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Impacts of Payment for Forest
Environmental Services (PFES)
policies in A Luoi district, Thua
Thien-Hue province
Duong Ngo...
Contents
• Context for PFES in Thua Thien-Hue
• Environmental impacts
• Economical impacts
• Social impacts
• Key take awa...
PFES in Thua Thien Hue
• 311,051.09 ha of forest (2019), of which 68.21% is
natural forest; forest coverage: 57.34%.
• PFE...
Environmental Impacts
Improve the participation
• Before PFES: there were 300 rangers in Hue (200 field rangers
and 100 office-based ones, howev...
The number of illegal forest
clearing cases tends to decrease
Year Number of cases Area (ha)
2006-2010 137 84.59
2011 171 ...
… however, forested area is still
decreasing after PFES started
294,651.05 294,665.98 294,947.10 296,075.84 297,802.40 298...
changes in forest conversion into
other landuses
TT Type of infrastructures No. of
const.
Area (ha)
1 Reservoirs 6 1,050.6...
Environmental impacts
• 77% interviewed HHs believed that the forest condition is
improved while only 1% said that it is d...
Economic impacts
Added financial resources for forest
protection work
PFES funding
released (2019)
48,762,073,000
Provincial budget
for sus...
PFES’ contribution in HH income
The payments are different between villages due to the forest areas and
number of HHs invo...
Economical impacts
Strengths
• PFES is more stable and longer
term than normal projects.
• 50% interviewees confirmed the
...
Other contingencies
No Item
% of planned
payment
% of actual
payment
1 Daily allowance for patrolling 60-70 60-70
2
Procur...
Incurred Costs
Total revenue deducted for the commune: in a year with
deduction for forest rangers is 5%, some years is 20...
Social Impact
Steps to escape poverty
Step Strategies
10 Open banks’ saving accounts and invest in children’s education
9 Buy more lands...
The use of PFES income for welfare
purposes
Source: Household interviews (2020)
BƯỚC 2
BƯỚC 3
BƯỚC 10
PAPOLD
BƯỚC 5
BƯỚC 6...
Social Impact
Achievements
• 79% have better understanding and
access to information
• 21% of households mentioned they us...
Gender Impact
• Hong Ha Commune: 30% of the proceeds from
PFES will be kept as a fund, the rest is calculated
according to...
Conclusion
• Together with other forest protection and development policies, PFES
has helped raise people’s awareness of t...
Recommendation
• Organize training classes for bookkeeping as well as building
an effective payment plans
• Build a focus ...
Thank you!
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Impact of Payment for Forest Environmental Services (PFES) Policies in A Luoi District, Thua Thien-Hue Province

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Presented by Mr. Duong Ngoc Phuoc (University of Agriculture and Forestry. Hue University), at "National workshop: 12 years of PFES impacts in Vietnam" on 24 November 2020

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Impact of Payment for Forest Environmental Services (PFES) Policies in A Luoi District, Thua Thien-Hue Province

  1. 1. Impacts of Payment for Forest Environmental Services (PFES) policies in A Luoi district, Thua Thien-Hue province Duong Ngoc Phuoc MSc., University of Forestry and Agriculture, Hue Email: duongngocphuoc@huaf.edu.vn Pham Thu Thuy – CIFOR; Email: t.pham@cgiar.org
  2. 2. Contents • Context for PFES in Thua Thien-Hue • Environmental impacts • Economical impacts • Social impacts • Key take away mesages
  3. 3. PFES in Thua Thien Hue • 311,051.09 ha of forest (2019), of which 68.21% is natural forest; forest coverage: 57.34%. • PFES started in 2011 • 13 mandate contracts (12 for hydropower production, 01 for clean water supply). Total revenue: VND 205.5 billion (2012 – 2019) • Average unit price: VND 407,000 VND/ha/year (2019) • 589 owners (9 state entities, 4 Commune PCs, 576 communities/HH groups/HHs) receives payment for ESs from 152,625 ha of forests. Total cost: VND 177.1 billion (2014 – 2019)
  4. 4. Environmental Impacts
  5. 5. Improve the participation • Before PFES: there were 300 rangers in Hue (200 field rangers and 100 office-based ones, however, not still enough human resources) • After PFES: more than 140-150 rangers added • On average, each PFES received family devote 6.83 months an years for forest protection work • In PFES villages, percentage of HHs involve in forest protection is 70 times higher than ones without PFES. • Patrolling stations 77.7% 1.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% Percentage of HHs participated in forest protection Villages without PFES Villages with PFES
