The World Banks Board of Directors Thursday (8. July) approved a 39,5 million US dollar credit and a GEF grant of 9 million dollar for the Vietnam Forest Sector Development Project to achieve sustainable management of plantation forests and the conservation of biodiversity in special use forests in Vietnam.
This project was conceived under the framework of the Forest Sector Support Program, a multi-donor, NGO, and government initiative.
The largest component of the project will support small-scale forest plantation of over 66.000 hectares of barren and old poorly-stocked land in Binh Dinh, Quang Nam, Quang Ngai, and Thua Thien Hue provinces.
– An estimated 19.000 poor or medium income households from 120 communes in 21 districts could be involved in the plantation forest component. The 21 districts are mostly among the poorer in the four provinces, said Klaus Rohland, World Bank Country Director for Vietnam.
– The 20 poorest project communes all have ethnic majority populations, with a maximum of 92 per cent poor households. More than half of the project communes (73) have more than 50 per cent poor households, and only 21 of the 120 project communes have poverty levels less than 40 per cent, added he.
The project will finance, over a period of six years, the following main components and activities.
Component 1: Institutional Development.
This component, national in scope, will assist GOV in strengthening the enabling environment for sustainable forest management and biodiversity conservation.
Component 2: Smallholder Plantation Forest.
This component, covering the four provinces of Quang Nam, Quang Ngai, Binh Dinh, and Thua Thien Hue, will establish forest plantations based on different cropping systems, including fast-growing plantations, mixed forestry-agriculture crops, and fruit trees and promote small-scale tree growing by rural communities, many of whom are poor. In addition, special attention will be paid to improving productivity of existing but poorly performing plantations.
Component 3: Special Use Forest.
This component will improve the conservation and sustainable use of biodiversity resources in priority special use forests and increase the reliability of SUF funding through the establishment of an innovative financing mechanism.
Component 4: Project Management and Monitoring and Evaluation.
This component would facilitate efficient project implementation and the coordination of the various government agencies at central, provincial and district levels as well as undertaking project specific monitoring and ensuring effective collaboration and cooperation with other partners in the FSSP Partnership in accordance with the signed MOA and related principles.
The total project cost is 74,5 million US dollar in which the Government contributes 5 million, local communities contribute over US$11 million.
In support for the project, the World Bank Groups IDA credit of 39,5 million US dollar is supplemented by a grant of 9 million dollar from the Global Environment Fund, and over 10 million dollar from Finland and the Netherlands.
The International Development Association Credit is being extended at standard IDA terms, with a 40-year maturity and a 10-year grace period.
For more information on the project, please visit this web page www.worldbank.org/projects/
The Bank on the Bank
The World Bank strongly supports Vietnams efforts in attaining Vietnams localized Millennium Development Goals and targets.
The World Bank provides three type of services to Vietnam:
(1) design and financing of development projects;
(2) analytical work, policy advice, and technical assistance; and
(3) donor dialogue facilitation.
In addition, every year the Bank co-chairs the Consultative Group (CG) meeting in which all donors gather to discuss the aid program for Vietnam.
Since reengaging in Vietnam in 1993, the World Bank has supported 35 projects to help fight poverty in Vietnam through finance for agriculture, infrastructure, health programs, schools, and other essential needs.
During the last 10 years, 3,8 billion US dollar has been committed to Vietnam, of which 1,7 billion has been disbursed. This makes Vietnam the largest IDA-only borrower in the world.
For more information on the Banks work in Vietnam, visit: www.worldbank.org/vn
Kilde: www.worldbank.org
