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MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENTMANAGEMENT BOARD FOR FORESTRY PROJECTS

MARD - WB

E2871 v2

GOVERNMENT OF VIETNAM

FOREST SECTOR DEVELOPMENT PROJECT

ENVIRONMENTAL IMPACT ASSESSMENT

AND

UPDATED ENVIRONMENTAL MANAGEMENT

AND MONITORING PLAN

FOR ADDITIONAL FINANCING AND EXTENSION

October 10, 2011

1

Table of Contents

LIST OF ABBREVIATIONS.......................................................................................5

EXECUTIVE SUMMARY.....................................................................................9

1. INTRODUCTION..........................................................................................12

1.1 BRIEF PROJECT DESCRIPTION.................................................................................121.2 PROJECT EXECUTING AND IMPLEMENTING AGENCIES...............................................181.3 INVESTMENT CAPITAL AND FUNDING SOURCES........................................................191.4 ADDITIONAL FINANCING AND EXTENSION................................................................191.5 PROCEDURE IN EIA PREPARATION..........................................................................20

1.5.1 Site feasibility study in 2 new provinces......................................................201.5.2 Assessment of proposed new districts of Binh Dinh and Quang Ngai.........211.5.3 Review of important project documents......................................................24

2. REVIEW OF LEGAL POLICY FRAMEWORK AND IMPLEMENTATION OF FSDP ENVIRONMENTAL PROTECTION GUIDELINES....................................25

2.1 PERTINENT POLICIES OF THE GOVERNMENT OF VIETNAM.....................................252.2 RELEVANT POLICIES OF THE WORLD BANK.........................................................30

3. FSDP ENVIRONMENTAL MANAGEMENT...................................................31

3.1 FSDP ENVIRONMENTAL PROTECTION GUIDELINES..................................................313.2 COMPLIANCE TO FSDP ENVIRONMENTAL PROTECTION GUIDELINES.........................353.3 INTERNAL ASSESSMENT OF FSDP PLANTATIONS PERFORMANCE..............................363.4 ACTIONS TAKEN TO IMPROVE PLANTATION PERFORMANCE.......................................373.5 USE OF PESTICIDES BY FARMERS............................................................................383.6 CUMULATIVE IMPACTS...........................................................................................39

4.0 ENVIRONMENTAL CHARACTERISTICS OF SELECTED PROJECT SITES UNDER ADDITIONAL FINANCING..................................................................40

4.1 SELECTED AREAS..................................................................................................404.2 NGHE AN PROVINCE.............................................................................................44

4.2.1 Geographical location and administrative divisions....................................444.2.2 Topography..................................................................................................454.2.3 Soil...............................................................................................................454.2.4 Rivers and streams......................................................................................464.2.5 Climate........................................................................................................474.2.6 Existing flora and fauna..............................................................................474.2.7 Forestland classification..............................................................................484.2.8 Potential areas for plantation management in Nghe An..............................50

4.3 THANH HOA PROVINCE..........................................................................................524.3.1 General Information.....................................................................................524.3.2 Soil...............................................................................................................534.3.3 Water resources...........................................................................................544.3.4 Climate.........................................................................................................554.3.5 Fauna...........................................................................................................554.3.6 Forest land classification.............................................................................564.3.7 Potential areas for smallholder forest plantation management in Thanh Hoa..............................................................................................................................58

4.4 QUANG NGAI PROVINCE.........................................................................................60

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4.4.1 Proposed new districts and communes........................................................604.4.2 Minh Long District......................................................................................614.4.3 Binh Son district..........................................................................................634.4.4 Ba To and Tra Bong districts.......................................................................64

4.5 PROPOSED NEW PROJECT SITES IN BINH DINH PROVINCE........................................664.5.1 Proposed communes and socio-economic characteristics............................664.5.2 Hoai An........................................................................................................674.5.3 Binh Thanh commune, Tay Son District......................................................68

5.0 SUMMARY OF EXISTING PLANTATION MANAGEMENT PRACTICES IN PROPOSED NEW PROJECT SITES...................................................................69

5.1PLANTATION OBJECTIVES........................................................................................695.2 PLANTED SPECIES.................................................................................................695.3 SITE PREPARATION............................................................................................715.4 PLANTING.............................................................................................................735.5 TENDING..............................................................................................................735.6 INTERCROPPING....................................................................................................735.7 PESTS AND DISEASES CONTROL.............................................................................745.8 FIRE PREVENTION AND CONTROL...........................................................................745.9 HARVESTING.........................................................................................................75

6. POTENTIAL ENVIRONMENTAL IMPACTS OF SMALLHOLDER PLANTATION FORESTS IN EXPANSION AREAS AND MITIGATION MEASURES......................................................................................................76

6.1 POTENTIAL ENVIRONMENTAL IMPACTS....................................................................766.1.1 Soil erosion..................................................................................................766.1.2 Loss of Soil Fertility.....................................................................................786.1.3 Risk of Pest and Disease Infestation ..........................................................786.1.4 Loss of Biodiversity......................................................................................786.1.5 Fire Risk.......................................................................................................786.1.6 Carbon Sequestration..................................................................................796.2 Environmental Management Measures..........................................................79

7.0 UPDATED ENVIRONMENTAL PROTECTION GUIDELINES...................80

7.1 SITE SELECTION....................................................................................................827.2 PLANTATION PLANNING.......................................................................................83

7.2.1 Landscape Plantation Planning....................................................................837.2.2 Plantation Plot Design..................................................................................87

7.3 SPECIES SELECTION..............................................................................................877.4 SITE PREPARATION................................................................................................87

7.4.1 Vegetation clearance...................................................................................887.4.2 Digging of planting holes.............................................................................887.4.3 Basal fertilization.........................................................................................88

7.5 INTERCROPPING....................................................................................................887.6 TENDING..............................................................................................................897.7 INTEGRATED PEST MANAGEMENT...........................................................................897.8 FIRE PREVENTION AND CONTROL...........................................................................917.9 ACCESS TRACKS....................................................................................................917.10 PLANTATION HARVESTING....................................................................................92

8. ENVIRONMENTAL MONITORING PLAN.....................................................92

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8.1 IMPLEMENTATION MONITORING.........................................................................928.2 COMPLIANCE MONITORING................................................................................938.3 CONDITION MONITORING..................................................................................93

ANNEX 1. ACTION PLAN TO IMPROVE PLANTATION PERFORMANCE.........95

ANNEX 2. FSC PRINCIPLES AND CRITERIA FOR STEWARDSHIP...............101

ANNEX 3. TECHNICAL SPECIFICATION ON FORMULATION OF PLANTATION DESIGN INTRODUCTION..............................................................................109

GENERAL APPROACH TO THE WORKS...........................................................................109PROFESSIONAL STANDARDS AND QUALITY ASSURANCE.................................................109SITE CHARACTERIZATION...........................................................................................110DEFINITION OF PLANTATION OWNER OBJECTIVES AND MANAGEMENT OPTIONS................111DESCRIPTION OF TECHNICAL SPECIFICATIONS..............................................................112CONFORMING TO ENVIRONMENTAL PROTECTION GUIDELINES......................................112SCHEDULE OF ACTIVITIES...........................................................................................113REVIEW AND REVISION OF PLAN.................................................................................113SITE DEVELOPMENT PLAN..........................................................................................113INTERPRETATION.......................................................................................................114CONTRACTOR AND EQUIPMENT QUALIFICATION...........................................................114FEATURE INTERPRETATION AND MAPPING...................................................................114DELIVERABLES AND DATA MANAGEMENT....................................................................115QUALITY ASSURANCE AND AUDIT................................................................................115TECHNOLOGICAL/PERSONNEL CHANGE.......................................................................116

ANNEX 4. LIST OF PESTICIDES BANNED FOR USED IN VIETNAM........117

ANNEX 5........UPDATED ENVIRONMENTAL PROTECTION GUIDELINES AND MONITORING PLAN FOR FOREST PLANTATION MANAGEMENT...............119

ENVIRONMENTAL PROTECTION GUIDELINES (EPGS) FOR PLANTATION MANAGEMENT..............................................................................................121

1. SITE SELECTION....................................................................................................1222. PLANTATION PLANNING.........................................................................................1233. PLANTATION PLOT DESIGN.....................................................................................1274. SPECIES SELECTION..............................................................................................1275. SITE PREPARATION................................................................................................1286. INTERCROPPING....................................................................................................1297. TENDING..............................................................................................................1298. INTEGRATED PEST CONTROL..................................................................................1309. FIRE PREVENTION AND CONTROL...........................................................................13110. ACCESS TRACKS..................................................................................................13211. PLANTATION HARVESTING....................................................................................133

8. ENVIRONMENTAL MONITORING PLAN...................................................133

1 IMPLEMENTATION MONITORING..........................................................................1332 COMPLIANCE MONITORING.................................................................................1333 CONDITION MONITORING....................................................................................133

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LIST OF TABLES

Table 1. Key features of revised smallholder forest plantation model 13

Table 2. Area of forest plantations established from 2005-2010 under FSDP 14

Table 3. Estimated forest plantations established in 4 provinces by end of 2011 15

Table 4. Forest plantation targets proposed for additional financing 18

Table 5. Criteria for the assessment of proposed additional project sites in Quang Ngai and Binh Dinh Provinces.

20

Table 6. Summary of Environmental Protection Guidelines 2003, FSDP 29

Table 7. Summary of selected plantation areas in 6 provinces to be included under the additional financing and extension operation. 41

Table 8. Soil characteristics of potential plantation areas in Nghe An province 44

Table 9. Reservoirs in six districts of Nghe An Province proposed to join FSDP 44

Table 10. Climatic characteristics of Nghe An Province, average of last 10 years, Do Luong Weather Station

46

Table 11. Forestland classification of Nghe An Province 48

Table 12. Potential areas for smallholder plantation management in Nghe An based on assessment by FIPI

50

Table 13. Soil characteristics of potential project areas in Thanh Hoa province 53

Table 14. Water reservoirs in Thanh Hoa districts proposed for FSDP participation.

54

Table 15. Climatic data of Thanh Hoa, average of 2 years (2008 – 2009) 55

Table 16. Forest land classification of Thanh Hoa Province according to master plan 2005 - 2015

57

Table 17. Potential areas for smallholder forest plantation management in Thanh Hoa based on assessment by FIPI

59

Table 18. Additional sites proposed in Quang Ngai Province 60

Table 19. Ethnic population of Minh Long District, 2010 61

Table 20. Additional sites proposed in Binh Dinh Province 66

Table 11. Area (ha) of forest destroyed by fire 74

Table 22. Criteria for site selection under FSDP 82

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LIST OF FIGURES

Figure 1. Project poster prepared by Binh Phuoc commune, Binh Son district, Quang Ngai

37

Figure 2. Barren land in Thanh Hoa province. 38

Figure 3. Unproductive cashew plantation proposed to be replaced with forest plantations of Acacia, Tay Son district, Binh Dinh

39

Figure 4 Coppice plantations of Eucalyptus excerta, left (Nghi Loc District, Thanh Hoa) and E. camaldulensis, right (Tinh Gia District, Nghe An).

39

Figure 5 Harvestable Acacia plantations in Thanh Chuong District, Nghe An and in Binh Son, Quang Ngai

40

Figure 6 Mixture of eucalyptus and acacia species (Ha Trung District, Thanh Hoa). 69

Figure 7 Erythrophloeum fordii (Lim xanh) planted by households, along Ho Chi Minh trail, Tan Ky District established under Program 327 and/ or 661.

70

Figure 8 Burning is a common site preparation practice in both provinces, even in sites just above reservoirs (right picture) as in Nhu Thanh District, Thanh Hoa

71

Figure 9. Excavation of eucalyptus stumps in Nghe An province. 72

Figure 10. A sound site preparation practice in Ha Trung District, Thanh Hoa Province.

72

Figure 11. Newly planted acacia hybrid intercropped with cassava, Minh Long district, Quang Ngai province

73

Figure 12 Deep gullies formed by soil erosion in plantations in Du Luong District (left) and in the boundaries between Dien Chau and Nghi Loc Districts (right).

76

Figure 13 Badly eroded banks of drainage canals (Thin Gia District) and streams (Nghi Loc District).

76

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LIST OF ABBREVIATIONS

5MHRP Five Million Hectare Reforestation Program

CPC Commune People’s Committee

CPCU Central Project Coordination Unit

CWG Commune Working Group

DARD Department of Agriculture and Rural Development

DLO Department of Land Administration

DPC District People’s Committee

DIU District Implementation Unit

EA Environmental Assessment

EIA Environmental Impact Assessment

EU European Union

FDD Forest Development Department

FFG Farm Forestry Group

FPD Forest Protection Department

FINNIDA Finnish International Development Agency

FIPI Forest Inventory and Planning Institute

FPD Forest Protection Department

FSDP Forest Sector Development Project

FSIV Forest Science Institute of Vietnam

FSSP Forestry Sector Support Program

GDLO General Department of Land Administration

GDP Gross Domestic Product

GEF Global Environment Facility

GoV Government of Vietnam

GTZ Deutsche Gesellschaft für Technische Zusammenarbeit

IDA International Development Assistance

IPM Integrated Pest Management

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Ha Hectare

LUC Land Use Right Certificate

M&E Monitoring and Evaluation

MARD Ministry of Agriculture and Rural Development

MDF Medium Density Fiberboard

MONRE Ministry of Natural Resources and Environment

MOSTE Ministry of Science and Technology

NGO Non-Governmental Organization

ODA Overseas Development Administration, UK

PIM Project Implementation Manual

PPC Provincial People’s Committee

PPMU Provincial Project Management Unit

SIA Social Impact Assessment

SFE State Forest Enterprise

SKM Sinclaire Knights Merz

SUF Special Use Forest

TA Technical Assistance

TOR Terms of Reference

VBSP Vietnam Bank for Social Policies

VCF Vietnam Conservation Fund

WB World Bank

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EXECUTIVE SUMMARY

The Smallholder Plantation Forest Component is one of 4 components of the Forest Sector Development Project which aims to develop sustainable, productive and profitable plantation forests and help eradicate poverty in the rural areas. It has been implemented since 2005 in 4 provinces, namely Thua Thien Hue, Quang Nam, Quang Ngai and Binh Dinh. Recently, the Government of Vietnam requested the World Bank for an Additional Financing Operation and the extension of the FSDP.

This supplemental Environmental Impact Assessment (EIA) was prepared in accordance with relevant laws of Vietnam and the operational policies of the World Bank . It covers the proposed FSDP Additional Financing operation in six provinces: Binh Dinh, Quang Ngai, Quang Nam, Thua Thien Hue, Nghe An and Thanh Hoa. It supplements the original EIA done in 2003 and integrates the findings of the environmental impact assessment in the two new provinces Nghe An and Thanh Hoa and the environmental screening done in the proposed new districts in Binh Dinh and Quang Ngai provinces. The Project’s Environmental Protection Guidelines were updated taking into consideration the observations made in the Internal Assessment of plantations of 2010 and the actions taken to comply with Environmental Protection Guidelines and efforts to achieve sustainable forest plantation management.

The potential additional project sites in the six provinces totals 56,277 ha, itemized as follows:

Thanh Hoa - 9,213 ha

Nghe An - 11,035 ha

Thua Thien Hue - 7,148 ha

Quang Nam - 10,997 ha

Quang Ngai - 10,324 ha

Binh Dinh - 7,510 ha

About 15,600 ha of these sites are barren lands (1a and 1b) and low quality plantations, while the rest are unproductive or underproductive plantations, which are harvestable in 2012-2013 and require replacement for improved management. Almost half of the proposed project areas have already been covered by Land Use Rights Certificates (Red Book) while the other half have been allocated to individual households but have yet to be issued Red Books.

The potential environmental impacts of smallholder plantation development in the additional project areas include:

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Soil erosion

The most important potential adverse impacts of smallholder plantation project in the two provinces is excessive soil erosion triggered by poor management practices such as:

1) comprehensive vegetation clearance followed by burning during site preparation; 2) excavation of tree stumps/roots using machines in sloping areas;3) cultivation, planting and harvesting of agricultural crops on sloping areas;4) improper construction and poor maintenance of access tracks;5) soil disturbances during harvesting operations and yarding of logs;6) cutting/ removal of native vegetation along drainage canals and stream banks.

The problem of soil erosion will be aggravated by steep slopes, and heavy rainfall such as that occurring in the provinces in September to October. On site, soil erosion leads to loss of top soil and soil fertility, reducing productive capacity of site in the following rotations. Off site, eroded soil results in siltation and sedimentation of reservoirs, rivers and streams which would trigger a series of adverse consequences such as reduce water quality, lower water holding capacity, and impacts on aquatic life. This is a serious concern because some of the proposed plantation sites are situated above the reservoirs which are supplying irrigation water for rice paddy production.

Loss of soil fertility

Loss of soil fertility as a consequence of soil erosion as described above, and by the burning of vegetation in site preparation, and removal of biomass in harvesting.

Pest and disease infestation

Risk of pest and disease infestation increases with increasing area of monoculture plantations especially exotic species .

The use of pesticides to control important pests and diseases could have several potentially adverse environmental impacts, including on the health of the workers applying them.

Loss of biodiversity

Impact of smallholder plantation forests on biodiversity will be minimal because little biodiversity remain in proposed areas. However, the Project would have positive impact on biodiversity, if the native species will be planted along with the fast growing species, or if 3 or more clones of acacias (hybrid) will be per planted in each plantation area.

Fire risk

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Risk to plantation damage cause by fire is expected to be minimal, if plantation species would be limited to Acacia and eucalyptus species, which are less susceptible to fire than Pinus merkusii, and the authorities and local communities will continue to implement their present fire prevention and control program.

Carbon sequestration

The plantation forests could sequester up to 77 tons per ha of carbon in 6 – 7 years, some of which will remain sequestered if the wood will be used for building construction, for furniture or MDF. The plantations would then have positive contribution in reducing the impact of climate change.

Mitigation measures

Management measures to mitigate the potential adverse environmental impacts are the following:

Proper selection of sites to ensure high productivity and profitability of plantations with minimal impacts on the environment and the local communities.

Implementation of landscape level planning in each participating village and the revised plantation design contract. Compliance to the landscape plantation plan and design must be strictly monitored.

Proper selection of species that matches the site and management objectives. Planting of native species in mixture with exotic, fast growing species should be encouraged.

Adoption of good silvicultural practices in plantation management. In these regard, extension and training should be strengthened, making full use of manuals on plantation establishment and management prepared by the project.

Development and adoption of environment-friendly, non-chemical methods of pest management, with primary reliance on prevention and biological and silvicultural control rather than on the use of pesticides.

Forest fire prevention and control must be an integral part of the management plan for the plantations.

Access tracks must be designed, constructed and maintained with the least impact on soil erosion and the environment in general.

Harvesting of wood and other forest plantation products must be done in a manner to minimize soil disturbance.

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The updated Environmental Protection Guidelines were prepared to integrate lessons learned in project implementation over the past five years and the findings of this supplemental EIA (see Annex 5).

1. INTRODUCTION

1.1 Brief Project Description

The 5Million Hectare Reforestation Program (5MHRP) was launched in 1998 to increase forest cover to 14.3 million ha or 43 % of the total land area of the country and increase the supply of wood for industrial and domestic purposes. The 12-year reforestation program was also intended to significantly contribute to the eradication of poverty in the rural areas and to improve environmental conditions. It is in this context that the Forest Sector Development Project (FSDP) was formulated. The Pre-Feasibility Study of FSDP was approved by the Prime Minister on 6 April 2004 under Decision No. 332/QD-TTg, while the Project Feasibility Study was approved by Ministry of Agriculture and Rural Development (MARD) through Decision No. 1067 QD/BNN-LN dated 27 April 2004. The Project Agreements were signed on 4 April 2005. FSDP implementation started in March 2005 and, as currently planned (without the Additional Financing and Extension), would end in March 2011

The development objective of FSDP is to achieve sustainable management of forest plantations and the conservation of biodiversity in special use forests and enhance the contribution of natural forests and forest plantations to rural poverty reduction and global environmental protection. It has four components, namely:

Institutional Development to improve policy and regulatory environment for sustainable forestry management and biodiversity conservation;

Smallholder Plantation Forestry to provide credit and technical assistance to local households in developing productive, sustainable and profitable forest plantations;

Special Use Forests to provide competitive grants and technical assistance in managing at least 50 special use forests of international importance, and

Project Management, Monitoring and Evaluation to enhance the capacity in regional, provincial, district and commune levels in providing needed support services and in monitoring and evaluating project impacts and outcomes.

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The Smallholder Plantations Component originally aimed at establishing 66,000 ha of productive and profitable commercial forest plantations for smallholders in four provinces, namely Thua Thien Hue, Quang Nam, Quang Ngai and Binh Dinh . These plantations are expected to produce about 3.3 million m3 of pulpwood, 300,000 m3 of saw logs and 400,000 m3 of fuel wood by the end of the first harvest in 2016. The plantations are expected to provide additional sources of income, generate employment and thus help reduce poverty in the rural areas.

The Project provides smallholders/farmers with low-interest financing through Vietnam Bank for Social Policies (VBSP), and supports land allocation to households as incentive for long term investments. To improve the economic viability and sustainability of plantations, farmers are given technical assistance in land use planning, plantation design, access to high quality planting materials, capacity building and extension services on important aspects of plantation establishment, tending and management. The Project promotes sustainable forest plantation management to qualify plantations as certifiable under international forest certification standards. Towards this end, the project encourages farmers to organize themselves into Farm Forestry Groups (FFG) as strategy to obtain group forest certification and to sustain project initiatives long after its completion.

The overall guidance for the project is described in the Project Implementation Manual (PIM), agreed upon by donors, World Bank, and the Government of Vietnam.

Project participants can choose from 8 plantation models, as follows:

Models 1 and 2 involve fast-growing, exotic species (Acacia, Eucalyptus) aimed at maximizing wood production. Both are short-term models (6-8 years) for production of pulpwood. Model 1 is based on a medium quality site and model 2 is based on a good site.

Model 3 involves a longer plantation cycle (12-15 years) for production of both pulpwood (6-8 years) and higher value saw-logs (12-15 years).

Model 4 involves planting fast-growing tree species (such as Acacia) as a nurse crop, with native hardwoods (Hopea, Dipterocarpus, Erythrophleum, Castanopsis) inter-planted after 2-3 years. The fast-growing trees are harvested for chip-wood at 6-8 years. The native hardwoods are harvested for saw-logs at 25 to 35 years.

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Model 5 is a short-term model providing income from chip-wood, harvested at 7-8 years, with intercropping of annual agricultural crops.

Model 6, is a mixed-farming system, appropriate for allocated land plots with hill slopes and lowland, alluvial soils. Fast growing trees (Acacia, Melia, Eucalyptus) are grown on one portion of the allocated land plot for wood production, and nut or fruit trees (e.g. Cashew, etc.) on another portion of the plot.

Model 7 is a longer-term model producing chip-wood at 7-8 years and saw-logs at 10-15 years. Both models are applicable to a wide range of sites and project participants, including use in conjunction with swidden agriculture in ethnic minority areas.

Model 8 is also an agroforestry based on planting fast-growing trees such as Acacia or Melia at about 1000 trees per ha and then interplanting with tree crops, such as improved genotypes of cinnamon, during the early years of the plantation, prior to cashew-nut production.

Experience in the past five years show that most farmers follow Model 1 and 2 (chip wood production) and Model 5 (incropping with cassava). Plantation models have been updated in 2009 and the key features of these models are described in Table 1.

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Table 2 Key features of revised smallholder forest plantation models1.

Model Main species Rotation Products

Short rotation plantation model (combines Models 1, 2 & 5)

Fast growing tree species- Acacia hybrid, A. mangium, Eucalyptus urophylla, Melia azedarach. Agricultural crops may be intercropped in the first 2 years.

6 -7 years

Agricultural crops

Fuelwood, pulpwood

Long rotation plantation model (combines Models 3 & 7)

Fast growing tree species-Acacia species, Eucalyptus species, Melia azedarach, etc.. Agricultural crops may be intercropped during the first 2 years.

12 -15 years

Agricultural crops

Fuelwood,

Pulpwood,

Sawlogs

Mixed plantation of native and fast- growing tree species model (same as in Model 4)

Timber native species – Hopea, Dipterocarpus, etc. – mixed with fast growing tree species- Acacia spp., for short and long rotation wood. Agricultural crops may be intercropped in first 2 years.

20 -25 years

Agricultural crops,

Fuelwood, pulpwood, poles, sawlogs

Mixed plantation of non-timber and fast growing tree species model (combines Models 6 & 8).

Other non-timber species planted with forest tree species . The non-timber species may be planted together with the forest tree species or planted in separate portions of the plantation area. Agricultural crops may be intercropped in the first 2 years.

15-25

Years

Agricultural crops, fuelwood, pulpwood,

sawlogs

non-timber products.

The total area of forest plantations established as of 2010 is 39,127 hectares in 118 communes, 21 districts and 4 provinces (Table 2).

Table 2: Area of forest plantations established from 2005-2010 under FSDP2.

