National workshop

on
Linkages of Forest Protection, Economic Growth and Poverty
Reduction - Issues and Approaches in Vietnam

Public-Private Partnership (PPP) model for AR-CDM

in Nghien Loan commune, Pak Nam district, Bac Kan province

By

Do Anh Tuan, Do Chu Dat, Hoang Minh Ha,

Nguyen Hoang Quan, Bùi Văn Quang

March, 4 to 6, 2009, Hanoi, Vietnam

 Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province

1.PPP in AR-CDM: An opportulity for private plantation

companies in Vietnam

• Clean Development Mechanism through afforestation

and reforestation opens a chance for private forest
plantation companies to joint carbon market.

• Two forms of the carbon market:

- Certified Emission Reduction (CER)
- Voluntary Carbon Market (VCM)
Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province

Profolio of land types in Vietnam

Total area of
32% Vietnam:
32,507,079 ha
45%

8%

15%

Natural forest Forest plantation Bare forestland Other lands

Source: DOF, 2008

 Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province

Land allocation and planned for different economic entities in Vietnam

Unit: Ha

Forest Private Others

State Household Communitie Army Unallocate
Total area managemen economic organization
enterprises s s units d
t boards entities s

2,553,369
Plantation 479,564 466,737 48,936 1,035,937 62,576 50,035 46,007 363,577

Bare forest 5,009,666

land 398,584 1,047,140 7,541 1,460,411 23,325 492,815 48,194 1,531,656

14,660,08 11,431,01
Other lands 0 321,226 388,493 8,782 1,940,666 86,605 400,727 82,562 9

Source: DOF, 2008

 Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province

• Constraints of private plantation companies in Vietnam

- Lack of land for plantation establishment

- weak technical capacity to access the Carbon
market & environmental funds

So that PPP could be a possible mean for private plantation

sector to establish AR-CDM projects
 Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province

2. D & G Vietnam and pilot AR-CDM project in Bac Kan

- D&G Vietnam is a private company, famous for forest
plantation and exporting woodchips for years

- The company has implementing a number of production

plantation projects in Hoa Binh, Bac Kan, Lang Son,
Quang Ninh provinces in the North of Vietnam
Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province
Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province

D&G Vietnam rent

4000 ha out of 7000
ha of bare forestland in
Bac
Pac Nam distric for
Nam plantation
establishment
 Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province

2. PPP model for AR-CDM in Bac Kan province

3rd stakeholders

2nd stakeholders

1st stakeholder
ICRAF Vietnam
Plantation Forestry
University
D& G Households

Local authoritiues Environmental funds

Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province
Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province

• Benefit sharing mechanisms

(i) PPP for planting, protecting plantation and selling wood
Case A: Forestland under mangement of community
Community
3%
District
2%
Farmers
20%

D&G
75%
Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province

(i) PPP for planting, protecting plantation and selling wood

Case B: Forestland use rights under mangement of households

Farmers
40%

D&G
60%
Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province

(ii) PPP for managing and selling Carbon Credit

Environmental
protection
funds
40%

D&G
60%
Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province

PPP in AR-CDM makes us better

Public-Private Partnership (PPP) model for AR-CDM
in Nghien Loan commune, Pak Nam district, Bac Kan province

Thank you !