FINAL CONSULTANT REPORT (January 2007)

Transcription

1 Pilot Biodiversity Corridor (BC) Program for the Lam Dong Province of Viet Nam FINAL CONSULTANT REPORT (January 2007) Asian Development Bank / MKAE 6 ADB Avenue Metro Manila Philippines January 2007

2 TABLE OF CONTENTS 1 INTRODUCTION Background and Rationale Objectives Process ORGANIZATION AND FINANCES Project Management Unit Budget Specification Cost Norms Payment Mechanism Reporting Consultants assigned to the Project IMPLEMENTATION Overall Work Plan Base Line Survey Background and Locations Objectives Survey method Working Steps and Timing Survey Team Composition Survey Results Eco-Tourism Interventions in the 3 Pilot Communes Forestry Investments Animal Husbandry Investments Supportive Farming Systems Investments LESSONS LEARNED RECOMMENDATIONS AND FOLLOW-UP...16 LIST OF TABLES Table 1: Revised Project Budget 5 Table 2: Revised Disbursement Schedule 5 LIST OF ANNEXES Annex 1: Project Proposal Annex 2: Letter of Agreement Annex 3: Minutes of Inception Meeting (July 2005) Annex 4: Participants and Schedule of Inception Workshop (November 2005) Annex 5: Revised Work Plan Annex 6: Participants of Final Workshop (November 2006) Annex 7: Reference Examples for Cost Norms Annex 8: Cost Norms of the Project Annex 9: Formats and Documents for Liquidation Annex 10: Format Quarterly Progress and Financial Report Annex 11: Forest Protection Regulations Annex 12: Cattle Revolving Fund Regulations i

3 1 INTRODUCTION 1.1 Background and Rationale Environmental policy in Viet Nam identifies protection of biodiversity as a priority. The main response to biodiversity loss in Viet Nam is establishment of protected areas (PAs). Viet Nam has established 25 national parks, 60 nature conservation areas and 37 cultural, historic and environmental sites. These initiatives are significant initial steps towards protection of valuable biological diversity. Nevertheless, establishment of PAs does not necessarily ensure protection of biodiversity; proper design and management of PA systems is essential. There has been a series of initiatives aiming at proper management PAs in the past. So far the PA management performances have been mixed. PAs are small in size and not well distributed over the ecological landscape. The modern theories of ecology such as island biogeography, metapopulations and minimum viable populations suggest that natural populations, communities and ecological processes are more likely to be maintained in landscapes that comprise an interconnected system of PAs. Therefore, the PAs need to be connected through biodiversity corridors to achieve the goals of conservation. Terrestrial biodiversity corridors (BCs) are linear strips of vegetation that provide continuous or near continuous pathways between protected areas. They constitute a strategy of biodiversity conservation to cope with the problem of habitat fragmentation arising out of economic activities such as commercial agriculture, tree plantations, urbanization, and infrastructure developments. Establishment and management of BCs to create a space for unhindered passage of animals and seeds within the connected PAs are crucial to avoid further loss of biodiversity. The main obstacle to providing this connectivity is the existing human activities such as commercial agriculture, industries, urban and infrastructure developments and human settlements in these potential corridors. Well thought-out interventions in BCs are necessary to change the current resource patterns to facilitate the free movement of animals and seeds. Under the project a BC for pilot interventions was selected in the Lam Dong province of the central highland area of Viet Nam to enhance conservation of large number of species, with noticeable impact on Black-shanked Douc Langur, Yellow-cheeked Crested Gibbon, and Germain s Peacock Pheasant. The majority of the population in the three pilot communes is ethnic minorities and 86.8% of the economically active population is unskilled. About 80% of the population depends on agriculture, which is characterized by shifting cultivation, tree crops like coffee and fruits, upland rice, cassava, and other cash crops. Gathering forest products supplements their livelihoods. The project was to identify and pilot in the pilot communes biodiversity corridor development and establish approaches and regimes that allow for integrating effective PA system functioning, rural livelihood improvement and poverty reduction and support eco-friendly resource use patterns in BCs. On 14 th October 2004, the Steering Committee of the Poverty and Environment Program at ADB headquarters in Manila approved the proposal (see Annex 1) for a Pilot Biodiversity Corridor (BC) Program for the Lam Dong Province of Viet Nam (the Project). 1