  6. 6. The number of illegal forest clearing cases tends to decrease Year Number of cases Area (ha) 2006-2010 137 84.59 2011 171 47.78 2012 143 28.5 2013 90 16.22 2014 37 7.13 2015 45 10.04 2016 30 13.75 2017 56 9.79 2018 30 12.01 2019 53 10.35 Source: TT-Hue FPD
  7. 7. … however, forested area is still decreasing after PFES started 294,651.05 294,665.98 294,947.10 296,075.84 297,802.40 298,577.80 283,003 288,087.54 288,196.89 288,194.74 99,527.93 99,313.78 99,323.96 99,402.03 99,782.72 100,189.89 90,796.30 95,491.62 95,362.84 91,934.43 0.00 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Forest Area (TT-Hue) Forest Area (A Luo district) Source: TT-Hue FPD
  8. 8. changes in forest conversion into other landuses TT Type of infrastructures No. of const. Area (ha) 1 Reservoirs 6 1,050.66 2 Roads (transportation, special-use roads, electricity mantainance roads, rescue roads etc.) 20 222,162 3 Housing, offices, dometries 11 132,225 4 Rural development projects 3 39,284 5 Mining projects 1 26,410 6 Cemetery construction project 3 68,841 7 Solar power project 7 2,033 8 Religious (Buddhism) facilities 2 5,356 Total 51 1,546.971 Infrastructure development
  9. 9. Environmental impacts • 77% interviewed HHs believed that the forest condition is improved while only 1% said that it is degraded • Since PFES was introduced, PFES villages have higher percentage of HHs involved in forest clearance activities (0.83% vs 4.12%) • The biggest difficulty: when communities detect violators, they inform FPD, however, the treatment is not appropriate • People in the PFES beneficiary communities have good awareness, but as for the others, they are still encroaching forest lands, illegally logging for housing and other commercial purposes • Lack of safety equipment • High risks of accidents when patrolling in bad weather conditions (rain, storm). Some were also attacked by wild animals (snakes, etc.) • When people are mobilized for duties, some of them obeyed and some were not virtuous and continued to encroach on the forest areas
  10. 10. Economic impacts
  11. 11. Added financial resources for forest protection work PFES funding released (2019) 48,762,073,000 Provincial budget for sustainable forest development programme (2019) 13,100,000,000* 4 times 22% Provincial budget for none-business environmental work (2019) 224,273,000,000* (*): 2019 estimation Source: TTH Dept. of Finance & TTH Fund for Forest Development and Protection
  12. 12. PFES’ contribution in HH income The payments are different between villages due to the forest areas and number of HHs involved, average: VND 1.64 million/HH, ranked 5th, 2.67% total HH income 1.05 2.64 1.52 1.33 0.00 0.50 1.00 1.50 2.00 2.50 3.00 A Hươr Pa E Đụt - Lê Triêng 2 A Đeeng Parlieng 1 A Đeeng Parlieng 2 PFES to HHs (VND million) 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 Income sources of PFES recepients – VND million Animalraising Labours Remuneration Assetleasing, lending Giftsfrom lelatives Othergifts OtherState programmes
  13. 13. Economical impacts Strengths • PFES is more stable and longer term than normal projects. • 50% interviewees confirmed the improved livelihoods since PFES • 30% interviewees confirmed increased income since PFES vs. 7% said that their income was decrease • Most of donor projects require counterpart funds, PFES therefore can be used for this purpose Challenges • Cutting trees for housing was forbidden • No forest clearance for cultivation leading to lack of production land • Income of some HHs (who used to cut timber for income) was reduced • HH Payment norm is rather low due to PFES payment has to cover other expenditures such as clothing, community programs, management fees etc. • People have to go far to collect the payment • Area of community forests is small, so, payment level is low • Conflict between communes and FPDs: FPD can be benefited from PFES but CPC. • PFES is often said to be a voluntary program, however, CPCs as all HHs have to participate. Hence, the number of payees is high, so monetary values received is small
  14. 14. Other contingencies No Item % of planned payment % of actual payment 1 Daily allowance for patrolling 60-70 60-70 2 Procurement of closing and supporting equipment 8-10 5 3 Annual meetings 8-10 5 4 Payment for management boards 5-10 5 5 Stationary 1-2 1 6 Community activities (festivals, infrastructures) 10 7 Allowance for local staffs 4-10 8 Others 3-4 Rest Source: indepth interviews, group discussion, 2020
