TFF Annual Report 2010 - Forest Sector Support PartnerShip

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					                         Ministry of Agriculture and Rural Development
                                   Trust Fund for Forests (TFF)




               TFF annual report 2010


         Prepared by:

        TFF Management Unit / March 2011




TFF Annual Report 2010                      1
TABLE OF CONTENT

EXECUTIVE SUMMARY                                                            4

1         TFF PORTFOLIO PERFOR MANCE                                         9

    1.1   GA018 (CBBC)                                                           10
    1.2   GA019 (LAM DONG)                                                       12
    1.3   GA20 (PPFP)                                                            13
    1.4   GA021 (FLITCH)                                                         15
    1.5   GA025 (FSDP)                                                           18
    1.6   GA029 (FORMIS)                                                         21

2         OFF-PORTFOLIO PERFORMANC E                                        23

    2.1   Fund mobilization and Receipt                                          23
    2.2   Capacity and instrument development                                    23
    2.3   BoD Meetings                                                           24
    2.4   Fund utilization and portfolio management                              24
    2.5   Operational planning and reporting                                     25
    2.6   Communication and Public Relation                                      25
    2.7   TFF into VNFF                                                          25
    2.8   Conclusion                                                             27
    2.9   Recommendations                                                        27

3         FINANCIAL REPORT                                                  29

    3.1   Annual Financial Data (1st of January to 31st of December 2010)        29
    3.2   Annual Planned Budget for 2011 and 2012                                30

4         CONCLUDING REMARK                                                 31




LIST OF TABLES
Table 1: Project Performance                                                      9
Table 2: Financial Data 2010                                                     29
Table 3: Planned Budget for 2011 and 2012                                        30




TFF Annual Report 2010                            2
Acronyms
ASEAN                    Association of Southeast Asian Nations
BoD                      Board of Directors
CBBC                     Capacity building for Conversation
CFM                      Community Forest Management
CIP                      Commune Investment Plan
CO                       FSSP Coordination Office
CPMU                     Central Project Management Unit
DARD                     Department of Agriculture and Rural Development
FLA                      Forest Land Allocation
FLITCH                   Forest Livelihood Improvement to the Central Highlands
FMU                      Forest Management Unit
FMB                      Forest Management Board
FORMIS                   Forest Management Information System
FRA                      Fiduciary Risk Assessment
FSDP                     Forest Sector Development Project
FSSP                     Forest Sector Support Partnership
GoV                      Government of Vietnam
HH                       Household
KfW                      German Development Bank
LURC                     Land Use Rights Certificates
MARD                     Ministry of Agriculture and Rural Development
MoF                      Ministry of Finance
MoU                      Memorandum of Understanding
MPI                      Ministry of Planning and Investment
NPMB                     National Planning Management Board
NCAEZ                    North Central Agro-ecological Zone
ODA                      Official Development Assistance
OM                       Operational Manual
PES                      Payment for Environmental Services
PIM                      Project Implementation Manual
PPC                      Provincial People’s Committee
PPFP                     Pro-poor Forestry in upland North Central Agro-ecological Zone
PPMB                     Provincial Planning Management Board
PPMU                     Provincial Project Management Unit
PRSC                     Poverty Reduction Support Credit
REDD                     Reduction of Emission from Deforestation and Degradation
ROI                      Return of Investment
SFC                      Sustainable Forest Certificate
SFE                      State Forest Enterprise
SOP                      Standard Operation Procedure
SME                      Small and Medium Enterprise
SUF                      Special Use Forest
SWAP                     Sector-wide Approach
TA                       Technical Assistance
TDNP                     Tam Dao National Park
TFF                      Trust Fund for Forests
TFFMU                    Trust Fund for Forests Management Unit
TOT                      Train of Trainer
VBS                      Vietnam Bank for Social Policies
VCF                      Vietnam Conservation Fund
VFDS                     Vietnam Forest Development Strategy
VNFF                     Forest Protection and Development Fund
WPF                      Watershed Protection Forest


TFF Annual Report 2010                           3
        EXECUTIVE SUMMARY
(1) The Trust Fund for Forests (TFF) was established on 23rd of June 2004 through the Memorandum of
Understanding (MoU) signed between the Government of Viet Nam (GoV) and the Governments of Finland,
the Netherlands, Sweden and Switzerland. TFF is a potent and effective financing mechanism by pooling
funds from international donors to address sectoral priorities with regard to pro-poor sustainable forest
management and for the reduction of transactional costs as well as aligning with administration and
planning systems of the Vietnamese Government in support the implementation of the Vietnam Forestry
Development Strategy (VFDS, 2006-2020).
By 2010 the funds committed to TFF by the contributing donors are 30.92 million EUR. Around 15% (4,7
million) of these funds are earmarked for specific projects. A total of 19.37 million EUR was received as of
31st of December 2010; a commitment of 11.54 million EUR remains. For the year 2011 (quarter II, III and IV)
a fund request of 5.62 million (for Finland) and 1.2 million EUR (for SDC) is expected; respectively for 2012
around 3.43 million EUR (Finland) and 1 million EUR from Switzerland. All details are provided in Chapter 3.1.

Completed projects count for 4.42 million EUR, the commitment for ongoing / new projects (from 2011) is
26.49 million EUR, the disbursement to projects until 31st of December 2010 counts for around 50% of the
committed funds; in detail 13.26 million EUR are disbursed which is leaving a remaining fund of 13.23 million
EUR. The remaining fund will divided into planed budget for 2011 (8.13 million EUR) and for the year 2012
(4.43 million EUR.).

(2) The i) unallocated remaining fund, ii) the unspent fund1 from GA025 World Bank project and iii) the
reduced commitment from FLITCH project (GA021; due to significant delays in the project implementation2
will be reallocated to five new projects; namely the support of VNDOF, FSSPCO, CFM Phase 2 and the
extension of the World Bank Project; both the plantation and the VCF component. All details are presented
in Annex 4.

(3) With those new projects the decision makers are able to finance more cost-effective projects for an
effective development of Vietnam’s forest sector and further support the VFDS 2006 – 2020 or for identified
new priorities related to adapting and mitigating the negative impacts of Climate Change to Viet Nam or
support the implementation of new financing mechanism as PES and / or REDD.

(4) On BoD#11 on 19th December 2010 the BoD made i) the general decision to extend the GA025 (FSDP)
project; followed ii) by the official approval of the donor (Letter Nr. 45/11, dated 17th of February 2011) and
the iii) approval of the Prime Minister (No. 342/TTg-QHQT, dated 9th of March 2011). Therefore the GA025
FSDP got an approval on extension for TFF fund for TA; 0.56 million EUR for the plantation component
(FSDP) and 0.84 million EUR3 for the Vietnam Conservation Fund (details see paragraph 54) using the TFF
unspent amount and the FLITCH cut.

(5) The agreement between TFF and the Embassy of Switzerland will come to an end in December 2011,
between TFF and Finland end of 2012. TFF will kindly request SDC to extend the current agreements till the
end of December 2012; nevertheless SDC will wait for the successful conduction of the 3rd TFF evaluation
before make a final decision.

(6) During 2010 there were the following projects ongoing: Four single-funded projects4 and two co-
financed5 projects together with the World Bank (GA025) and the Asian Development Bank (GA021). The

                1
                  Fund still unallocated to GA025 project; still on TFF’s account
                2
                  330.356 from Grant 0060-VIE FLITCH and 1.525.285 EUR from TA 4895-VIE
                3
                  0.8 million USD for Plantation / 1.2 million USD for VCF component
                4
                  GA018 CBBC; GA019 Lam Dong; GA020 PPFP and GA029 FORMIS

TFF Annual Report 2010                                     4
GA018, CBBC, was closed in June 2010 and the final report handed over to the donor whereas the Lam Dong
GA019 projects close down in March 2011. The GA021 with the respective TA and FA components as well as
the FORMIS project (GA029) will all be closed from TFF’s side end of December 2012.