4 1.2 Objectives The objective was to develop approaches, generate necessary scientific and socioeconomic information and implement pilot biodiversity corridor program in the Lam Dong Province. The results of the project were to flow into the recently established Biodiversity Conservation Corridors Initiative (BCI) of ADBs Greater- Mekong-Subregion Core Environment Program, and the upcoming Forests for Livelihood Improvement in the Central Highlands (FLITCH) project financed by ADB, and thus facilitate and enhance their implementation. Since the BC is a new approach to biodiversity conservation in the GMS region, understanding the ground level constraints such as of capacity limitations, data gaps, and institutional weaknesses is very important for successful implementation of GMS BC program. Given this very strong link of the pilot activities to the forthcoming GMS BC program, the project benefits are not confined to the project area, but will flow to provincial, national, regional, and global levels because the project enhances the provision of a public good, benefits of which occur at all the above-mentioned levels. At the local level the project was to provide direct user benefits of biodiversity such as NTFP, watershed values, climate moderations etc. Poverty interventions provide enhanced empowerment for local communities to participate in decision making on natural resource use and conservation, better technologies, increased access to markets through better infrastructure, and increased incomes. At the national, regional and global levels benefits included increased potential pharmaceutical values, nonconsumptive values such as eco-tourism opportunities, indirect user values, existence and option values of species. 1.3 Process Due to a rather lengthy administrative process involving a number of Government institutions on several levels, the "no objection" letter from the Ministry of Natural Resources and Environment (MONRE) in its capacity as the focal point of the Poverty and Environment Program was received only in April The corresponding Letter of Agreement between ADB and the Executing Agency was signed end of May 2005 (see Annex 2). A first inception meeting with the Executing Agency and other institutions relevant to the Project was conducted on 14th July 2005 in Lam Dong province (see Annex 3 for list of participants and minutes of meeting). During this meeting the Project concept was explained in detail, a number of issues were clarified, including the selection of the 3 pilot communes and the need to set-up a Management Unit, and the initial work plan was revised and further detailed. The organizational set-up of the Project was officially announced by the Peoples' Committee of Lam Dong province on 13th September Consultants were recruited by 12th September 2005 (Team Leader), 3rd October 2005 (Ecology/Forestry Specialist), and 16 th January 2006 (Poverty Specialist). The first instalment of the operational budget for the EA was made on 20th November, shortly before the inception workshop conducted on 23 rd November

5 During the preparation and conduction of the inception workshop (workshop schedule and list of workshop participants is presented in Annex 4) a number of outstanding administrative issues were clarified, and the work plan was further adjusted in detail (see Annex 5). Implementation of the Project commenced in December 2005 with the preparation of the biophysical and socio-economic base-line surveys, which were conducted in January The survey report was finalized by April 2006, after all collected plants specimen had been properly identified, and investments possibilities thoroughly discussed with local communities and assessed by PPMU and TA team. The investment proposal was approved by ADB on 14 th May Investment implementation continued throughout summer and autumn 2006 and was scheduled in such a way as to ensure that training, and particularly the regulatory conditionalities for the investments (i.e. village forest protection regulations, and commune regulations on the cattle revolving fund) were in place before investment realization. The final workshop was conducted on November (see Annex 6 for list of participants) and resulted in a number of recommendations presented in chapter 5. 2 ORGANIZATION AND FINANCES 2.1 Project Management Unit With decision no. 2431/QN-UBND dated 13 September 2005 the Peoples' Committee of Lam Dong province formally established the Management Unit for the Project. The unit comprises staff members from the Departments of Agriculture and Rural Development (DARD), the Department of Natural Resources and Environment (DONRE), the Sub-Department for Forestry, the Sub-Department for Forest Protection, the Bi Doup-Nui Ba National Park, the Da Nhim Protection Forest Management Board, and the Lac Duong district in which the 3 pilot communes are located. The Vice Director of DARD is appointed Chairman of the Management Unit, the Head of the Sub-Department for Forestry Vice-Chairman, and the Chief Accountant of the Sub-Department for Forestry is appointed Chief Accountant for the Project. The main tasks of the Management Unit stipulated in the PPC decision included: To implement the Project in line with instructions and guidance of ADB consultants, Management Board for Forestry Projects (MARD), and MONRE To arrange for the necessary organizational and regulatory framework to receive and implement the Project To assume responsibility for Project management, including fund utilization in line with applicable regulations. Further stipulations included in the PPC decision were: 3