1 Review of Indicative Plantation Models. FSDP TA 2 Draft Report No. 62, April 2009.

2 FSDP M & E Report, Sept 2011

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Binh Dinh 2005 2006 2007 2008 2009 2010 Total (ha)

An Nhon 115.00 172.64 341.21 76.12 51.01 81.45 837.43

Tuy Phuoc 72.70 140.38 413.91 111.94 83.96 69.42 892.31

Tay Son 102.02 464.83 322.62 206.51 170.75 1266.73

Van Canh 120.30 126.07 318.09 193.80 384.03 623.83 1766.12

Phu My 202.70 199.71 259.69 209.29 119.74 154.29 1145.42

Phu Cat 213.20 194.98 685.56 651.36 842.84 603.04 3190.98

Quy Nhơn 134.09 85.57 298.51 518.17

Sub-total 723.90 935.80 2,483.3 1,699.2 1,773.7 2,001.3 9,617.2

Quang Ngai 2005 2006 2007 2008 2009 2010 Total

Ba To 54.80 223.87 478.07 946.81 679.11 670.38 3,053.04

Son Tinh 297.28 233.21 189.43 128.27 66.76 179.07 1,094.02

Mo Duc 170.20 276.47 105.19 129.42 126.69 201.77 1,009.74

Tra Bong 167.00 103.78 590.07 763.81 640.96 495.54 2,761.16

Sub-total 689.3 837.3 1,362.8 1,968.3 1,513.5 1,546.8 7,918.0

Quang Nam 2005 2006 2007 2008 2009 2010 Total

Tien Phuoc 100.00 244.95 676.33 382.77 734.69 1,433.00 3,571.74

Hiep Duc 100.00 344.00 736.52 1,061.0 1,256.0 850.00 4,347.50

Bac Tra Mi 123.00 350.70 664.74 498.67 326.61 650.00 2,613.72

Que Son - 91.61 114.25 160.00 118.64 242.00 726.50

Sub-total 323.00 1,031.3 2,192.0 2,102.0 2,435.9 3,175.00 11,259.2

TT Hue 2005 2006 2007 2008 2009 2010 Total

Phong Đien 337.50 439.90 481.96 329.95 348.00 1,499.00 3,436.31

Huong Tra 404.00 417.84 313.70 645.26 590.00 436.00 2,806.80

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Huong Thuy 217.60 321.75 190.92 396.00 299.00 190.00 1,615.27

Phu Loc 213.05 186.15 530.95 286.50 221.00 209.00 1,646.65

Nam Đong 83.53 41.82 264.00 272.00 166.00 827.35

Sub-total 1,172.1 1,449.2 1,559.3 1,922. 1,730. 2,500.00 10,332.7

Total 39,127

The total area of forest plantations established is estimated to be 45,332 hectares by end of 2011 , benefitting 24,346 households. This is 69% of the overall plan and 81% of targeted area for smallholder plantation program (Table 3).

Table 3. Estimated forest plantations established in 4 provinces by end of 20113.

No. Province Project target (ha)

Estimated plantation area by end of 2011

(ha)

No. of participating households

%

1 TT Huế 20,300 11,006 7,168 54%

2 Quảng Nam 10,600 13,093 5,896 124%

3 Quảng Ngãi 10,300 9,915 4,743 96%

4 Bình Định 24,400 11,318 6,539 46%

Total 65,600 45,332 24,346 69%

3 Draft Work Plan for the Period 2012-2015, FSDP, May 2011.

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1.2 Project Executing and Implementing Agencies

The Ministry of Agriculture and Rural Development (MARD) is the Executing Agency of FSDP while the Implementing Agencies are the Management Board of Forestry Projects, Forest Protection Department, Vietnam Bank for Social Policies, Provincial People’s Committee of Thua Thien Hue, Quang Nam, Quang Ngai and Binh Dinh, District People’s Committee and the Commune People’s Committee.

A Central Project Coordination Unit (CPCU) established in MARD is responsible for overall administration, consolidation of reports, centralized procurement and coordination with Department of Forest Development (DFP) and Forest Protection Department (FPD) in the implementation of national level project activities related to institutional development as well as liaison with the Forestry Sector Support Program (FSSP).

For the Special Use Forest component, a Management Committee was established to oversee the policy and operations of the Vietnam Conservation Fund (VCF) and endorse small grants proposals. Under the Management Committee, a VCF Secretariat is organized to manage day-to-day work of the SUF component. The VCF Secretariat is supported by a Technical Review Group (TRG), which is responsible for the technical review and selection of all proposals sent to the VCF Secretariat and eventually to the Management Committee for final approval and authorizing fund disbursement to sub-projects.

All credit for plantations is managed and disbursed by the Vietnam Bank for Social Policies (VBSP) through its existing network from central to local levels. At the central level, a Project Implementation Unit is established within the VBSP to provide guidance to the provincial and district levels and to handle all VBSP-related procedure.

Field implementation of the Smallholder Plantation Forest component is a direct responsibility of each of the four provinces. A Provincial Project Management Unit (PPMU) is established in each project province to coordinate implementation of the component dealing with plantation forest as well financial management of provincial project funds and procurement through national competitive bidding (NCB) and national shopping. It is also responsible for liaising with Department of Land Administration in land allocation and issuance of Land Use Certificates (LUCs), a critical project activity.

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A District Implementation Unit (DIU) and a Commune Working Group (CWG) are established in each of the participating district and commune, respectively, to implement and facilitate day-to-day project implementation. Existing District Extension Centres with support from contracted staff provide extension support services to households.

Provincial branches of VBSP are responsible for provision of loans to participating households through its existing local networks.

For the SUF, implementation of approved sub-projects is the responsibility of the individual SUF Management Board in concert with the related provincial Forest Protection Department and with the support of the regional TA teams.

1.3 Investment Capital and Funding Sources

FSDP total investment capital amounts to USD 78 million, distributed by components as follows:

Component of Institutional Development: USD 1.3 million Component of Smallholder Plantation Forest: USD 52.4 million Component of Special Use Forest: USD 19.3 million Component of Project Management: USD 5.0 million

And by funding sources:

International Development Assistance (IDA): USD 39.6 million Global Environment Facility (GEF) grant: USD 9.0 million Grant from Finnish Government: USD 5.3 million Grant from Netherlands Government: USD 6.3 million Vietnam counterpart funding: USD 4.4 million European Community contribution: USD 2.5 million Estimated contribution of farmer labor cost: USD 10.9 million

1.4 Additional Financing and Extension

The Government of Vietnam has requested the World Bank to consider an additional financing operation for the FSDP, which was confirmed for inclusion into the lending pipeline by the Bank in March 2011. In the context of the Government’s Forest Development Strategy, the Additional Financing operation would support the development and expansion of commercial smallholder plantation forestry to about 25,000 ha in six provinces as itemized in Table 4 over 3 years, from March 2012 to March 2015. It would

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build on existing and well functioning project institutions and implementation experience. The Additional Financing and project extension aims to:

1) strengthen the project’s impact through continued investments in and operational support to smallholder plantations and related activities in the four project provinces of Thua Thien Hue, Quang Nam, Quang Ngai, and Binh Dinh;2) expand implementation of the Smallholder Plantation Forest component to two new provinces where smallholder plantations are technically feasible and environmentally and economically appropriate;3) expand and deepen the project’s policy and institutional development work under the Institutional Development Component to assist Government improve its policy and institutional framework for sustainable forestry; and,4) address any remaining project implementation weaknesses and strengthening its capacity to carry out defined activities at all project levels.

Table 4. Forest plantation targets proposed for additional financing.

No. Province Proposed area (ha)

1 TT Hue 3,000

2 Quang Nam 3,000

3 Quang Ngai 3,000

4 Binh Dinh 4,000

5 Thanh Hoa 6,000

6 Nghe An 6,000

Total 25,000

About 50 % of the additional financing resources will go to plantation credit. The rest will finance support activities such as land allocation, plantation design, extension and training, nursery upgrading, construction/improvement of fire guard towers, improvement of existing access tracks, administrative support and technical assistance.

1.5 Procedure in EIA Preparation

1.5.1 Site feasibility study in 2 new provinces

A site feasibility study was conducted in Thanh Hoa and Nghe An provinces in November and December, 2010, to screen and select suitable sites for commercial smallholder forest plantations so as to ensure high productivity and profitability with minimal adverse social and environmental impacts. There were four components of the feasibility study, namely, a) site selection using GIS screening; b) Social Impact Assessment; c) Environmental

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Impact Assessment, and d) assessment of nurseries and plant material production. Separate reports were prepared for the different components.

The Environmental Impact Assessment for the two provinces was conducted by a Team composed of an International Forest Plantation Specialist and his counterpart National Forest Plantation Specialist, and an Interpreter/translator. The Team visited the proposed project areas, met with FSDP Working Groups at the provincial and district levels and discussed the purpose of the environmental assessment, collected relevant data and information such as land area and land classification, forest development strategic plans, climate, topography and soils, flora and fauna and specially protected species, plantation establishment and management practices and the general characteristics of areas proposed for the project. Representatives of proposed area in one or two communes per district were visited to observe exiting conditions and get better understanding of existing plantation establishment and management practices. Initial observations on the field visits were discussed with the provincial working groups of Nghe An on November 27, with Thanh Hoa on December 3, and with CPCU on December 10, 2010. Report of the environmental assessment was prepared and submitted to CPCU on December 24, 20104.

1.5.2 Assessment of proposed new districts of Binh Dinh and Quang Ngai.

A team composed of CPCU, TA, PPMUs and DPMUs conducted an assessment of the proposed plantation sites from August 8 to 18, 2011. The objective was to determine land availability and suitability for commercial forest plantation development. This is to ensure that the proposed sites have the potential to meet high productivity and good economic returns, with minimal or no adverse social and environmental impacts.

A set of criteria for assessment of proposed additional project sites was discussed and agreed by the Assessment Team before going on field trip. The criteria used in the site feasibility study conducted on proposed sites in Nghe An ad Than Hoa provinces were adopted and improved to include key socio-economic and environmental considerations. The criteria for field assessment of proposed additional project sites in Quang Ngai and Binh Dinh are shown in Table 5. It should be noted that no new commune is proposed for Quang Nam and TT Hue provinces.

Field assessments started with a meeting with the PPMU Head and his staff to discuss the criteria, information needs, schedule and general methodology to be followed. Accompanied by PPMU staff, the Team proceeded to the different districts and communes. The usual itinerary included courtesy call and briefing at the district, courtesy call and briefing at the commune. Relevant information on the commune and the proposed sites, including maps were collected. Representative samples of proposed sites in each commune were then visited to get better understanding and appreciation of the bio-physical conditions of the sites and performance of existing plantations. Initial findings and

4 Environmental Assessment Report for Nghe An and Thanh Hoa Provinces. FSDP/SKM Draft Report, December 24, 2010.

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observations were validated and clarified in wrap-up meeting with the PPMU officers at the end of the trip in the province. The report on the assessment was submitted to CPCU in August, 20115.

Table 5. Criteria for the assessment of proposed additional project sites in Quang Ngai and Binh Dinh Provinces.

CRITERIA DESCRIPTION

Land use classification Commercial forest plantation sites must be inside production forest lands; land not used for food production, grazing nor for collection of medicinal plants and other important non-timber products

Availability of barren land with potential for developing into commercial forests

At least ten hectares of block plantation per village is required and sufficient suitable forestland in the whole commune to justify project interventions. Sites are classified as barren land (Class 1 a and 1 b) or existing plantations of poor quality that may be converted into more productive plantations.

Location in relation to main markets

The market for plantation wood is available and easily accessible; road conditions are suitable for easy transporting of wood products.

5 Report on the assessment of new communes and districts proposed for participation in FSDP. FSDP TA Report No. 1, August, 2011.

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Accessibility of plantation sites

Sites should be within two kilometres from all weather roads. Project will not engage in construction of roads but may support repair/improvement of existing tracts.

Soils and slopes Soil types not laterite or sterile coastal sand, soil depth at least 40 cm;

slope not more than 25 o.

Quality of existing forest plantations

This is an indicator to assess the current knowledge and expertise in plantation forestry in the commune. It also provides an indication of the potential quality (site quality) of plantation forest in the proposed location.

Availability of labor; interested households

This is an important condition, given that major time and work commitment will be needed to establish forest plantations. Household response needs to be equated to increase work burden to women, and potential impact to household children.

Security of land tenure Land-use Certificates are pre-requisites for smallholder forestry establishment loans under FSDP. Sites had either been issued with Red Book, or had been allocated to households and will be issued with Red Book.

Strong commune leaders This is an important precondition, given that capacity and commitment of commune to follow-up on participatory aspects of the project are of utmost importance. Weak commune capacities would translate into possible grievance amongst smallholders and poorly established and monitored plantations. Existing support institutions at commune and district levels.

Potential impact to poverty reduction

FSDP’s main objective is to help reduce poverty in the rural areas. Communes with high number of poor households and willing to participate in the project may be given priority.

Food security Plantation does not compete with agricultural production.

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When feasible project should be able to compliment food production (agro-forestry).

Environmental risks and impacts

Potential impacts on biodiversity, soil and water resources; and risks associated with pests and diseases, storm damage and market price fluctuations.

1.5.3 Review of important project documents

The following documents, among others, were reviewed:

Relevant laws, rules and regulation of Vietnam.

Relevant polices of the World Bank

EIA conducted in 2003 for the project and the accompanying Environmental Protection Guidelines and Monitoring Plan6.

EIA of Nghe An and Thanh Hoa provinces prepared on Dec 2010.

Report on Potential Plantation areas in Thanh Hoa and Nghe An, FIP, FSDP, Jan 2011.

Project Implementation Plan, Volume 2, approved on 21 April, 2004, particularly the plantation component, M & E, and the Environmental Management Plan.

Report on a Field Mission to Assess The Implementation of Environmental Guidelines in The Establishment and Management of Plantations Under the Forest Sector Development Project (FSDP)7

Internal Assessment Final Report, FSDP, 25 May 2010.

Action Plan to Improve Plantation Quality and Sustainability, Addressing Identified Gaps and Weaknesses. FSDP Draft Report No. 102, October 2010.

This supplemental EIA covers the proposed additional financing operations proposed to be financed by IDA in six provinces: Binh Dinh, Quang Ngai, Quang Nam, Thua Thien Hue, and Nghe An and Thanh Hoa. It updates the original EIA done in 2003 and integrates the 6 John Dick and Vo Thanh Son. 2003. Environmental Impact Assessment of FSDP. Prepared for the Government of Vietnam, August 2003.

7 John Dick. Report on a Field Mission to Assess The Implementation of Environmental Guidelines in The Establishment and Management of Plantations Under the Forest Sector Development Project, FSDP, Nov 2008.

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findings from the new project areas in Nghe An and Thanh Hoa provinces as well as from the new proposed districts and communes in Binh Dinh and Quang Ngai provinces. Finally, the Project’s Environmental Protection Guidelines were updated taking into consideration the findings of this supplemental EIA, the observations made in the internal assessment of plantations in 2010 and the actions taken so far to comply with Environmental Protection Guidelines and efforts to achieve sustainable forest plantation management.

2. REVIEW OF LEGAL POLICY FRAMEWORK AND IMPLEMENTATION OF FSDP ENVIRONMENTAL PROTECTION GUIDELINES

2.1 Pertinent Policies of the Government of Vietnam

The EIA conducted in 2003 made a comprehensive review of government laws, decrees, decisions and circulars relevant to forest and forest land management and environmental protection in Vietnam. The pertinent laws are briefly discussed hereunder.

2.1.1 Law on Land enacted on 26 November, 2003 and in force and effect on 1 July, 2004. This Land Law replaced the 1993 Law on Land and its amendments in 1998 and 2001. This law governs the powers and responsibilities of the State as representative of the ownership of land by the entire Vietnamese people for uniform administration and use of land, as well as the rights and obligations of the land users. The Law provides for the classification of land into three main categories: agricultural, non-agricultural and unused lands. Production forest land, protection forest land and special use forest lands are sub-land classifications under agricultural lands, along with lands for annual crops, land for perennial crops, land for aquaculture, land for salt production and other agricultural land.

This Law also mandates the formulation of land use zoning and planning which take into consideration (i) most economical and effective land use, (ii) protection of the environment, (iii) protection and maintenance of historical sites and places of scenic beauty, and (iv) must be done in democratic manner and disclosed publicly. It further provides that land use zoning be done every 10 years, and land use planning, every 5 years.

The Land Law provides for the allocation of land without land use fees to family households directly working in agriculture, forestry, aquaculture or salt production. The land user will be issued with a Land Use Certificate by the Ministry of Environment and Natural Resources, for each parcel of land. For forest production purposes, a household is entitled LUC for maximum of 30 hectares, with a duration of 50 years. The land user shall have the following rights:

1) Enjoy the benefits of labor and investment to the land;

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2) Enjoy the benefits arising from State works for protection and improvement of agricultural land.

3) Receive guidance and assistance from the State in improvement and fortification of agricultural land;

4) Protection by the State from other persons who infringe on the land use right;

5) Right to exchange, assign, lease, and sub-lease, bequeath, and donate land use rights; right to mortgage, guarantee and contribute capital using land use right; and right to be paid compensation when the State recovers land.

The Land Law, on the other hand, obligates the land user the following, among others:

1) To use the land for the correct objectives;

2) To discharge financial obligations according to law;

3) To take measures to protect the land;

4) To comply with the provisions on environmental protection.

2.1.2 Law on Forest Protection and Development enacted on December 3, 2004 which provides for the management, protection, development and use of forests and forest owners’ rights and obligations. As in the Land Law, the forests are classified into 3 categories:

(i) Forest protection which are used mainly to protect water sources and land, prevent soil erosion and desertification, restrict natural calamities and regulate climate, thus contributing to environmental protection including headwater protection forests, wind and sand shielding protection forests; protection forests for tide shielding and sea encroachment prevention; and protection forests for environmental protection.

(ii) Special use forests which are used mainly for conservation of nature, specimens of the national ecosystems and forest biological gene sources; for scientific research; protection of historical relics as well as landscapes; in service of recreation and tourism in combination with protection. These include national parks, nature conservation zones including nature reserves and species-habitat conservation zones, landscape protection areas, scientific research and experimental forests.

(iii) Production forests which are used for the production and trading of timber and non-timber forest products, including natural production forests, plantation production forests and seeding forests.

The law renders forest use rights to forest owners in the form of assignment or lease, and recognizes ownership rights over planted trees. The sustainable management of forests and promoting the balance between economic benefits and environmental protection and nature

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conservation are among the important principles emphasized. Several decisions and circulars were then issued to guide implementation of certain provisions. These include the following:

Decree No. 23/2006/ND-CP dated March 3, 2006 elaborated on the implementation of the Law on Forest Protection and Development and which provides for forest protection and development planning; forest assignment, lease and recovery, change of forest use purposes, exchange, transfer and donation; recognition, registration, sub-lease, mortgage, guarantee, capital contribution with and bequeathal of forest use rights or ownership over planted production forests; statistics, inventory and monitoring of changes in forest resources; organizing of forest management, protection, development and use.

Decision No. 16/2005/QD-BNN dated March 15, 2005 by the Minister of MARD concerning the list of major tree species for production forest plantations in 9 ecological regions;

Decision No. 40/2005/QN-BNN dated July 7, 2005 which provides for the regulation on the harvesting of timber and other forest products, including harvesting of plantations funded by state budget and ODA funds.

Decree No. 119/2006/ND-CP dated October 16, 2006 which organized the Forest Protection Service under the MARD. Part of its forest protection function is to organize and build up forest fire prevention and fighting force, and to participate in controlling pests.

Decision No. 147/2007/QD-TTg dated 10 September 2007 which provided the policy on Production Forest Development. It reiterated the right of forest owners to collect and harvest forest products from plantations, and obliged them to contribute to commune budget equivalent to 80 kg of rice per ha, and to reforest the area within one year after harvesting. This policy also provided for state support in planting and managing seed forests and nurseries.

Joint Circular No. 2/2008/TTLT-BKH-BNN-BTC dated June 23, 2008 which provided further guidance in implementing Decision No. 147 of the Prime Minister which includes, among others, the following: (I) formulation, evaluation, and approval of production forest planting support projects; (ii) elaboration of lands and forest allocation plans, grant of land use certificates, and contracting of forest lands; procedures for providing forestation investment support; management of tree sources for forestation including seedling prices.

2.1.3 Law on Environmental Protection enacted on 27 December 1993 provides for the protection of the environment which includes activities aimed at preserving a healthy, clean and beautiful environment, improving the environment, ensuring ecological balance, preventing and overcoming adverse impacts of man and nature on the environment, making a rational and economical exploitation and utilization of natural resources. It mandates all organizations and individuals to protect all species and varieties of wild plants

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and animals, maintain biodiversity and protect forests, seas and all ecosystems. It directs the state to adopt plans to involve organizations and individuals in afforestation to expand forest cover and protect watersheds. However, measures must be taken to restrict and prevent soil erosion and other forms of land degradation. Among many others, this law prohibits the burning and destruction of forests, exploitation and trading of precious or rare species of plants and animals, and the use of methods, means, instruments causing destruction in exploiting or harvesting animal and plant resources. This law establishes an environmental protection and management regime for Vietnam under the overall authority of the Ministry of Natural Resources and Environment (MONRE). This regime includes the formulation of environmental regulations, the development of environmental policies, objectives and standards, environmental planning, environmental monitoring, state-of-environment reporting, the assessment and management of environmental impacts associated with major development projects, and environmental compliance and enforcement.

Decree No. 29/2011/ND-CP dated April 8, 2011 mandates the preparation of environmental assessment of various projects. Projects are classified into three groups: 1) those requiring Strategic Environmental Assessment, 2) those requiring Environmental Impact Assessment, and 3) those that only require Environmental Protection Commitment. Forest plantations covering 1,000 ha or larger is in the second group. This decree also defines the procedure of conducting environmental assessments including approval of the same.

Decision No 23 /2007/QÐ-BNN of March 28 the 2007 of the Ministry of Agriculture and Rural Development list the pesticides banned in Vietnam (see Annex 4);

2.1.4 Law on Biodiversity enacted on November 13, 2008 and was in effect on July 1, 2009, which provides for the conservation and sustainable development of biodiversity and the rights and obligations of organizations, households and individuals related thereto.

2.1.5 Vietnam Forest Development Strategy 2006 – 2020

Pursuant to the 2004 Law on Forest Protection and Development, the Prime Minister approved the Vietnam Forestry Development Strategy 2006 – 2020 (Decision No. 18/2007/QD-TTg). The Strategy aimed to sustainably establish, manage, protect, develop and use 16.24 million ha of land planned for forestry in order to: 1) increase their contributions to socioeconomic development, environmental protection, biodiversity conservation and environmental services to 2-3 % of GDP by 2020; 2) reduce poverty and improve the livelihoods of rural mountainous people, and 3) contribute to national defence and security.

It is planned that 4.15 million ha of plantation forests will be established, 1.0 million ha by the end of 2010, another 1.0 million ha by the end of 2020, and 0.3 million ha/year to be reforested after harvesting. It also envisioned that the allocation and lease of forests and

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forest lands to organizations, enterprises, communities, households and individuals will be completed before 2010.

The Forestry Development Strategy provided the framework for forest protection and development in the different regions and provinces. In the Northern Central region (Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue), forest protection and development shall focus on the following:

Establishment and consolidation of protection forests for watershed, coastal protection, sand and wave-shielding, and prevention of erosion and earth crumbling along the sea coast.

Protection and strengthening of national parks, such as Pu Mat, Vu Quang, Ben En, Bach Ma, Phong Nha – Ke Bang, and other nature reserves areas. Establishment of special use forest areas in North and Central Greater Anamites / Truong Son to protect high biodiversity of the region in association with watershed protection.

Establishment and development of timber and NTFP material supply areas, which are linked with processing industries to emerging local forest product industrial areas based on existing and potential markets; accelerate wooden product processing (initially, chips for pulp and paper production) and rural handicraft villages, with special emphasis on NTFP processing (pine resin, bamboo and rattan).

Strengthening of community-based forest management modality, especially for protection forests in scattered watersheds, and areas needing sand - shielding and improvement of poor soils.

For the Southern Central Coastal Region (Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan), the focus shall be:

Strengthen the watershed protection forest system, particularly in steeply mountainous areas, where the forest has been lost, and enhance the establishment of plantations for wind and sand shielding and for the control of coastal erosion and earth crumbling.

Enhance the protection of existing forests and plant new forests in dry areas to improve water sources and cultivated land.

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Protect and consolidate the existing national parks such as Nui Ong and Takuo and continue to develop the areas of special use forest in Southern anamites/Truong Son and various traditional cultural historical areas and strengthen ecotourism development.

Develop key afforestation areas for industrial material supply and NTFPs in association with concentrated key export processing zones from Quy Nhon to Danang.

Construct one particle board factory with annual capacity of 100,000 m3 of products.

The provinces, districts and communes are mandated to prepare their respective 10-year forestry development plans based on the priorities and directions set by the National Forest Development strategy.

2.2 Relevant Policies of the World Bank

Operational policies, directives and procedures of the World Bank that were considered in the development of this supplemental EIA were the following:

Operational Policy 4.01. Environmental Assessment, (Revised Feb 2011): specifically Sections 1 (Bank’s requirement of EA), 2-3 (definitions of the environment and environmental assessment), 4-6 (responsibilities for SESA on World Bank projects), 8 (environmental screening and project categories), 14 (public consultation), 15-18 (SESA disclosure), 19 (compliance with environmental prescriptions during implementation), Annex A – Definitions, Annex B (contents of an Environmental Assessment Report for a Category A Project) and Annex C (Environmental Management Plan);

Operational Policy 4.04. Natural Habitats (June, 2001): specifically Sections 3-8 (project design and implementation to avoid conversion of natural habitats;

Operational Policy 4.09 – Pest Management (December, 1998), specifically Section 1 (addressing pest management issues in EA), Section 3-4 (IPM in agricultural projects), Section 5-7 (Criteria for pesticide selection and use) and Annex B (Application of EA to projects involving Pest Management).

Operational Policy 4.36. Forests: specifically Sections 1-3. (Policy objectives and scope), Sections 4 7 (Bank financing), Sections 9-10 (forest certification), Sections 13-15 (Project Design), Annex A (Definitions).

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Bank Procedures 17.50. Disclosure of Operational Information: specifically Sections 11-14 (disclosure of environment-related documents).

In addition to these established policies, directives and procedures, the supplemental EIA has also taken into consideration the Bank’s expressed aims in poverty reduction. The World Bank joins the GoV and other development partners in focussing on poverty reduction as a principal development priority, and supports GoV's efforts to develop a national poverty reduction strategies.

3. FSDP ENVIRONMENTAL MANAGEMENT

3.1 FSDP Environmental Protection GuidelinesA comprehensive environmental impact assessment (EIA) for FSDP was originally conducted in October 20038 during the preparation of the project. A parallel social impact assessment was likewise conducted. The environmental and social assessments examined the positive and negative environmental and social impacts of the project, compared them with feasible alternatives (including a "no project" option), and recommended measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and to improve impact management performance. Findings and recommendations in the EIA/SIA were integrated in the design of FSDP, and later in the formulation of the Environmental Protection Guidelines and the Environmental Monitoring Plan.

The EIA Report noted that the smallholder forest plantation component would significantly increase the supply of wood products, and thus would reduce pressure on remaining natural forests, rehabilitate many degraded lands, and provide additional employment and income to the communities. Among the 4 components, only the Smallholder Plantation was assessed to potentially have adverse environmental impacts, described as:

Overly simplistic (in terms composition and structure) plantation communities may be vulnerable to pests and nutrient depletion, thus requiring enhanced levels of inputs (fertilizers and pesticides); and

Poor cultural practices may lead to soil depletion and surface water quality degradation.