(7) The CBBC (GA018; 596.406 EUR) approved 2010 budget (by MARD6) was 194.419 EUR; whereas 161.299
were disbursed from TFF to the project. The utilization by the project in 2010 was 124.517 EUR. The project
closed on 22nd of June 2010, the final evaluation report was published end of June 2010. The total fund
utilization since project start at the end of 2010 was 548.274 EUR, accounting for 92% the total project
budget.
Until now the project increased the capacity of forest protection personnel to effectively manage protected
areas and enforced the Vietnamese forest protection legislation.
The project furthermore promoted already full interagency cooperation and law enforcement; SOPs were
developed and accepted, signed and put into operation. An MOU was signed between environment police
and forest protection department for close cooperation which will support strongly the forest protection and
ensure the income generation of household in this area. The national training curricula for improved forest
and biodiversity protection were successfully developed and finally approved by MARD in October 2010.

(8) Lam Dong (GA019; 926.092 EUR) runs until 22nd of March 2011. A total amount of 817.155 EUR was
utilized since project start, counting for 88% of the total budget. In the year 2010 the project had
expenditures of 162.586 EUR, out of 204.887 EUR transferred by TFF to the project. The unused amount of
72.975 will be transferred back to TFF.
A direct output is that not only the capacity of Lam Dong’s DARD but also the different FMU’s, other
agencies and relevant staff were significantly increased and strengthened on planning and managing high
value conservation forest (HVCF). Training courses strengthened the capacity on payment for environmental
services (PES) and collaborative forest management with local community. The output contributed to
achieve one of the project overall objective of maximizing the contribution of Vietnam’s three forest
management categories to reducing poverty, providing environmental services, sustaining biodiversity
values and to support the development of the national economic. An evaluation team was selected,
consisting of one national and one international consultant. During the writing of this report the final
evaluation was ongoing; the final report is to be expected end of March 2011.
All six created FMU’s are now able to prepare diverse multiple-use forest planning and management
documents. Regulations in collaborative forest management between the FMUs and local communities have
been successfully established. The Lam Dong province now permitted planning and investment, forest
management, protection and development for all six FMUs in the project area according to the approach to
multiple-use forest management. An area of high conservation value forests has been agreed on and in the
end the loss evergreen forests (due to agricultural activities) and losses of due to fire was in 2010
significantly reduced.
A mechanism for enhanced community participation in planning, development, management and benefit
sharing and regulations in collaborative forest management with local communities are agreed on. This
output currently and in the future helps relevant communities to use the gained knowledge for a more
sustainable exploitation of non-timer forest products and therefore a livelihood improvement for the
affected households in the area. The forest resources in the project area are still successful conserved
through active participation and coordination of indigenous communities. With the five-year forest
management plans for six FMU’s, six multiple-use management models were established in six FMU’s and
enhanced community participation it is ensured.

(9) PPFP (GA020; 3.14 million EUR) had 292.000 EUR approved for 2010, whereas 299.687 were transferred
by TFF. An amount of 322.011 EUR was utilized by the project in 2010. From the project start until the


               5
                   GA021 FLITCH and GA025 FSDP
               6
                   Not to be confused with approved budget by TFF (after reviewing and deduction of what is left on the project account)

TFF Annual Report 2010                                         5
closure date7 on 4th of February 2010 the project utilized the amount of 2.023.445 EUR8 accounting for 64%
the total project budget. The 2010 budget plan was approved before making decision on project termination
in February 2010. The PPFP Project therefore needed more money to cover un-expected costs regarding
termination procedure and clearance exercises, especially to mention are in that context the pending
consultant costs incurred in 2007 and 2008. There were no expenditures after the project closing date.
The reports on project termination and the “Technical Report on Termination” were finished in June 2010
and are available. Results for participatory land allocation processes and implements forest land
management for sustainable and improved household income were only partly achieved due to the
premature closing of the project.

(10) FLITCH, the GA021 had 12.34 million EUR9 committed in 2010. In January 2011 the project was informed
by the TFF - following the decision of BoD#11 dated 19th of November 2010 - about cutting down the TFF
commitment in regard to the TFF regulation. It is verified because the annual disbursement rate compared
to the approved annual budget was below 75%. The liquidation plan of ADB was designed to cover (with TFF
funding) the technical assistance until the end of 2014 whereas the TFF Administration Agreement is only
valid until end of 2012. Therefore the basic for calculation of cutting the commitment was the planed budget
of 2013 – 2014. TFFMU then agreed on ADB’s new submitted draft proposal on a revised work plan &
utilization based on the results of the FLITCH MTR (for until 2012 only). TFFMU proposed a cut down from
1.8 million EUR and donor agreed on Option 2; details are provided at Minutes of Meeting of BoD#11.
An amount of 330.356 EUR was cut down from the Grant 0060-VIE FLITCH as well as EUR 1.525.285 from TA
4895-VIE. A revised work plan and budget according to the new budget is expected in March 2011. The
overall budget for FLITCH is now 10.48 million only.
In 2010 the approved budget was 1.87 million EUR for 2010, whereas TFF disbursed 1.48 million EUR. The
project utilized 1.48 million EUR altogether10, divided in 1 million EUR for FA component (=85% compared to
plan for the FA component) and 0.47 million EUR for TA component (69% for the TA part).
As of 31st of December the project disbursed the amount of 3.28 million EUR (~27% of the total project
budget).
ADB together with TFF conducted the Mid Term Review from 18th of October to 12th of November. The MoU
was reviewed by TFF and comments and suggestions of the donor were incorporated.
For the forest land management planning the project developed and approved guidelines, terms of
reference, cost estimates for forest land management and planning for all 6 provinces; procured satellite
imagery for Kon Tum province and the mobilization of service providers for land use planning. Within the
area of forest resource development the target area increased from 99.000 ha to 180.000 ha.
CDF is becoming functional and currently fund for 38 communes was transferred, whereby loans have been
provided to members in 18 communes and Community Investment Plans have been approved for 59 of a
total of 60 communes. To further improve the capacity of the staff and farmer all together 175 different
training courses have been conducted in 2010.
After the MTR the ADB proposed that based on different meetings with the PPMUs indicated that the
current CDF amount of USD 20.000 per commune is not sufficient and proposed to increase the amount to
USD 30.000 per commune. After the assessment of TFFMU and several discussions between TFFMU and the
donors both parties gave the recommendation not to increase the CDF amount.
3,124 ha of production forest was planted by HH in 2010; 326 ha for agroforestry as well as 220 ha of
afforestation by SME’s. For the participatory Community Forest Protection 21.911 ha were established.

(11) FSDP (GA025; 9.2 million EUR11) had an approved 2010 budget of 1.97 million EUR and utilized 1.23
million EUR (0.38 million for VCF and 0.85 for the FSDP plantation. The overall budget for the project after

               7
                 Regarding to decision no. 065/TFF-CV and decision no. 481/BNN-HTQT
               8
                 Including 123,757 Euro lost by exchange rate plus 4,293 Euro auditing fee to be paid by TFF
               9
                 Managed by the Asian Development Bank (ADB) on behalf of TFF under a Grant Administration Agreement of June 2007
               10
                  Actual expenditure form TFF fund is only 1,26 million; project advanced to activities 220.014 EUR
               11
                  Managed by the World Bank Group (WBG) under a Grant Administration Agreement of December 2004

TFF Annual Report 2010                                     6
the agreement is therefore 2 million USD higher; nevertheless it is expected, that the project can’t spend all
fund within the regular period (which ended December 2010). The un-used fund from the project (before
start of extension period) will be transferred back to TFF. The new commitments will be then submitted to
the project separately

As of 31st of December, the project utilized altogether the amount of 6.24 million EUR, accounting for ~68%
the total project budget. After assessment of the project and a joint-mission donor and TFF agreed that the
FSDP is delivering good results for both the plantation and VCF component. Therefore it is considered
worthwhile to extend the projects. Therefore the TFF fund will be provided for an extension, namely one
year for the plantation component with 0.8 million USD and 1.2 million USD for two years for the VCF
component.

(12) Considering the suggestion of the State Bank (letter No.30/TTr-NHNN) dated 25th of February 2011, the
Prime Minister has the comments that it is agreed i) with the revised content of the agreements on credit
development and on Trust Fund within the framework of FSDP project and extension of closing date for
CR.3953-VN by 31st of March 2012 and for TF.53397-Vn by 31st of March 2013, as requested by the State
Bank; ii) The State Bank of VN shall work on procedures with WB for the revision and extension according to
the existing regulations and iii) MARD should have detail plan to implement and complete all activities
within extension duration, to ensure the Project conducted as right process and achieve expected targets.