6 The office of Subproject management unit will be located at Sub-Department for Forestry at the address: 4, Phan Tru Chinh Street, Da Lat City, Lam Dong province. The project location is in the three communes of Da Sar, Da Nhim, and Da Chais in the Lac Duong district, Lam Dong province The Management Unit is allowed to use the stamp of the DARD for opening and operating the bank account, and official communication The director, deputy director and other members of the management unit are permitted to mobilize their own staff for the implementation of the Project in parttime arrangements. Although the Management Unit remained administratively under DARD, the rights and obligations of DARD as stipulated in the Letter of Agreement between ADB and the Management Board for Forestry Project at MARD were by the decision of PPC transferred to the Management Unit. Consequently also financial management including opening and management of the Project account, and reporting were tasks directly fulfilled by the Management Unit. Due to the decentralized set-up of the project, authorities on Central Level were not directly involved in project implementation. The Management Unit reported to the Management Board for Forestry Projects of MARD in Hanoi, which regularly informed and consulted with MONRE as the focal point of ADB's Poverty and Environment Program in Vietnam. During the course of the project the Management Unit met repeatedly to discuss about and decide on various issues. However, decision-making was not always efficient because there was the understanding that all decisions have to be taken collectively, which was hard to achieve because all members of the Management Unit were appointed on a part-time basis. As a result, important decisions relating e.g. to cost norms and local consultant recruitment were often late. In early 2006 the TA team suggested to immediately form an implementation team consisting of a coordinator, a technical staff, and the Chief Accountant, all being staff of the Sub-Department for Forestry charged with the implementation of the Project. This proposal was well received and put into action. Once the scope and budget of interventions as well as management cost norms were specified, this team was be in charge of overseeing the day-to-day implementation of the Project, with the Management Unit guiding overall Project implementation and coordinating between the Project and local government authorities. 2.2 Budget Specification The initial budget proposed and approved in the Project proposal had prior to the inception workshops been slightly adjusted by (i) reducing consultant inputs by one month local economist (3,000 US-$) to a total of 76,000 US-$, (ii) reducing the budget line for workshops by 10,000 US-$ to a total of 20,000 US-$, and (iii) increasing the budget line for field surveys by 13,000 US-$ to a total of 28,000 US-$. These adjustments resulted in a revised overall budget as per following table: 4

7 Table 1: Revised Project Budget (US-$) Item Government Contribution ADB Contribution Total Consultants International National (Forester) 6 pm National (Poverty) 6 pm Travel International Local Pilot Interventions Others Workshops Maps/reports Field surveys Office space, personal time, equipments and transport Total Cost Norms The workshop participants agreed that cost norms applied under the Project followed as much as possible cost norms already established in relevant ongoing projects, or agreed in the design of relevant upcoming projects 1 (see Annex 7). A list of relevant cost norms, as decreed by the PMU on 21 March and endorsed by the Management Board for Forestry Projects of the Ministry for Agriculture and Rural Development (MARD) in Hanoi, is presented in Annex 8. As stipulated in the Letter of Agreement all personnel costs incurred by this project at different management levels were covered out of Vietnamese budgets. Travel costs for consultation and supervision at and between the various involved management levels were financed out of the ADB grant up to a maximum amount of US-$ 10, Payment Mechanism As stipulated in the Letter of Agreement, ADB provided different instalments for operational expenses to the EA as per following revised schedule: Table 2: Revised Disbursement Schedule (US-$) Event Anticipated Date Amount Finalization of consultant contracts and plan of operation November Travel costs, pilot interventions, others October Submission of final report. December Total Disbursement to Management Unit Lam Dong The following projects were chosen as reference: 1) The ADB-financed "Forests for Livelihood Improvement in the Central Highlands" (FLITCH) project; 2) the ADB-financed "Forestry Sector Project" (Loan 1515-VIE) in Gia Lai province; 3) the World Bank-supported "Forest Protection and Rural Development Project" in Lam Dong province; 4) the ADB-funded "Silk Improvement Project" in Kon Tum province. 5

8 These payments were made by ADB Manila directly to the Project Management Unit upon submission of payment requests endorsed by the designated project officer of the Management Board for Forestry Projects. Whenever applicable the request was accompanied by Statements of Expenditures also endorsed by the designated project officer of the Management Board for Forestry Projects. Payments to individual households/group of households/communities, contractors, and Project personnel were made by the Project Management Unit, in line with budget provisions approved by ADB, and applicable Government and ADB regulations. Unless stipulated differently in ADB regulations applicable for grant projects, procurement was undertaken in line with applicable Vietnamese regulations, including the ceilings for direct purchase procedure, 3-quotation procedure, and lowest-costbidder procedure applicable in Lam Dong province. Payments were liquidated in accordance with applicable ADB procedures for grant fund disbursement, using the formats attached in Annex Reporting The Project Management was required to submit quarterly financial and programmatic reports in English and Vietnamese language, to be submitted to ADB, and PPC/Management Board for Forestry Projects in Hanoi/MONRE. Reporting was to follow the standard ADB formats for the Poverty and Environment Program attached in Annex 10. However, for some periods PMU omitted the quarterly reports and rather linked reporting with financial reporting and disbursement requests The programmatic reporting related to demonstrating progress with respect to the work plan and performance indicators articulated in the Project design. The financial reporting was based on the approved Project budget. 2.6 Consultants assigned to the Project To support Project implementation, ADB recruited the following consultants: Consultant Team Leader / Chief Technical Advisor (2 person-months) Forestry / Ecology Specialist (6.3 person-months) Poverty expert (6 person-months) For specific tasks the PMU contracted local consultants in the following fields of expertise: Biology / Zoology Forest Protection Animal Husbandry Farming Systems Eco-Tourism. 6

