DECISION

APPROVING THE FEASIBILITY PROJECT ON THE PROTECTION AND DEVELOPMENT OF COASTAL SUBMERGED LAND AREAS IN THE PROVINCES OF CA MAU, BAC LIEU, SOC TRANG AND TRA VINH IN SOUTH VIETNAM

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Regulation on Investment and Construction Management issued together with the Governments Decree No. 52/1999/ND-CP of July 8, 1999;
Pursuant to the minutes of the negotiations between the Socialist Republic of Vietnam and the World Bank from October 18 to 20, 1999 and the Vietnam State Bank’s Report No. 1127/CV-NHNN8 of November 17, 1999 on the results of the negotiations on the Project on the protection and development of coastal submerged land areas in South Vietnam;
At the proposals of the ministries of: Agriculture and Rural Development (in Official Dispatch No. 3242-BNN/HTQT of September 9, 1999, Official Dispatch No. 4033-BNN/HTQT of November 4, 1999 and Official Dispatch No. 474/BNN-HTQT of February 17, 2000); Planning and Investment (Official Dispatch No. 64/BKH-VPTD of January 5, 2000); Finance (Official Dispatch No. 5338/TC of October 22, 1999); Science, Technology and Environment (Official Dispatch No. 2182/BKHCNMT-MTg of August 18, 1999); and the State Bank of Vietnam (Official Dispatch No. 103/CV-NHNN8 of February 1st, 2000),

DECIDES:

Article 1.- To approve the feasibility project on the protection and development of coastal submerged land areas in South Vietnam with the following principal contents:

1. The projects name: Protection and development of coastal submerged land areas in South Vietnam.

2. The project owner: The Ministry of Agriculture and Rural Development.

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4. The project implementation duration: 6 years from 2000 to 2005.

5. Objectives:

- To protect and develop the submerged forest area, rehabilitate the ecology of coastal submerged forest areas in order to sustain the functions of protecting the coast and reproduce marine resources.

- To develop a buffer zone so as to support the protection of the vital protection areas and the nature preservation parks.

- To develop forestrial production, aquaculture, agriculture and other related business lines, generate employment, improve the people’s living conditions in the project area and its vicinities, create the safety area for protecting and developing coastal submerged forest areas in a long-term manner.

6. The projects scope:

- The land area stretching along the coast in four provinces of Ca Mau, Bac Lieu, Soc Trang and Tra Vinh. The total area for project implementation according to plan is 44,400 hectares (including 27,053 hectares and 17,347 hectares of vital and less vital protection areas respectively), determined in Article 2 of the Prime Ministers decision No. 116/1999/QD-TTg of May 3, 1999 approving the plan on the zoning for restoration of submerged forests (the project area) in the provinces of Ca Mau, Bac Lieu, Soc Trang and Tra Vinh.

7. The investment contents:

- Managing and protecting the ecology and growing submerged forests.

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- Developing social welfare in poor communes (including poor ethnic minorities).

- Applying the States guidelines and policies to working out specific regulations to ensure effective project implementation.

- Resettling inhabitants living in vital protection areas.

- Supervising and evaluating the use of coastal land areas, water quality, fishing productivity, bio-diversity and socio-economic situation.

- Coordinating and managing the project.

8. The total project funding is 65,673,445 USD, including:

- Concessional loans of the World Bank (WB): 31,863,445 USD.

- Non-refundable aid of Denmark (DANIDA): 11,300,000 USD.

- The reciprocal capital of the Vietnamese Government: 12,347,000 USD.