(13) So far 133 Forest Farmer Groups (FFGs) were established, increasing total to 435 FFGs with
participation of 11.333 households to plant 20.047 ha. In addition 24 pilot FFGs have been established in
four provinces with the total area of 1.758 ha for preparation of forest certification.
18.356 LUCs were successfully issued since the project start covering 34.126 ha.
120 project communes and 37.953 ha out of 65.000 ha completed the plantation design, 7.384 alone in
2010.

(14) FORMIS (GA029; 1.8 million EUR) approved revised budget for 2010 was 423.000 EUR, whereas 437.759
EUR were spent until end of December 2010.
The steering committee was created, three PPMU assigned. The ITWG at central level started working with
two meetings in September 2010, focused on the TOR for the WG.
The WG’s will support the alignment of procedures, standards and mechanism to share information between
forestry agencies and therefore support the implementation of the VFDS. Information need for core forestry
processes have been documented in an information matrix. The FORMIS system architecture was approved
in the steering committee meeting on 27th of August 2010. It was also decided on the first sub-systems,
namely the FORMIS platform, FORMIS portal and the forest resource database system. The IT infrastructure
procurement was done in the 4th quarter of 2010 following the projects work plan approved by MARD.
The assessment for existing hardware and software as well the information needs was finished. The training
need assessment and training plan was drafted. For the strengthened capacity in MARD for monitoring the
VFDS implementation improved data collection methods activities are ongoing, impacts are expected by the
end of 2010. Project management and coordination structures were established are now in place at central
level and in the three pilot provinces. Until June 2010 the cooperation and working conditions between
TFFMU and FORMIS was excellent. The project is running very smoothly and has a very good performance.
The CPMU started in early March the implementation of the work plan.

(15) This report is prepared by the TFFMU to reflect TFF operations in 2010. The report follows the structure:
    1   TFF Portfolio Performance
    2   Off-portfolio Performance
    3   Financial Report
    4   Concluding remark


TFF Annual Report 2010                            7
The chapter “TFF Portfolio Performance” gives a brief overview about the status, the achievements in
reporting period compared to annual plan, the key results achieved, the problems and related actions taken
as well as short recommendations, if any.
Chapter two provides an overview about the comprehensive activities of the TFF Management Unit, focusing
mainly on fund mobilization and receipt, capacity and instrument development, fund utilization and
portfolio management. Fund requests were sent to the donor, the new OM was finalized. The BoD#10 was
hold in April; the BoD#11 in November 2010; Chapter three shows in financial details. Six annexes to the
report provide more detailed information.




TFF Annual Report 2010                          8
   1 TFF PORTFOLIO PERFOR MANCE
(16) The assessment of the five main indicators was done for the ongoing projects. The first indicator is the
Progress related to the annual work plan and to the previous year (both in %). Second Coordination /
Management between the different level12; third Disbursement rate for (a) the Reporting Period (should be
above 50%) and (b) the previous year (consideration here is mainly the reason for low disbursement, e.g.
because of bad management or bad annual planning (=negative scoring) or because of external reasons,
which not affect the implementation of the annual work plan (= positive scoring possible). Fourth the
Contribution to the Sector Policy Development (Policy Development & Workshops) and fifth related to the
Training / Capacity Development.
The Result based ranking for the year 2010 is based on the assessment of the progress against logical
framework and approved annual work plan; the details are provided in Annex V. TFFMU assessed the
different indicators for the respective year and compare which and how many activities were implemented
in what quality to finally reach the expected results.
For the assessment the TFFMU is using a performance matrix based on a “Result based Management Tool”,
developed by TFFMU. The performance matrix is verifying and evaluate different indicators about i)Progress;
ii) Coordination and Management, iii) Disbursement Rate and the iv) Contribution to the Sector Policy
Development. In addition the TFFMU assess the progress against logical framework and approved annual
work plan. For each project every single expected result will be split up into the different expected activities
(depend on every single project). Then each activity (ongoing or recently implemented during the reporting
period) will be evaluated in regard to the quality (Q-Rating). This Matrix can be found in the Annex XII.
Additionally TFFMU is considering other soft facts. Those will be taken into account; as example the
implementation speed of activities (delay, quality), the communication with the project, and the quality of
the reports / requests, quality of meetings or preparation of Review Missions from the project.
The actual project performance and result based ranking based on the description above is shown in
following table:

  Ranking based on       Ranking based on       TFF Grant        Grant Acronym         Grant status
                                                                                                         Total Approved TFF (€)
      RESULTS             PERFORMANCE             Code            (short name)          June 2010
       Good                   Average           GA 018/07             CBBC             Implemented              596.406

       Good                    Good             GA 019/07           Lam Dong              ongoing               926.092

      Average                 Average           GA 020/08              PPFP             Terminated             3.147.755
                                                                                                                          13
      Average                  Good             GA 021/07             FLITCH              ongoing             12.340.000
                                                                                                                          14
       Good                    Good             GA 025/06             FSDP               Extended             9.200.000

      Average                  Good             GA 029/09            FORMIS               ongoing              1.798.636

                                              Table 1: Project Performance

(17) After BOD#11 TFF donors decided on funding EUR 100.000 for the FSSP CO 2011-2012 with the
condition of earmarked support of 80% (for financial support to the partnership activities) and 20% for the
operational and overhead cost. For the support of the VNDOF proposal, the donor are willing to support the
VNDOF proposal but for TA and its costs only. For other costs like overhead costs, meetings or interviewing
counterpart contributions should be considered.


                 12
                    Central Level (CPMU) to Province – District – Commune; CPMU – TFFMU; CPMU – TA / PPC; CPMU – Administration
                     Agreement Partner (GA021 and GA025) (AA) and / or Technical Assistance (TA)
                 13
                    Commitment from TFF reduced by 1.85 million EUR in January 2011
                 14
                    An additional funding of 2 million USD was agreed on in February 2011

TFF Annual Report 2010                                   9
The proposals for the Mangrove forest as well as the CFM Project (Phase 2) should be revised and updated in
regard to donor comments, so far no revised proposals were submitted (Status March 2011). Then donor will
re-assess the proposals, if funding is appreciated and revised proposals are developed. The proposals for the
new projects of VASI and FIPI are not eligible at this time but donor would reconsider if new proposals could
be resubmitted to donor. Nevertheless no revised / new proposals are available at the time of the writing of
this report.



1.1       GA018 (CBBC)

(18) The Capacity Building for Biodiversity project, or CBBC in short (GA018; 596.406 EUR) was successful
implemented by the national Forest Protection Department (FPD) under MARD on 22nd of June 2010. The
approved budget for 2010 was 194.419 EUR whereas 124.517 EUR were utilized. The disbursement rate was
at 64%.

(19) The most successful outcome of the project is a set of training material for the forest rangers. This is the
first manual for forest ranger force to ensure good work in Vietnam. The training material is not only useful
and practically suitable for the forest rangers from protected area but also for students from universities of
forestry and environment and forestry throughout Vietnam. Colleges including the Department of
Environment Police (Police Academy), as well as officials from Forest Department at central, provincial and
district level also are able to use this manual.
In the short term the project has improved and strengthened the operational capacity of agencies to
implement law enforcement more effectively in the protected areas in Thai Nguyen, Vinh Phuc, Tuyen
Quang and Quang Binh province. In the long term the project is to contribute to an improvement of the
implementation of legislation on protection of forest ranger in Vietnam.
A training program framework was established to improve the knowledge and working skills for officials
from the protected area. The project has developed eight modules including three modules for the basic
course (law enforcement, field skills and biodiversity monitoring), two modules for technical course (IT and
biodiversity monitoring) and three modules for the management course (law enforcement, field skills,
biodiversity monitoring.
The national training curricula as result one are developed, piloted, reviewed and approved by MARD for
institutionalization to ensure long-lasting and sustainable forest protection and biodiversity conservation.
For the second result - train the trainer -, a 10-day pedagogic course for 13 instructors was held from 5th to
15th of January 2010 in Hanoi and four experimental courses (131 days) in Tam Dao, including a basic course,
a technical course and a management course. During 2010 the project coordinated with the Phong Nha-Ke
Bang project to train 10 instructors in Phong Nha-Ke Bang National Park and continue training rangers in a
basic course. The instructors were the rangers and officials from FPD with the age from 24 to 40. The project
collaborates with School No.1 for Personnel Management of MARD, the Forestry University, the Hanoi Law
University, the National Academy for Police, the Phong Nha Ke Bang project, VCF and FLITCH project.
For the result three the provincial inter-agency task forces were institutionalised. Three working groups of
joint PFPDs and Provincial Environment Police were established and working in three provinces followed by
three sum-up workshops to review the pilot implementation interagency cooperation in three provinces15. A
complete standard framework of operating procedures for each province (Tuyen Quang: Four violation
groups, Vinh Phuc: Nine violation groups and Thai Nguyen: Three violation groups) was finalized though
consultancies and workshops. Nine violation groups include:

