Inadequacies in payment for forest environmental services between hydropower basins

(Baonghean) - Regarding the implementation of the policy of payment for forest environmental services, some people informed Nghe An Newspaper: The unit price paid for forest protection subjects in 2016 had a difference between hydropower basins, in some places only reaching 28,000 VND/ha/year, leading to a situation of comparison; potentially negatively affecting forest protection work.

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Unit price discrepancy

According to the provisional unit price that the Forest Protection and Development Fund sent to the localities, the basins of Ban Coc, Ban Ve, Hua Na, Cua Dat, Nam Mo, Nam Can hydropower plants reach over 200,000 VND/ha/year; the remaining areas including the hydropower basins: Ban Canh, Nam Non, Khe Bo, Sao Va, Nam Pong have a price under 100,000 VND/ha/year. In particular, the Nam Non hydropower basin is 46,000 VND/ha/year; the Khe Bo hydropower basin is 28,000 VND/year.

In district 30a Tuong Duong, the forest area in the basin of Ban Ve, Khe Bo, Nam Non hydropower projects is 148,153 hectares. From 2012 to present (the time when the forest environmental service payment policy was implemented), people and units and organizations participating in forest protection work in the hydropower basin have received over 44,054 million VND.

According to the assessment of the People's Committee of Tuong Duong district, the implementation of the policy of payment for forest environmental services has attracted a large number of people to participate in forest protection. Thereby, people have increased their income, contributing to stabilizing their lives, gradually reducing poverty; People's awareness of the law and responsibility for forest management and protection has been raised; Forest protection work has had positive changes, forest resources have developed sustainably. In 2011, forest cover in Tuong Duong only reached 59.1%, by 2016, it had increased to 80.3%.

Forest protection work contributes to stabilizing water sources for hydroelectric plants. (Photo taken at Ban Ve hydroelectric reservoir). Photo: Nhat Lan

According to the officials participating in the payment for forest environmental services in Tuong Duong district, the benefits from the policy of payment for forest environmental services are very clear; but through that, it can also be seen that the subjects participating in forest protection are looking forward to the funding from the policy of payment for forest environmental services. This funding source is paid twice a year (at the beginning and end of the year, when people's spending needs increase).

However, up to now, when the Lunar New Year 2017 is approaching, the payment of 2016 expenses has only been made in the areas of Ban Ve hydropower basin (with a provisional unit price of 229,000 VND/ha/year). As for the areas of Khe Bo and Nam Non hydropower basins, it has not been made temporarily because the provisional unit price for payment of forest environmental services in 2016 is too low.

Regarding this issue, Mr. Kha Van Ot - Vice Chairman of Tuong Duong District People's Committee said: "Based on the announcement of payment unit price of the Forest Protection and Development Fund, Nam Non and Khe Bo hydropower basins have a low provisional forest protection unit price, only from 28,000 - 48,000 VND/ha/year. Meanwhile, the payment amount for the first phase of 2016 according to the advance payment level is not more than 50%, so most households and groups of households receiving forest protection and providing forest environmental services in the basins of these hydropower plants receive very little money.

If implemented, it will cause difficulties for people in the process of traveling, as well as the payment force and local authorities. Therefore, Tuong Duong district has consulted with the Forest Protection and Development Fund, agreeing that in January 2017, payment will only be made to the subjects implementing forest protection in the Ban Ve hydropower basin. As for the Nam Non and Khe Bo hydropower basins, one-time payment will be made after completing the management level acceptance (expected payment in April 2017), and at the same time, it is recommended that competent authorities consider providing additional support…”.

In Que Phong district, at present, the first phase of forest environmental service payments is also being implemented. In this locality, there are also areas with very low unit prices. For example, in Hanh Dich commune, many people in the village community participating in forest protection in the Sao Va hydropower basin only receive a few tens of thousands of VND; in particular, some people only receive a few thousand VND...

Sustainable solutions are needed.

According to the regulations, in any basin where there is a large hydroelectric plant producing electricity, there will be a corresponding source of funding to pay for forest environmental services. In fact, the difference in unit prices between hydroelectric basins is not a new phenomenon that has only occurred this year, and the Provincial People's Committee has had to have a plan to provide additional support for places with low unit prices.

Specifically, in 2015, the Provincial People's Committee decided to use the funds collected from forest environmental services in 2011, 2012, 2013 (there was no spending object at the same time) to support the hydropower basins of Khe Bo, Ban Canh, Nam Pong, Sao Va, Nam Non, Yen Thang, Ca Loi with a budget of up to over 17,557 million VND (ensuring uniformity in payment unit price of 200,000 VND/ha/year).

Forces coordinate to inspect and protect forests. Photo: Nhat Lan

At the end of 2016, at the meeting of the Forest Protection and Development Fund Council, the issue of unit price differences between hydropower basins continued to be discussed. Representatives of the Forest Protection and Development Fund also predicted that complications would arise such as: Forest owners and forest protection subjects have comparisons; Difficulty in encouraging people to actively protect forests; Limited awareness of people participating in forest protection, making it difficult to propagate and explain policies... Thereby, it is recommended that members of the Council consider and have a plan to submit to relevant departments and branches for consultation, and submit to the Provincial People's Committee for support decision.

Talking to reporters, Director of the Forest Protection and Development Fund, Mr. Nguyen Khac Lam said that recently, the Provincial People's Committee has agreed in principle to continue to provide support for basins with low unit prices for forest environmental services. Regarding funding, it comes from state budget sources according to the criteria and the remaining fund resources from previous years.

After receiving the approval from the Provincial People's Committee, the Forest Protection and Development Fund is reviewing the basins with low unit prices; based on existing capital sources to develop a plan. When the plan is completed, it will be submitted to relevant departments and branches for appraisal and submitted to the Provincial People's Committee for approval...

Thus, concerns about the difference in unit prices for forest environmental services payments in hydropower basins in 2016 have been considered and resolved by competent authorities; subjects participating in forest protection in hydropower basins with low unit prices will be supported. However, a matter of concern is that the difference in unit prices for forest environmental services payments in hydropower basins will continue to occur in the following years.

If there is no fundamental solution to the problem in the long term, then "when the time comes", the problem of low unit prices in forest environmental service payments will "rise again" and become complicated. The fundamental solution is to have a legal, standard and stable source of funding. However, according to research, the surplus from forest environmental service revenues from previous years has run out. So where will the stable funding source for hydropower basins with low unit prices come from? This is an issue that needs to be considered and researched by the Council and the Forest Protection and Development Fund.

Nhat Lan