rural Development
During the
time when the budget for the pilot program has not been submitted to the
Prime Minister for approval, the Ministry of Agriculture and Rural Development and the
People’s Committees of Lam Dong and Son La provinces could advance fund from the ministry’s budget or the local budget to pay for the costs for the development of the projects
and the costs of the pilot activities,
then get reimbursement
from the approved
budget.
Chapter VI EXECUTION ARTICLES
Article 23. This Decision comes
into force since the date
of signing
Article 24. The Ministry of Agriculture and Rural Development and the relevant Ministries and agencies; the
Chairs of the Provincial People’s Committees of Lam Dong, Son La, Dong Nai, Ninh Thuan, Binh Thuan, Hoa Binh, and Ho Chi Minh City are responsible for carrying out this
Decision.
-----------------------------------------
Source: Ministry of Justice of Vietnam
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