  15. 15. Incurred Costs Total revenue deducted for the commune: in a year with deduction for forest rangers is 5%, some years is 20% due to many opposition This rate is determined based on an agreement between commune officials, forest rangers and local people Many villagers do not want the deduction, but the commune does it nonetheless with a 10% deduction before distributing to the people Just finished receiving money, the commune would call to request villagers for other payments Even though the village already has its own plan to pay for PFES, the commune has no knowledge of this. Hence, the commune still calls on the village head follow its plan. The village head refuses to follow
  16. 16. Social Impact
  17. 17. Steps to escape poverty Step Strategies 10 Open banks’ saving accounts and invest in children’s education 9 Buy more lands for production From moderate to well-off 8 Buy plows, tractors, water pumps 7 Continue to buy more breeds of chickens, pigs, and cows 6 Build or repair a house, buy household appliances Escaped poverty 5 Buy buffalo breeds, cows, fertilizers, animal feed 4 Repair or renew pig cages 3 Buy pig and goat breedings 2 Buy food, chicken and duck breedings 1 Lack of productive land, no labor force, no capital, temporary housing situations Source: Focus group discussions (2020)
  18. 18. The use of PFES income for welfare purposes Source: Household interviews (2020) BƯỚC 2 BƯỚC 3 BƯỚC 10 PAPOLD BƯỚC 5 BƯỚC 6 80% 2% 4% 17% 9% 11% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Mua lương thực, mua cây giống Mua con giống heo, dê Mua phân bón Mua các vật dụng trong gia đình Gửi tiết kiệm, đầu tư cho con cái… Trả nợ Chữa bệnh How PFES’s income is spent
  19. 19. Social Impact Achievements • 79% have better understanding and access to information • 21% of households mentioned they used PFES money to contribute for the village to repair electricity, buy furniture, renovate cultural houses, build a village welcome gate, contribute to the wedding or funeral fund and hold a year-end meeting • The biggest impact of PFES is public participation. • Before PFES: people confronted forest rangers with deep conflict • After PFES: The relationship between forest rangers and villagers has been improved • Build trust with villagers about the forest policy. In the past, forest was allocated without actual payments (only promised) Difficulties: • Conflict between those who are paid and those who are not + between patrols and illegal loggers • The annual increase or decrease in payments was prescribed and guided, but some members did not understand so they blamed the community for bad management, leading to the management board being blamed. • Information is only accessible to village leaders. Hence, people have very little access to information • The Kinh do not have to pay for bookkeeping while ethnic minorities face many difficulties with this
  20. 20. Gender Impact • Hong Ha Commune: 30% of the proceeds from PFES will be kept as a fund, the rest is calculated according to patrolling workdays. Women are very happy to join because they can stay in the watchtowers, men can patrol directly. Annually, the team leader would receive 600,000 VND
  21. 21. Conclusion • Together with other forest protection and development policies, PFES has helped raise people’s awareness of the role of forests, create a driving force for maintaining community-based forest protection activities, and supplement funding for protection. Therefore, the efficiency of forest protection is improved. • The money received from PFES helps people with additional income to cover the essential needs of life, help them escape poverty. Villages also have more funds for communal activities and connect spirit solidarity in the community • However, households wish for a higher level of payment to reward their efforts more deservedly in forest protection activities. There is also a need to further promote communication, raise awareness and provide thorough training for local people. • The policy implementation, monitoring and evaluation process should involve adequate participation of the people to ensure the transparency and effectiveness of the policy.
  22. 22. Recommendation • Organize training classes for bookkeeping as well as building an effective payment plans • Build a focus team with people in charge bookeeping instead of many communities working together • Create a hotline for better communication with the fund in times of difficulties. Simplify administrative procedures. • Request the national fund and the Ministry of Finance to issue one archive system. It is also necessary to have consensus among different provincial funds in the country, for simplified audit purposes • Improve the efficiency of communication, information dissemination and law so that people can understand their community's rights and obligations when participating in the policy implementation.
  23. 23. Thank you!

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