      -   (1) Illegal logging at large scale in special use forests,
      -   (2) Mineral mining illegally in special use forests,
      -   (3) Large-scale burning of forests for shifting cultivation,
                  15
                       Total of 103 participants

TFF Annual Report 2010                                10
    -   (4) Illegal wildlife trafficking,
    -   (5) Illegal harvesting and trade NTFPs at large scale,
    -   (6) Exploitation and trade in timber products for large scale,
    -   (7) Hunting wildlife at large scale,
    -   (8) Business of wildlife and rare plant species in the restaurants,
    -   (9) Illegal transport of forest products, wildlife, timber products and NTFPs at large scale.

The provinces have issued operational procedures for inter-agency task force operation (Vinh Phuc,
Agreement 35/BTT/CCKL-PC36; Thai Nguyen: procedure 722/QTrPH; Tuyen Quang Regulation No.09/QCPH-
CSMT-KL). After three months when the inter-agency task force became operational, the number of
violations of forest law detected and processed in Vinh Phuc province increased by 75% over the same
period in 2008; in Tuyen Quang province, the number of violations against the forest law detected counted
31 cases, which is increase of 19% over three months of the same period in last year; and in Thai Nguyen
province, the number of violations detected, decreased by 13.9% over the three previous months. All the
violations against the forest law were handled according to regulations.

(20) The project had participated in building a regulation16 between the environmental policy and forest
protection force, the provincial environmental police in each province sent one policeman and each PFPD
assigned six staff to work permanently in the inter-agency working groups, resulting in enforcement of the
law. The project drafted an agreement for integration between provincial units (environmental policy and
forest protection unit). On the basic of this regulation progress, the project had built draft of standard
action progress for inter-agency force. Since then the project drafted decisions of the Provincial People
Committee for implementation of standard action progress. The development of training curricular based on
ASEAN competence standard had as a direct result a strong impact on all ranger operations, e.g. biodiversity
monitoring capability; management skills and enforcement for forest protection.

(21) As for result four, the enhanced capacity of FDP staff different courses were implemented, the capacity
from the trained people improved for provincial task forces, Tam Dao National Park Managers to pilot
curricula for managers, technical staff to pilot curricula for technical and research staff and training courses
for rangers to test training curricula for FPD protected area ranger staff. Project monitoring and
management the PMU is fully operational and the internal database developed. GA018 coordinated strongly
with the Vietnam Conservation Fund (VCF) and KFW project to provide support for Phong Nha Ke Bang
National Park as well as GA021 (FLITCH) to conduct training using training curricular developed by the
project.

(22) The project implementation was slightly delayed because the project had to follow international bidding
processes required by law. In addition the developed curricula’s were very comprehensive and the
translation into Vietnamese consumed more time than anticipated. The project managed and used human
resources and coordinated all activities following donor and MARD regulations. The no-cost extension was
justified to identify lessons learned from the project implementation and replicating project results into
activities of the created Forest Ranger Force and the developed curricular approved by MARD and integrated
into education system.

(23) CBBC is the first project to develop training materials aiming at improving knowledge and skills for
ranger force of special used forests. Although the localization of the materials into Vietnamese still has some
shortcomings as well as the non-proper contents which are not conformed with Vietnamese conditions and
laws, the materials are considered to be useful in advanced training to ranger force and students from
universities, colleges and administration schools in the field of forestry and environment. Especially, the
materials provide them with skills on the field and knowledge on biodiversity. If training materials are taught
in universities and colleges of environmental and forestry as the “soft” special subjects, the project can make
                16
                     No. 1188/QCPH – C36 on 10th of December 2008

TFF Annual Report 2010                                      11
significant contributions to improve knowledge on law enforcement, conservation of biodiversity and field
skills to students from universities and colleges in Vietnam.

(24) The TFFMU identified no major restrains, problems, restrictions, insufficiencies or weaknesses during
2010. The project managed and used human resources and coordinated all activities following the donor and
MARD regulations.
The project management board coordinated with experts from relevant agencies and from MARD. The
Lesson learnt will be maintained during course of coordination of law enforcement and forest protection and
management and biodiversity conservation activities.
CBBC project's activities ended on the 22nd of June 2010. The training program framework has not yet been
approved by MARD, and the results of trainers are limited. Therefore, FPD should propose Directorate of
Forestry and Phong Nha - Ke Bang project to support to finalize above mentioned contents, so the
sustainability and effectiveness of the project can be promoted once it is completed.


1.2     GA019 (LAM DONG)

(25) Lam Dong (GA019; 926.092 EUR) project runs until 22nd of March 2011. The expenditures by the project
were 162.586 EUR compared to an approved budget of 197.366 EUR. That is an implementation rate of 75%.
Since the start the project utilized an amount of 817.155 EUR accounting for 88% the total project budget.

(26) The project is embarking on a very challenging concept which hasn’t yet applied or even tested at larger
scale in Vietnam and the entire region. The concept is envisioning a radical shift from current forest function
classification systems with a singular management objective per forest type, following the current
Vietnamese forest function classification system, towards a multiple-use forest management defining zones
of different management objectives within each of the three forest types of Vietnam. Thought different
provincial workshop, institutionalisation within the given project period, Lam Dong PPC has approved new
provincial planning and financing schemes with 45.000ha of forest earmarked to be leased to organisations
and individuals.
Provincial representatives clearly articulated the need for further cooperation with the project to
incorporate main concepts into above mentioned provincial programs and to ensure that project outcomes
will become integrated components of provincial forest management planning. A further immediate project
impact is seen in the widened scope of the provincial action plan for biodiversity conversation considering
the scale of application for all three types of forests thus including production forests as well. The capacity
and cooperation of Lam Dong DARD and selected FMU, districts and communes in multiple-use forest
planning and management, forest valuation and collaborative management increased further during 2010
with all activities completed aimed for 2010. This is a strong foundation for improving institutional and
policy issues in implementing the model of multiple-use forest management.
Through the training courses target staff from the six selected FMUs are now able to prepare multiple-use
forest planning and management documents and therefore supporting result one. As a direct outcome Lam
Dong DARD and FMU stakeholders have now an improved capacity to value forests through PES program
piloted in Lam Dong province and in planning and managing High Value Conservation Forest Other trainings
directly resulted in increasing the capacity of relevant staff on valuing ecological services which serve to the
payment for ecological services (PES) in Lam Dong province (PES). This output will help to find new financing
mechanism and mitigate the negative effects of climate change in Vietnam. The regulations in collaborative
forest management between the FMUs and local communities have been established; relevant sides
committed to implement the regulations after the project has finished. This effectively contributes to
successful implementation of decision 380/QĐ-TTg on piloting the payment of ecological services in Lam
Dong province. For multiple-use management piloted at selected Forest Management Units the models of
multiple-use forest management (comprising special use forest, watershed protection forest and production

TFF Annual Report 2010                            12
forest) for six FMUs in the project area representative three forest categories in Vietnam are established.
The project has organised a provincial workshop to present the model for FMU multiple-use forest
management. This workshop is to consolidate all variables, strategies and working mechanisms into an FMU
multiple-use forest management model. A publication of demonstrative forest valuation in Lam Dong province
and guiding on forest valuation in Vietnam has been published to further increase the awareness of multi-use
management. Another achievement is that the collaborative forest management regulation identified the
benefits and measures for local community participation in planning and management of forest resources
and the loss of FMU evergreen forests (due to agricultural activities) and losses of FMU forests due to fire is
reduced.
For the mechanisms for enhanced community participation in planning, development, management and
benefit sharing four consultative workshops with communities in relevant villages and a provincial workshop
to assess opportunities and constraints for participation of local communities in planning and management
of FMUs, and define possible co-management schemes have been organized. This created a high awareness
within these communities for a sustainable multi-use management. Lam Dong province permitted to build
projects of planning and investment, forest management, protection and development for six FMUs in six
relative villages within the project area according to the approach to multiple-use forest management. Lam
Dong will approve to carry out these projects after the project has finished making the basis to replicate the
models all over the province. The area of high conservation value forests has been agreed to manage in the
project area. These activities allow the establishment of a strong foundation for the dissemination of the
model.