The following principal environmental management prescriptions were proposed:

8 John Dick and Vo Van Son. 2003. Environmental Impact Assessment and Impact Management and Monitoring Plan for FSDP, October 3, 2003.

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The application of ecosystem (landscape and stand-level) management models, employing nutrient budgeting analyses, to assess the economic and ecological sustainability of plantations and to determine appropriate ecological rotations (defined as that combination of the frequency and severity of ecosystem disturbance and inherent ecosystem resilience that would ensure the maintenance long-term site productivity) and harvest intensities; and

A comprehensive set of "Environmental Protection Guidelines for Plantation Management" which was incorporated in the FSDP Implementation Manual (PIM). These environmental management measures are summarized in Table 6.

Table 6. Summary of Environmental Protection Guidelines 2003, FSDP9

Plantation Management

Environmental protection measures

Site selection Only bare lands, Class 1a and 1b, will be selected for FSDP; class 1c lands will not be selected.1b lands 50 ha or more with canopy height of > 4 m and with >5 woody plant species per ha will not be selected if a) contiguous to 1c lands, or b) adjoining protection forests and special use forest, or c) identified sources of NTFP, or d) having cultural or spiritual significance.Plantation sites will not compromise food security and other critical household needs.Plantation sites must be within 2 km of existing roads.Climatic and soil conditions are suitable.No plantations will be allowed on slopes above 25 degrees.

Plantation Design No commercial plantations above 25 degrees; On slopes between 20 – 25 degrees, planting density lower than normal;Establish stream protection reserve of from 5 – 30 m of each side of stream bank where native vegetation are retained, and clearing, ground disturbance and timber harvesting are not allowed. Promote in-plantation biodiversity by a) planting mixture of species. b) planting 3 or more clones, c) different ages (structural) of plantations.

Plantation establishment

Broadcast burning is not allowed in site preparation; Debris in site preparation and weeding to be retained on site as source of nutrients.Full cultivation is allowed only on slopes below 15 degrees.Planting holes or strip cultivation on slopes 16 – 20 degrees.

9 Environmental Impact Assessment and Impact Management and Monitoring Plan. FSDP Project Implementation Manual.

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Contoured planting holes in 20 – 25 degrees slopes.Intercropping of agricultural crops should be done along contours. No intercropping is allowed on slopes over 20 degrees and no intercropping of root crops will be allowed beyond 15 degrees.

Tending Spot weeding will be employed; Vegetation debris from weeding, pruning and thinning should be left on site as mulch.Thinning and pruning must be carefully planned and implemented.Only spot fertilization using inorganic fertilizers will be allowed; broadcast fertilization is prohibited.

Pest control Integrated Pest Management (IPM) shall form an essential part of the plantation management plan, with primary reliance on prevention, early detection, damage thresholds, and design, mechanical and biological control methods rather than chemical pesticides. Any pesticides used must fall into World Health Organization Class II and Class III categories, be specific to the particular pest, and have low toxicity to non-target organisms. Workers and farmers who are to apply pesticides may only do so after they have received training on the safe handling, storage and use of the chemicals.

Fire prevention and control

Forest fire prevention and control activities must be an integral part of the operational plan for the plantation area pursuant to Decree No. 22-CP of 1995 (Regulation on the Prevention and Fighting of Forest Fires) which include a fire control organization, roles and responsibilities, and detailed prevention, public education, patrolling, enforcement and fire response programs.All plantation blocks over 100 ha shall have firebreaks of between 10-20 m wide and should utilize stream courses and fire resistant native vegetation wherever possible.

Harvesting All logging operations must be strictly supervised and enforced by DARD/DFD. For slopes over 15 degrees, logging coupes shall not exceed 10 ha with at least 60 m between adjacent coupes logged the same year. For slopes less than 15 degrees, logging coupes shall not

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exceed 20 ha, with at least 30 m between adjacent coupes felled the same year. Ground vegetation shall be preserved as far as possible during logging and the site shall be re-planted in the year following logging.

Access road construction and maintenance

density of secondary extraction tracks shall be the absolute minimum;tracks will be permitted to encroach into stream protection corridors only at points of crossing, which must be in areas of stable, moderate terrain;stream crossings should be rock-stabilized drifts; culverts should be employed only in extreme cases where drifts are not practical;tracks shall have a maximum width of 3 m, a maximum favourable grade of 15 degrees and a maximum adverse grade of 10 degrees;cut and fill slopes must be avoided wherever possible;no yarding of logs will be permitted on the surface of tracks;track rights-of-way will be lightly slashed and vegetation cover will be maintained on the running surface wherever possible;all tracks on side-slopes shall be out-sloped or equipped with water-bars to disperse water onto stable areas down slope; and tracks must be properly maintained.

The progress of plantation development as well as the effectiveness of environmental protection guidelines will be monitored and assessed, using the following indicators:

Plantation Performance Indicators

1) Regularly-maintained plantation records and maps showing areas planted each year by species/varieties, planting densities, and establishment techniques.2) Survival rates (%) by year and species and the extent (ha) of beating-up required.Extent (ha) of tending operations (weeding, thinning, pruning, fertilization) each year.

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3) Incidence of insect attack, disease and fire (number and area impacted) and actions taken (method and area of treatment/response).4) Growth or production rates by sub-compartment; recording increment in height, DBH and m3/ha/yr, based on sampling.5) Harvesting operations (area and yield per ha and site class).

Environmental Compliance Indicators

Incidences of non-compliance with plantation block zoning, codes of best plantation practice, and approved plantation management plans as determined by regular inspections.

Environmental Effectiveness Indicators

1) Area (ha and % of total plantation areas) of set-asides for biodiversity conservation in fire breaks, protection reserves and stream protection corridors for each plantation site of 50 ha or larger.2) Regular measurements of soil fertility (organic matter, pH and selected macro, micro and trace elements), based on sampling.3) Annual occurrence and levels of damage due to insects, disease and fire. 4) Annual use (kg/ha) of fertilizers, herbicides and pesticides by plantation species.5) Training of pesticide users/applicators in safety, handling and risks associated with use of pesticides.

3.2 Compliance to FSDP Environmental Protection Guidelines

Compliance by FSDP implementers and beneficiaries to the environmental protection guidelines was assessed in November 200810. Among the relevant observations were the following:

1) There was no conflict between government regulations and FSDP plantation management prescriptions;2) Selection of plantation areas in some sites was ad hoc and site-by-site; primary objective was to meet plantation targets, often regardless of site quality; 3) Attaining plantation diversity was of secondary importance as indicated by the uniformity (in species, age and foliage texture) of plantations over relatively large areas; 4) The key to protect productive capability and nutrient capital is the retention of organic matter (ground vegetation on original sites and lops, tops and stripped

10 John Dick.2008. Report on Field Mission to Assess the Implementation of Environmental Guidelines in the Establishment and Management of Plantations under FSDP. FSDP World Bank, November, 2008

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bark on harvested plantation areas) in site preparation – both of new areas and following plantation harvest;5) Singling and pruning of Acacia species and coppice management of Eucalyptus spp. were done poorly in some sites, probably because of limited extension services at that time.

The report also highlighted a variety positive examples of good plantation management and suggested the implementation of the commune landscape planning to integrate such examples and provide a more rational and systematic selection of acceptable, productive plantation sites and the protection of environmental values. It also proposed to consider the development of simulation models of nutrient status/nutrient flow for selected plantation models. These models could provide the basis for formulating guidelines and prescriptions for species mixes, rotation ages, site selection criteria, site preparation techniques, practical fertilization regimes, thinning regimes, weeding, and harvesting that are sustainable over the long-term. It was also recommended to to raise the standard of forest management in the communes, including those of non-project areas, to qualify for FSC certification.

3.3 Internal Assessment of FSDP Plantations Performance

In April, 2010, an Internal Assessment of project plantations was conducted to 1) identify gaps and weaknesses in meeting international forest certification standards, and 2) determine the performance of plantations11. Important findings are summarized below.

Security of land tenure – all plantation areas had been issued with Land Use Certificates. Boundaries are clearly visible on the ground.

Accessibility – most plantations are located within 2 km of existing roads or tracks; however, there is need to improve access tracks in some plantations to facilitate harvesting and transport of products.

Stream bank protection is neglected in many cases.

Management plan- farmers do not use nor follow the plantation designs prepared for their plantations. They did not participate in its preparation and have poor knowledge of the contents. In effect, farmers have no written plantation management plans.

Growth and yield - plantations are mainly monoculture of Acacia mangium, Acacia hybrid or Eucalyptus urophylla for chip wood production. Most have good growth and yield and expected high economic returns. However, about 10 % of the plantations in low site quality are growing poorly and are expected to give low economic returns.

11 Internal Assessment Final Report, May 25, 2010, FSDP.

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Plantation establishment and maintenance: weaknesses were found on plantation establishment and maintenance of some plantations:

Burning in site preparation is still used by some farmers;

Planting density of more 2000 trees per hectare;

Unnecessary and improper conduct of pruning and thinning.

Plantations were effectively protected from fire.

No major pest and disease were reported.

Many plantations were damaged by storm in 2009, and storm damage remains a threat to plantations.

Documentation of plantation operations - farmers does not document their management activities including use of fertilizers and pesticides.

Most farmers applied fertilizers; some farmers in Binh Dinh applied pesticides (Benlate, Sulphatols, Basudin, 3GSH), and 4 farmers in Quang Ngai used fungicides.

316 Forest Farmer Groups (FFGs) were organized but not functional; there was no FFG in about half of project areas. Most farmers expressed interest in joining FFG and FSC, and willing to pay required fees.

Growth and yield tables- lack of growth and yield tables for important plantation species in the region constrained estimation of growth and yield and income.

Benefits to community - plantations were providing many benefits to the community such as employment, fuel wood, grazing, and soil and water protection.

Certifiability –most of the plantations are certifiable without major efforts.

3.4 Actions Taken to Improve Plantation Performance.

Several measures were undertaken to strengthen compliance to the Environmental Protection Guidelines in particular and to improve plantation performance and “certifiability” of plantations in general. These included the following:

1) Environmental protection guidelines were used in the selection of new project sites in Quang Nam and Quang Ngai in 2009, in Nghe An and Thanh Hoa in 2010, and in Quang Ngai and Binh Dinh in 2011.

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2) Internal Assessment of plantations was carried out in 2010, and a second one is underway in 2011. The assessment is now used to monitor and evaluate plantation performance and compliance to environmental protection guidelines as well as compliance to international forest certification standards. Two trainings of internal auditors had been conducted so far, one in April, 2010 and another one in August 2010.

3) Action Plans to address weaknesses observed in the 2010 Internal Plantation Assessment were drawn up in a 3-day workshop organized in October, 2010 in Quy Nhon. These action plans are to be implemented starting 2011. Details of the Action Plan are in Annex 1.

4) Environmental protection guidelines along with FSC guidelines (Annex 2) were incorporated in tool kits and references used by extension agents to train farmers.

5) Contract for plantation design preparation was revised to incorporate the environmental protection guidelines and ensure a more active participation of the farmer-owner. The revised Plantation Design Contract and specifications was approved by the CPCU and the Bank in April, 2010 and subsequently implemented. The technical specifications in the revised plantation design contract are shown in Annex 3.

6) Trainings on forest certification have been conducted involving members of “pilot” FFGs in the four provinces and project extension personnel and other project staff.

7) In cooperation with FSIV, demonstration plantations (demplots) showcasing five plantation “models” were established in selected provinces in 2009 and 2010.

8) Training of extension staff on silvicultural techniques conducted in Quy Nhon, in early 2010. Manuals on the establishment of fast growing species for chip wood and saw logs production, and of the establishment of mixed species plantations were developed for used in extension and training.

9) Regular WB supervision missions were conducted to follow-up on project progress and compliances to Environmental Protection Guidelines.

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10) Growth and yield tables for common plantation species in the Central region were recently developed by a company contracted by the project.

3.5 Use of pesticides by Farmers

Although use of pesticides in forest plantations was not part of the technical prescriptions nor financial support, there were still some farmers who used pesticides, especially in Binh Dinh and Quang Ngai provinces (see Section 3.4). It is also known that in nurseries, pesticides are commonly used in treating potting soil, in the prevention and control of fungi and pest infesting seedlings. The project needs to conduct activities to support farmers and nurseries in better handling and application of pesticides. Use of pesticides is being monitored as part of the Project’s assessment for compliance to FSC certification standards.

The list of banned pesticides in Vietnam is shown in Annex 4.

3.6 Cumulative Impacts

FSDP’s plantation target of 66,000 ha is small when compared to the 3.0 million production plantations envisioned in Vietnam’s Strategic Plan for Forestry from 2010 to 2020. However, the cumulative impacts could be significant. Presently the project is implemented in 120 communes and 21 districts in 4 provinces. Project supported plantations, in general, exhibit better growth and yield in comparison with adjacent non-project plantations. FSDP plantations have become “learning sites” of improved plantation techniques such the use of seedlings of high genetic quality, lower planting densities, fertilization, effective weed control, among others and the farmer-owners, the extension agents. In time, the lessons from the project will be adopted by other farmers in the village and beyond, resulting in better plantation management in these areas.

The area of forest plantations under sustainable management is expected to increase beyond project boundaries when the financial advantage of getting forest certification by “pilot FFGs” in the four provinces will be realized. FFGs will be organized and strengthened in other areas, and membership will extend to non-project farmers. The FFGs will continue with project initiatives long after the end of the project. It is hoped that the FFG will explore other livelihood opportunities including training, bee keeping, seedling production, and marketing.

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It is estimated that plantations of Acacia mangium will sequester about 78 tons of carbon in 5 to 7 years. Assuming that this is the average carbon fixation of the 3 main species in the project, then there will be about 5.15 million tons of carbon sequestered for the first rotation of project plantations. At least a third of this amount will be sequestered for a long time as more wood is used for furniture and even in the manufacture of medium density fibreboards (MDF).

FSDP plantations are established on bare lands (class 1a & 1b) as well as on areas with low quality plantations where biodiversity is already minimal, at best. With the establishment of buffer zones along stream banks, protection of 1c areas and other native vegetation, and other biodiversity corridors, as required in the Environmental Protection Guidelines and in the Plantation Design, the cumulative impact on local biodiversity would be significant. In addition, in-plantation biodiversity is increased as more farmers are encouraged to plant native but more valuable timber species in mixture with the fast growing native species, or planting at least 3 clones of Acacia hybrid.

4.0 ENVIRONMENTAL CHARACTERISTICS OF SELECTED PROJECT SITES UNDER ADDITIONAL FINANCING

4.1 Selected Areas

The selected plantation areas for the six provinces under additional financing are summarized in Table 7. It shows that there is more than enough land available to achieve the 25,000 ha plantations planned for additional financing (see Table 3). These areas had been pre-selected by the respective PPMUs and DPMUs using the site selection criteria defined in the Environmental Protection Guidelines as summarized in Table 6. Potential project participants were likewise informed of FSDP through village meetings. Information materials were also posted in strategic areas.

FIPI12 found the proposed areas in Nghe An and Thanh Hoa to be suitable, i.e., meeting site screening criteria, except for Nong Cong district where only about 105 ha are suitable.. This area was considered too small for the district to qualify for participation in the project.

12Report on Potential Plantation Areas in Thanh Hoa and Nghe An. FIPI/ FSDP, Jan 2011.

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All the 56,227 ha proposed areas are inside the production forestland and composed of the following:

Barren lands, 1a & 1b - 6,319 ha

Poor quality plantations - 9,336 ha

Harvestable plantations - 40,571 ha

In terms of existing vegetative cover/land use, the proposed plantation areas fall within any of the following categories:

1) Barren land vegetated mainly by shrubs and other small trees of no or low economic value. Many of these lands are actually on fallow and waiting for needed capital investment by the owner. In this category may be added forest plantations damaged by storm in 2009 and planted to cassava after clearing the trees. Yield of cassava is drastically reduced on the second year, and becomes uneconomical in the third year. Forest plantation, especially with acacia species is a good and practical fallowing strategy to restore soil fertility. Most of the bare lands to be planted under the project are located in Thanh Hoa and Quang Nam, and to a limited extent, in Nghe An and Binh Dinh.

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Figure 1. Project poster prepared by Binh Phuoc commune, Binh Son district, Quang Ngai

Figure 2. Barren land in Thanh Hoa province.

2) Old cashew plantations especially in Hoai An district and in Binh Thanh commune, Tay Son district, which were unproductive for the past 5 or more years. Accordingly, cashew flowers are easily damaged by the rains; pests and diseases destroy the shoots, flowers and nuts. Recently, market price for cashew nuts has come down drastically. For these reasons, the government has allowed the conversion of cashew plantations into forest plantations. In fact, many trees are already cut down and wood used as firewood in brick factories and for domestic purposes.

3) Low quality forest plantations which are of poor growth and yield. These included old, coppiced Eucalyptus camaldulensis and E. Exserta planted in the 1900s which hab been regenerated at least 4 times; slow growing mixture of Acacia species that were established from seeds of unknown origin and quality and poorly maintained plantations.

Figure 4 Coppice plantations of Eucalyptus excerta, left (Nghi Loc District, Thanh Hoa) and E. camaldulensis, right (Tinh Gia District, Nghe An).

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Figure 3. Unproductive cashew plantation proposed to be replaced with forest plantations of Acacia, Tay Son district, Binh Dinh

4) Mature plantations of Acacia species which included those planted under project 347 and 661 and subsequently allocated to households; or those that had been planted by households. These plantations are better than the third category (low quality) but the yield is still low, not exceeding 50 tons of pulpwood per hectare.

Figure 5 Harvestable Acacia plantations in Thanh Chuong District, Nghe An and in Binh Son, Quang Ngai

All the proposed areas have been allocated to their respective owners and about half of the land had been issued with corresponding land use certificate of Red Book.

The following discussions are focused on the new project areas in Nghe an and Thanh Hoa provinces and the new communes in Quang Nam and Binh Dinh provinces. As already mentioned in Section 1.5, separate environmental and social assessments/ screenings were conducted in these areas.

Table 7_. Summary of selected plantation areas in 6 provinces to be included under the additional financing and extension operation.

Provinces Communes Selected Forest Plantation Areas (ha)No. Bare

lands, 1a 1b

Poor quality

plantations

Harvestable plantations Total area

2011-2012 2013-2014Total 6 provinces

203 6,319 9,336 18,950 21,621 56,227

With Red Book

3,240 4,836 10,850 9.671 28,598

W/O Red Book

3,080 4,500 8,100 11,749 27,429

Thanh Hoa

35 2,134 2,667 2,425 1,987 9,213

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Provinces Communes Selected Forest Plantation Areas (ha)No. Bare

lands, 1a 1b

Poor quality

plantations

Harvestable plantations Total area

2011-2012 2013-2014With Red Book

2,134 2,667 2,425 1,766 8,992

W/O Red Book

221 221

Nghe An 43 764 2,578 5,540 2,153 11,035With Red Book

734 717 4,413 1,974 7,838

W/O Red Book

30 1,861 1,128 178 3,197

TT Hue 28 2,337 4,811 7,148With Red Book

330 768 1,098

W/O Red Book

2,007 4,043 6,050

Quang Nam

34 2,778 1,117 2,407 4,695 10,997

With Red Book

372 301 749 1,676 3,098

W/O Red Book

2,406 816 1,658 3,019 7,899

Quang Ngai

32 3,860 6,464 10,324

With Red Book

2,070 3,070 5,140

W/O Red Book

1,790 3,194 4,984

Binh Dinh

31 644 2,974 2,382 1,1511 7,510

With Red Book

1,151 864 417 2,432

W/O Red Book

644 1,823 1,518 1,093 5,077

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4.2 Nghe An Province

4.2.1 Geographical location and administrative divisions

Nghe An is one of the provinces in the Northern Central Region of Vietnam, at the co-ordinates 18° 33’’10”’’ to 19° 24’’43”’’ North latitude and from 103° 52’’53”’’ to 105° 45’’50”’East’longitude. It borders Thanh Hoa province in the north, Ha Tinh province in the south, Laos in the west, and the Eastern Sea in the East. It has a total land area of 1,648,820 ha (16,488.20 km2). The province is composed of 17 districts, 1 provincial town and 1 city, categorized into three areas for socio-economic development planning purposes:

The Upland area includes 10 districts in two sub areas- the North West and the South West.

The North-West sub-area includes districts of Que Phong, Quy Chau, Quy Hop, Tan Ky, and Nghia Dan. This is very suitable for long-term industrial crops.

The South-West sub-area includes districts of Ky Son, Tuong Duong, Con Cuong, Anh Son and Thanh Chuong. This region has complicated topography, underdeveloped economy and difficult road network.

The Coastal lowland area includes districts of Quynh Luu, Dien Chau, Yen Thanh, Do Luong, Nam Dan, Nghi Loc and Hung Nguyen. This is the area of food production and short term industry in the province.

The Urban area, which includes Vinh City and Cua Lo Town, is the economic and political centre of the province.

Of the districts to participate in FSDP, 4 districts belong to the coastal lowland, while two are uplands.

According to data from Nghe An Statistic Office, Nghe An province in 2009 has a population of 2,919,214. Most of the population live in rural areas (2,550,701) and there are an almost equal number of men (1,452,423) and women (1,466,791). Dien Chau District has the largest population (267,216) and Cua Lo Town has the smallest (52,087 people).

The average population density in the province is 177 people per square kilometre; highest in Vinh City (2,873 people per km2) and lowest in Tuong Duong District (26 people per km2).

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4.2.2 Topography

Nghe An province is located on the North East of Truong Son range, with complicated topography, divided by hills, mountains, rivers and streams slanting from North- West to South- East , the highest peak is Pulaileng (2,711 m) in Ky Son district, the lowest is Quynh Luu, Dien Chau, Yen Thanh where the altitude is only 0,2m above the sea level (Quynh Thanh commune, Quynh Luu district).

Mountainous and hilly lands cover 83% natural area of the whole province.

The province has a network of rivers and streams which is quite dense and complex. Of these, Ca river is the largest and its basin covers most of the area of the whole province.

4.2.3 Soil

Of the total land area of 1,648,729.8 ha (or 16,487.298 km2), and with the exclusion of rock mountains and streams and rivers, alluvial deposits cover 234,000 hectares (14.2%) which are mainly in coastal lowland and riverside areas in the midland. Soils of 85.8 % of the land area is feralite.

Most of the soils in the proposed project areas are deep and with gravel mixture under 40 % as shown in Table 8_, which are very suitable for growth of fast growing forest plantation species13

Table 8_. Soil characteristics of potential plantation areas in Nghe An province14.

District Total area proposed

(ha)

Mixture with gravel (ha) Soil thickness (ha)

< 40 % 40 – 70 % 40 cm 30-40 cm

Do Luong 1,254 1,218 36 1,185 69

Dien Chau 1,134 1,118 16 996 138

Nghi Loc 681 681 681

Tan Ky 2,559 2,522 37 2,429 130

Thanh 3,827 3,803 24 3,804 23

13 Daalmacio, M. 2010. Manual for the Establishment and Management of Fast growing Species. FSDP Report No. 66.

14 FIPI. 2011. Report on Potential Plantation Areas in Thanh Hoa and Nghe An, FSDP, January 2011.

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Chuong

Yen Thanh 1,679 1,658 21 1,413 266

Total 11,133 10,999 134 10,507 626

4.2.4 Rivers and streams

Total length of rivers and streams in the province is 9.828 km, or an average density of 0.6-0.7 km/km2. Ca River is the biggest which originates from Muong Pec district (Xieng Khoang, Laos). Its total length is 532 km of which 361 km is in Nghe An. It has a total basin area of 27.200 km2, 17.730 km2 of which is inside Nghe An. To support the agricultural economy, especially rice paddy production, a system of water reservoirs was built all over the province. In the 6 districts proposed to join FSDP alone, there are 518 reservoirs which support irrigation water of 40,744 ha of agricultural lands (see Table 9).

Table 9. Reservoirs in six districts of Nghe An Province proposed to join FSDP.

District Number of Water reservoirs (Quantity)

Service irrigated area (ha)

Total 518 40.744Nghi Loc 121 5241Thanh Chuong 120 6078Tan Ky 133 378Do Luong 83 6867Tan Thanh 44 13100Dien Chau 17 9080

Nghe An coast line is 82 km long with 6 estuaries and convenient for marine transport and sea port development and salt producing activities (about 1000 ha). Mangrove forests were planted along the coast for protection against tidal waves and strong winds.

4.2.5 Climate

The climatic characteristics of Nghe an Province is summarized in Table 10. Total annual rainfall over the last ten years ranged from a low of 1293 mm in 2000 to a high of 2610 mm in 2004. The average annual rainfall is 1872 mm with heavy rains during August to October. It is during this period that rainfall of up to 300 mm per day had been recorded. December to February is usually dry with average monthly rainfall of less than 40 mm, then picking up starting in March with a second peak in May.

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The average air temperature is coldest in December to February (17.9 – 19. 3 0C) and warmest in June –July (29 0C), when the relative humidity is also lowest, and the sunshine is longest. The highest wind speed of 19 m/sec or 68 km/hr was recorded in May 2009.

Table 10. Climatic characteristics of Nghe An Province, average of last 10 years, Do Luong Weather Station15

Units Month1 2 3 4 5 6 7 8 9 10 11 12 Total

Rainfall

Mm 34.1 36.1 57.1 91.7 241.2 106.1 158.5 267.1 381.2 382.6 78.4 37.9 1872

Maximum daily rainfall Mm 13.7 12.6 23.9 43.8 65.6 45.9 65.3 82.8 130.3 115.5 29.3 14.8

Air Temperature

0C 17.9 19.3 21.1 25.1 27.6 29.5 29.1 28.2 26.9 25.1 22.0 19.2

Highest air temperature

0C 30.2 29.7 33.6 37.7 37.4 37.7 37.7 36.8 35.7 33.5 28.3 28.3

Lowest Temperature

0C 10.0 11.6 12.6 17.5 20.7 23.7 24.0 23.9 21.8 20.0 14.0 12.8

Relative Humidity % 85 86 88 85 82 76 79 83 84 85 82 83

Sunshine total Hrs 79 58 69 130 182 188 183 141 133 101 122 70

Ave Wind speed m/sec 1.75 1.75 1.75 1.6 1.75 1.75 1.75 1.4 1.8 1.5 1,5 1.75

4.2.6 Existing flora and fauna

The Province biodiversity resources are mainly found in its two nature reserves: Phu Mat and Pu Huong Nature Reserves.