9 3 IMPLEMENTATION 3.1 Overall Work Plan The indicative work plan prepared during the inception meeting on 14th July 2005 was further revised and updated during the inception workshop. The work plan covered the period December 2005 to November 2006 and specified the following activities (a detailed table informing about timing and responsibilities is presented in Annex 5): Preparation and conduction of base-line survey - Collection and analysis of secondary data and information available from existing documents - Training for members of survey team - Field survey Group A: - Biodiversity, land and forest resource use patterns (including threat analysis for natural resources supportive to biodiversity and intervention activities inside the BC) - Field survey Group B: - Socio-economic conditions in the BC (including poverty mapping and identification of feasible livelihood improvement opportunities outside the BC) Preparation of draft survey report Preparation of inputs for the planning of pilot interventions Preparation of final survey report Preparation of the plan for pilot interventions and submission to ADB for approval Initiation of planning and organizational basis for community-based forest protection and development in the 3 pilot communes with focus on the endorsement and protection of the BC by the communities Adjustment of land use plans in the 3 communes in view of including the Bio- Corridor, and ensuring proper socialization to/participation of involved communities Implementation of pilot interventions Preparation of draft final reports Final workshop in Lam Dong to report results and experiences to PPC Lam Dong Preparation of publication on approaches, results, and experiences of the BC pilot project in Lam Dong Regional workshop in Lam Dong to report the experiences of the BC pilot project in Lam Dong to a wider audience Preparation of final report and submission to ADB and MONRE. The activities outlined in the Project Proposal (see Annex 1) were to be addressed and further specified in the detailed survey plan and the subsequent investment plan. 7

10 3.2 Base Line Survey Background and Locations The 3 selected pilot communes of Da Sar, Da Nhim, and Da Chais in Lac Duong district are located in between the Bi Dup-Nui Ba National Park and the Da Nhim Watershed Protection Forest. They represent a portion of a larger corridor system intended to be established under the intended GMS-BCI (Greater Mekong Sub-Region Biodiversity Conservation Initiative) which would interconnect the Chung Yang Sin national park in Dak Lak province, the Bi Dup-Nui Ba National Park and the Da Nhim Watershed Protection Forest (Lam Dong province), Ta Dung Special Use Forest (Dak Nong province) and Cat Tien National Park (Lam Dong province). Since no systematic surveys for bio-corridors had yet been carried out in the area, the survey was meant to not only result in useful information for this small pilot project, but also to contribute to methodology development applicable in the intended larger biodiversity conservation project Objectives To assess the forest resource and biodiversity in the project area (PA) To assess the utilization patterns of natural resources (land use, forest utilization) in the PA to identify threats to biodiversity conservation and the intended bio-corridor To map the incidence of poverty and assess the livelihood of the local people in the corridor To assess the potentials and problems (social-economic, biophysical and institutional) related to biodiversity conservation and poverty reduction as inputs for assessing the viability and relevance of project interventions To initiate a participatory process to delineate the bio-corridor on the ground, and identify interventions on commune, village and household level Survey method 2 teams working simultaneously carried out the field survey, with one team focusing on the biophysical aspects and the other team on socio-economic aspects. Prior to the field survey secondary data and information available from existing documents were be collected and analysed. The survey was conducted in a participatory manner to ensure direct involvement of local institutions and communities. The following aspects were covered by the survey: Forest resources and biodiversity - Information from available documents and maps/ satellite images/ aerial photos to identify the ecological status such as forest, forest types, agricultural ecology - Fauna and flora, endemic, rare and valuable species through interviews, transects and sample plots 8