(27) It can be summarized that all outputs achieved so far contributed to achieve an maximization of the
contribution of Vietnam’s three forest management categories to reducing poverty, providing environmental
services, sustaining biodiversity values, and supporting national economic development.

1.3     GA20 (PPFP)

(28) PPFP (GA020; 3,147,755 EUR) had 292.000 EUR approved for 2010 by TFF. This amount was not included
in the approved budget for 2010. The amount of 322.011 EUR was utilized.

(29) Despite a shorter implementation period lessons learned from this project are prominent and relate to
many fields. Some key lessons regarding organization management and mechanism needed to be taken into
account during the project design and approval process are the following:
The project design process should give priorities to simple projects having high feasibility with clear objective
and should not be too ambitious. The targets of the project should be direct, detailed, obtainable and
observable through visible outputs of the project and design process should include the participation of all
stakeholders and should keep all outputs as well as the building process, enclosed with explanations and
evidences showing how stakeholders have been consulted and how their contributions have been reflected
in the project design process. Tendering procedure for TA service should be strictly followed in order to
ensure the selection of the possibly best TA service providers. The establishment of project management
tools (project implementation guidance, monitoring and evaluation system, inception report) should be
regarded as important points in supporting the project and monitoring and evaluation of all stakeholders
should be clearly developed from the beginning. Besides, there should be one project monitoring and
evaluation specialist in the central project management board.
The project was organized to carry out its activities at three levels, management of project implementation
at the central level, at provincial level by provincial project management boards and at district and
commune levels by project implementation boards. The direct achieved result was that the project
management boards from central to local levels have been formulated. Guidance documents for project
implementation such as “Regulations guiding TFF project implementation” have been published. In general,
the management capacity of the project owner was not sufficient at the beginning of the project but has
gradually been improvised during the time before termination.

TFF Annual Report 2010                             13
For the capacity building activities for the project key implementing agencies and partners the capacity of
local staff and people has been improved through training courses on forest protection, forest protection
and development planning, GIS technology application, building of forest plantation, agro-forestry and NTFP
models at provincial, district and commune level. Through using pilot models, technical training courses on
forest plantation and agro-forestry have created opportunities for people to learn from each other about
effective works of forest plantation, use and exploitation and therefore, contributing to sustainable forest
resources management task. In fact the project has supported people in the project zone to build agro-
forestry, NTFP, commercial forest plantation, community nurseries, and community forest models. The
models are now able to disseminate and have many benefits to local people like medicine herbs plantation
model in Thua Thien Hue province; models of community-based forest management and rattan plantation
under forest canopy in Quang Tri province; models of bamboo plantation for bamboo shoots and
beekeeping for honey in Quang Binh province and finally models of “huong bai” trees plantation and large-
timber plantation in Nghe An province.

(30) In general it can be said that the project had – even with it’s premature termination – some economical
results: Through project activities and achieved results, the project has been gradually improving the
livelihood of people working with forest via activities of building forest plantation, agro-forestry and NTFP
models and has created job opportunities, improved knowledge, capacity and living standards for local
people. Especially, the project has focused on ethnic minority people, poor households and women in
remote areas to step by step make the people working with forest being able to earn their living from forest,
therefore, contributing to hunger eradication and poverty alleviation.

(31) The project also produced some socio-economic and socio-cultural results such as the formulation of
forest protection groups based on communities including villages with most ethnic minority people has
attracted active participation of ethnic minority communities in project activities; developed and formulated
forest management funds with members being representatives of communes, forest protection groups at
the commune level. This has largely contributed to the role and responsibility enhancement of forest
management, protection and development at the local levels. The simultaneous processes of allocating land
and forest to communities and village groups and organizing training courses on forest management and
protection task for village people has contributed to the improvement of knowledge on the importance of
forest and forest biodiversity to the ecological environment and water sources protection for local people.

(32) Ecological results through project activities are that local people have acquired awareness about forest
as well as the importance of forest to the ecological environment. At the same time, the project has
attached local people to responsibility of forest protection, nature and biodiversity conservation tasks so
that the forest area has been gradually increasing, effectively implementing the protection function of
forest.

(33) Lesson learned are that this project was very hard to implement due to the fact that the project
activities took place in four provinces, eight districts and 16 communes with many different terrains and
ethnic minorities. Moreover, the time of starting to implement the project was to far from the time of
designing the project, some of the project contents have lost their meaningfulness during the
implementation period due to changing environments and priorities.
During the project operation process, it was recognized that some activities that have high importance and
means to poor people such as supporting training of handicrafts that use materials from the forestry sector,
supporting building models of beekeeping for honey, rattan plantation under forest canopy, medicine herbs
plantation, and developing sustainable forest management plans for forest companies and protection forest
management boards etc. The recommendation is that this activities need to be studied, maintained and
developed further through the evaluation and adjustment of the project activities and to build a “tool set”
for forest companies, protection forest management boards, and other forest agencies in order to develop
sustainable management plans and implement activities which may include allocating forest certificates in a


TFF Annual Report 2010                           14
“new” project. If there is a follow up project it could therefore promote a market connection to improve the
added-value chain of Acacia and NTFPs for smallholders; support terrace field land use planning in Quang Tri
and Quang Binh provinces; strengthen capacity on land use planning in the forestry sector (this should
include connections with other programmes such as the LUP-GIS system, the FORMIS project, sector plans,
planning’s for climate change problems, socio-economic development plans and climate change impact
alleviation projects such as REDD...).


1.4     GA021 (FLITCH)

(34) TFF Funds of up to EUR 12.34 million17 were managed by the Asian Development Bank (ADB) on behalf
of TFF under a Grant Administration Agreement of June 2007. In 2010 the expenditure by the project was
one million EUR for the FA component and 0.48 for TA compared to an approved budget of 1.8 million EUR
(FA) and 0.69 million EUR (TA). Therefore the disbursements rates for 2010 are 85 % (FA) and 69 % (TA). As
of 31st of December 2010, the project disbursed the amount of 3.282.368 EUR; what is 26% of the total
project budget originally committed to the project (before cutting down the commitment in January 2011).
The disbursement rate of the project has still been low compared with the budget plan and approved
budget. The administrative procedures for loan disbursement to CDFs are complicated and were not clarified
and agreed at the beginning between ABD and FLITCH project led to delay on fund disbursement.
Due to complicated procurement the selection of the audit company AAFC was done last year by ADB and
MARD only. At the moment AAFC is conducting audit for a period from beginning of the project until 31st of
December 2010 but the report will be done annually. The final reports are expected to be done in the end of
June 2011.

(35) In January 2011 the project was informed by the TFF about cutting down the TFF commitment in regard
to the TFF regulation and as decided on BoD#11. It is verified because the annual disbursement rate
compared to the approved annual budget was below 75%. An amount of 330.356 EUR was cut down from
the Grant 0060-VIE FLITCH as well as EUR 1.525.285 from TA 4895-VIE. A revised work plan and budget
according to the new budget is expected in March 2011.
After the MTR the ADB proposed that based on different meetings with the PPMUs indicated that the
current CDF amount of USD 20.000 per commune is not sufficient and proposed to increase the amount to
USD 30.000 per commune. After the assessment of TFFMU and several discussions between TFFMU, the
MARD financial department and the donors both parties gave the recommendation not to increase the CDF
amount.
Donor expect FLITCH project to have an external supervision mission in addition to the ADB MTR. TFFMU will
draft the TOR’S for the external MTR. A meeting between TFFMU and the donor will be conducted in early
April 2011 to discuss the net steps and procedures so that the MR can be implemented in the second half of
2011.