Phu Mat Nature Reserve16 is located in the Annamite Range, within the territorial jurisdictions of Anh son, Con Cuong and Thuong Doung districts. The elevation ranges from 100 m to 1841 m. It covers an area of 91,113 ha and a buffer zone of 86,000 ha. There are 1,144 plant species confirmed in Phu Mat, of which 3 new species: Cleistanthus sp. noy, Phyllagathis sp. noy and Phrynium pumatensis. The habitat types include lowland evergreen forest, dominated by Dipterocarpaceae, Fagaceae, and Lauraceae families; lower montane evergreen forest below 1500 m, dominated by Fagaceae, Lauraceae and Myrtaceae families and the montane forest (>1500 m) dominated by conifers.

15 TAI LIEU KHI TUONG THUY VAN KHU VUC BAC TRUNG BO (2000-2009)

16 Phu Mat Nature Reserve, Bird Life International. European Union and Forest Inventory and Planning Institute. Internet download.

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The nature reserve is also known habitat of important wild animals such as Saola (Pseudoryx nghetinhesis), Annamite Stripe rabbit, and White –cheek Gibbons, giant muntjac, Indochinese warty pig, Langurs, Assamese macaque, Dhole, Tiger, Banded Civet, and Asian elephant. There are recorded 295 bird species including 22 globally threatened species such as the Rufous Hornbill.

The Pu Huong Nature Reserve17 covers more than 40,000 ha across ten communes of the five districts of Que Phong, Quy Chau, Quy Hop, Con Cuong and Tuong Duong. Its fauna and flora include 45 endangered plants listed in Vietnam’s Red Book and 291 rare wild animals. Four or five white-cheeked gibbons (Nomascus leucogenys) and four phayre’s leaf monkeys (Trachypithecus phayrei) - two rare species facing extinction – were discovered in the Pu Huong Nature Reserve.

In the proposed project areas, however, no important wildlife species are reported.

4.2.7 Forestland classification

The land use classification of Nghe An Province is shown in Table 11, according to the Province’ Forest Protection and Development Plan, 2010 - 2020. The objective of the forest protection and development plan is to sustainably manage, protect, and develop 1,178,182 ha of land planned for forestry in order to:

increase their contributions to socio- economic development, environmental protection and biodiversity conservation of the province;

reduce poverty and improve the livelihoods of rural communities, especially in the mountainous regions, and

contribute to maintaining border security, national defence and public order in the mountain villages.

As envisioned, production forest will cover 613,032 ha of which 229,165 ha will be composed of plantation forests, an increase of 155,712 hectares of plantations in 2008. This translates to about 15,600 new plantations annually for the next 10 years. It is also to be noted that the Plan hopes to have 59 % of land area with forest cover by 2020, or from 777,359 ha in 2008 to 978,848 ha in 2020.

Table 11. Forestland classification of Nghe An Province18

17 Rare primates discovered in Pu Huong Natural Park. VOVNews, Internet Download.

18 Master Plan for Forest Protection and Development, 2010 – 2020, Nghe An Province.

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Forest typeStatus in 2008

(ha)2020 Plan (ha) Change (ha)

Total forest land 1,178,182 1,178,182 0

Land with forest cover

777,359 978,843 201,459

1.Special Use Forest 170,004 170,004 0

a. With forest cover 156,670 166,028 9,358

- Natural vegetation 156,026 164,385 8,358

- Plantations 643 1,643 1000

b. Bare land 13,334 4,001 -9,333

- 1a 2,045 - -2,045

- 1b 4,989 1,400 -3,589

- 1c 6,299 2,601 -3,698

2.Protection Forest 395,146 395,146 0


- Natural vegetation 245,895 296,646 50,751

- Plantations 14,186 25,502 11,316

b. Bare land 134,066 72,997 -61,069

- 1a 35,067 - -35067

- 1b 50,005 35,277 -14,728

- 1c 49,530 37,236 -12,294

Infrastructure land 10 10

3.Production Forest 613,032 613,032 0


- Natural vegetation 287,156 261,501 -25,655

- Plantations 73,453 229,165 155,712

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Forest typeStatus in 2008

(ha)2020 Plan (ha) Change (ha)

b. Bare land 252,423 122,366 -130,057

- 1a 69,921 37,468 -32,453

- 1b 93,367 34,967 -58,400

- 1c 86,388 37,455 -48,933

-Agroforest land 2,746 5,585 2,839

Infrastructure land 6,891 6,891

4.2.8 Potential areas for plantation management in Nghe An

Nghe An proposed 11,895 hectares for participation in the project, located in 360 villages, 43 communes and 6 districts and involving 11,350 households. Assessment conducted by FIPI showed that the potential areas is 11,133 hectares (Table 12). The number of communes was reduced to 43 and so were the villages (312) and households (5,315).

Most of the potential areas consist of mature plantations of Acacia species which are ready for harvest in 2011-2012, and 2013-2014. Most of these plantations are actually underproductive, with wood yields of up to 50 tons per hectare only. The unproductive plantations include old eucalyptus (E. camaldulensis and E. exserta) planted in the early 1900s under PAM 4304. These plantations had been regenerated by coppice at least 4 times, and are now mostly of poor growth and low yield. Some are plantations of Acacia species which are growing poorly most likely because of poor quality seedlings and poor management practices. The bare lands are mostly located in in Tan Ky district and also in Thanh Chuong district. Some of these are on fallow and waiting for enough capital for investments.

Table 12. Potential areas for smallholder plantation management in Nghe An based on assessment by FIPI19

District Yen Thanh

Tan Ky Nghi Loc

Dien Chau

Do Luong

Thanh Chuong

Total

Communes (No.)

8 7 5 3 7 13 43

Villages (no.) 53 57 31 37 44 90 31219 FIPI. Report on Potential Areas in Thanh Hoa and Nghe An, FSDP, Hanoi. January 2011

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HH (No.) 917 1397 218 471 723 1589 5315

Total area proposed (ha)

1679 2,559 681 1134 1254 3,827 11,113

Bare land (ha) 9 684 3 14 62 231 1003

Unproductive plantations(ha)

375 24 630 832 380 338 2578

Mature plantations(ha)

2011-2012

1001 817 14 288 776 2638 5533


2013-2014

294 1034 35 - 36 756 2154

Red Book (ha) 1046 2559 - 1 831 3668 8104

No Red Book (ha)

633 - 681 1133 423 159 3029

Many of the areas have been allocated with corresponding Red Books. These lands may be considered for the first year to avoid delay in implementation associated with loan application and processing. Land allocation activities can be done on the other areas, and hopefully, the Land Use Certificates will be ready in the second year.

As shown in Table 8, most of the areas are of suitable for forest plantation development with soils more than 40 cm deep, and less gravel contents.

4.3 Thanh Hoa Province

4.3.1 General Information

Thanh Hoa province lies in the north of the Central Viet Nam at geographical position 19o18' to 20o 40' North; and 104o 22' to 106o 04' East. It borders Ninh Binh, Hoa Binh, Son La provinces in the north, Nghe An in the south, and Hua Phan province of Laos in the west and the East Sea in the east. The Province has a total land area of 1,112,032 hectares and is composed of 24 districts, 2 towns and 1 city (Thanh Hoa City). The province is divided into three development zones:

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The upland areas which include 11 districts, namely Muong Lat, Quan Hoa, Quan Son, Ba Thuoc, Lang Chanh, Cam Thuy, Thach Thanh, Ngoc Lac, Thuong Xuan, Nhu Xuan and Nhu Thanh. The mountainous areas have average elevation of 600 – 700m with slope of more than 25 degree; the hill side areas have average elevation of 150-200m with slope of 15 – 25 degree. Area of land with forestry potentiality occupies about 58.2% of total land area of the Province.

The lowland areas comprising of 10 districts, namely Tho Xuan, Yen Dinh, Thieu Hoa, Vinh Loc, Trieu Son, Dong Son, Nong Cong, Ha Trung, Bim Son Town and Thanh Hoa City. The lowland area has average elevation of 5 – 15m with small hills and limestone mountains and several hollow places which are alternate with one another. In the lowland area, area of land with forestry potentiality occupies about 2.2% of total land area of the Province.

The coastal area which include 6 districts, namely Nga Son, Hau Loc, Hoang Hoa, Quang Xuong, Tinh Gia and Sam Son Town. The area has average elevation of 3 – 6m and is alternate with hill ranges. The coastal area has wide land for development of industrial zone and deep sea port (Tinh Gia district); area of land with forestry potentiality occupies 2% of total land area of the Province.

According to 2009 data from the Statistic Office, Thanh Hoa province has totally 27 districts and towns covering 633 communes/wards with total population of 3.045 million people (women: 1,719.5 thousand people; men: 1,685.5 thousand people; population in urban area: 355.4 thousand people; population in rural area 3,049.6 thousand people.

Population density in upland area and lowland area is 108 people per km2 and 814 people per km2, respectively.

Quang Xuong district has the most population, which is 256,351 people and in a density of 1,125 people per km2.

Muong Lat district has the least population, which is 33,614 people and at a density of 41 people per km2.

4.3.2 Soil

Thanh Hoa has 10 soil categories with 28 different soil types.

The red and yellow feralite soil (Ferralsols), covering 635,200 hectares, equal to 57%;

The yellow and red feralite soil (Humic Acrisols) on high mountains, covering 59,100 hectares;

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The valley soil (Dystric Gleysols), covering 1,800 hectares;

The eroded soil (Leptosols), covering 32,900 hectares;

The grey soil (Acrisols), covering 7,800 hectares;

The impoverished soil (Acrisols), covering 9,900 hectares;

The swamp soil (Fleysols and Histosols), covering 1,300 hectares;

The alluvial soil (Fluvisols), covering 144,270 hectares;

The alkaline soil (Thionic Fluvisols), covering 15,400 ha;

The sandy soil (Arenosols), covering 17,100 hectares and distributed mainly in coastal lowland which is for agriculture production.

Table 1320 shows the soil depth and gravel contents of the potential project areas. Thode with deeper soils and lesser gravel contents are generally better for commercial forest plantation management.

Table 13. Soil characteristics of potential project areas in Thanh Hoa province.

District Total area potential area (ha)

Mixture with gravel (ha) Soil thickness (ha)

< 40 % 40 – 70 % 40 cm 30-40 cm

Ha Trung 1,220 1,220 784 436

Ngoc Lac 931 862 70 782 149

Nhu Thanh 1,302 1,302 952 350

Thach Thanh 2,030 1,016 1,015 823 1,208

Trieu Son 996 994 2 88 908

Tinh Gia 2,991 2,981 10 2,981 10

Total 9,470 8,374 1,096 6,410 3,060

4.3.3 Water resources

Rivers and streams of Thanh Hoa total to 1,072 km long.. The four major rivers of Thanh Hoa are Hoat, Ma, Yen and Lach Bang rivers.

Ma river has the total length of 528 km, 242 km of which flows through the province. It consists of 89 branches such as the Sim, Quanh and Xia streams, Luong, Lo, Hon Nua, Buoi, Cau Chay, Chu, Khao, Am and Dat rivers..

20 FIPI. 2011. Report on the Potential Plantation Areas in Thanh Hoa and Nghe An., FSDP, Jan 2011.

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Yen river has the length of 94.2 km including 50 km flowing through the mountains and 40km through the plain. Yen river consists of four main branches: Nhom, Hoang, Ly and Thi Long rivers.

Hoat river is about 55km from the riverhead to the estuary, flowing through Ha Trung and Nga Son districts. The upper part of Cu bridge is called Man Bao river, the remaining is named Hoat river.

Lach Bang river is 34.5 km, of which 18km run through the mountain and hill area, 16.5km through the plain.

The agricultural economy of the province, particularly paddy rice production is supported and sustained by a network of water reservoirs. In the 7 districts to join the project, there are 518 reservoirs built as shown in Table 14.

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Table 14. Water reservoirs in Thanh Hoa districts proposed for FSDP participation.

District Water reservoirs (Quantity)

Paddy -field area is irrigated (ha)

Total 518 40,744

1.Trieu Son 41 10,101

2. Nhu Thanh 105 59,000

3. Thach Thanh 62 5,411

4. Ha Trung 23 6,044

5. Ngoc Lac 94

6. Tinh Gia 62 6,553

7. Nong Cong 26 1,700

4.3.4 Climate

The climatic characteristics of Thanh Hoa Province is summarized in Table 15. The average annual rainfall is 1641 mm with rainy season lasting from May to October, with the heaviest rains in September. Dry period falls on December to February.

The average air temperature is coldest in December to February (19.2 – 17.7 0C) and warmest in June –July (29 0C).

Table 15. Climatic data of Thanh Hoa, average of 2 years (2008 – 2009)21

Units Month

1 2 3 4 5 6 7 8 9 10 11 12 Total

Rainfall

Mm46.4 8.8 36.0 101.3 165.5 149.0 191.3 151.4 426.2 290.5 61.3 13.7 1641.2

Air Temperature

0C 16.0 17.7 20.5 24.2 26.7 29.0 29.0 28.0 27.5 25.7 21.5 19.2

4.3.5 Fauna

The biodiversity resources of Thanh Hoa Province are concentrated in the following nature reserves: Ben En National Park located in Nhu Xuan and Nhu Thanh Districts, Pu Long Nature Reserve in Quan Hoa district and Ba Thuoc districts,, Xuan Lien Nature Reserve in 21 Average of 2008 & 2009, from Thanh Hoa Weather Station.

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Thuong Xuan District and the Madhuca pasqueri Species Reserve in Ha Trung . It should be mentioned that one proposed commune in Nhu Thanh District is in the buffer zone of Ben En National Park, and Ha Linh commune in Ha Trung District include 259 ha of the Madhuca pasquiere species reservation.

Ben En National Park22 has a total land area of over 16,000ha plus 30,000ha of buffer zone forest. The flora in the Park consist of 462 varieties and 125 orders that includes Lim xanh (Erythrophloeum fordii Oliv), with some hundred-year-old trees with a diameter of 3m, Cho chi (Parashorea chinensis Wang Hsie.), Vu huong (Cinnamomum balansae), Sen mat (Madhuca pasquieri), Vang tam (Manglietia fordiana ), Lim xet (Peltophorum tonkinensis), Lat hoa (Chukrasia tabularis A. Juss), etc.; groups of herbaceous plants such as Song (Calamus poilanei Conrard), rattan, bamboo; family Dipterocarpaceae such as Trau (Vernicia foridii), Sen (Sapotaceae) Mang tang (Litsea cubeba) and over 300 species of rare medicinal herbs.

The Park boasts a diverse fauna composed of 50 orders, 177 families, 216 varieties and over 1,000 species of animals, including 91 species of animals, 201 species of birds, 54 species of reptiles, 31 species of amphibians, 68 species of fish and 499 species of insects. Many of them are listed in the Red Book, such as elephants, gayals, Bao lua (Fel ursi), Khi mat do ( Macaca arctoides), Vuon bac ma (Hylobates concolor leucogienis), etc.

Pu Luong Nature Reserve 23 has a primary forest classified as closed evergreen tropical seasonal forest with five major subtypes: lowland broadleaved forest on limestone (60 to 700 m); lowland broadleaved forest on schist/shale and clayey sandstone (60 to 1,000 m); broadleaved submontane forest on limestone (700 to 950 m); coniferous submontane forest on limestone (700 to 850 m); and broadleaved submontane forest on basalt (1,000 to 1,650 m). The nature reserve also supports a range of secondary vegetation types, including secondary forests, bamboo, scrub and agricultural land. The vertebrate fauna of Pu Luong has a total of 84 mammal species (including 24 bat species), 162 bird species, 55 fish species, 28 reptile species and 13 amphibian species. Pu Luong nature reserve is an important site for the conservation of the globally critically endangered, endemic primate, Delacour's Leaf Monkey which number from 40 to 45 individuals, making it one of the largest known populations in Vietnam.

Xuan Lien Nature Reserve Area24 has a moderate level of biodiversity consisting of 560 plant species, 38 species of mammals, 134 species of birds, 53 species of herpetiles and 143 species of butterflies. Several of these species are globally threatened, including six species of plant, 10 species of mammal, two species of bird and one species of herpetile.

22 Ben En National Park, in Discovery Indochina. Internet Download.

23 Pu Luong Nature Reserve, in Vietnam’s Natural Parks and Nature Reserves. Internet Download.

24 Bird Life International. A Feasibility study for the establishment of Xuan Lien Nature Reseerve, Thanh Hoa Province, Vietnam, Executrive Summary. Internet download.

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There are four plant species endemic to Vietnam (Cinnamomum balansae, Colona poilanei, Croton bonianus and Macaranga balansae), two bird species endemic to Vietnam and Laos (Red-vented Barbet Megalaima lagrandieri and Short-tailed Scimitar Babbler Jabouilleia danjoui) and one amphibian species endemic to Vietnam (Rana microlineata). Ten endemic species of butterflies were recorded, concentrated in two families: the Satyridae and Amathusiidae. Large mammals recorded in the area included Tiger Panthera tigris, Gaur Bos gaurus, Asiatic Black Bear Ursus thibetanus, Sun Bear U. malayanus, and Roosevelt’s Muntjac Muntiacus rooseveltorum.

4.3.6 Forest land classification

The forest land classification of Than Hoa province is shown in Table 16. Forest land is projected to be 629,100 hectares in 2015 from 701,326 hectares in 2005, or a reduction of 72,226 hectares. The decrease in forest land area is accounted mainly by the decrease of the forest protection areas. Nevertheless, the planned forest areas is about 57 % of the province total land area. Production forests is projected to increase to 355, 651 hectares in 2015 from 334,516 hectares in 2005, with plantations projected to increase by 12,284.

Table 16. Forest land classification of Thanh Hoa Province according to master plan 2005 - 2015

ItemStatus forest land use in

2005

Forest Master Plan in 2015

Changed 2015-2005

Total area land 1,112,033 1,112,033 -

Agricultural land 940,987 874,335 - 66,653

Land for agricultural production 239,662 245,235 5,573

Forest land 701,326 629,100 - 72,226

1. Special use Forest land 90,713 81,505 - 9,208

1.1.with forest cover 79,452 74,495 - 4,957

a- natural forest 78,322 73,239 - 5,083

b- Plantation 1,130 1,255 126

1.2 Bare land 11,261 7,010 - 4,251

a- IA 3,572 2,287 - 1,285

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ItemStatus forest land use in

2005

Forest Master Plan in 2015

Changed 2015-2005

b- IB 2,277 2,374 97

c- IC 5,412 2,349 - 3,062

2.ProtectionForest land 276,097 191,944 - 84,153

2.1.with forest cover 202,539 151,474 - 51,064

a- natural forest 170,082 131,247 - 38,836

b- Plantation 32,457 20,228 - 12,229

2.2 Bare land 73,558 40,470 - 33,089

a- IA 26,480 10,993 - 15,486

b- IB 17,266 12,102 - 5,163

c- IC 29,813 17,374 - 12,439

3. Production Forest land 334,516 355,651 21,136

3.1.with forest cover 202,255 262,684 60,429

a- natural forest 119,154 167,299 48,145

b- Plantation 83,101 95,385 12,284

3.2 Bare land 132,261 92,967 - 39,294

a- IA 47,627 35,643 - 11,984

b- IB 31,689 29,101 - 2,588

c- IC 52,945 28,223 - 24,722

B. Non- Agricultural land 73,069 82,439 9,369

C. Other land 97,976 155,259 57,283

4.3.7 Potential areas for smallholder forest plantation management in Thanh Hoa

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Thanh Hoa proposed 8,902 hectares in 7 districts for participation in FSDP. However, after land evaluation and screening by FIPI, potential areas increased to 9,470 hectares in 6 districts, as summarized in Table 17. It may be noted that Nong Cong district was excluded for participation in the project because only 106 hectares were found suitable, which is way below the 500 hectares minimum limit set for a district.

Bare land (1a and 1b) constituted 2,177 hectares and are almost equally distributed among the 6 communes. The unproductive plantations are mostly old E. camaldulensis planted in the early 1900s under PAM 4304. These plantations had been regenerated by coppice for at least 4 times, and are now mostly of poor growth and low yield. There are also plantations of mixed acacia species that were most likely grown from seeds/seedlings of very poor quality. Many of the mature plantations of Acacia species which are ready for harvest. were planted under project 347 and 661, and which were subsequently allocated to households. Some were established through the initiatives of the farmers themselves. However, many of these plantations are underproductive, mort probably because of poor quality seedlings and/or low management inputs.

Table 17. Potential areas for smallholder forest plantation management in Thanh Hoa based on assessment by FIPI25

District Ngoc Lac

Thach Thanh

Tinh Gia

Nhu Thanh

Ha Trung

Trieu Son

Nong Cong

Total

Communes (No.)

6 9 10 3 4 3 0 35

Villages (no.) 38 28 62 26 22 24 - 200

Households 595 625 1035 489 344 440 - 3,528

Potential area (ha)

931 2030 2991 1302 1220 996 0 9470

Bare land (ha) 500 381 260 464 290 282 - 2177

Unproductive plantations(ha)

260 269 910 11 187 75 - 1712


2011-2012

63 1176 1821 149 376 355 - 3940

Mature 108 204 - 678 368 283 - 164125 FIPI. Report on Potential Areas in Thanh Hoa and Nghe An. FSDP, Hanoi, January, 2011.

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plantations(ha)

2013-2014

Red Book 931 2030 2969 1302 1220 996 - 9449

No Red Book 0 0 21 0 0 0 - 21

As shown in Table 13, 6,410 hectares are highly suitable for plantation development on account deep soil (above 40 cm).

Almost all of the areas have been issued with Red Books, except for 21 hectares. This would facilitate the application for and processing of loans, as well as lessen the cost associated with survey and issuance of Land Use Certificates.

4.4 Quang Ngai Province

4.4.1 Proposed new districts and communes

Quang Ngai is one of 4 project provinces that has been implementing FSDP Smallholder Plantation Component since 2005 (see Table 2). For the Additional Financing, the province proposed 5,120 ha plantation areas in 10 new communes in 4 districts, two of which are new, namely, Minh Long and Binh Son districts. These are summarized in Table 18. Almost half of the areas had already been issued with Red Books. About 1,580 households are expected to participate.

Brief description of the new district and communes including the results of the assessments are presented in the preceding discussions.

Table 18. Additional sites proposed in Quang Ngai Province

District/Commune No. Villages

No. HH Areas in hectares Total area

2012 2013 2014 Hectares

1. Ba To*

11 400 300 350 350 1000

With Red Book 800

No Red Book 200

Xa Ba Bich 6 160 100 150 150 400

Xa Ba Le + 5 240 200 200 200 600

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2012 2013 2014 Hectares

2.Tra Bong* 3 180 200 200 180 580

With Red Book 450

No Red Book 130

Xa Tra Thuy 3 180 200 200 180 580

3.Minh Long ** 9 500 530 730 780 2040

With Red Book 670

No Red Book 1370

Xa Thanh An 3 165 170 250 250 670

Xa Long Mai 3 135 160 180 200 540

Xa Long Son 3 200 200 300 330 830

4.Binh Son** 13 500 600 500 400 1500

With Red Book 450

No Red Book 1050

Xa Binh Nguyen 4 130 150 150 100 400

Xa Binh Tan 3 105 100 100 100 300

Xa Binh Phuoc 3 135 150 150 100 400

Xa Binh Khuong 3 130 200 100 100 400

Total 36 1580 1630 1780 1710 5120

With Red Book 2370

No Red Book 2750

Notes: * Old district ** New district + unsuitable (see 4.4.4)

4.4.2 Minh Long District

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Minh Long district is located about 30 km west of Quang Ngai city. It has a total land area of 21,689 ha, of which forestlands account for 17,089 ha. The production forest land is 8,060 while protection forest land is 9,029. Lands for agricultural production totals 3,342 of which some 1,057 ha are for paddy rice production.

The district is mountainous, located between 02 relatively high mountain chains in the northwest and southwest and which connects with the mountain chains in the east of Kon Tum and Gia Lai provinces. The valleys are narrow and dissected by rivers and streams. The valleys in the proposed new communes, namely Thanh An, Long Mai and Long Son, however, are relatively flat, surrounded by low lying mountains. About 71 % of the population belongs to the Hre ethnic group, as shown below (Table 19). Most of the people are dependent on agriculture and forestry for livelihood.

Table 19. Ethnic population of Minh Long District, 2010

Commune Total population Ethnic Groups

Kinh Hre % Hre

15,771 4,577 11,196 71

Long Hiep 3,862 2,286 1,576 41

Long Son 4,370 1,286 3,084 71

Long Mai 3,330 658 2,672 80

Thanh An 3,043 331 2,714 89

Long Mon 1,166 16 1,150 97

The annual average rainfall is 2,985 mm. Rainy season starts in September and lasts until the next January, with heavy rains occurring in October and November, accounting for 50% of the annual rainfall. Heavy rain usually caused landslides in the mountainous areas and floods in valleys.

The People’s Committee of Minh Long proposed 2,040 ha in Thanh An, Long Mai and Long Son communes (Table 18) to join FSDP to help local farmers access needed capital and technical assistance, which are necessary to improve productivity of forest plantations, increase income and eventually contribute to poverty reduction and hunger elimination in the rural areas. Results of the assessment of the 3 new communes are summarized below.

Land availability: proposed 2,045 ha had been pre-selected by a district task force using the FSDP criteria for site selection described in the PIM. These areas are within production forest lands, generally on low hills and mountains surrounding paddy fields with slopes of

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less than 25 degrees. Most are mature or harvestable acacia plantations between 5 – 7 years old of low quality or underproductive with estimated yield of not more than 50 tons per ha. There are a few barren lands or grassland areas which are under fallow from successive planting of cassava and waiting for capital for forest plantation development.

Accessibility: the proposed areas very accessible from the district center through existing all-weather roads. Equally important is the proximity of the areas to a wood chip factory – potential market – located in the neighbouring district of Nghia Hanh. Markets for plantation products are also located in Binh Son district.

Interest of households: 500 households have expressed interest to join the project in village meetings conducted for this purpose by the district task force.

Land allocation: Land allocation is on- going, of which about one-third or 670 hectares of the proposed areas had already been issued with Red Book.