11 Socio-economic survey - Analysis of available document/reports - Participatory poverty mapping by wealth ranking - Livelihood analysis through household interviews Resource use pattern - Land use mapping using existing maps, satellite images, aerial photos, discussions with local people to map the present land use - Needs for land and forest products (timber, fuelwood, non-timber forest products) through interview and field assessment - Local land use patterns through interviews and transects to identify farming systems, indigenous technologies, and traditional regulatory systems and habits governing land use - Analysis of threats to biodiversity conservation in the planned corridor and the protected areas Working Steps and Timing The survey was conducted according to the following steps: Collection of secondary data/document, procurement of maps/ satellite images and necessary material (until 15 December 2005) Training for survey team members (in period December) Field survey with commune and village workshops, interviews, transects, documentation by taking photos or video recording (January 2006) Analysis of the result and report writing as input for intervention planning - Draft report by March Proposal on pilot interventions for submission to ADB by end of March Final report by mid of April Survey Team Composition The survey team consisted of 18 staff members of the following institutions: Lam Dong Sub-Department for Forestry Lam Dong Sub-Department for Forest Protection Lam Dong Department of Natural Resources and Environment Bi Doup-Nui Ba National Park Da Nhim Protection Forest Management Board Lac Duong district administration Commune administrations. Village leaders and key farmers completed the team. Consultants contracted by ADB (forestry and poverty experts) as well as local experts (contracted by the Management Unit) were directly involved in the preparation and conduction of the baseline survey. 9

12 3.2.6 Survey Results The baseline survey report took place in the second half of January The full reports in Vietnamese language were available by May 2006, after the plant samples collected during the survey had been identified in the plant laboratory of the Da Lat University. The report is divided into a biodiversity report and a socio-economic report, and a summary report. The survey revealed that biodiversity in the Project areas is still rather high. The analysis of different plant species collected in 5 randomly chosen 50 m 2 sample plots showed that for both, pine forests and broadleaf forests, biodiversity indicators are rather high, with e.g. 173 different plant species identified in one plot. Hunting and trapping is at present the biggest threat to the fauna. Forest destruction due to shifting cultivation and illegal logging, though existing, is not yet in an alarming state, although this is very likely to change with the construction of the Da Lat - Nha Trang highway. The socio-economic situation of the 3 communes of Da Sar, Da Nhin, and Da Chais is improving, due to Government support through a number of programs, particularly Program 134 which provides housing and land for ethnic minorities. Distance from the province capital Da Lat is obviously an important factor: While the Da Sar commune close to Da Lat is already attracting foreign investments into intensive horticulture, land use in the Da Chais commune (about 3 hours drive from Da lat) remains traditional and less effective. Poverty in the project communes is marked by a lack of agriculture land, period of food deficit (1-2 month per year), low cultivation technologies, and lack of awareness and of alternative livelihood options. Birth rates are rather high although contraceptives are used. People lack savings and capital for investment to adopt better production technologies. They grow corn, beans and coffee on small-scale, none of which provide high yields due to poor choices of cultivation areas and poor soil qualities, and lack of production inputs. Livelihoods of poor local villagers depend largely on both collection of forest products and encroachment to forest land for agriculture. Besides, they also depend on government subsidies. Cash incomes result mainly from selling coffee and forest products. 10

13 All 3 communities strongly opted during the baseline survey for support to animal husbandry. To this extend it was decided to immediately recruit 2 local experts for animal husbandry and farming systems with the objectives to (i) further analyse technical options for and details of the investments, and (ii) through training and regular field visits assist local communities in bringing about the required adjustments. The findings of these experts were to be included in the intervention design, which is expected to be available by April Eco-Tourism During the course of the baseline survey PMU realized that the beautiful landscape and pristine forests of the Bi-Doup - Nui Ba Nature Reserve particularly in the vicinity of Da Chais together with the ongoing highway construction and the intended construction of the Bi Doup - Nui Ba Main office in Da Chais commune would considerably raise the potential and accessibility for eco-tourism. In order to realistically assess the options for eco-tourism development, the TA team proposed to the Management Unit to recruit local experts who were to further investigate potentials and options and to prepare a report on potentials for, approaches to, and investments needed for eco-tourism development in and around the Bidoup- Nui Ba Nature Reserve. Costs for local expert inputs were to be covered out of the budget position "Field Surveys". The team consisted of a forestry staff of Bi Doup-Nui Ba National Park and a docent at the Faculty for Tourism of the Da Lat University. The survey commenced in April Because of weather conditions and other commitments of the experts, the survey report was available only in September The survey results suggest that there is potential for eco-tourism development which can, however, only be fully realized if the Bi Doup-Nui Ba National Park Administration provides for supportive organization and human resource development allowing for a clear and consistent eco-tourism development strategy. Local authorities are required to facilitate infrastructure development in the area supportive to attract tourists, which is beyond the reach and mandate of the Bi Doup-Nui Ba National Park. 3.3 Interventions in the 3 Pilot Communes Project interventions in the pilot communes included investments into reforestation and forest regeneration (on scrubland and deteriorated protection plots), animal husbandry (cattle and a local small-framed pig species), and farming systems (provision of planting materials for fodder grass and coffee) in combination with a number of technical training courses. Communities were early on advised that investments could only take place if there was an agreement to protect and conserve the areas included in the bio-corridor. To this extend PMU recruited a local forest protection expert who, in cooperation with the Sub-Department for Forest Protection, assisted local communities in the preparation of village forest protection regulations (see Annex 11). The regulations, once finalized at village level, were submitted to the District People Committee which formally endorsed the regulations and thus transformed them into legally binding provisions. 11