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The concessional loans are allocated to the provinces in the project area, the central project office and reserved as follows:

- Tra Vinh province: 3,075,995 USD

- Soc Trang province: 9,048,667 USD

- Bac Lieu province: 3,200,138 USD

- Ca Mau province: 10,497,005 USD

- The central project office: 2,744,946 USD

- Not yet allocated: 3,296,694 USD

Total: 31,863,445 USD

Article 2.- Organization of implementation

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- To set up the Central Project Management Board, which is composed of: a Vice Minister of Agriculture and Rural Development as its head, representatives of the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Science, Technology and Environment, the Ministry of Aquatic Resources, the General Land Administration, the Committee for Ethnicities and Mountains, the State Bank of Vietnam, the Bank for Agriculture and Rural Development, representatives of the People’s Committees of Ca Mau, Bac Lieu, Soc Trang and Tra Vinh provinces, representatives of a number of related Departments and Bureaus under the Ministry of Agriculture and Rural Development, as its members.

- To coordinate with the ministries, branches and provincial People’s Committees in organizing the project�s management apparatus. To formulate and issue guidelines for the payment procedures regarding the resettlement, growing of submerged forests, and appoint an independent auditing company as prescribed in the Development Credit Agreement.

- To direct the provinces to implement the project according to the objectives, tempo and contents prescribed in the Development Credit Agreement and the project documents.

- To coordinate with the People’s Committees of the provinces in the project area in elaborating technical processes and financial norms for forestation and resettlement activities and set up a system of accounts for the project with a view to ensuring that the Development Credit Agreement can be enforced 3 months after its signing.

2. To assign the People’s Committees of the provinces in the project area the responsibility to coordinate with the Ministry of Agriculture and Rural Development:

- In directing the project implementation in their respective localities, ensuring the objectives and tempo set in the approved project documents.

- Annually, basing themselves on the project’s objectives and contents according to the direction of the Ministry of Agriculture and Rural Development, the provinces shall make plans on the yearly reciprocal capital allocated from their budgets. If the project’s reciprocal capital exceeds the balancing capability of a province, the People’s Committee of such province shall report such to the Government for offsetting the deficit (according to Circular No. 06/1998/TTLT-BKH-BTC of August 14, 1998 guiding the reciprocal capital management mechanism applicable to programs and projects using official development assistance (ODA) sources.

3. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance in balancing and incorporating in the annual State budget plans the reciprocal capital amount and various taxes so that the Ministry of Agriculture and Rural Development and the provinces targeted by this project implement the project within 6 years.

4. The Ministry of Finance shall financially manage the project’s capital and plan the repayment of debts to the WB when they are due.

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6. The support fund for households relocated under the resettlement plan for the project implementation shall comply with the mode of support applicable to projects borrowing loans from the WB and the agreement reached at the negotiation round from 18 to 20 of October 1999.

7. To ensure the project implementation tempo in the first year, to permit the project to procure five four-wheel-drive and six-seat cars and five high-speed motor boats of 60HP out of the total of 15 cars and 31 high-speed boats (one car and one boat for each province in the project area and one car and one boat for the central project office/site coordinating board) through the multilateral procurement agency of the United Nations and in strict compliance with current tax regulations of the Vietnamese State.

The source of fund for the above-said procurement of cars and motor boats shall come from the loan source as agreed upon in the project content.

8. Financial management: Five special accounts are allowed to open (one special account for each project province and one special account for the central project office/site coordinating board).

Article 3.- This Decision replaces Decision No. 540/QD-TTg of May 12, 1999.

On the basis of the feasibility project approved by the Prime Minister, to assign the Minister of Agriculture and Rural Development to approve the different items in the project contents in line with the annual project implementation plans as agreed upon with the WB.

Article 4.- This Decision takes effect after its signing.

The Ministers of: Agriculture and Rural Development; Planning and Investment; Defense; Finance; Aquatic Resources; Science, Technology and Environment; the Minister-Director of the Committee for Ethnicity and Mountainous Areas, the Governor of the State Bank of Vietnam, the General Director of the General Land Administration, the presidents of the People’s Committees of Ca Mau, Bac Lieu, Soc Trang and Tra Vinh provinces, the general director of the Bank for Agriculture and Rural Development, the heads of the related agencies shall have to implement this Decision.

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FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Nguyen Cong Tan