Potential environmental and social impact: potential environmental impact include soil erosion and loss of soil fertility associated with burning in site preparation (a common practice) and in cassava intercropping. Uncontrolled burning may also damage the regenerating natural vegetation in adjacent 1c areas.

No adverse impact on food security is anticipated.

Suitability for plantation development: the proposed areas in Minh Long district are found to be highly suitable for forest plantation development. Moreover, the project has high potential to provide additional income to beneficiaries and contribute to the reduction of poverty in this commune which is very high (53 % of households) at present. As an ethnic community, implementation of Ethnic Minority Development Strategy should further maximize the socio-economic benefits of the project even as the potential adverse impacts are minimized if not totally avoided.

4.4.3 Binh Son districtBinh Son District is located in northern coastal area of the province. Its central town, Chau O is only 20 km north of Quang Ngai city, the provincial center, linked by national highways and railways to other provinces and cities on the country. Binh Son is an industrial zone and host to several factories and industries including chip wood and furniture factories. It borders similar economic zones: Chu Lai Economic zone, Nui Thanh district, Quang Nam Province in the north, Tinh Phong Industrial Zone of Son Tinh province in the south, and Tra Bong district in the west.

Binh Son has a total land area of 46,760 ha. of which 22, 235 ha is devoted to agricultural production, and 14,540 ha are forestry lands. The production forest lands total 9,254 ha while 1,511 ha are classified as protection forest lands.

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Topography is generally flat to slightly sloping low hills. The yellow red soil is the dominant soil type, sandy loam and deep of up to 2 m. The climate is tropical monsoon, with rainy season from August to next January. The average annual rainfall is 2310 mm, with heavy rains of 400-500 mm/month occurring in October and November. February to April is the driest period with only about 60 to 70 mm of rain per month. As a coastal region, Binh Son is vulnerable to storms originating from the east sea (South China Sea). Accordingly, the storm in 2009 killed 26 people, damaged 10,000 houses and destroyed 2,000 ha of forest plantations.

The total population of the district in 2010 is 175,203, composed mainly of Kinh people. The average income per capita is 10.5 million dong.

As in Minh Long District, the primary reason for the proposal to participate in the project is to access investment capital and technical knowhow in forest plantation management. It is hoped that through FSDP, the productivity of forest plantations will increase, generating additional income and employment, and ultimately contributing significantly to poverty reduction in the rural areas. A total of 1,500 ha is proposed under the project, involving 500 households in 13 villages and 4 communes (Table 18). Results of the assessment of the proposed areas are summarized below.

Land availability: all the proposed areas are within production forest lands, in level to gently rolling terrain, with generally deep soils, except in old eucalyptus plantations where top soil have been eroded in many areas. The areas are under existing plantations of eucalyptus coppice and acacia species (hybrid, mangium and some auriculiformis) and some mix plantations of acacia and eucalyptus. Present growth and yield is low to average but not more than 50 tons per ha in 6 – 7 years.

Accessibility: Most plantation areas are accessible through all weather roads and access tracks. More importantly, they are in the outskirts of Chau O town and the industrial zone where wood chip factories are located. Binh Son district borders Nhu Thanh district of Quang Nam province, where another industrial zone is located.

Interest of households: village meetings have been conducted in all communes and interested households have filled up and submitted registration forms for participation.

Land allocation: As in Minh Long, land allocation is going on in the district. So far, 450 ha of the proposed areas have been given Red Books.

Potential environmental and social impacts: Typhoon damage is a serious threat to commercial forest plantations in this district. Some 2000 hectares were reportedly destroyed by the storm in 2009 which also destroyed 10,000 houses and killed 26 people.

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Soil erosion associated with site preparation, intercropping and harvesting may cause siltation of reservoirs in the long term. Buffer zone around the reservoirs need to be established to minimize this risk.

Suitability of commercial forest plantation development. The proposed areas are highly suitable for commercial forest plantation management. Areas are flat to gently rolling, very accessible and near the market. Farmers are very enthusiastic about the project and the local officials showed keen interest and active support to its implementation.

4.4.4 Ba To and Tra Bong districts

Ba To and Tra Bong are two of 4 districts in Quang Ngai province that are already participating in FSDP; the other two are Mo Duc and Son Tinh districts. There are already 7 communes in Ba To district that are participating in the project and another 2 communes, namely Ba Bich and Ba Le are proposed, with a total plantation targets of 400 ha and 600 ha respectively.

Tra Bong has already 6 communes participating and is proposing one additional commune, Tra Thuy, with a plantation target of 580 ha involving 180 households in 3 villages.

The results of the assessment in these communes are described below.

Land availability: proposed sites in the three communes are within production forest lands with flat to moderate slopes in Ba Bich and Tra Thuy communes, and moderate to steep slopes in Ba Le commune, some of which are over 25 degrees. Most of the areas are with existing plantations of acacia species which are of low growth and yield. Some areas are barren lands (1a and 1b) which are currently on-fallow after successive cropping of cassava. This include plantations destroyed by the typhoon in 2009.

Accessibility. Ba Bich and Tra Thuy are accessible by all weather roads; however, access to Ba Le is difficult at present and road repairs and maintenance are going on in many sections. Ba Le is bisected by river and some of the proposed areas are located at the other side of the river. Access to these areas would be difficult especially during the rainy season when the river is deep and water flow is fast.

Interest of households. District officials had conducted village meetings and households signified their interest to participate in the project.

Land allocation: majority of the proposed areas have been issued with corresponding Red Book, while issuance of Red Book to the remainder is reportedly on process.

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Potential environmental and social impacts: Soil erosion and loss of soil fertility are potential environmental risks associated with steep slopes, poor site preparation, intercropping with cassava and harvesting of trees. This is expected to be more pronounced in the steep slopes of Ba Le commune than in the other two communes. No adverse impact on food security is expected, however, efforts must be exerted to ensure that food production areas including those for upland farms are excluded from the project.

Suitability for commercial forest plantation development. Areas in Ba Bich and Tra Thuy communes are suitable. However, many of the proposed areas in Ba Le commune are not suitable for commercial forest plantation development because of very steep slopes and difficult accessibility especially during the rainy season.

4.5 Proposed new project sites in Binh Dinh Province

4.5.1 Proposed communes and socio-economic characteristics

Binh Dinh proposed 2,909.83 ha additional plantation area located in 25 villages of 5 communes, in Hoai An district and one new commune in Tay Son District. The expected number of participants is 1410 households (Table 20). The proposed sites included bare land, poor quality plantations and mature forest plantations.

Table 20. Additional sites proposed in Binh Dinh Province



Bare land

Poor Plantation

Maturing Plantation

Hectares

Hoai An District** 25 1410 419.81 1051.10 1438.92 2909.83

With Red Book 635 - 582.14 676.99 1259.13

No Red Book 775 419.81 468.96 761.93 1650.70

An Thanh commune

4 168 - 286.34 43.66 330.00

With Red Book 125 - 215.30 27.46 242.56

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Bare land

Poor Plantation

Maturing Plantation

Hectares

No Red Book 43 - 71.24 16.20 87.44

An Duc commune 4 330 91.91 430.72 198.57 721.20

With red Book 172 - 230.50 108.20 338.70

No Red Book 158 91.91 200.22 90.37 382.50

An Huu commune 5 302 74.70 44.91 484.93 604.54

With Red Book 130 - 20.41 240.43 260.84

No Red Book 172 74.70 24.50 244.50 343.70

An Tuong Dong commune

7 280 62 - 536.85 598.85

With Red Book 113 - - 226.40 226.40

No Red Book 167 62 - 310.45 372.45

An Tuong Tay commune

5 330 191.20 289.13 174.91 655.24

With Red Book 95 - 116.13 74.50 190.63

No Red Book 235 191.20 173.00 100.41 464.61

Tay Son District* 624 30 202 127 359

Binh Tan commune

624 30 202 127 359

With Red Book

No Red Book 624 30 202 127 359

* Old district ** New district

4.5.2 Hoai An

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Hoia An is a midland, mountainous district, about 100 km away from Quy Nhon city. The elevation ranged from 300 – 500 m above sea level. It borders Phu Cat and Phu My (FSDP Districts) in the east, An Lão district in the west, Vinh Thanh district in the south and Hoai Nhon district in the north. The rainy season is from October to December with average annual rainfall ranging from 1500 mm to 1900 mm.

The district has a total land area of 74.512 ha, divided into the following land use categories:

Agricultural land – 55,347 ha Agricultural production land – 12,529;Forest land – 42, 798 Production forest land – 21,342Protection forest land – 21,456Non-agricultural land – 5,046 haUn-used land – 14,119 ha

Hoai An has 84,623 inhabitants by the end of 2010, and 23,353 households consisting mainly of Kinh people. However, a very small minority of Ba Na and E De ethnic groups are living in An Tuong commune.

Results of the assessment of these proposed areas are summarized below.

Land availability: the district proposed 7,509 hectares in 5 communes (Table 20) for inclusion in FSDP. These areas are within forest production lands, in slightly to moderately sloping terrain of less than 25 degrees. The areas included bare land (1a & 1b), old and unproductive cashew plantations, and low quality plantations and plantations that are harvestable in 2011 to 2013, which are generally underproductive. There are a number of household nurseries in the villages raising acacia hybrid cuttings from hedgerows.

Accessibility: the areas are within 2 km of existing all- weather roads, though some access tracks would need improvement at harvest time. The communes are near and readily accessible from the district center, and more importantly, near a chip wood factory in neighbouring Hoai Nhon district. Quy Nhon, where many wood factories/markets are located, is about 100 km away, however, but it is very accessible year round through good road network.

Interest of households: village meeting had been conducted and 1410 households in all 5 communes expressed their willingness to participate.

Land allocation: About 43 % (1259 ha) of the areas have been issued with Red Books while the rest have yet to be issued.

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Potential environmental and social impact: soil erosion and loss of soil fertility due to burning in site preparation, intercropping and harvesting of cassava and in harvesting of trees at end of rotation. No impact on food security is anticipated.

Suitability for commercial forest plantation development. All areas proposed in the five communes of Hoai An are suitable for commercial forest plantation management.

4.5.3 Binh Thanh commune, Tay Son District

Binh Thanh is a new commune under Tay Son district, proposed to join the project. The total planting target in Tay Son district is 745 ha, of which 359 ha is proposed in Binh Thanh.

Land availability: the proposed areas are composed of 30 hectares barren land, 66 hectares plantations of generally low yield including unproductive cashew plantations. The sites are in slightly to moderately sloping terrain with generally deep, sandy loam soils. As an existing project district, there are accredited nurseries that can supply quality planting materials.

Accessibility: all proposed sites are within 2 km of the main commune road. The commune is near the Tay Son district center where 3 chip wood factories are under construction and expected to begin operation late this year or early next year. It is also about 50 km from Quy Nhon.

Interest of households: village meetings conducted in the communes have generated interests among villagers to join the project. The expected demand by the 3 chip wood factories for wood raw materials is also a good motivation.

Land allocation: all proposed areas have yet to be officially allocated to the households with the issuance of Red Book.

Potential environmental and social impacts: soil erosion caused by burning during site preparation and intercropping of cassava is the most important adverse impacts of the project in this commune, especially so because of the sandy nature of the soil. No adverse impact on food security is anticipated.

Suitability for commercial forest plantation development. Suitable.

5.0 SUMMARY OF EXISTING PLANTATION MANAGEMENT PRACTICES IN PROPOSED NEW PROJECT SITES

5.1Plantation Objectives

It is necessary to distinguish between the project (and government’s) objectives and that of the farmers/plantation owners. As mentioned in the project overview, FSDP aims to

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promote sustainable forest plantation management as a strategy to reduce poverty in the rural areas. On the other hand, the objective of the farmers/plantation owner is to produce wood at the earliest possible time and earn income from the investment. It is thus understandable that almost all the farmers would harvest their plantations at age 4 – 6 years and produce chip wood. A few farmers grow their plantations for longer period to produce timber, however, they are the exception rather than the rule.

5.2 Planted species

Species planted in existing plantations include the following:

Fast growing species: Eucalyptus camaldulensis and E. exserta initially planted in early 1990 under the World Food Program or Program 4304. The plantations have been coppiced 3 or 4 times; growth and yield is generally very poor and soils are badly eroded.

Acacia mangium, A. auriculiformis and Acacia hybrid. Some of the plantations proposed under FSDP were planted under Programs 327 and 661 in 1996 – 98 but not yet harvested. New plantations of A. mangium grown from imported seeds exhibited very fast growth.

Native species usually planted under Program 327, 661 and KfW4.

Trång Mì- Manglietia glauca Bl

Ràng ràng mít- Ormosia balansea Drake

Nhéi- Bischofia javanica Bi.

Xa Cu - Khaya senegalensis

Lat hoa - Chukrasia tabularis A. Juss

Re gõng - Cinnamomum obtusifolium A. Chev

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Figure 6 Mixture of eucalyptus and acacia species (Ha Trung District, Thanh Hoa).

Muong – Cassia seamea

Sao den – Hopea odorata Roxb

Lim xanh – Erythrophloeum fordii Oliver

Lim –Peltophorum tonkinensis A. chev

Xoan ta – Melia azedarach

Sua- Dalbergia tonkinensis

De bop- Lathocarpus fissus Champ ex Benth

De an qua- Castanopsis bosii Hicket et Camus (produce fruits)

Sấu -Dracontomelum mangiferum Piere (also produce fruits)

Thong nhua -Pinus merkusii (mainly planted in protection forests which is also tapped for its resin)

Non-timber producing species

Gió trầm- Aquilaria crassna Piere ex Lecomte

Tram – Canarium album Raeusch

Luong mat – Dendrocalamus membranaceus.

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Figure 7 Erythrophloeum fordii (Lim xanh) planted by households, along Ho Chi Minh trail, Tan Ky District established under Program 327 and/ or 661.

Tre gai – Bambusa stenostachya

May – Calamus sp. (rattan)

Medicinal plants (la khoi)

Most farmers would plant Acacia species for commercial wood production. Some may plant native species, mainly Xoan Ta, Xa cu, or Sau den but only along boundaries or in a small portion of their plantations.

Bamboos are planted in districts in Thanh Hoa province that are near a plywood factory.

5.3 Site Preparation

The most common site preparation method in the proposed new areas is burning, after the vegetation is cleared and the debris, dried.

Burning is the cheapest, fastest and the easiest way to clear the land for planting. However, it increases soil erosion that lead to siltation of rivers and reservoirs. Burning also destroys the accumulated organic matter, and together with loss of top soil due to erosion, reduces soil fertility and eventually, lower growth and yield of plantations.

Figure 8 Burning is a common site preparation practice in both provinces, even in sites just above reservoirs (right picture) as in Nhu Thanh District, Thanh Hoa.

In some cases, in former eucalyptus plantations, the stumps are excavated with machines to completely kill the species. However, this practice is very expensive, costing as much as 10 to 11 million dong per ha. Moreover, the disturbance to soil could cause excessive soil erosion, even in slightly sloping terrain. This is often followed by burning of the stumps and other debris. Holing is also done by machine.

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Figure 10. A sound site preparation practice in Ha Trung District, Thanh Hoa Province.

A more sustainable and sound practice is strip and/ or spot vegetation clearance and without burning Figure 10. The soil remains protected and soil fertility is conserved.

5.4 Planting

Planting season in the north central region (TT Hue, Nghe An and Thanh Hoa) is spring (from February to April) and autumn (from August to October). In the south central coastal region, however, planting is usually conducted in September to December of the year.

5.5 Tending

Spot weeding with soil cultivation done twice in the 1st and 2nd years.

Follow-up fertilization – 100 - 150 g NPK (5-10-5) per seedling applied at 6 months after planting. This is necessary in poor sites.

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Figure 9. Excavation of eucalyptus stumps in Nghe An province.

Singling and pruning of young plantations were observed in some plantations. However, these are done with knives, leaving branch stubs and often, deep wounds on the stem which potential entry points for wood decaying pathogens including those that causes heart rot.

5.6 IntercroppingIntercropping of agricultural crops, usually cassava, is a common practice. It was reported that cassava intercrop could yield up to 12 - 15 tons per ha after 10 months. And at 2.0 million dong per ton, the gross income could amount to 24 to 30 million dong per ha. This is more than adequate to cover the expenses in site preparation and planting. Cassava is known to be a “soil depleter” especially of potassium. Planted in the same area, the yield is drastically reduced in the second year, and becomes very low in the third year.

5.7 Pests and Diseases Control

The important pests and diseases that have affected plantation species in Nghe An and Thanh Hoa provinces are the following:

Caterpillar infesting Pinus merkusii plantations which infested 3361 hectares in Nghe An Province26 and 2650 hectares in Thanh Hoa27 . In Nghe An, this pest is controlled by spraying with Bauvaria basiana fungus (biological control) which is produced by the Center for Environmental Protection.

Purple stripe disease of bamboo (Dendrocalamus membranaceus) affected 1575 ha in Ngoc Lac and, Lang Chanh District, Thanh Hoa. This disease is probably caused by a fungus (Fusarium sp. or Arthrinium sp). It affects the young shoots which become stunted and fail to develop.

26 Phuong an phong tru sau rom Thong nam 2010 tai mot so vung trong diem- So Nong nghiep va PTNT Nghe An 2010.

27 De tai: ung dung khoa hoc cong nghe trong du tinh, du bao vas u dung che pham sinh hoc de phong tru mot so sau hai rung tai thanh hoa – chi cuc bao ve thuc vat tinh thanh hoa – 2010.

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Figure 11. Newly planted acacia hybrid intercropped with cassava, Minh Long district, Quang Ngai province

Gall wasp (Lyptocebe. invasa) that was reported to infest Eucalyptus species including E. camaldulensis and E. urophylla in Vietnam and in other countries.

Heart rot disease of Acacia mangium. Farmers reported this to be common on older trees, starting from age 7 years.

5.8 Fire Prevention and Control

The area of forests destroyed by fire had decreased significantly in the last 5 years as shown in Table 17. According to information supplied by the Forest Rangers in the different districts visited, these fires were accidental in nature and were immediately put under control.

Table 31. Area (ha) of forest destroyed by fire.28

Province 2005 2006 2007 2008 2009

Thanh Hoa 24.0 13.8 13.6 1.2

Nghe An 126.5 108.5 27.9 9.7 3.6

Over the last 5 years, fire prevention and control had been strengthened, consisting of the following:

Formation of strong fire prevention and control organization at all levels, each with specific tasks and responsibilities, including organizing a fire fighting teams in the villages.

Establishment of a mechanism for strong cooperation among forest owners, district forest protection units, local government, police and military.

Providing sufficient supplies, materials and funds for fire control.

Training of fire control teams.

Information and education campaigns on fire prevention and control using tri-media.

Acquisition and deployment of fire fighting equipment and facilities.

24-hour fire fighting teams deployed during summer.

28 Year book 2009. Agriculture, Forestry and Fishery

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5.9 Harvesting

Clear cutting is the main method used in harvesting plantations of fast growing species, usually using a small (pulpwood) chainsaw. Once felled, the branches are cut, and the stems are bucked into desired length. The logs are then carried to roadside (pick-up point) where they are debarked. The bark and bigger branches are collected for fuel wood.

6. POTENTIAL ENVIRONMENTAL IMPACTS OF SMALLHOLDER PLANTATION FORESTS IN EXPANSION AREAS AND MITIGATION MEASURES

6.1 Potential Environmental Impacts

6.1.1 Soil erosion

The most important potential adverse impact of smallholder plantation project in the two provinces, as it is in the four initial provinces, is excessive soil erosion. Soil erosion is inevitable because of site disturbances during site preparation, planting, weeding, thinning and harvesting, intercropping of agricultural crops, and the construction of access tracks. When such practices are poorly conducted, soil cover is reduced or removed, or the soil particles become loose, increasing soil erosion. High rate of soil erosion is aggravated by steep slopes and heavy rainfall such as that occurring in the two provinces in September to October.

During field visits to some plantations/areas proposed for the project, several sites were observed to be seriously eroded, characterized by formation of deep gullies, running along the slopes in several places.

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Figure 12 Deep gullies formed by soil erosion in plantations in Du Luong District (left) and in the boundaries between Dien Chau and Nghi Loc Districts (right).

Banks of drainage canals and streams, which had been devoid of vegetation, had collapsed in many places. In some areas, particularly the old eucalyptus plantations, the soil is compacted and practically devoid of top soil.

Figure 13 Badly eroded banks of drainage canals (Thin Gia District) and streams (Nghi Loc District).

These conditions may have been caused by a combination of the following practices:

1) comprehensive vegetation clearance followed by burning during site preparation; 2) excavation of tree stumps/roots using machines;3) cultivation, planting and harvesting of agricultural crops specially on slopes;4) improper construction and poor maintenance of access tracks;5) soil disturbances during harvesting operations and yarding of logs;6) cutting/ removal of native vegetation along drainage canals and stream banks.

The consequences of soil erosion include the following:

On site, soil erosion leads to loss of top soil and soil fertility, reducing productive capacity of site for future tree crops.

Off site, eroded soil results in siltation and sedimentation of reservoirs, rivers and streams which would trigger a series of adverse consequences such as reduce water quality, lower water holding capacity, and impacts on fish and other aquatic life. Several sites proposed for FSDP in both provinces are located on slopes just above the reservoirs which are

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supplying irrigation water for rice paddy production. While these areas were classified as production forest lands, they are actually part of the watersheds of these reservoirs. Plantation practices that increase the rates of soil erosion would have adverse impacts on these reservoirs in the long run.

6.1.2 Loss of Soil Fertility

Loss of soil fertility results from a number of factors: soil erosion as described above, burning of vegetation in site preparation, and removal of biomass in harvesting. Burning usually decrease the total site nutrient pool through the combination of oxidation, volatilization, ash transport, leaching and erosion29.

6,1.3 Risk of Pest and Disease Infestation associated with large monoculture plantations especially, of exotic species

As discussed above, a number of economic pests and diseases are affecting tree plantations in the two provinces and elsewhere in the country. The acacias (hybrid), A. auriculiformis and A. mangium had been observed to be least affected by pests and diseases, so far. However, the risk of pest and disease infestation becomes greater as larger areas are planted to a few species.

The use of pesticides to control important pests and diseases, as was observed in Binh Dinh and Quang Ngai, and in tree nurseries could have several potentially adverse environmental impacts, including the health of laborers who are applying the pesticides. Pesticide residues and wastes including containers, when not properly dispose of could contaminate water bodies reducing water quality.

6.1.4 Loss of Biodiversity

Impact of smallholder plantation forests on biodiversity is expected to be negligible, if at all, because proposed project areas are either bare lands or existing plantations and have low biodiversity. On the other hand, the Project has the potential to enhance biodiversity, if buffer zones of native species are established, or if the native species will be planted along with the fast growing species, or 3 or more clones of acacias (hybrid) are planted per plantation.

6.1.5 Fire Risk

Risk to plantation damage cause by fire is expected to be minimal, if plantation species to be planted would be mainly Acacia and eucalyptus species, which are less susceptible to fire than Pinus merkusii. This is further ensured by the continuing implementation of an effective fire prevention and control system.

29 Fire effects on soil nutrients, http// forestencyclopedia. net.

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6.1.6 Carbon Sequestration

Plantation forests could contribute significantly to carbon sequestration, and thus to reduction of impact of global warming. The amount of carbon that can be sequestered in a 5 – 7 years old Acacia mangium, for instance, was estimated to be about 77.8 tons per hectare. This sequestered carbon would remain stored for a long time, if the wood will be used for construction, furniture and the like.

6.2 Environmental Management Measures

To minimize if not avoid the potential adverse environmental impacts of smallholder plantation management in the expansion areas, the management measures are recommended into the following areas: site selection, landscape planning and plantation design, species selection, silvicultural practices, pest and disease management, fire prevention and control, improvement of access tracts and harvesting. These measures are discussed in the Updated Environmental Protection Guidelines below (Section7).

6.2.1 Sites for commercial forest plantations must be carefully selected to ensure high productivity and profitability of plantations, with minimal adverse impacts on the environment and to the local communities. The proposed plantation areas (Table 5) are more than double the plantation target (Table 2) for additional financing, which would allow that the most suitable sites can be selected. Slope and soil characteristics would have important influence on site productivity, and should be serious considered.

6.2.2 Landscape plantation planning should cover all commercial forest plantations in the village, whether or not they are participating in FSDP to ensure that stream banks are protected, biodiversity corridors are established and access tracts, fire breaks and fire lines are planned to benefit all the forest plantations and not just project plantations. Environmental protection must also be incorporated in the plantation plot design as called for in a revised plantation design contract. Adherence to the landscape plan and plantation design must be strictly monitored to ensure that stream banks are protected, and access tracts, fire breaks and fire lines are planned to benefit all the forest plantations and not just project plantation must be strictly monitored to ensure compliance.

6.2.3 Proper selection of species means that the species matches the objectives and the site to be planted. Given the need to recover investments as soon as possible, it is likely that most plantation owners will select fast growing species of Acacia hybrid and Acacia mangium and to a certain extent A. Auriculiformis and Eucalyptus urophylla. The government has periodically provided a list of approved varieties, provenances or clones of the fast growing species based on extensive trials conducted by FSIV. In the case of Acacia hybrid, at least 3 clones should be planted in every plantation plot. Planting of the more valuable but slow growing timber species need to be encouraged. There are good examples of mixed species plantations in the project areas including those planted by the farmers

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themselves which could be used as learning sites. A manual30 was also developed to provide guidance in the establishment and management of mixed species plantations.

6.2.4 Good silvicultural techniques and practices not only result in better growth and yield of plantations but will also reduce environmental impacts and risks. Good silviculture starts with proper selection of species as described above. This also includes acquisition of the best quality planting materials, proper site preparation, planting and tending operations. The techniques for the establishment and management of fast growing species for chip wood and for timber production are described in a project manual31. The manuals should be used in training and extension given to farmers.

6.2.5 Pest and disease control is a necessary plantation strategy especially considering that larger and larger areas in the country are planted to just 2- 3 species. Measures shall be taken to prevent or minimize outbreaks of pests, diseases and invasive plant introductions. Integrated Pest Management (IPM) shall form an essential part of the plantation management plan, with primary reliance on prevention, early detection, damage thresholds, and design, mechanical and biological control methods rather than chemical pesticides.