(36) In 2010 the project identified protection areas as a part of CIP planning which covers a total of 60
communes. The target area to be protected as part of the Project has been increased from 99,000 ha to
180,000 ha. The project completed 59 CIPs, all of them are approved.

(37) Project work related to forest resource inventory, household afforestation, agroforestry, livelihood, and
infrastructure is speeding up pace while forest protection is in-line with project design targets. Nevertheless
land use planning and forest land allocation and demarcation to provide secure land tenure has yet to be
undertaken. Afforestation by the Management Boards for Forest Protection (MBFAs), State Forest
Enterprises (SFEs) and small and medium enterprises (SMEs) has not started in 2010.



                17
                     Before cutting the commitment in 2011

TFF Annual Report 2010                                       15
(38) For the Sustainable Forest Resources Development and Management the project developed and
approved different guidelines, terms of reference, cost estimates for forest land management and planning
for all six project provinces; procured satellite imagery for Kon Tum province and conduct the mobilization
of service providers for land use planning, (LUP). New forest maps are expected to be done in the second
quarter of 2011.

(39) During 2010 the CPMU in cooperation with TA and the project provinces organized different road shows
to work closely with communes relating to implementing activities of CDF and elaborating fund management
plans and providing training courses. CDF is becoming functional and currently 33 communes have received
the CDF funds, whereby loans have been provided to members in 18 communes. This result contributes
directly to poverty reduction and the diversification of local economies and entrepreneurship in the project
area.

(40) 175 training classes were conducted in 2010, focus in project implementation and management skills at
central level, planning, sivilculture techniques, plantation and tending techniques, CIP, land use planning,
community monitoring, CDF, computer skills for local project staff, communities and beneficiaries according
to the project training plan. Currently the project has trained a total of 15.000 trainees in project
management, financial management, procurement as well as forestry-related training. These training classes
are contributing directly to improve the project implementation and management from central to local
levels in terms of progress and quality of project activities.

(41) 3.124 ha of afforestation forest was planted by households in 2010, totalling a area of 4.006 ha since
project start (Plan for the whole project is 18.358 ha). Protection forest afforestation was not yet
implemented because the Government only approved the adjustment of the supportive norm in August
2010. More protection afforestation is expected in 2011. For forest protection (for existing forest) contracts
were signed for 21.911 ha.

(42) Some constrains with the project still remain, such as i) land availability and land use issues, ii) livelihood
improvements, and iii) the quality of plantation forest.
Related to the land availability the project had problems with the shortage of land for afforestation, which
are due to ongoing delays in project implementation. This delays caused land in project areas to be reverted
to other projects or programs18, the competition with other more profitable industrial and agriculture crops;
the lack of commitment of local villagers to project afforestration activities and lack of awareness of the
potentials of forestry in improving their incomes; as well as delays in handing over lands to communes by
MBFPs for production forests and agro-forestry. MARD and ADB should to allow an expansion of project
areas to cover additional communes, permitting provincial MBFPs and SFEs in protection and production
forest related activities of the project; and allowing to plant in lands with no conflict in land use. Based on
MARD and ADB’s approval in principle, provinces will conduct a final review of the land availability of various
concerned entities (expected to be conducted mid of 2011).
The increscent of livelihood improvement is endangered because of the low awareness of local farmers on
the importance of agroforestry and home gardens, the farmer’s lack of familiarity with adequate techniques
and insufficient documentation on procedures and guidelines along with the lack of good agroforestry
models. Those factors hinder them of potential opportunities to improve their livelihoods.
Recommendations are to allow the Project to allocate budget to further promote agriculture and forestry
extension services for training to the benefit of local farmers and complete necessary documents / establish
demo models as well as engage local staff to establish demo plots supported with technical assistance from
forest institutions.
ADB addressed the issue of CDF - which provides opportunities for poor farmers to access credits to improve
their livelihoods – that the investments per household are considered too low by the beneficiaries (currently
at 20.000 USD per commune). After TFF discussions with donor and a assessment donor decided not to

                18
                     Such as Government’s 661/147/30a

TFF Annual Report 2010                                  16
increase the CDF to 30.000 USD per commune because (i) the fact that by the end of 2010 only 34/52
communes could disburse money to households with an amount of VND 7,754/16,648 millions due to lack of
TA support to CDF management units on funds operations as well as the lack information accessibility to
HH’s, (ii) lessons learnt from previous projects of which CDF disbursement was very low, which was also
concluded resulting from limited capability of local partners, limited information accessibility of HH’s and
other institutional and technical concerns. Therefore the donor asked that the project should provide their
assessment for utilization of CDF by the end of 2011. Whenever such assessment is available, the donors are
open to discuss for further decision on increase CDF investment.
The increase of the forest productivity in plantation by 30% is currently at risk because of the absence of
detailed technical instructions to local farmers and efficient supervision of technical staff over farmer’s work,
lack of understanding and disciplines of local farmers on the importance of following the right technical
procedures, and lack of attention to thorough forest practices in establishing and managing plantations.
The project should strengthen responsibilities of technical staff and local sub-consultants in instructing and
supervising local farmers during the planting and tending seasons and invest in additional pilot activities such
as introducing new planting materials, and improving the quality of nursery production through upgrading of
existing nurseries in selected areas. The TA consultants could support the development of proposals for pilot
activities and upgrading nurseries for relevant authority’s consideration, help to develop training plans,
systematic monitoring and evaluation, along with explicit recommendations on measures needed to achieve
high yielding plantations.

(43) TFF grant will be available up to end of 2012, while FLITCH project completion is 2014. The TFF grant
finances activities relating to business development, livelihood improvement, capacity development, and
project management, consulting services and studies. In order to maximize the utilization of TFF grant,
CPMU, PPMUs and TA consultants are to prioritize their efforts to accelerate the implementation of these
activities in 2011-2012 as well as increase the capacity of project staff at the PPMU and particularly at the
district and commune levels. The new work and budget plans are currently under development by ADB
incorporating the comments of the TFF donor and TFFMU. All recommendations are to be coordinated with
TFFMU. To ensure the successful implementation of the project ADB is currently reviewing other options for
a continued TA support after the period of 2012 e.g. from loan savings or the reallocation several
expenditure items originally funded under the ADB loan to consulting services. Nevertheless, in regard of
TFF’s concern the consultants input need to be optimized up to the end of 2012 to produce best results
possible.
In general a better progress can be certified by TFFMU in 2010, the roles and responsibilities for the different
project entities are clearer and direct communication between CPMU and TFFMU has increased.
For the output of performance-enhanced, sustainable forest management plans the preparations for the
approval of provincial forest management plans are completed, fieldwork and the creation of new forest
maps are expected to start in the second half of 2011. For the output of 30.000 ha of high yielding
plantations established and 99.000 ha of natural forests protected, under non-state sector forestry,
improving livelihoods of over 8.000 HH should lead in the long term to important forested watershed areas
under protection and increased cash incomes in project communes. So far household afforestation for 800
ha was done and protection contracts issued in lam Dong and Kon Tum for a total of 37.000 ha.
MARD and provincial authorities have also issued appropriate instructions and staff capacity has been
upgraded through a set of training courses in key topics like planning, finance and procurement. Planning
and budgeting has taken steps in the right direction like planning targets from CPMU and local aspirations
are harmonized and a more active involvement of lower levels. TFF was using a more direct communication
(informal).