14 During all stages of investment implementation staff of the Bi Doup-Nui Ba National Park and the Da Nhim Forest Protection Board were involved, thus forging a closer relationship between them and local communities which will facilitate project sustainability given the fact that both institutions will play a central role in any followup actions Forestry Investments Two valuable indigenous species were planted in Da Chais commune to provide an afforestation example to local community members and testing the species conservation through planting in a new environment. In the vacant spaces caused by encroachment, forest fire, and shifting cultivation, these high valuable and rare species were planted in the natural forest area. Enrichment of indigenous trees is important because this will produce mix forest and ultimately a predominantly evergreen forest that would contribute to a higher biodiversity. The size of the total area planted amounted to 3.2 ha and included 2 separate species (Fokenia hodginsii and Calocedrus macrolepis). Planting took place in July Besides, in Da Chais commune, 32.6 ha of old pine plantation were affected by invasive species (Lantala camara L.) on trees, due to lack of maintenance in the past. Different intensity levels for tending and removal of invasive species were tested under the Project to identify the most appropriate remedial approach in terms of costs and results. Furthermore, 6 ha of Castanopsis chinensis were tended to collect higher yields of edible seeds, and to shorten the period until heavy fruit bearing. These activities were carried out in September Since the investments were planned and implemented with the involvement of local communities, awareness, skills, and incomes of the local people in relation to forest activities and environment protection could be increased. 12

15 3.3.2 Animal Husbandry Investments During the baseline survey, all 3 communities strongly opted for support to animal husbandry in form of cattle and a local small-framed pig species. These priorities were confirmed by the TA team during separate visits to all 3 communes. While many farmers in the 3 communes were already involved in cattle and pig raising the Project was asked to provide cattle and pigs particularly to poor households. In view of the limited funds available for investments, and acknowledging mechanisms applied by a number of Government and ODA investments into animal husbandry in Vietnam, the TA team requested during commune meetings to establish "revolving fund" arrangements for cattle, by which those households which are given cattle have to "repay" the first calf to the village community which will give the calf to another household not included in the initial delivery (alternatively mother cows can be circulated among participating household). Local communities were requested to establish specific regulations for this "cattle fund", and all households earmarked to receive cattle from the Project were requested to agree in writing to these regulations prior to taking delivery of the cattle. In all communes the cattle revolving funds were successfully established (see Annex 12). While animal husbandry is economically a viable option for poverty reduction, the need for increased fodder production required the Project to address the improvement of grassland and farming systems management. To this extend 2 local experts for animal husbandry and farming systems with the objectives to (i) further analyse technical options for and details of the investments, and (ii) through training and regular field visits, assist local communities in bringing about the required adjustments. Prior to the delivery of animals, a total of 30 training course on animal husbandry management techniques were conducted, involving a total of 900 participants. A number of potential suppliers were identified, competitive bidding procedures were carried out, and the contracts were signed in September

16 In October 2006, 392 beneficiary households in the three project communes received 784 pigs (2 pigs per household), and 192 households received 192 cows (1 cow per household) 2. An additional 10 cattle will be delivered on a performance-oriented basis to poor households in Da Nhim commune (where commune administration performed best), to be financed out of remaining funds from the final workshop budget. Prior to delivery the households receiving cows had been supplied with a total of 31.5 tons of elephant grass for fodder. Cow sheds and pig stalls had to be constructed and checked by project field staff before delivery. Vaccination of livestock was already high on the agenda of local governments due to a recent outbreak of mouth and foot disease in Thus vaccination of livestock before as well as after distribution was done in time without any problems. A set of facilities including refrigerator, medicine, and basic equipment for veterinary services was provided for each commune in connection with the training courses for commune and village para-veterinary staff to ensure the sustainability of the investment Supportive Farming Systems Investments Due to limited agricultural land (about 0.3ha per household) and lack of irrigation system in the project area, coffee cultivation was identified as a promising income generating activity. While coffee cultivation is common in the project area, poor farmers are experiencing low yield due to lack of awareness, knowledge and skills. Beneficiary farmers were selected based on selection criteria such as income level degree of poverty and knowledge of about coffee cultivation. Because of the short project period, seedlings were produced in the communes, but procured from commercial nurseries and provided to the households. A total of 15 training course were conducted with 450 participants. 13 households in Da Chais Commune received 18,000 coffee seedlings for planting on a total area of 5 ha. 2 This additional purchase has been approved by ADB on 4th January