6.2.6 Forest fire prevention and control activities are integral part of the operational plan for the plantation management pursuant to Decree No. 22-CP of 1995 (Regulation on the Prevention and Fighting of Forest Fires) and reiterated in Decree No. 119 of 2006 (reorganization of the Forest Protection Service). Preparation and implementation of the fire protection plan in every village must be continued.

6.2.7 Access to plantation areas becomes necessary as the plantations established in 2005/2006 are approaching harvestable sizes. If not yet done, plans for access tracks should already be drawn, with the design, construction and maintenance guided by the guidelines described in Section 7. FSDP will support improvement of existing tracts.

6.2.8 Harvesting of trees and other products shall not result in long-term soil degradation or adverse impacts on water quality and watershed hydrology. All logging operations must be strictly supervised and enforced by DARD/DFD. Ground vegetation shall be preserved as far as possible during logging and the site shall be re-planted in the year following logging.

7.0 UPDATED ENVIRONMENTAL PROTECTION GUIDELINES

The Smallholder Plantation Forest Component of FSDP aims to increase income of farmers, generate additional employment and help eradicate poverty in the rural areas by promoting the management of productive, profitable and sustainable plantation forests.

30 A Farmer’s Guide in the Establishment and Management of Mixed Species Plantations. FSDP TA Report No. __, 2010.

31 Manual for the Establishment and Mnagement of Fast Growing Species. Short and Long Rotation Plantations. FSDP TA Report No. 66. 2010.

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This environmental protection guideline was prepared to ensure that forest plantations supported by FSDP are designed and managed to achieve the highest level of productivity and financial viability with the least possible negative impacts on local communities and the natural environment. The plantations must also meet the international standards for Forest Stewardship Council (FSC) certification.

This section updates the Environmental Protection Guidelines prepared for FSDP in 2003 (which were reviewed and summarized in Section 2, above) and incorporates the experiences and lessons learned from project implementation in the last 5 years as well as the observations made in this environmental impact assessment for additional financing.

These guidelines were based on the following:

Government of Vietnam laws, regulations and policies, specifically: the Law on Land (2003); the Law on Forest protection and Development (2004); Decree No. 23/2006/ND-CP on the Implementation of Forest Protection and Development; Decision No, 147 –policy on forest production development; Jt. Circular No.2/2008/TTLT-BKH-BNN-BTC further guidance to implementing Decision No. 147; Decision No. 40/2005/QN-BNN regulation on the harvesting of timber and other forest products ; Decision No. 119/2006/ND-CP reorganization of the Forest Protection Service; the Law on Environmental Protection (1993); Decree No. 175-CP (1993) Providing Guidance on the Implementation of the Law on Environmental Protection; the Law on Land (2003); Decree No. 29/2011/ND-CP on the preparation of environmental assessment for various projects; Decree 02-CP (1994) On the allocation of forest land to organizations, households and individuals for long-term forestry purposes; Law on Biodiversity (2008); Decision 845/TTg (1995) Biodiversity Action Plan; Decision 661 QD/TTg(1998) On the implementation of the project to plant five million hectares of forest; Decision 08 QD-TTg (2001); Decision No. 18/2007 Vietnam Strategy for Forestry Development 2006-2020; Regulations on the management of special use, protection and production forests; and the GOV/Donor/NGO Forest Sector Support Program (FSSP) of 2001.

World Bank operational policies and directives, specifically: Operational Policy 4.01 (Feb. 2011) Environmental Assessment; Operational Policy 4.04 Natural Habitats; Operational Policy 4.09- Pest Management; 4.36 Forestry; and Operational Directive 4.10 Indigenous Peoples.

The most important pre-requisite to a successful commercial forest plantation project is clear definition of management objectives, including the following:

expected outcomes in terms of levels of productivity, rotation age and final products;

the rehabilitation and maintenance of land productivity;

soil and watershed protection;

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habitat conservation and restoration; and

community participation and improved livelihoods.

In the case of FSDP, the main objective is to develop and manage productive and profitable forest plantations in a sustainable manner that meets the international standards for forest certification.

Plantation objectives will have a fundamental influence on all aspects of plantation management from site selection, through design and implementation, to monitoring and evaluation. A statement of management objectives should be contained in the management plan for each plantation site or project.

Environmental protection measures are incorporated into the following plantation management activities: site selection and landscape level planning and plantation design, site preparation, plantation establishment, tending, integrated pest and disease management, fire prevention and control, harvesting and access tracts improvement and maintenance.

7.1 Site Selection

Areas for commercial plantation forests must be carefully selected to ensure high productivity and profitability to farmers, and to avoid adverse impacts to the local community and to the natural environment. The forest plantation areas must be consistent with the commune’s land use zoning and development plans. The criteria for site selection are shown in (Table 22):

Table 22. Criteria for site selection under FSDP.

Criteria Description

Forestland classificationProduction forestland

Vegetative cover1) Only bare lands, Class 1a and 1b, will be used for FSDP plantations. Excluded are (I) class 1c lands; and (ii) 1b lands, 50 ha or more with canopy height of > 4 m and with >5 woody plant species per ha and are contiguous to 1c lands, or adjoining protection forests and special use forest.

2) Forest plantations of low quality.

SlopeNot more than 250 in slope.

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AccessibilityPlantation sites must be within 2 km of existing all-weather roads.

Soil conditionsSoil type other than laterite or sterile coastal sand, soil depth above 30 cm, pH above 4, and soil composed of less than 40% stones and coarse fragments.

Existing land useNot used for food production, grazing of livestock, production of NTFP so as not to compromise food security and other critical household needs.

Area has no cultural or spiritual significance.

Land allocation Land is allocated to household and issued or will be issued with Land use certificate (LUC/Red Book).

7.2 Plantation Planning

7.2.1 Landscape Plantation Planning

This Landscape Plantation Planning will encompass all forest plantation areas in each village including those that are not participating in FSDP. This is to ensure that stream banks are protected, and access tracts, fire breaks and fire lines are planned to benefit all the forest plantations and not just project plantations. The landscape plantation plan

1) defines areas for biodiversity conservation, stream bank protection, access tracts, fire breaks and poor areas that are unsuitable for commercial forest plantations;2) guides plantation owners on appropriate plantation models, suitable species, intercropping and other information necessary to prepare simple and practical individual forest plantation management plan.3) can be used to develop a group management plan for the FFG as may be required for forest certification.

The Landscape Plantation Plan must include the following basic considerations and which are properly delineated on a plantation plan map:

Slope and plantation operability:

No production plantations shall be allowed on slopes exceeding 25 o for reasons of both slope instability and low productivity. Slopes between 20 – 25 o should have lower than

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normal planting densities, 4 x 2 m or 1,100 trees per ha, to limit site disturbance during site preparation, planting, tending and harvesting. Where site is suitable, such areas may be planted to valuable timber species.

Buffer zone protection:

Buffer zone protection of reservoirs, entrenched streams, drainage canals where natural vegetation will be retained, no clearing or ground disturbance will be allowed during plantation establishment, and no clear cutting of trees will be allowed. Native vegetation in the buffer zone may be established through Assisted Natural Regeneration (ANR) techniques supplemented by the planting of ecologically important trees and other plants such as those eaten by birds and other wild animals or economically important species like bamboo (for poles), Canarium album (nuts), Areca cathechu (nuts), Tricanthera gigantea (forage for pigs, cattle, goats, rabbits), Flemingia macrophylla (forage), Caliandra calothyrsus (forage). These buffer zones may link up with 1c and other natural vegetation in the village and communes that will significantly contribute to and enhance biodiversity conservation in the village and commune.

The recommended buffer zone protection for water reservoirs and streams are described hereunder.

(1) Reservoirs, rivers and streams of more than 10 m in width: 30 meters of buffer zone on each side as shown in Figure 14a.

Figure 14 a. Buffer zone in alluvial streams, rivers and water reservoirs

(2) Entrenched small streams usually < 5 m in width with boulder or bedrock substrate.

Recommended buffer zone = 5 m from the top of the entrenchment slope on each side of the stream (Figure 14b).

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Figure 14b. Buffer zone for small entrenched stream in boulder or bedrock substrate

(3) Entrenched small streams and drainage canals usually < 5 m in width in fine-textured channel substrate. Recommended protection reserve = 5 m from the top of the entrenchment slope on each side of the stream (Figure 14c).

Figure 14c. Buffer zone for small entrenched streams in fine-textured substrate

Eroded areas:

Badly eroded areas characterized by deep gullies and land slips in road cuts and plantations will be stabilized using appropriate vegetative and structural soil control measure.

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In-plantation biodiversity:

Plantations are not forests; they are much more like agricultural systems and have many of the same risks and uncertainties. Plantations can be made more like natural systems by incorporating diversity (of genetic materials, species, age classes and spatial structure at the landscape-level) to improve the ecological stability and resilience that limits the risk of failure and reduces the necessity for artificial inputs to these simplified ecosystems. All plantations over 50 ha should consist of several sub-compartments, the size and number of which will depend on the scale of the plantation, comprising different tree ages (to promote structural diversity), different species of indigenous and exotic trees, different genotypes within species, and residual indigenous natural vegetation types. Wherever practical given the scale of the plantation, design and layout should promote the protection, restoration and conservation of natural communities. This can be accomplished by utilizing wildlife corridors, retention of native tree species, stream protection corridors, sanitation and fire breaks of native vegetation and a mosaic of different age and rotation periods to mimic the landscape patterns of natural forest communities.

Access provisions:

Landscape plantation design must show the location of existing roads, access tracks and trails that may be used for transporting seedlings and other plantation inputs, as well as in fire prevention and control. Additional access tracks may need to be constructed for eventual product extraction. It should be emphasized, however, that as per present project design, FSDP support will be limited to access track maintenance. (Also see Section 7.9 for design specifications of access tracks).

Fire breaks:

The Landscape Plantation Design must provide for the location, specifications, construction and maintenance of fire breaks and fire lines. The design must maximize the use of the buffer zones in streams and drainage canals, other native vegetation, as well as roads and access tracks.

Poor sites:

Poor sites within the plantation block such as those with very shallow top soil, very stony areas, or areas with over 25 degrees n slopes which are unsuitable for commercial plantation forests should be delineated and earmarked for rehabilitation using assisted natural regeneration and other afforestation techniques that promote the growth of native species. This may be supplemented by planting leguminous species such as Tephrosia candida and other local species.

7.2.2 Plantation Plot Design

As mandated under Decision 516 dated February 18, 2002 a plantation design has to be prepared for any plantation plot that uses State funds or preferential loan funds such as

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FSDP. The preparation of this plantation design will be guided by the provisions spelled out in the Revised Plantation Design contract. The technical specifications are summarized in Annex 3.

7.3 Species Selection

Choice of species is determined primarily by the following factors: a) plantation objectives; b) site conditions or the expected growth and yield of the species on the given site conditions; c) availability and costs of high quality planting materials. Given the need to recover investments as soon as possible, it is likely that most plantation owners will select fast growing species of Acacia mangium, A. Auriculiformis, Acacia hybrid and Eucalyptus urophylla. The government has periodically provided a list of approved varieties, provenances or clones of the fast growing species based on extensive trials conducted by FSIV. As a general rule, at least 3 clones should be planted in every plantation plot.

On old eucalyptus plantations, it would be better to retain the eucalyptus coppice, plant acacia species in between the coppices and manage a 2-species plantation.

Plant bamboos (Dendrocalamus membranaceus) for commercial production of poles and/or edible shoots especially on areas above reservoirs, rivers or streams

Encourage the planting of native species such as Hopea odorata, Dipterocarpus alatus, Tarrietia javanica, Enthryploeum fordii, Melia azedarach, Homalium hainanense, Cassia seamea which, though slower growing, are likely to have both a higher conservation value and a monetary return at harvest. There is sufficient experience in the project provinces regarding the planting of native species. Moreover, management techniques of mixed plantation species are described in a draft Manual32 prepared by the FSDP Technical Assistance team.

7.4 Site Preparation

Site preparation are activities done before planting to improve existing site conditions and enhance survival and promote fast initial growth of planted seedlings. This includes vegetation clearance to reduce competition and fire risks, hole digging to improve soil structure and enhance root growth, and basal fertilization to increase soil fertility.

7.4.1 Vegetation clearance

Environmental protection guidelines to be followed are the following:

32 A Farmer’s Guide to the Establishment and Management of Mixed Species Forest Plantations. 2nd draft, FSDP, Report No. 87-A, April, 2010.

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Broadcast burning cannot be used as a tool of site clearing and site preparation; vegetation must be cleared by hand or machine.

Avoid comprehensive vegetation clearance on sloping areas. Clear vegetation in strips or on spots.

Debris in vegetation clearance should be retained on site as source of nutrients and to provide soil cover and help in reducing soil erosion.

Mechanical extraction of tree stumps and roots will not be allowed on sloping areas; only on flat terrain.

Full cultivation will be allowed only on flat or slightly sloping terrain below 15 degrees. Between, 16 to 20 degrees slope, cultivate in alternate strips. No cultivation is allowed beyond 20 degrees.

7.4.2 Digging of planting holes

Planting holes should not be excavated during the period of heavy rainfall.

Back-fill the hole immediately as soon as possible to keep the loosened soil inside the hole and minimize soil erosion.

In sloping terrain, dig planting holes along the contour and in fish scale- like pattern.

7.4.3 Basal fertilization

Apply basal fertilizer on the hole; broadcast application is not allowed.

Use a container not bare hands in handling fertilizer.

Record the kind, dosage and date of fertilizer application.

7.5 Intercropping

Any intercropping activities on sloping plantation sites should be carried out along the contour. No intercropping will be allowed on slopes over 20 degrees and intercropping of root or tuber crops will not be permitted over 15 degrees.

7.6 Tending

7.6.1 Weeding should be limited to what is absolutely necessary to maintain high survival and fast growth of planted seedlings, employing spot weeding around the base of the seedlings, and slashing of vegetation in other areas, so as to maintain ground cover. Vegetation debris from weeding and slashing should be left on site as mulch.

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7.6.2. Conduct singling during the dry season, when trees are about 4-6 months old and stems are still small. Do not conduct singling without the proper tools.

7.6.3 Pruning is required only on plantations that aim to produce saw logs. It is not necessary if the final product is pulpwood. It is also not necessary on species with good natural self-pruning characteristics like Eucalyptus urophylla. It will be applied only on selected trees that will constitute the final crop (saw logs). As in singling, prune only with the proper pruning equipment, never a knife. Make a clean and straight cut at the outer edge of the branch collar. The branch collar must not be injured since this is where the healing process starts. Cut pruning debris into shorter pieces and spread them evenly in the plantation.

7.6.4 Thinning, as in pruning, is performed only on plantations where the objective is to produce saw logs. Moreover, thinning is recommended only on good sites where the yield is high enough to warrant additional investments in thinning and pruning. Conduct thinning when canopy begins to close and competition for light begins. After selecting the trees to be retained, cut all others but with care so as not to injure the retained trees.

After removing any usable stems, chop the thinning debris into shorter pieces and spread evenly on the area.

7.7 Integrated Pest Management

Integrated Pest Management (IPM) shall be guided by the following FSC Principles and Standards:

Principle 6.6 which provides that management systems shall be used that promotes the development and adoption of environment-friendly non-chemical methods of pest management and strives to avoid the use of chemical pesticides.

Principle 10.7 which states that measures shall be taken to prevent and minimise outbreak of pests and diseases, fire and invasive plant introductions. Integrated pest management shall form an essential part of management plan, with primary reliance on prevention and biological control measures rather than chemical pesticides.

FSC decision framework33 for integrated pest, disease and weed management in FSC certified forests and plantations comprises of the following steps, and are herein adapted for project plantations:

Identify and quantify the problem.

33 Ian Willoughby, Carlos Wilcken, Philip Ivey, Kevin O’Grady and Frank Katto. 2009. FSC Guide to integrated pest, disease and weed management in FSC certified forests and plantations. FSC Technical Series No. 2009-001.

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The actual or potential problem must be identified and quantified, to allow prediction to be made of likely consequences if not addressed. Once likely impacts are determined, decisions can be made on further actions to be taken.

Consider the control options

1) Take no action except to monitor the situation. This may be the case when there are no effective control measures or when the economic costs or environmental or social impacts of such control measures outweigh the risk to the forest from taking no action or when the critical threshold have not been exceeded.

2) Avoid the problem. Given a good understanding of the nature of pest or disease, it may be possible to avoid the problem. Such approach may be cheaper and involve lesser potentially damaging impacts to the environment than taking remedial measures. Examples of avoiding the problem are (i) planting of species, provenances, varieties or clones that are resistant to known economic pests of the species; (ii) increasing plantation biodiversity through the establishment of “biodiversity corridors”, planting of 3 or more clones in any one plantation, planting of native species in mixture with fast growing exotic species, or ensuring “structural diversity” in plantations; (iii) adoption of good silvicultural practices such as weeding, fertilization, singling, pruning and thinning to promote fast growth and good health of the stand.

3) Take remedial actions when options 2.1 and 2.2 are not possible. Consider which remedial control measures are most suitable, i.e those that are both effective and have the least risks of harm to the environment, operators and local communities.

a) Non-chemical method. This is the preferred approach and must be considered first. Non-chemical control methods include (i) sanitation cuttings to remove affected branches, stems or stands; (ii) biological control or use of natural enemies of pests such as predators, parasites or pathogens; (iii) cultivation, weeding, mulching to control weeds.

b) Chemical methods, if non-chemical options are impractical, ineffective, very costly or likely to carry the risk of causing more harm to the environment and to local communities. In deciding which pesticide to use, (i) consider if there are any long term landscape scale planning or conservation designations that may limit the use of pesticides; (ii) select pesticide that is most effective at controlling the target pest but least harmful to crop species, to the environment, operator and local communities; (iii) do not use banned pesticides or those designated as “Hazardous” by FSC ; (iv) Ensure operators have the correct training for, and information on, the pesticide to be used, and are adequately protected from harmful effects of pesticide; (v) dispose of washing water, unused pesticides and used containers carefully and without harming the environment; (vi) store and transport pesticide safely; and (vii) record the use of pesticide including the amount

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and name of pesticide, date and method of application, and prevailing weather condition at time of application.

7.8 Fire Prevention and Control

Forest fire prevention and control activities must be an integral part of the operational plan for the plantation area. Such plans should establish a fire control organization, defined roles and responsibilities, and detailed prevention, public education, patrolling, enforcement and fire response programs.

In each plantation area, reduce amount of fuel in the plantation through timely and effective weed control. Cut debris in weeding, pruning and thinning to small pieces, and pile them in between tree rows. Compress the pile low by pressing or stepping on it.

If plantation is adjoining grassland or other fire prone areas, construct fire breaks of at least 10 meters wide along the boundaries, at the onset of the dry season.

7.9 Access Tracks

Access within plantation blocks will be limited to that necessary to transport planting materials to the site and to extract products from primary landings in the plantations to secondary landings at the road. Such tracks should be wide enough for motorcycles and or small tractors. Plantation block plans must show how the site is to be accessed; including details on location, design, construction and maintenance. It should be emphasized, however, that as per present project design, FSDP support will be limited to access track maintenance.

All roads and access tracks must be properly located, designed, constructed and maintained. Roads and trails must be constructed according to acceptable engineering standards and shall have regular maintenance. Detailed access guidelines should be prepared early in project implementation and may include design considerations such as the following:

1) primary extraction from felling site to the first landing at trackside will be by human labor or draft animals, depending on the size of product (i.e. fuel/pulp wood vs sawlogs);2) density of secondary extraction tracks shall be the absolute minimum consistent with the practical distances of primary extraction;3) tracks will be permitted to encroach into stream protection corridors only at points of crossing, which must be in areas of stable, moderate terrain;4) stream crossings should be rock-stabilized drifts; culverts should be employed only in extreme cases where drifts are not practical;5) tracks shall have a maximum width of 3 m, a maximum favorable grade of 15 degrees and a maximum adverse grade of 10 degrees;

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6) cut and fill slopes must be avoided wherever possible;7) no yarding of logs or other products will be permitted on the surface of tracks;8) track rights-of-way will be lightly slashed and vegetation cover will be maintained on the running surface wherever possible;9) all tracks on side-slopes shall be out-sloped or equipped with water-bars to disperse water onto stable areas down slope; and

10) tracks will be inspected regularly during rainy periods in the first three years after construction and during periods of active use, and immediate maintenance action taken to correct problems of drainage or erosion.

7.10 Plantation Harvesting

Harvesting of trees and other products shall not result in long-term soil degradation or adverse impacts on water quality and watershed hydrology. All logging operations must be strictly supervised and enforced by DARD/DFD. For slopes over 15 degrees, logging coupes shall not exceed 10 ha with at least 60 m between adjacent coupes logged the same year. For slopes less than 15 degrees, logging coupes shall not exceed 20 ha, with at least 30 m between adjacent coupes felled the same year. Ground vegetation shall be preserved as far as possible during logging and the site shall be re-planted in the year following logging.

8. ENVIRONMENTAL MONITORING PLAN

8.1 Implementation MonitoringImplementation monitoring determines the progress in program implementation against established "benchmarks" and timelines (i.e. number of activities undertaken, number of plans completed, number of clients served, number of people trained, cost of delivery, etc). Implementation monitoring measures program "OUTPUTS" and will be used in program supervision and evaluation.

8.2 Compliance MonitoringCompliance monitoring assesses whether operational implementation has been carried out in a manner consistent with established standards and plans. Guidelines (such as these environmental guidelines) are not usually directly enforceable because they seek to cover a range of site conditions and operational activities. As the term implies, their function is to guide operational design and implementation. It will be the responsibility of the DARD/DFD to ensure that all plantation design plans meet the established principles, standards and criteria. Once a plan has been prepared and approved, DARD/DFD will be responsible for ensuring, through regular inspections and supervision, that all operations are implemented in a manner that complies with the approved plan. To ensure consistency and continuity in compliance monitoring, standard reporting forms will be used. The primary focus of compliance monitoring will be the plan prescriptions on plantation

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diversity, stream protection, site preparation, tending (weeding and thinning), pest management (use and application of pesticides and worker/farmer safety), fire prevention and control, and harvesting. A multi-year compliance record is an important pre-requisite to plantation certification.

8.3 Condition Monitoring

Condition monitoring will be conducted thru the internal assessment of plantation exercises. It assess: 1) plantation performance and productivity; 2) the effectiveness of guidelines and development plans in protecting and enhancing the environment; and 2) the contributions of plantations to local community livelihoods. This type of monitoring will utilize a limited number of practical monitoring indicators, which will be measured at established intervals and regularly evaluated to determine whether management practices require revision. Proposed plantation performance, environmental and social indicators are described in the following sections. These indicators will not be relevant to every area and every situation and must be selected and adapted to specific monitoring programs. These monitoring programs, in turn, must be practical, meaningful and affordable.


Regularly-maintained plantation records and maps showing areas planted each year by species/varieties, planting densities, and establishment techniques.

Survival rates (%) by year and species and the extent (ha) of beating-up required.

Extent (ha) of tending operations (weeding, thinning, pruning, fertilization) each year.

Incidence of insect attack, disease and fire (number and area impacted) and actions taken (method and area of treatment/response).

Growth or production rates by sub-compartment; recording increment in height, DBH and m3/ha/yr.

Harvesting operations (area and yield per ha and site class).


Area (ha and % of total plantation areas) of set-asides for biodiversity conservation in fire breaks, protection reserves and stream protection corridors for each plantation site of 50 ha or larger.

Regular measurements of soil fertility (organic matter, pH and selected macro, micro and trace elements).

Annual use (kg/ha) of fertilizers, herbicides and pesticides by plantation species.

Training of pesticide users/applicators in safety, handling and risks associated with use of pesticides.

Social Effectiveness Indicators

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Participation rate of households (% of target villages) in plantation programs

Changes in household income attributable to participation in plantation activities

Farmer satisfaction with plantation agreements as measured by regular community consultation

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ANNEX 1. ACTION PLAN TO IMPROVE PLANTATION PERFORMANCE

1. Improve selection of plantation sites (only for new communes/villages)

Purpose: To identify suitable plantation sites in the communes.

Table 1. Suggested action plan to improve selection of plantation sites.

Activities Outputs Time frame Responsible persons/office

1. District level meeting Briefing of District officials

Before 2011 PPMU, DIU assisted by CPCU

2.Commune level meeting Briefing of commune officials and residents

Before 2011 DIU, CWG assisted by extension staff

3.Preliminary selection of sites in commune

Proposed plantation sites in communes

Jan 2011 CWG, DIU (endorse), PPMU (endorse), CPCU (for approval)

4. Commune level screening: Contracting

Contract signed Mar 2011 PPMU

5. Technical screening using GIS

Suitable sites in commune identified

May 2011 Contractor

6. Review of commune level site selection and screening

Final plantation sites in village selected

May 2011 CWG, DIU, PPMU (approval)

2. Village Plantation Landscape Planning (Preparation of Plantation Block Design): for new sites

Purpose: To conduct a landscape plan of selected plantation site in the village and prepare Block Plantation Design

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Table 2 Suggested action plan for Landscape level planning.


Village meeting 1 Villagers are informed of site screening & planning

June 2011 CWG assisted by extension staff; contractor

Village level screening & mapping

Delineations of conservation areas, commercial plantation areas; maps

June 2011 Contractor

Collection of relevant data and information

Social, economic, bio-physical information of commune and village

June 2011 Contractor

Village meeting No.2 Comments on landscape planning; suggestions on plantation objectives, models, species, list of interested participants

August 2011 Contractor, CWG, Extension staff, DIU

Preparation of draft Block Plantation Design

Draft Block Plantation Design

September 2011

Contractor

Review and approval of Block Plantation Design

Block Plantation Design

October 2011 CWG, DIU, PPMU

3. Modified Plantation Landscape Planning (for existing plantations)

Purpose: To delineate buffer zones for streams and rivers and other biodiversity conservation areas in existing plantations;

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To prepare plan for construction/ improvement of access tracks in plantations .

Table 3 Suggested action plan for landscape planning of existing plantations.


Contracting Contract signed January 2011

PPMU

Village meeting 1 Villagers are informed of site mapping and planning

February 2011

DIU,CWG assisted by extension staff; contractor

Village level mapping

Maps showing buffer zone for stream banks, access tracks; identification of plantations affected.