TFF Annual Report 2010                             17
1.5     GA025 (FSDP)

(44) EUR 9.2 million in TFF Funds are managed by the World Bank Group19 (WBG) until the end of 2010. In
2010, the disbursement to FSDP was EUR 750.000 for the VCF component and 1.2 million for the FSDP; the
expenditure by the project was 379.553 for VCF (33% disbursement) and EUR 851.786 (103% disbursement)
for FSDP plantation component. In the beginning of 2010 the remaining budget was 2 million EUR, TFF
transferred 750.000 EUR; therefore a budget 1.25 million EUR remains for the VCF component. The actual
expenditure by project in 2010 was only 379.553 EUR. For the plantation component the remaining budget
was 1.5 million EUR, TFF transferred 1.2 million, what leaves 300.000 EUR left. The project actual
expenditure was 851.786 EUR. The unused fund will be transferred back to TFF after ending of the normal
project period.
The agreed new commitment for the extension period from TFF donor to WB will be transferred after
agreement in 2011 (0.8 million USD for plantation and 1.2 million USD for VCF).
It has to be made clear that the donor agree with the TFF assessment that the GA25 (Plantation and VCF
component) create good results and verifiable outcomes since some time now despite the former
limitations. Nevertheless, the 9.2 million are nearly 30% of the overall budget of TFF. Therefore a low
disbursement rate of GA025 ultimately leads to a significant (negative) impact on the general disbursement
rate of TFF in 2010 and resulted in the loss of the commitment and the end of bilateral agreement from the
Dutch side. TFFMU likes to verify again, that even with the current low disbursement rate the donor and
TFMU agree that the FSDP delivers very good results. This finally resulted in sending a confirmation letter of
the donor to extend the project with letter Nr. 45/11 from 17th of February 2011 where the donor confirmed
the Deputy Minister their decision to extend the project.

The end of the project implementation cycle for the Grand Agreement with WB was in December 2010, the
administration agreement between TFF and WB ends June 2011. It took quite some time to get the
agreement for m all involved sides (MARD Deputy Minister, BoD decision, World Bank Washington, Vietnam
Government via letter of the Prime Minister).

(45) By letter of the Prime Minister (No. 342/TTg – QHQT) the revised content within the framework of the
FSDP project and extension was agreed on. Therefore the GoV approved on an extension of FSDP until 31st
of March 2012 and VCF until 31st of March 2013. The State Bank of Vietnam will work on procedures for the
extension according to the existing regulations. TFF will start now the procedures related to TFF Regulation.
The proposals on the extension periods were sent to the TFFMU end of March 2011. Nevertheless, it need to
be verified if an extension over the end of 2011 is currently possible because the SDC commitment ends in
December 2011 and only the Finland contribution ends in December 2012. The lawyer of the WB will verify if
this constellation is possible for an extension or not.

(46) The two components (FSDP/VCF) will be extended, after agreement of donor and GoV. The FSDP
component will be extended by one year until March 2012 (with 0.8 million USD) and the VCF component
for two years until March 2013 (with 1.2 million USD). Therefore the TFF will support this project with a total
amount of 11.2 million EUR.

(47) Project activities mainly focus on two issues, namely strengthening capacity and improving livelihood.
Thanks to attending some training courses and model study tours organized by the project, households of
ethnic minority will be more confident in applying sivilculture techniques in planting and tending plantation
to get the highest productivity, together with investing estimation methods and effective use of borrowed
funds, rejecting earlier fear of borrowing money from banks to develop family economy.

(48) For the output of stronger institutional development reports of landscape plan, provincial forest land
management strategy, internal forest plantation, etc. were issued by projects. 21 voluntary Forest Farmer
                19
                     Grant Administration Agreement of December 2004

TFF Annual Report 2010                                      18
Groups (FFGs) on district level were established, increasing total to 435 FFGs with participation of 11.333
households to plant 20.047 ha in 112 communes in four project provinces.

(49) For the output of promoting forest certificates: 24 pilot FFGs have been established in four provinces
with the total area of 1.758 ha for preparation of forest certification. The action plan to address
shortcomings/weakness has been prepared and planned to implement in 2011. An internal WB plantation
assessment has attained optimistic results with 70% plantation area to be FSC certifiable.

(50) For land availability screening the assessment and appraisal of proposed communes for project
expansion in four provinces with the total area of around 7.500 ha at 17 new communes in Binh Dinh (three
communes); Quang Ngai (10 communes); Quang Nam (four communes); whereas 11 communes have 20% or
more of ethnic minority and need to develop EMDP.
The project achieved so far plantation in 12 communes counting for 42.160 ha. After consideration and field
review by CPMU, MARD and WB these two provinces are qualified in terms of WB’s selection criteria. The
project altogether issued 18.356 LUC’s covering 34.126 ha.
7.384/8.200 ha of land collected for plantation was allocated to households for plantation, increasing the
total allocated area to 34.126 ha compared to the target of 55.600 ha. All 120 project communes and 38.714
ha/ 65.600 ha completed plantation design.
17 Ethnic Minority Development Plans (EMDPs) had been approved; the project is ready to support the
establishment of 11 more EMDPs in new communes.

57 extension staff (35 field staff and 22 M&E staff) recruited to provinces together with key trained farmers
are pushing extension system into full operation. 2.168/ 4.600 person days were trained and transferred
extension techniques in 2010, increasing the total to 19.698 person days. 40 nurseries were selected in four
provinces to provide seedlings to plantation 2010 and nurseries upgrading is undertaking to secure qualified
input seedlings.

(51) Through communication campaign and technical training courses conducted by the project, farmers
have achieved basic knowledge on forestry techniques, a Smallholder Plantation Establishment and
Management Manual for Short and Long Rotation Plantations is in use. A document encouraging “Design for
Mixed Species Plantation” was prepared, based on observations on and experiences in existing plantations.
As a result, there has been no spontaneous planting and it helps to enhance plantation productivity as well
as sustainable forest management. Particularly good progress has been made in improving quality of seed
material across all provinces. Good progress has also been made in reviewing the land measurement,
cadastral surveys, and plantation design procedures and in developing quality standards for improved land
measurement and commune-level land use planning and plantation design.
This invested area is contributing to forest cover area and protect environment however, the project work
plan also includes activities of establishing and initiating ethnic minority development plan. This aims to
enhance the capacity of approaching and create the most favourable conditions for ethnic farmers to
participate in the project. 30 supported SUFs are in process of conducting management plan (METT) in
coordination with local communities and 74 natural reservation areas and national parks are supported.

(52) For project management, monitoring and evaluation the technical assistance teams acquired knowledge
for implementing their later work in workshops, field visits, supervision missions and the preparation of
reports; project work plans, guidelines and implementation strategies for project components. The
reallocation of funds proposal between the TA1 and TA2 received approval by MARD; several specialists
were mobilized as needed. The team, composed of 24 individuals contracted under the FSDP Extension
Program, is placed at the district and provincial levels to conduct, collate, and report monitoring results,
communicating findings through the regular monitoring at provincial and district levels, and directly to the
project director and TA Team Chief Technical Advisor. The Field M&E Team has defined implementation
work plans for 2010. Hereafter, monitoring of the above four key aspect are collated with the assistance of


TFF Annual Report 2010                           19
the TA Team, and disseminated through the CPCU to project stakeholders, particularly PPMUs and DIUs to
strengthen project management and delivery to beneficiaries.

(53) The VCF - as one of the components of FSDP - is expected to improve the conservation and sustainable
use of biodiversity resources in priority special use forests relates to biodiversity conservation. One main
output is that the management effectiveness within the SUFs will improve and measured by using the
Management Effectiveness Tracking Tool (METT). The project has set up an administration system that is
screening selecting and managing sub grants of various sizes; international management standards are
introduced. Some new policy Decrees are under preparation and Decree 117 on SUF Organisation and
Management (O&M) was passed in late December 2010. The METT score cards are in common use in the
projects. 113 have been completed since project start (56 this reporting period). Around 80% of the SUFs
involved in the project report improvements in management capacity.
75 SUF management boards are now eligible for support from the VCF. 30 draft OMPs have been submitted,
quality varies and further work will be required. That supports the outcome that SUFs are managed and
protected according to international conservation standards.