17 4 LESSONS LEARNED The short time frame of the project forced the TA team to seek an approach by which (i) a rather weak PPMU could be guided into proper actions adjusted to their limited capacities and capabilities without lengthy capacity building inherent to many technical assistance projects (ii) investments could be realized without the lengthy approval procedures inherent to many investment projects, (iii) basic conditionalities could be enforced without the TA-team becoming too dominant, and (iv) local communities and government institutions could follow-up on project investments and approaches. This seems to have worked: Representatives of local communities as well as of involved Government institutions on district, province and central level, ADB s GMS-BCI program, and NGOs applauded during the final workshop the results achieved in a short time and the soundness of the approach. The following factors are believed to have led to this success: The involvement of local farmers in the base line survey and particular in biodiversity assessment was a proper way to (i) convey the dimension the project was about to local communities, (ii) enable the project team to get a deeper understanding of local communities, and (iii) even forge personal relationships between beneficiaries and experts. The resulting understanding and trust was very helpful in bringing the project on the ground. With the joint understanding created during the baseline survey, farmers were entrusted to formulate the proposals for investment themselves, with consultants and PPMU assessing the proposals. In a normal investment project it is just the other way around: Experts design investments and try later to create a sense of ownership by various often costly and lengthy means. Consequently communes and also lower levels of Government were involved in the steering committee, thus incorporating a bottom-up approach also in the project management structure. Decentralized controlling systems: The participatory process and bottom-up approach was applied in the development of village regulations on forest protection, and commune regulations on cattle revolving funds. Early on in the project the TA team had during commune meetings clarified that these regulations need to be in place before investment implementation, but had left their elaboration to local communities and experts from involved local institutions. This created a sense of ownership and responsibility which makes it likely that the regulations will continue to be in place, and be followed, also after end of project. With the Bi Doup-Nui Ba National Park and the Da Nhim Protection Forest Management Board, the project had two institutional players involved in the project which, unlike the PPMU or the TA team, continue to exist after project. The objectives and agendas of these institutions, which rather match those of the project, where implicitly part of the harmonization process with the agendas of the communities agendas facilitated by the project. It is foreseen that the cooperation between both institutions and local communities will continue in the future and thus facilitate the perseverance of the project s approach in a changing political and socio-economic environment. 15

18 The lessons learned under this project show that relevant results can be achieved in a short time if (i) approaches are simple and clear, (ii) investment relevant and their implementation not overly bureaucratic, and (iii) agendas of local institutional players are made part of the project design. Local Government representatives mentioned during the final workshop that the resource management model piloted by the project supports is a good example which should be applied in similar activities in various project in Lam Dong Province. In regard to the GMS-BCI program, it is believed that the lessons learned under this project could help to create efficient and effective means to facilitate the creation of bio-corridors in many rural areas with similar conditions as the southern central highlands in Vietnam. 5 RECOMMENDATIONS AND FOLLOW-UP The delays in bringing the Project on the ground have severely shortened the time available for field implementation. As a result investments and training and awareness raising activities planned to be undertaken in the 3 pilot communes are confined to a period of utmost 8 months (March - October 2006). There is a clear need to follow-up the interventions initiated under this Project by other forthcoming investments of ADB, most prominently the "Greater Mekong Sub-Region (GMS) Biodiversity Conservation Initiative" for which this Project is tasked to develop approaches, generate necessary scientific and socio-economic information, and implement pilot activities in view of biodiversity corridor conservation and development, and the "Forests for Livelihood Improvement in the Central Highlands (FLITCH)" project. During the final workshop, the following issues were mentioned which need attention: The new road Da Lat-Nha Trang Local passes through the 3 project communes and will particularly for the formerly remote Da Chais commune improve accessibility. As a result market access will become better, but encroachment into the Bi Doup- Nui Ba National Park will become worse. Adherence of local communities to the protection regulations and sanctioning of non-compliance are not yet ensured. Apart from official/formal sanctions, an informal monitoring and sanction system should be developed. Options for Eco-Tourism development should be further explored and pursued: The Management of the Bidoup - Nui Ba National Park informed the TA team that Government has earmarked an amount of about 5 million US-$ over the next 5 years for the National Park, which strongly indicates the political will to support biodiversity conservation. In order to assist the Bidoup - Nui Ba National Park in making proper use of these funds and at the same time facilitate the link between the Reserve and particularly ADB's "Greater Mekong Sub-Region (GMS) Biodiversity Conservation Initiative", the project looked into options for ecotourism development. These options need to be further refined and pursued. Local development priorities on high-tech agriculture can be very helpful to disintensify land use in protection areas / bio-corridor if they provide employment and incomes for local farmers. Farmer know-how and cross-institution and cross-sector coordination are not yet satisfactory. 16