March 2011 Contractor

Village meeting No.2

Villagers are informed of plans; prescriptions for buffer zones;

April 2011 Contractor, CWG, Extension staff, DIU

Preparation of draft Block Plantation Design for buffer zone and access tracks

Draft Block Plantation Design including construction costs of access tracks

April 2011 Contractor

Review and approval of Block Plantation Design

Block Plantation Design May 2011 CWG, DIU, PPMU, CPCU

Implementation Buffer zone for stream bank

Construction of access tracks

May 2011

Starting June 2011

Plantation owner

PPMU, contractor

4. Prepare Household Plantation Forest Management Plans

Purpose: To prepare a management plan for each individual plantation;

To properly document implementation of management plan.

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Table 4 Suggested action plan for the preparation of Household Management Plan.


Finalize Household Management Plan and Plantation Record outlines

Household Management Plan & Plantation Record outlines

Before 2011 TA, CPCU

Training of trainers Trainers (all extension staff at district)

Before 2011 CPCU, PPMU

Training of FFG Leaders All FFG leaders Jan – Feb 2011

PPMU, DIU, Extension (Trainers)

Training of farmers HH Management Plan prepared by farmers

Feb-Mar 2011

FFG Leaders assisted by Extension staff

Documentation of HH Management plan implementation

Plantation record Starting Mar 2011

Farmers

Monitoring of HH Management plan implementation

Report Starting Mar 2011

FFG Leader, M & E staff

5. Organize and Strengthen Forest Farmer Groups

Purpose: To organize and strengthen FFG as vehicle for sustainable forest management and group certification;

Table 5 Suggested action plan for organizing and strengthening FFG.


Orientation of farmers on FFGs (for new sites)

Farmers are informed about FFG

Village meetings 1 & 2 in new sites

CWG, Extension staff

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Convene meeting to organize FFG in village

FFG is organized in village

CWG, Extension staff

Assist FFG develop internal policies, work plans, etc

FFG policies, work plans, committees, meeting schedules, etc.

Within 1 month after organization

FFG leader, Extension staff,

Farmers

Implementation of work plans

Planned activities implemented

continuing FFG Leaders, farmers, extension staff.

Legal organization of FFG: deciding on options

Legal option is decided

Mid-2011 CPCU, PPMU,DIU, FFG leaders

Organizing commune, district, province FFGs

FFG organized at various levels; functions and responsibilities

Mid-2011 to end of 2011

FFG leaders supported by project management.

6. Develop Growth and Yield Tables for Important Species in the Region

Purpose: To develop growth and yield tables for Acacia hybrid, A. mangium and Eucalyptus urophylla in FSDP provinces;

To identify important indicators of site quality of each species, and integrate them in site selection.

Table 6. Suggested action for developing growth and yield tables for important species in project areas.


Bidding for conduct of study

Contractor selected Before 2011 CPCU

Conduct of study Growth & yield equations and tables; site quality indicators for 3 species

2011 Contractor

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Review of results Comments 2011 TA, CPCU, PPMU

Finalize tables and site quality indicators

Growth and yield tables; site quality indicators

2011 Contractor

Integration of site quality indicators into site selection methodology

Improve site selection methods

2011 TA, CPCU

Training on use of growth and yield & site quality indicators

Trained extension & M & E staff

2011 TA, CPCU

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ANNEX 2. FSC PRINCIPLES AND CRITERIA FOR STEWARDSHIP 1. Principle #1: Compliance with laws and FSC Principles

Forest management shall respect all applicable laws of the country in which they occur, and international treaties and agreements to which the country is a signatory, and comply with all FSC Principles and Criteria.

1.1 Forest management shall respect all national and local laws and administrative requirements.

1.2 All applicable and legally prescribed fees, royalties, taxes and other charges shall be paid.

1.3 In signatory countries, the provisions of all binding international agreements such asCITES, ILO Conventions, ITTA, and Convention on Biological Diversity, shall be respected.

1.4 Conflicts between laws, regulations and the FSC Principles and Criteria shall be evaluated for the purposes of certification, on a case by case basis, by the certifiers and the involved or affected parties.

1.5 Forest management areas should be protected from illegal harvesting, settlement and other unauthorized activities.

1.6 Forest managers shall demonstrate a long-term commitment to adhere to the FSC Principles and Criteria.

2. Principle #2: Tenure and use rights and responsibilities

Long-term tenure and use rights to the land and forest resources shall be clearly defined, documented and legally established.

2.1 Clear evidence of long-term forest use rights to the land (e.g. land title, customary rights, or lease agreements) shall be demonstrated.

2.2 Local communities with legal or customary tenure or use rights shall maintain control, to the extent necessary to protect their rights or resources, over forest operations unless they delegate control with free and informed consent to other agencies.

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2.3 Appropriate mechanisms shall be employed to resolve disputes over tenure claimsand use rights. The circumstances and status of any outstanding disputes will be explicitly considered in the certification evaluation. Disputes of substantial magnitude involving a significant number of interests will normally disqualify an operation frombeing certified.

3. Principle #3: Indigenous peoples' rights

The legal and customary rights of indigenous peoples to own, use and manage their lands, territories, and resources shall be recognized and respected.

3.1 Indigenous peoples shall control forest management on their lands and territories unless they delegate control with free and informed consent to other agencies.

3.2 Forest management shall not threaten or diminish, either directly or indirectly, the resources or tenure rights of indigenous peoples.

3.3 Sites of special cultural, ecological, economic or religious significance to indigenous peoples shall be clearly identified in cooperation with such peoples, and recognized and protected by forest managers.

3.4 Indigenous peoples shall be compensated for the application of their traditional knowledge regarding the use of forest species or management systems in forest operations. This compensation shall be formally agreed upon with their free and informed consent before forest operations commence.

4. Principle #4: Community relations and worker's rights

Forest management operations shall maintain or enhance the long-term social and economic well-being of forest workers and local communities.

4.1 The communities within, or adjacent to, the forest management area should be given opportunities for employment, training, and other services.

4.2 Forest management should meet or exceed all applicable laws and/or regulations covering health and safety of employees and their families.

4.3 The rights of workers to organize and voluntarily negotiate with their employers shall be guaranteed as outlined in Conventions 87 and 98 of the International Labour Organisation (ILO).

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4.4 Management planning and operations shall incorporate the results of evaluations of social impact. Consultations shall be maintained with people and groups (both men and women) directly affected by management operations1.

4.5 Appropriate mechanisms shall be employed for resolving grievances and for providing fair compensation in the case of loss or damage affecting the legal or customary rights, property, resources, or livelihoods of local peoples. Measures shall be taken to avoid such loss or damage.

5. Principle #5: Benefits from the forest

Forest management operations shall encourage the efficient use of the forest's multiple products and services to ensure economic viability and a wide range of environmental and social benefits.

5.1 Forest management should strive toward economic viability, while taking into account the full environmental, social, and operational costs of production, and ensuring the investments necessary to maintain the ecological productivity of the forest.

5.2 Forest management and marketing operations should encourage the optimal use and local processing of the forest's diversity of products.

5.3 Forest management should minimize waste associated with harvesting and on-siteprocessing operations and avoid damage to other forest resources.

5.4 Forest management should strive to strengthen and diversify the local economy, avoiding dependence on a single forest product.

5.5 Forest management operations shall recognize, maintain, and, where appropriate, enhance the value of forest services and resources such as watersheds and fisheries.

5.6 The rate of harvest of forest products shall not exceed levels which can be permanently sustained.

6. Principle #6: Environmental impact

Forest management shall conserve biological diversity and its associated values, water resources, soils, and unique and fragile ecosystems and landscapes, and, by so doing, maintain the ecological functions and the integrity of the forest.

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6.1 Assessment of environmental impacts shall be completed -- appropriate to the scale,intensity of forest management and the uniqueness of the affected resources – and adequately integrated into management systems. Assessments shall include landscape level considerations as well as the impacts of on-site processing facilities. Environmental impacts shall be assessed prior to commencement of site-disturbing operations.

6.2 Safeguards shall exist which protect rare, threatened and endangered species and their habitats (e.g., nesting and feeding areas). Conservation zones and protection areas shall be established, appropriate to the scale and intensity of forest management and the uniqueness of the affected resources. Inappropriate hunting, fishing, trapping and collecting shall be controlled.

6.3 Ecological functions and values shall be maintained intact, enhanced, or restored,including:a) Forest regeneration and succession.b) Genetic, species, and ecosystem diversity.c) Natural cycles that affect the productivity of the forest ecosystem.

6.4 Representative samples of existing ecosystems within the landscape shall be protected in their natural state and recorded on maps, appropriate to the scale and intensity of operations and the uniqueness of the affected resources.

6.5 Written guidelines shall be prepared and implemented to: control erosion; minimize forest damage during harvesting, road construction, and all other mechanical disturbances; and protect water resources.

6.6 Management systems shall promote the development and adoption of environmentally friendly non-chemical methods of pest management and strive to avoid the use of chemical pesticides. World Health Organization Type 1A and 1B and chlorinated hydrocarbon pesticides; pesticides that are persistent, toxic or whose derivatives remain biologically active and accumulate in the food chain beyond their intended use; as well as any pesticides banned by international agreement, shall be prohibited. If chemicals are used, proper equipment and training shall be provided to minimize health and environmental risks.

6.7 Chemicals, containers, liquid and solid non-organic wastes including fuel and oil shall be disposed of in an environmentally appropriate manner at off-site locations.

6.8 Use of biological control agents shall be documented, minimized, monitored and strictly controlled in accordance with national laws and internationally accepted scientific protocols. Use of genetically modified organisms shall be prohibited.

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6.9 The use of exotic species shall be carefully controlled and actively monitored to avoid adverse ecological impacts.

6.10 Forest conversion to plantations or non-forest land uses shall not occur, except in circumstances where conversion:a) entails a very limited portion of the forest management unit; andb) does not occur on high conservation value forest areas; andc) will enable clear, substantial, additional, secure, long term conservation benefitsacross the forest management unit.

7. Principle #7: Management plan

A management plan -- appropriate to the scale and intensity of the operations – shall be written, implemented, and kept up to date. The long term objectives of management, and the means of achieving them, shall be clearly stated.

7.1 The management plan and supporting documents shall provide:a) Management objectives.b) Description of the forest resources to be managed, environmental limitations, land use and ownership status, socio-economic conditions, and a profile of adjacent lands.c) Description of silvicultural and/or other management system, based on the ecology of the forest in question and information gathered through resource inventories.d) Rationale for rate of annual harvest and species selection.e) Provisions for monitoring of forest growth and dynamics.f) Environmental safeguards based on environmental assessments.g) Plans for the identification and protection of rare, threatened and endangered species.h) Maps describing the forest resource base including protected areas, planned management activities and land ownership.i) Description and justification of harvesting techniques and equipment to be used.

7.2 The management plan shall be periodically revised to incorporate the results of monitoring or new scientific and technical information, as well as to respond to changing environmental, social and economic circumstances.

7.3 Forest workers shall receive adequate training and supervision to ensure proper implementation of the management plan.

7.4 While respecting the confidentiality of information, forest managers shall make publicly available a summary of the primary elements of the management plan, including those listed in Criterion 7.1.

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8. Principle #8: Monitoring and assessment

Monitoring shall be conducted -- appropriate to the scale and intensity of forest management -- to assess the condition of the forest, yields of forest products, chain of custody, management activities and their social and environmental impacts.

8.1 The frequency and intensity of monitoring should be determined by the scale and intensity of forest management operations as well as the relative complexity and fragility of the affected environment. Monitoring procedures should be consistent and replicable over time to allow comparison of results and assessment of change.

8.2 Forest management should include the research and data collection needed to monitor, at a minimum, the following indicators:a) Yield of all forest products harvested.b) Growth rates, regeneration and condition of the forest.c) Composition and observed changes in the flora and fauna.d) Environmental and social impacts of harvesting and other operations.e) Costs, productivity, and efficiency of forest management.

8.3 Documentation shall be provided by the forest manager to enable monitoring andcertifying organizations to trace each forest product from its origin, a process known as the "chain of custody."

8.4 The results of monitoring shall be incorporated into the implementation and revision of the management plan.

8.5 While respecting the confidentiality of information, forest managers shall make publicly available a summary of the results of monitoring indicators, including those listed in Criterion 8.2.

9. Principle #9: Maintenance of high conservation value forests3

Management activities in high conservation value forests shall maintain or enhance the attributes which define such forests. Decisions regarding high conservation value forests shall always be considered in the context of a precautionary approach.

9.1 Assessment to determine the presence of the attributes consistent with High Conservation Value Forests will be completed, appropriate to scale and intensity of forest management.

9.2 The consultative portion of the certification process must place emphasis on the identified conservation attributes, and options for the maintenance thereof.

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9.3 The management plan shall include and implement specific measures that ensure the maintenance and/or enhancement of the applicable conservation attributes consistent with the precautionary approach. These measures shall be specifically included in the publicly available management plan summary.

9.4 Annual monitoring shall be conducted to assess the effectiveness of the measuresemployed to maintain or enhance the applicable conservation attributes.

10.Principle #10: Plantations

Plantations shall be planned and managed in accordance with Principles and Criteria 1 - 9, and Principle 10 and its Criteria. While plantations can provide an array of social and economic benefits, and can contribute to satisfying the world's needs for forest products, they should complement the management of, reduce pressures on, and promote the restoration and conservation of natural forests.

10.1 The management objectives of the plantation, including natural forest conservation and restoration objectives, shall be explicitly stated in the management plan, and clearly demonstrated in the implementation of the plan.

10.2 The design and layout of plantations should promote the protection, restoration and conservation of natural forests, and not increase pressures on natural forests. Wildlife corridors, streamside zones and a mosaic of stands of different ages and rotation periods, shall be used in the layout of the plantation, consistent with the scale of the operation. The scale and layout of plantation blocks shall be consistent with the patterns of forest stands found within the natural landscape.

10.3 Diversity in the composition of plantations is preferred, so as to enhance economic, ecological and social stability. Such diversity may include the size and spatial distribution of management units within the landscape, number and genetic composition of species, age classes and structures.

10.4 The selection of species for planting shall be based on their overall suitability for the site and their appropriateness to the management objectives. In order to enhance the conservation of biological diversity, native species are preferred over exotic species in the establishment of plantations and the restoration of degraded ecosystems. Exotic species, which shall be used only when their performance is greater than that of native species, shall be carefully monitored to detect unusual mortality, disease, or insect outbreaks and adverse ecological impacts.

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10.5 A proportion of the overall forest management area, appropriate to the scale of the plantation and to be determined in regional standards, shall be managed so as to restore the site to a natural forest cover.

10.6 Measures shall be taken to maintain or improve soil structure, fertility, and biological activity. The techniques and rate of harvesting, road and trail construction and maintenance, and the choice of species shall not result in long term soil degradation or adverse impacts on water quality, quantity or substantial deviation from stream course drainage patterns.

10.7 Measures shall be taken to prevent and minimize outbreaks of pests, diseases, fire and invasive plant introductions. Integrated pest management shall form an essential part of the management plan, with primary reliance on prevention and biological control methods rather than chemical pesticides and fertilizers. Plantation management should make every effort to move away from chemical pesticides and fertilizers, including their use in nurseries. The use of chemicals is also covered in Criteria 6.6 and 6.7.

10.8 Appropriate to the scale and diversity of the operation, monitoring of plantations shall include regular assessment of potential on-site and off-site ecological and social impacts, (e.g. natural regeneration, effects on water resources and soil fertility, and impacts on local welfare and social well-being), in addition to those elements addressed in principles 8, 6 and 4. No species should be planted on a large scale until local trials and/or experience have shown that they are ecologically well-adapted to the site, are not invasive, and do not have significant negative ecological impacts on other ecosystems. Special attention will be paid to social issues of land acquisition for plantations, especially the protection of local rights of ownership, use or access.

10.9 Plantations established in areas converted from natural forests after November 1994 normally shall not qualify for certification. Certification may be allowed in circumstances where sufficient evidence is submitted to the certification body that the manager/owner is not responsible directly or indirectly of such conversion.

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ANNEX 3. TECHNICAL SPECIFICATION ON FORMULATION OF PLANTATION DESIGN INTRODUCTION

General approach to the WorksThe approach of the Forest Sector Development Project (FSDP) for the preparation of Plantation Design documents and plans for the smallholder farmers is to undertake these activities in a well-planned, coordinated, and participatory manner and in accordance with professional standards. It is this participatory approach that will ensure effective implementation of the plantation design that would result to better quality plantations.

These technical specifications for the works are intended to result in a controlled development of the spatial databases which are used for planning and management of FSDP small holder plantations. This should provide a reasonable guarantee that contractor submissions can be accepted with an assurance of appropriate quality. Application of these specifications is aimed at providing that;

the quality of the designs and maps produced are to a suitable standard to meet the objectives of the plantation owners and of FSDP as outlined in the PIM,

the design is fully understood and will be used by the farmers in establishing and managing the plantations; and the design conforms with the environmental guidelines, and pertinent laws, rules and regulations of the government.

Other background and technical information such as specific FSDP Standards and procedures, reference documents, and relevant Laws, Decrees and Circulars are to be consulted where these are required.

These specifications apply to all works described in the Scope of Works in this contract.

Professional Standards and Quality Assurance

All works under the contract shall be managed and operated in accordance with good practices as recognized by the profession.

The specifications will be correctly implemented according to the technical standards and procedures listed in Section 2 of these specifications and those issued by the Ministry of Agriculture and Rural Development, hereunder referred as “MARD” and the Provincial Department of Agriculture and Rural Development.

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Where the requirements and specifications herein conflict, the specifications in this contract prevail. The responsibility for ensuring that the outputs comply with the specifications is with the Contractor.

The Contractor shall operate a Quality Assurance System (QA) throughout the execution of the contract. The nature of the system will be described in the Project Management Plan.

The QA must be built into all major processes and not left to a final check only. For its part the PPMU will operate a verification process in parallel with the processing and preparation of the Plantation Design documents and Plans.

Contractors are to deliver quality outputs progressively for verification. The works are to be concluded on a Commune-by Commune basis with each individual plantation area within the Commune completed and submitted for approval.

Quality control by the Contractor shall include a check list. The check list is to include important conditions which are necessary for a quality result.

The Contractor shall issue to the PPMU a signed checklist declaring that the QA system has, as a minimum, ensured that the items required in the standards and procedures have been completed. The check list shall be included with the deliverables for each Commune.

Technical Standards and Procedures

The following is the technical standards and procedures that are to be applied to the contract.

Site characterization. The Contractor shall conduct site characterization to define the prevailing physical, biological, social, and economic conditions of the proposed plantation area. Analyze the site characteristics and list down plantation management alternatives or plantation models in the whole area or portions thereof.

The site characteristics should also provide a basis for species selection and for prescribing appropriate silvicultural techniques and management strategies including prevention or avoidance of potential risks.

The following are important site characteristics to be adhered to:

1. Physical factors:

a) Total area proposed to be planted;

b) Topography especially elevation and slopes that should be categorized into the following slope classes: level to slightly sloping (0 – 10 degrees); moderately sloping (11 – 20 degrees); steeply sloping (20 – 25 degrees).

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c) Soil conditions such as texture (sandy, loamy, clayey) and depth. Drainage or small streams in the area.

d) Distance to nearest road and residence of owner.

2. Climatic factors

e) Monthly amount of rainfall and number of rain days, average for the past 5 – 10 years, average monthly temperature, average monthly lowest temperature and average monthly highest temperature. Indicate rainy season and dry season. Average wind speed and occurrence of typhoons and strong winds.

3. Biological factors

f) Existing vegetation of the area, plant composition, with special emphasis of the kind and number of useful plant species and protected species.

g) Species and relative number of birds, mammals, invertebrates in the area.

h) Observed or known pests and diseases of plantation forest species in the locality.

4. Land use factors

i) Present and past land uses of the area.

j) Current land uses of adjacent areas.

5. Socio-economic factors

k) Markets and prices of possible agricultural and forest products.

l) Projected growth and yield, costs and benefits of possible forest products.

m) Available family labor and local labor including prevailing daily wages

n) Local sources and prices of important inputs such as seedlings and fertilizers (organic and inorganic).

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Definition of plantation owner objectives and management optionsThe plantation owner should give a clear definition of his objectives or what he wants to achieve in the short term, medium term and at the end of the rotation. For instance; does the plantation holder wants to produce (a) agricultural crops (if so what?) during in the first year of plantation forestry; or (b) fuel wood for sale to brick factories in the 2nd and 3rd year; or (c) produce pulpwood, or sawlogs. Within the context of the FSDP, these could be in terms of volume of products and estimated income.

Given the site characteristics described above, the different feasible options should be discussed and agreed upon with the farmer/plantation owner. This is the central part of the Plantation Design to which all the technical prescriptions, management strategies and financial and other resources must be directed to attain.

Description of technical specificationsThe contractor, in consultation with the owner, must describe the specific technical prescriptions needed to attain the specified objectives. These include the species/clones to be planted including where to get the seedlings, site preparation, initial planting density, planting and replacement of mortality, intercropping with agricultural crops (if applicable), fertilization, weed control, singling and if needed, pruning and thinning, integrated pest and disease management, fire prevention and control.

Conforming to Environmental Protection GuidelinesThe Contractor must ensure that the technical specifications and the overall plantation design shall conform to Environmental Protection Guidelines as defined in Chapter VIII, annex VIII-I of the FSDP Project Implementation Manual.

Key guidelines include:

a. No production plantations on slopes exceeding 25 degrees; slopes between 20 – 25 degrees shall have lower normal planting density to limit site disturbance.

b. Streamside and water spring areas must be protected. Existing vegetative cover must be conserved, especially indigenous tree species of high economic value. (Planning access tracts to reduce plantation management costs and avoid unnecessary environmental disturbance.

c. Avoid plantations in gullies holding remnant forest areas, and limit plantations to 1a and 1b vegetation site categories.

d. Careful use of fertilizers and pesticides, particularly in areas near waterways. If pesticides are to be used, it should comply to group levels II and Level III according to the classification list by World health organization WHO.

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e. To increase biodiversity, native species are preferred over exotic species. Exotic species shall only be used if their overall performance over the long term is greater than that for native species. As great a variety of clonal material should be made available to planting sites. As a general rule, not more 20 % of the plantings in one commune, and no area of plantation greater than 30 hectares shall be to a single clone.

f. Burning or bulldozer should not be applied for land preparation.

g. Agricultural crops should not be planted on slope over 20o.

h. Forest fire prevention and control should be an integral part of the operational plan for the plantation area.

i. Estimate costs

The Contractor must estimate the cost of each activity. It would be necessary to summarize the cost by activity by year so that the owner would know he would need to carry out the activities in a particular year.

Schedule of activitiesThe Contractor, in consultation with the farmer, must prepare a table or Gantt chart of schedule of plantation activities.

Review and revision of planThe contractor and the farmer must agree on a schedule to review the plan. The Plantation Design must be periodically reviewed to make revisions as may be necessary. For instance, the owner may set out to establish his/her plantation forest for pulpwood production. However, at 3 -4 years, the prices of pulpwood are very low that the owner decides to proceed with sawtimber production instead. This would necessitate the conduct of thinning and pruning of the plantation to increase diameter growth and improve timber quality. Thus, the plantation design needs to be revised

Site development planTogether with the farmer, the contractor will draw a map of the site development plan. This map should be prepared on the basis of the details and dimensions of the land use certificate for the site concerned. Onto this base map of the site the contractor will show all important features such as trails and streams, slope classes, and if need be, where to do agricultural

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intercropping, and planting of plantation species (consistent with environmental guidelines, etc.

Site Development Plan should indicate at the minimum the following features:

1. The boundaries with dimensions for the allotment as defined by the LUC and taken from the digital data prepared by DoNRE.2. All Topographical features on or adjacent to the site, includinga. Contours b. Slope classes, i.e. 0 – 15 degrees, 16 – 20 and 20 – 25;c. Streams/rivers d. Vegetative cover, if at least two classes.e. Trails/roads3. Area for agroforestry/intercropping, if planned.4. Area to be planted by species, if more than one.5. Other important features.

Interpretation

For interpreting the terms of references in this Schedule, the Contractor, project staff (CPCU, PPMU, DIU and CWG) and all or any others parties using, referring, or applying these standards and procedures shall consult the relevant FSDP documents applying and relevant Laws, Decrees, decisions, circulars and regulations that apply to the surveying and mapping sector in Vietnam as effect the FSDP.

This schedule shall be used in all FSDP Plantation Design operations undertaken by or for Project PPMU.

The Contractor is defined as a Extension office at the district or province who provides extension services to farmers and to the PPMU under the terms and conditions specified in the contract. The PPMU Representative is defined as the PPMU person that has the authority for issuing and managing the contract and for receiving the items or services delivered by the Contractor.

Contractor and Equipment QualificationThe Contractor shall register with the PPMU their expression of interest in providing the services for the current field planting season prior to the contract awards.

The Contractor shall demonstrate or prove to the PPMU Representative’s satisfaction that the Contractor has capacity, such as hardware/firmware and software, trained and

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experienced personnel, and past project performance, capable of meeting the requirements of the contract.

Feature Interpretation and MappingThe PPMU Representative shall conduct a pre-work conference with the Contractor to define what the significant features are and how the features are interpreted and mapped. The nature and quality of work expected in the contract and the quality assurance methods shall be clearly defined.

The Contractor will use the details as defined by the Land Use Certificate (LUC) to prepare an individual site map of each lot. This information will be taken in a digital form from the data held by the relevant DoNRE. The site map will be drawn to a suitable scale and show all relevant boundary dimensions, topographical features and other adjoining information. The farmer will use this site map with the contractor to sketch all plantation design features.

Deliverables and Data ManagementThe Contractor shall submit the final design document, including all tables, description, maps and approvals for each individual allotment to meet the specifications of this contract, in a standard format and medium specified by the PPMU Representative.

The contractor will submit a map of each Commune showing all allotments with plantation designs completed under this contract.

The Contractor will submit final map products in the MapInfo format and shall ensure that it adheres to the PPMU standards.

The PPMU Representative may require additional data in a specified format for quality assurance purposes.

Hardcopy maps at a specified scale shall conform to the PPMU Standards and shall be submitted for each land parcel which has a plantation design as defined by the PPMU Representative.

The Contractor shall submit a project report that includes the key information specified by the PPMU Representative.

All the data files created in the completion of the contract work under this schedule are the property of the PPMU and access to these files shall be made available to the PPMU.

The PPMU shall be responsible, or designate this responsibility to the Contractor, for archive, storage or destruction of the data files in accordance with government standards.

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The Contractor shall inform the PPMU Representative before destruction of the materials and data created from the contract.

Quality Assurance and AuditThe Contractor shall be responsible for overall quality control of all components of a Plantation Design. The PPMU Representative is responsible for quality assurance including audit of a deliverables.

All submitted work shall be subject to PPMU quality assurance and audit.

The Contractor shall rectify at his or her own expenses all deficiencies identified by quality inspection/checks and audits.

Technological/Personnel ChangeIf there are any changes in the Contractor’s components (i.e. hardware, firmware, software, methodology) or personnel during the period of the contract, the Contractor shall consult with the PPMU Representative who may choose to continue, discontinue, or modify the contract, whatever he/she deems appropriate.

The Contractor and the PPMU Representative shall ensure that the most current version of the relevant standards and procedures is used.

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ANNEX 4. LIST OF PESTICIDES BANNED FOR USED IN VIETNAM

Decision No 23 /2007/QÐ-BNN of March 28th 2007 of the Ministry of Agriculture and Rural Development;

Insecticides

Aldrex Aldrite Alkexon

Apadrin 50 SL Camphechlor Chlordimeform

Chlorotox CMM 7 d?u l?ng Copas NAP 90 G PMD 4 90 b?t

PBB 100 b?t Cyclodan 35EC Danacap M 25 M 40

Danacap M25 Dieldrex Dieldrite

Dimecron 50 SCW/ DD Drimex Dynamite 50 SC

Endosol 35EC Filitox 70 SC Folidol - M 50 EC

Gâmm HCH Gamma-BHC Heptamul

Heptox Hexadrin Isometha 50 DD 60 DD

Isomethyl 50 ND Isosuper 70 DD Magic 50 SL

Master 50 EC Master 50 EC 70 SC Metaphos 40 EC 50EC

Milion 50 EC Monitor 50EC 60SC Neocid

Nuvacron 40 SCW/DD 50 SCW/DD Octachlor

Octalox Octalox Orthophos

Pentachlorin Proteon 50 EC Romethyl 50ND

Sevidol 4/4 G Tamaron 50 EC Thasodant 35EC

Thiodol 35ND Thiopphos Thunder 515DD

Tigiodan 35ND Toxaphene Toxaphene Camphechlor

Strobane Wofatox 50 EC

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Fungicides

Captane 75WP Merpan 75WP Difolatal 80WP

Folcid 80WP Dinasin 6.5SC Anticaric HCB

Herbicides

Brochtox Decamine Veon

PESTICIDES FORBIDDEN BY FSC

Vibasu 10 H for controlling soil-dwelling insects. Contains diazinon. Considered highly hazardous, because of its bioaccumulation and acute toxicity as specified in FSC-GUI-30-001 VERSION 2-0 EN.

Viben C 50 BTN for protecting the seedlings against damping off and cold injury. Contains benomyl and copper oxychloride. It is considered highly hazardous, because of its developmental toxicity as specified in FSC-GUI-30-001 VERSION 2-0 EN.

Virofos 20EC for termite control. Contains chlorpyrifos ethyl. It is considered highly hazardous, because of its bioaccumulation, acute toxicity and aquatic toxicity as specified in FSC-GUI-30-001

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ANNEX 5. UPDATED ENVIRONMENTAL PROTECTION GUIDELINES AND MONITORING PLAN FOR FOREST PLANTATION MANAGEMENT

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MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT

MANAGEMENT BOARD FOR FORESTRY PROJECTS

GOVERNMENT OF VIETNAM

FOREST SECTOR DEVELOPMENT PROJECT

ADDITIONAL FINANCING

UPDATED ENVIRONMENTAL PROTECTION GUIDELINES

FOR PLANTATION MANAGEMENT

October 10, 2011

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ENVIRONMENTAL PROTECTION GUIDELINES (EPGs)

FOR PLANTATION MANAGEMENT

The Smallholder Plantation Forest Component of FSDP aims to increase income of farmers, generate additional employment and help eradicate poverty in the rural areas by promoting the management of productive, profitable and sustainable plantation forests. This environmental protection guideline was prepared to ensure that forest plantations supported by FSDP are designed and managed to achieve the highest level of productivity and financial viability with the least possible negative impacts on local communities and the natural environment. The plantations must also meet the international standards for Forest Stewardship Council (FSC) certification.

These EPG update the Environmental Protection Guidelines prepared for the FSDP prepared in 2003. The updated EPGs incorporate experiences and lessons learned from project implementation over the past 5 years as well as the findings of the supplemental Environmental Impact Assessment conducted for the FSDP Additional Financing operation.

These guidelines are based on the following:

Government of Vietnam laws, regulations and policies, specifically: the Law on Land (2003); the Law on Forest protection and Development (2004); Decree No. 23/2006/ND-CP on the Implementation of of Forest Protection and Development; Decision No, 147 –policy on forest production development; Jt. Circular No.2/2008/TTLT-BKH-BNN-BTC further guidance to implementing Decion No. 147; Decision No. 40/2005/QN-BNN regulation on the harvesting of timber and other forest products ; Decision No. 119/2006/ND-CP reorganization of the Forest Protection Service; the Law on Environmental Protection (1993); Decree No. 175-CP (1993) Providing Guidance on the Implementation of the Law on Environmental Protection; the Law on Land (2003); Decree No. 29/2011/ND-CP on the preparation of environmental assessment for various projects; Decree 02-CP (1994) On the allocation of forest land to organizations, households and individuals for long-term forestry purposes; Law on Biodiversity (2008); Decision 845/TTg (1995) Biodiversity Action Plan; Decision 661 QD/TTg(1998) On the implementation of the project to plant five million hectares of forest; Decision 08 QD-TTg (2001); Decision No. 18/2007 Vietnam Strategy for Forestry Development 2006-2020; Regulations on the management of special use, protection and production forests; and the GOV/Donor/NGO Forest Sector Support Program (FSSP) of 2001.

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World Bank operational policies and directives, specifically: Operational Policy 4.01 (Feb. 2011) Environmental Assessment; Operational Policy 4.04 Natural Habitats; Operational Policy 4.09- Pest Management;and 4.36 Forestry.

The most important pre-requisite to a successful commercial forest plantation project is a clear definition of management objectives, including the following:

expected outcomes in terms of levels of productivity, rotation age and final products;

the rehabilitation and maintenance of land productivity;

soil and watershed protection;

habitat conservation and restoration; and

community participation and improved livelihoods.

In the case of FSDP, the main objective is to develop and manage productive and profitable forest plantations in a sustainable manner that meets the international standards for forest certification.

Plantation objectives will have a fundamental influence on all aspects of plantation management from site selection, through design and implementation, to monitoring and evaluation. A statement of management objectives should be contained in the management plan for each plantation site or project.

Environmental protection measures are incorporated into the following plantation management activities: site selection and landscape level planning and plantation design, site preparation, plantation establishment, tending, integrated pest and disease management, fire prevention and control, harvesting and access tracts improvement and maintenance.

1. Site Selection

Areas for commercial plantation forests must be carefully selected to ensure high productivity and profitability to farmers, and to avoid adverse impacts to the local community and to the natural environment. The forest plantation areas must be consistent with the commune’s land use zoning and development plans. The criteria for site selection are described below.

Table 1. Criteria for site selection under the FSDP.

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Forestland classification

Production forestland

Vegetative cover1) Only bare lands, Class 1a and 1b, will be used for FSDP plantations. Excluded are (i) class 1c lands; and (ii) 1b lands, 50 ha or more with canopy height of > 4 m and with >5 woody plant species per ha and are contiguous to 1c lands, or adjoining protection forests and special use forest.

2) Forest plantations of low quality.

SlopeNot more than 250 in slope.

AccessibilityPlantation sites must be within 2 km of existing all-weather roads.

Soil conditionsSoil type other than laterite or sterile coastal sand, soil depth above 30 cm, pH above 4, and soil composed of less than 40% stones and coarse fragments.

Existing land useNot used for food production, grazing of livestock, production of NTFP so as not to compromise food security and other critical household needs.

Area have no cultural or spiritual significance.

Land allocation Land is allocated to household and issued or will be issued with Land use certificate (LUC/Red Book).

2. Plantation Planning

Landscape Plantation Planning

This Landscape Plantation Planning will encompass all forest plantation areas in each village including those that are not participating in FSDP. This is to ensure that stream banks are protected, and access tracks, fire breaks and fire lines are planned to benefit all the forest plantations and not just project plantations. The landscape plantation plan:

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(i) defines areas for biodiversity conservation, stream bank protection, access tracks, fire breaks and poor areas that are unsuitable for commercial forest plantations;

(ii) guides plantation owners on appropriate plantation models, suitable species, intercropping and other information necessary to prepare simple and practical individual forest plantation management plan.

(iii) can be used to develop a group management plan for the FFG as may be required for forest certification.

The Landscape Plantation Plan must include the following basic considerations and which are properly delineated on a plantation plan map:

Slope and plantation operability. No production plantations shall be allowed on slopes exceeding 25 o for reasons of both slope instability and low productivity. Slopes between 20 – 25 o should have lower than normal planting densities, 4 x 2 m or 1,100 trees per ha, to limit site disturbance during site preparation, planting, tending and harvesting. Where site is suitable, such areas may be planted to valuable timber species.

Buffer zone protection

Buffer zone protection of reservoirs, entrenched streams, drainage canals must be established where natural vegetation will be retained, no clearing or ground disturbance will be allowed during plantation establishment, and no clear cutting of trees will be allowed. Native vegetation in the buffer zone may be established through Assisted Natural Regeneration (ANR) techniques supplemented by the planting of ecologically important trees and other plants such as those eaten by birds and other wild animals or economically important species like bamboo (for poles), Canarium album (nuts), Areca cathechu (nuts), Tricanthera gigantea (forage for pigs, cattle, goats, rabbits), Flemingia macrophylla (forage), Caliandra calothyrsus (forage). These buffer zones may link up with 1c and other natural vegetation in the village and communes that will significantly contribute to and enhance biodiversity conservation in the village and commune.

The recommended buffer zone protection for water reservoirs and streams are described hereunder.

(1) Reservoirs, rivers and streams of more than 10 m in width: 30 meters of buffer zone on each side as shown in Figure 1a.

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Figure 1a. Buffer zone in alluvial streams, rivers and water reservoirs

(2) Entrenched small streams usually < 5 m in width with boulder or bedrock substrate. Recommended buffer zone = 5 m from the top of the entrenchment slope on each side of the stream (Figure 1b).

Figure 1b. Buffer zone for small entrenched stream in boulder or bedrock substrate

(3) Entrenched small streams and drainage canals usually < 5 m in width in fine-textured channel substrate. Recommended protection reserve = 5 m from the top of the entrenchment

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slope on each side of the stream (Figure 1c).

Figure 1c. Buffer zone in small entrenched streams in fine-textured substrate

Eroded areas

Badly eroded areas characterized by deep gullies and land slips in road cuts and plantations will be stabilized using appropriate vegetative and structural soil control measure.

In-plantation biodiversity

Plantations are not forests; they are much more like agricultural systems and have many of the same risks and uncertainties. Plantations can be made more like natural systems by incorporating diversity (of genetic materials, species, age classes and spatial structure at the landscape-level) to improve the ecological stability and resilience that limits the risk of failure and reduces the necessity for artificial inputs to these simplified ecosystems. All plantations over 50 ha should consist of several sub-compartments, the size and number of which will depend on the scale of the plantation, comprising different tree ages (to promote structural diversity), different species of indigenous and exotic trees, different genotypes within species, and residual indigenous natural vegetation types. Wherever practical given the scale of the plantation, design and layout should promote the protection, restoration and conservation of natural communities. This can be accomplished by utilizing wildlife corridors, retention of native tree species, stream protection corridors, sanitation and fire breaks of native vegetation and a mosaic of different age and rotation periods to mimic the landscape patterns of natural forest communities.

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Access provisions

Landscape plantation design must show the location of existing roads, access tracks and trails that may be used for transporting seedlings and other plantation inputs, as well as in fire prevention and control. Additional access tracks may need to be constructed for eventual product extraction. It should be emphasized, however, that as per present project design, FSDP support will be limited to access track maintenance. (Also see No. 10 below for design specifications of access tracks).

Fire breaks

The Landscape Plantation Design must provide for the location, specifications, construction and maintenance of fire breaks and fire lines. The design must maximize the use of the buffer zones in streams and drainage canals, other native vegetation, as well as roads and access tracks.

Poor sites

Poor sites within the plantation block such as those with very shallow top soil, very stony areas, or areas with over 25 degrees n slopes which are unsuitable for commercial plantation forests should be delineated and earmarked for rehabilitation using assisted natural regeneration and other afforestation techniques that promote the growth of native species. This may be supplemented by planting leguminous species such as Tephrosia candida and other local species.

3. Plantation Plot DesignAs mandated under Decision 516 dated February 18, 2002 a plantation design has to be prepared for any plantation plot that uses State funds or preferential loan funds such as FSDP. The preparation of this plantation design will be guided by the provisions spelled out in the Revised Plantation Design contract. The technical specifications are summarized in Annex 3.

4. Species Selection

Choice of species is determined primarily by the following factors: a) plantation objectives; b) site conditions or the expected growth and yield of the species on the given site conditions; c) availability and costs of high quality planting materials. Given the need to recover investments as soon as possible, it is likely that most plantation owners will select fast growing species of Acacia mangium, A. Auriculiformis, Acacia hybrid and Eucalyptus uophylla. The government has periodically provided a list of approved varieties, provenances or clones of the fast growing species based on extensive trials conducted by FSIV. As a general rule, at least 3 clones should be planted in every plantation plot.

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On old eucalyptus plantations, it would be better to the eucalyptus coppice, plant acacia species in between the coppices and manage a 2-species plantation.

Plant bamboos (Dendrocalamus membranaceus) for commercial production of poles and/or edible shoots specially on areas above reservoirs, rivers or streams

Encourage the planting of native species such as Hopea odorata, Dipterocarpus alatus, Tarrietia javanica, Enthryploeum fordii, Melia azedarach, Homalium hainanense, Cassia siamea which, though slower growing, are likely to have both a higher conservation value and a higher monetary return at harvest. There is sufficient experience in the project provinces regarding the planting of native species. Moreover, management techniques of mixed plantation species are described in a draft Manual34 prepared by the FSDP Technical Assistance team.

5. Site Preparation

Site preparation are activities done before planting to improve existing site conditions and enhance survival and promote fast initial growth of planted seedlings. This includes vegetation clearance to reduce competition and fire risks, hole digging to improve soil structure and enhance root growth, and basal fertilization to increase soil fertility.

5.1 Vegetation Clearance. Environmental protection guidelines to be followed are the following:

Broadcast burning cannot be used as a tool of site clearing and site preparation; vegetation must be cleared by hand or machine.

Avoid comprehensive vegetation clearance on sloping areas. Clear vegetation in strips or on spots.

Debris in vegetation clearance should be retained on site as source of nutrients and to provide soil cover and help in reducing soil erosion.

Mechanical extraction of tree stumps and roots will not be allowed on sloping areas; only on flat terrain.

Full cultivation will be allowed only on flat or slightly sloping terrain below 15 degrees. Between, 16 to 20 degrees slope, cultivate in alternate strips. No cultivation is allowed beyond 20 degree5.2 Digging of planting holes

34 A Farmer’s Guide to the Establishment and Management of Mixed Species Forest Plantations. 2nd draft, FSDP, Report No. 87-A, April, 2010.

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Planting holes should not be excavated during the period of heavy rainfall.

Back-fill the hole immediately as soon as possible to keep the loosened soil inside the hole and minimize soil erosion.

In sloping terrain, dig planting holes along the contour and in fish scale- like pattern.

5.2 Basal fertilization

Apply basal fertilizer on the hole; broadcast application is not allowed.

Use a container not bare hands in handling fertilizer.

Record the kind, dosage and date of fertilizer application.

6. Intercropping

Any intercropping activities on sloping plantation sites should be carried out along the contour. No intercropping will be allowed on slopes over 20 degrees and intercropping of root or tuber crops will not be permitted over 15 degrees.

7. Tending

7.1 Weeding should be limited to what is absolutely necessary to maintain high survival and fast growth of planted seedlings, employing spot weeding around the base of the seedlings, and slashing of vegetation in other areas, so as to maintain ground cover. Vegetation debris from weeding and slashing should be left on site as a mulch.

7.2. Conduct singling during the dry season, when trees are about 4-6 months old and stems are still small. Do not conduct singling without the proper tools.

7.3 Pruning is required only on plantations that aim to produce saw logs. It is not necessary if the final product is pulpwood. It is also not necessary on species with good natural self-pruning characteristics like Eucalyptus urophylla. It will be applied only on selected trees that will constitute the final crop (saw logs). As in singling, prune only with the proper pruning equipment, never a knife. Make a clean and straight cut at the outer edge of the branch collar. The branch collar must not be injured since this is where the healing process starts. Cut pruning debris into shorter pieces and spread them evenly in the plantation.

7.4 Thinning, as in pruning, is performed only on plantations where the objective is to produce saw logs. Moreover, thinning is recommended only on good sites where the yield is high enough to warrant additional investments in thinning and pruning. Conduct thinning

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when canopy begins to close and competition for light begins. After selecting the trees to be retained, cut all others but with care so as not to injure the retained trees.

After removing any usable stems, chop the thinning debris into shorter pieces and spread evenly on the area.

8. Integrated Pest Control

Integrated Pest Management (IPM) shall be guided by the following FSC Principles and Standards:

Principle 6.6 which provides that management systems shall be used that promote the development and adoption of environment-friendly non-chemical methods of pest management and strive to avoid the use of chemical pesticides.

Principle 10.7 which states that measures shall be taken to prevent and minimise outbreak of pests and diseases, fire and invasive plant introductions. Integrated pest management shall form an essential part of management plan, with primary reliance on prevention and biological control measures rather than chemical pesticides.

FSC decision framework35 for integrated pest, disease and weed management in FSC certified forests and plantations comprises of the following steps, and are herein adapted for project plantations:

Identify and quantify the problem.

The actual or potential problem must be identified and quantified, to allow prediction to be made of likely consequences if not addressed. Once likely impacts are determined, decisions can be made on further actions to be taken.

Consider the control options

1) Take no action except to monitor the situation. This may be the case when there are no effective control measures or when the economic costs or environmental or social impacts of such control measures outweigh the risk to the forest from taking no action or when the critical threshold have not been exceeded.

2) Avoid the problem. Given a good understanding of the nature of pest or disease, it may be possible to avoid the problem. Such approach may be cheaper and involve lesser potentially damaging impacts to the environment than taking remedial measures. Examples of avoiding

35 Ian Willoughby, Carlos Wilcken, Philip Ivey, Kevin O’Grady and Frank Katto. 2009. FSC Guide to integrated pest, disease and weed management in FSC certified forests and plantations. FSC Technical Series No. 2009-001.

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the problem are (i) planting of species, provenances, varieties or clones that are resistant to known economic pests of the species; (ii) increasing plantation biodiversity through the establishment of “biodiversity corridors”, planning of 3 or more clones in any one plantation, planting of native species in mixture with fast growing exotic species, or ensuring “structural diversity” in plantations; (iii) adoption of good silvicultural practices such as weeding, fertilization, singling, pruning and thinning to promote fast growth and good health of the stand.

3) Take remedial actions when options 2.1 and 2.2 are not possible. Consider which remedial control measures are most suitable, i.e those that are both effective and have the least risks of harm to the environment, operators and local communities.

a) Non-chemical method. This is the preferred approach and must be considered first. Non-chemical control methods include (i) sanitation cuttings to remove affected branches, stems or stands; (ii) biological control or use of natural enemies of pests such as predators, parasites or pathogens; (iii) cultivation, weeding, mulching to control weeds.

b) Chemical methods, if non-chemical options are impractical, ineffective, very costly or likely to carry the risk of causing more harm to the environment and to local communities. In deciding which pesticide to use, (i) consider if there are any long term landscape scale planning or conservation designations that may limit the use of pesticides; (ii) select pesticide that is most effective at controlling the target pest but least harmful to crop species, to the environment, operator and local communities; (iii) do not use banned pesticides or those designated as “Hazardous” by FSC ; (iv) Ensure operators have the correct training for, and information on, the pesticide to be used, and are adequately protected from harmful effects of pesticide; (v) dispose of washing water, unused pesticides and used containers carefully and without harming the environment; (vi) store and transport pesticide safely; and (vii) record the use of pesticide including the amount and name of pesticide, date and method of application, and prevailing weather condition at time of application.

9. Fire Prevention and Control

Forest fire prevention and control activities must be an integral part of the operational plan for the plantation area. Such plans should establish a fire control organization, defined roles and responsibilities, and detailed prevention, public education, patrolling, enforcement and fire response programs.

In each plantation area, reduce amount of fuel in the plantation through timely and effective weed control. Cut debris in weeding, pruning and thinning to small pieces, and pile them in between tree rows. Compress the pile low by pressing or stepping on it.

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If plantation is adjoining a grassland or other fire prone areas, construct fire breaks of at least 10 meters wide along the boundaries, at the onset of the dry season.

10. Access Tracks

Access within plantation blocks will be limited to that necessary to transport planting materials to the site and to extract products from primary landings in the plantations to secondary landings at the road. Such tracks should be wide enough for motorcycles and or small tractors. Plantation block plans must show how the site is to be accessed including details on location, design, construction and maintenance. It should be emphasized, however, that as per present project design, FSDP support will be limited to access track maintenance.

All roads and access tracks must be properly located, designed, constructed and maintained. Roads and trails must be constructed according to acceptable engineering standards and shall have regular maintenance. Detailed access guidelines should be prepared early in project implementation and may include design considerations such as the following:

1) primary extraction from felling site to the first landing at trackside will be by human labor or draft animals, depending on the size of product (i.e. fuel/pulp wood vs sawlogs);2) density of secondary extraction tracks shall be the absolute minimum consistent with the practical distances of primary extraction;3) tracks will be permitted to encroach into stream protection corridors only at points of crossing, which must be in areas of stable, moderate terrain;4) stream crossings should be rock-stabilized drifts; culverts should be employed only in extreme cases where drifts are not practical;5) tracks shall have a maximum width of 3 m, a maximum favorable grade of 15 degrees and a maximum adverse grade of 10 degrees;6) cut and fill slopes must be avoided wherever possible;7) no yarding of logs or other products will be permitted on the surface of tracks;8) track rights-of-way will be lightly slashed and vegetation cover will be maintained on the running surface wherever possible;9) all tracks on side-slopes shall be out-sloped or equipped with water-bars to disperse water onto stable areas down slope; and

10) tracks will be inspected regularly during rainy periods in the first three years after construction and during periods of active use, and immediate maintenance action taken to correct problems of drainage or erosion.

11. Plantation Harvesting

Harvesting of trees and other products shall not result in long-term soil degradation or adverse impacts on water quality and watershed hydrology. All logging operations must be strictly

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supervised and enforced by DARD/DFD. For slopes over 15 degrees, logging coupes shall not exceed 10 ha with at least 60 m between adjacent coupes logged the same year. For slopes less than 15 degrees, logging coupes shall not exceed 20 ha, with at least 30 m between adjacent coupes felled the same year. Ground vegetation shall be preserved as far as possible during logging and the site shall be re-planted in the year following logging.

8. ENVIRONMENTAL MONITORING PLAN

1 Implementation MonitoringImplementation monitoring determines the progress in program implementation against established "benchmarks" and timelines (i.e. number of activities undertaken, number of plans completed, number of clients served, number of people trained, cost of delivery, etc). Implementation monitoring measures program "OUTPUTS" and will be used in program supervision and evaluation.

2 Compliance MonitoringCompliance monitoring assesses whether operational implementation has been carried out in a manner consistent with established standards and plans. Guidelines (such as these environmental guidelines) are not usually directly enforceable because they seek to cover a range of site conditions and operational activities. As the term implies, their function is to guide operational design and implementation. It will be the responsibility of the DARD/DFD to ensure that all plantation design plans meet the established principles, standards and criteria. Once a plan has been prepared and approved, DARD/DFD will be responsible for ensuring, through regular inspections and supervision, that all operations are implemented in a manner that complies with the approved plan. To ensure consistency and continuity in compliance monitoring, standard reporting forms will be used. The primary focus of compliance monitoring will be the plan prescriptions on plantation diversity, stream protection, site preparation, tending (weeding and thinning), pest management (use and application of pesticides and worker/farmer safety), fire prevention and control, and harvesting. A multi-year compliance record is an important pre-requisite to plantation certification.

3 Condition Monitoring

Condition monitoring will be conducted thru the internal assessment of plantation exercises. It assess: 1) plantation performance and productivity; 2) the effectiveness of guidelines and development plans in protecting and enhancing the environment; and 2) the contributions of plantations to local community livelihoods. This type of monitoring will utilize a limited number of practical monitoring indicators, which will be measured at established intervals and regularly evaluated to determine whether management practices require revision. Proposed plantation performance, environmental and social indicators are described in the following sections. These indicators will not be relevant to every area and every situation and must be

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selected and adapted to specific monitoring programs. These monitoring programs, in turn, must be practical, meaningful and affordable.


Regularly-maintained plantation records and maps showing areas planted each year by species/varieties, planting densities, and establishment techniques.

Survival rates (%) by year and species and the extent (ha) of beating-up required.

Extent (ha) of tending operations (weeding, thinning, pruning, fertilization) each year.

Incidence of insect attack, disease and fire (number and area impacted) and actions taken (method and area of treatment/response).

Growth or production rates by sub-compartment; recording increment in height, DBH and m3/ha/yr.

Harvesting operations (area and yield per ha and site class).


Area (ha and % of total plantation areas) of set-asides for biodiversity conservation in fire breaks, protection reserves and stream protection corridors for each plantation site of 50 ha or larger.

Regular measurements of soil fertility (organic matter, pH and selected macro, micro and trace elements).

Annual use (kg/ha) of fertilizers, herbicides and pesticides by plantation species.

Training of pesticide users/applicators in safety, handling and risks associated with use of pesticides.

Social Effectiveness Indicators

Participation rate of households (% of target villages) in plantation programs

Changes in household income attributable to participation in plantation activities

Farmer satisfaction with plantation agreements as measured by regular community consultation

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ministry of agriculture and rural …€¦ · web viewon site, soil erosion leads to loss of top...

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