19 The following recommendations were presented by the TA team during the final workshop and welcomed by the participants: a) Follow-up proposed for ADB a.1) In general terms Facilitate close coordination and cooperation between the BCI-GMS and the FLITCH project Facilitate cross-sector coordination between investments into forest/natural resources and into e.g. infrastructure/ agriculture in the Central Highlands by means of e.g: Identifying sequencing of and conditionalities for investments not in a sectoral, but cross-sectoral, landscape oriented approach (e.g. no investments into infrastructure/agriculture projects unless protection of local natural/forest resources is secured) Utilizing manpower available with ongoing projects to cross-check between individual projects Co-financing private sector investments in view of securing better employment and incomes for local communities and balancing negative environmental effects a.2) Particularly for the GMS-BCI program The BCI-GMS should facilitate the establishment of proper formal and informal monitoring and sanction systems for forest & biodiversity protection, and in this particularly the cooperation between Bi Doup-Nui Ba National Park and local communities The BCI-GMS should support the identification of bio-corridors throughout Lam Dong province, and the development of a method applicable on land allocated to farmers (the bio-corridors identified under the PEP project are not allocated protection forest) The BCI-GMS should support capacity-building for relevant institutions in Lam Dong province in view of the larger GMS picture The BCI-GMS should cooperate with Bi Doup-Nui Ba National Park to support the development of eco-tourism Seek cooperation with international environmental NGOs a.3) Particularly for the FLITCH project The remaining investments opportunities into forestry are rather limited in the 3 communes. FLITCH should consider to co-finance private sector investments into high-tech agriculture with the aim to secure employment of local farmers FLITCH should support the establishment of proper formal and informal monitoring and sanction systems for forest & biodiversity protection (together with BCI-GMS) FLITCH should monitor the performance of the Cattle Revolving Funds in the 3 communes and conduct training courses for local farmers also for animal husbandry and high-tech agriculture 17

20 FLITCH should incorporate bio-corridors into land use planning and support the development of a method applicable on land allocated to farmers (together with BCI-GMS) b) Follow-up proposed for Province Peoples Committee (PPC) / DARD With the support of ADB and NGOs, PPC / DARD should develop local guidelines for the establishment and protection of bio-corridors which link up with international standards applied in the Greater Mekong area PPC should direct DPI and horizontal sector agencies to properly coordinate public and private sector investments in communes situated in bio-corridors through clear sequencing and conditionalities of investments. DPI and DARD should support the respective communes and district administrations in the yearly budgeting process and ensure that local communities are made aware of investment sequencing and the importance to adhere to conditionalities The Sub-Department of Forest Protection should regularly inspect the bio-corridors and present findings and recommendations to local communities, commune and district authorities, involved sector agencies, and PPC c) Follow-up proposed for NGOs International environmental NGOs should become engaged in the identification of bio-corridors throughout Lam Dong province, and other provinces in the Central Highlands International environmental NGOs should facilitate the emergence of standardized approaches to the protection and management of biodiversity corridors & special use forests in Lam Dong province, and other provinces in the Central Highlands (through e.g. FSSP working groups) International environmental NGOs should support the emergence and strengthening of local environmental NGOs NGOs should engage in discussions with ADB regarding a cooperation in the frame of the CEP/BCI-GMS in a program approach International environmental NGOs should consider co-financing of eligible activities / investments in addition to ADB s investments the CEP/BCI-GMS, and FLITCH. Soon after the workshop, representatives of the ADB GMS-BCI program and of Winrock Internationals Asia Regional Biodiversity Conservation Program directly followed-up on the recommendations by exchanged notes aiming at a closer cooperation in the fields of (i) Ecotourism (with Lam Dong Tourism Department), (ii) Sharing best practices between Bu Gia Map, Cat Tien, and Bi Dup Nui Ba National Parks, (iii) Commune exchange program to facilitate learning processes between communities, (iv) Cooperation with FLITCH with particular emphasis on the design and testing of provincial investments in biodiversity and watershed conservation planning and implementation approaches in Lam Dong province, and (v) Rapid Assessment to identify corridor potential and conservation value of linkages to the Eastern Plains Dry Forest. 18