(54) The justification in general is to widen the impact of the project. Additional justification for the
extension includes among others that the project will be able to continue and implement additional sub
grants, the project has already broadened the impact by expanding from supporting 51 to 75 eligible Special
Use Forest Management Boards and this means that the project has become a nationwide project. With the
additional TFF funding, this will save GEF funds for additional sub grants and training and the number and
values of sub grants will increase from 74 sub grants to about 90 sub grants. This will save funds to provide
support and time for the implementation of the shortly to be announced new government policy on Benefit
Sharing Mechanisms. In addition the TFF funds would be used to fund critical Technical Assistance activities
which support the implementation of the VCF. It can be noted that the delivery of the TA for the extension
will be more focused and prioritised. Improvement of efficiency of the TA will be important and achieved
through TA multiplication approaches as using the web site as a tool, conduct more training workshops; the
rationalisation and updating of the project design templates; update the OM with website links and
examples, characterization of SUFs to identify MBs most in need of TA support; and finally more emphasis
on self evaluation and the improved use of the METT.
With the funding for the extension period of 1.2 million USD long term TA and VCF secretariat activities
would be possible (Biodiversity and Sociology with 365.363 USD; TA for M&E with 464.165 USD; additional
short term capacity building technical assistance with about 260.000 USD as well as secretariat activities
with 110.400 USD). Project director was retired and project deputy director was appointed to be the new
project director since 1st of January 2010. A new deputy director was appointed at the same time.

(56) The project is making good and steady progress towards achieving this objective. All project
management units are in place and working well. Implementation is progressing in accordance with project
guidelines and agreed work plans and no major weaknesses are being reported or observed. Plantation
areas are continuously being expanded and improved under the VBSP smallholder loan program alongside
with forest land allocation, and the more recent plantations are of significantly better quality than
plantations established at the begin of the project five years ago. In addition, the technical support program
is generally functioning well along with the provision of quality seedling material. Additional activities to
ensure the long-term sustainability of plantations are currently being formulated. Under the VCF,
implementation of small grants to SUFs is progressing well with focus on strengthening capacity of
Management Boards. Financial management weaknesses are now being systematically identified and
addressed at the VCF Secretariat and at the local level through the implementation of the internal audit
function and capacity building. Some weaknesses remain in some cases, such as continued burning of sites
(Smallholder plantation forest component) in preparation for planting in some areas, but the PPMUs should
be able to address these effectively. For the Ethnic Minority Development Plans many of the specific EMDP
activities, mainly to improve the general livelihoods of beneficiaries and aiding them in meeting their loan


TFF Annual Report 2010                           20
obligations, have been less successful. While most of the EMDP activities appear appropriate and have
enhanced capacity and provided additional investments to aid some households in their loan repayment
obligations, several activities appear to have limited impacts due to low capacity and limited support during
implementation. In the next year(s) TA would concentrate more and assess EMDP implementation, quality
and sustainability of plantations in EM communities, recommend additional support activities, and advice
local implementing agencies on how to strengthen support to EM communes. For the VCF it need to be
ensured that sufficient attention is paid to the implementation of livelihood activities to enhance their
success in terms of livelihood improvement and conservation.


1.6    GA029 (FORMIS)

(57) On 12th of January the Steering Committee was created, three PPMU were assigned afterwards. On the
3rd of February 2010 the FORMIS Inception workshop was conducted. The Master Plan and the annual work
plan 2010 were approved by MARD in March 2010.

The project duration is 36 months, with the total budget of EUR 4.4 million of which TFF contribution is
nearly EUR 1.8 million with counterpart funding of EUR 431.550 and around EUR 2.2 million from the
Government of Finland for technical assistance. In 2010, the utilization of FORMIS project was 437.759 EUR
(85% of yearly utilization plan).

Especially to mention is that the cooperation between FORMIS and FSSPCO in the implementation of
component 5 in term of support the preparation of the “Forest Sector Progress Report 2006-2010” report
was good and well appreciated by all parties. Also in the Component five, FSSPCO has completed the FOMIS
Website, which manages and shares the sector indicators set, data and reports.

The working group on IT from the DoF was considered not to effective since their contribution not much to
the project team and the general system design took long time, especially some provinces were not aware
on what to support and what to do.
MTR is planned to conduct in June, second phase identification mission is planned to take place in
August.Regarding the selection of a service provider for the supply of the FORMIS Portal and Platform the
embassy of Finland has agreed on selecting of VidaGIS, the Vietnam – Denmark VidaGIS Joint Venture
Company Ltd.

(58) The WG’s will support the alignment of procedures, standards and mechanism to share information
between forestry agencies and therefore support the implementation of the VFDS. Information need for
core forestry processes have been documented in an information matrix. The FORMIS system architecture
was approved in the steering committee meeting on 27th of August 2010. It was also decided on the first
sub-systems, namely the FORMIS platform, FORMIS portal and the forest resource database system. In line
with the selected sub-systems to be built immediately standardisation was focused on forest resource
inventory. Assessment of standardisation need in the long-term will continue in 2011.

The IT infrastructure procurement was done in the 4th quarter of 2010 following the projects work plan
approved by MARD.

(59) The assessment for existing hardware and software as well the information needs was finished. The
training need assessment and training plan was drafted. For the strengthened capacity in MARD for
monitoring the VFDS implementation improved data collection methods activities are ongoing, impacts are
expected by the end of 2010. Project management and coordination structures were established are now in
place at central level and in the three pilot provinces.



TFF Annual Report 2010                           21
(60) Until June 2010 the cooperation and working conditions between TFFMU and FORMIS CPMU / TA was
good. The project is running very smoothly and it is expected to have a good performance. The CPMU
started in early March the implementation of the work plan.

(61) Forestry sector information is considered increasingly important to contribute effective and efficient
implementation of the VFDS. The FORMIS project is on track, frequent meetings between TA and TFF were
conducted, TFFMU recommend too continue the frequent meetings between TA/CPMU and TFFMU. Some
delays were experienced in work planning and procurement planning during 2010, which was the first
operational year of the project. Building information standards and mechanisms for information sharing is a
longer process than anticipated. This is because forestry sector information contains several information
categories. Furthermore the stakeholder consultation, which is important to ensure commitment to
standards and sharing mechanisms, took time. FORMIS project also continues to engage in the rapidly
developing national REDD programme so as to ensure that the IT system will sufficiently take REDD into
consideration.




TFF Annual Report 2010                          22
   2 OFF-PORTFOLIO PERFORMANCE
(62) The off-portfolio performance will follow the new seven sub-items, namely i) Fund mobilization, ii)
Capacity and instrument development, iii) BoD meetings, iv) Fund utilization and portfolio management, v)
Operational planning and reporting, vi) communication and public relation and vii) roadmap for the
integration TFF into VNFF.
The approved budget for TFFMU in 2010 was 160.000 EUR with an actual utilization in 2010 of 114.480 EUR
equivalents to a disbursement rate of 72%.

2.1     Fund mobilization and Receipt

(63) Fund request were prepared and send to donors. The donor and TFF did not come to an agreement
about new financial commitments for the years 2011 and 2012. Up to now TFF selected no new potential
donors. Nevertheless new financing possibilities were discussed with the international community on several
occasions, especially in regards to the integration of TFF into the VNFF and new important issues like REDD+
or PES in cooperation with FSSP.

2.2     Capacity and instrument development

(64) The new TFF OM was drafted during in 2010 upon recommendations made at second TFF review. The
final version was approved by MARD on 15th of June 2010 with decision Ref. No. 1602/QD-BNN-LN. This
document will be a very useful reference for the VNFF establishment and running. In addition it can be used
also for other funds come into effect in Vietnam in the future. New EU cost norm guidelines were applied to
TFF since beginning of 2010. This new rate is facilitating the progress of TFF activities as they stick to the
actual rate of the market.

(65) A new website for TFF is currently under construction. This will enhance the visibility of TFF among the
international partners (a test version is viewable under: http://210.245.80.182:8080)

(66) TFF with the financial support of GIZ succeeded to employ an experienced new Financial Advisor in May
2010. Unfortunately because of unforeseen personal reason the financial advisor had to resign the job.
During the writing of this report the German GIZ is advertising the new position, curricula vitae are collected
and currently (Status March 2011) under review by TFFMU. An decision for 5 potential experts followed by
TFF and GTZ joint-decision is expected in April 2011. TFF hopes for a long term position to act as a financial
controller of the fund and providing financial analysis among others on the fund status, reviewing financial
agreements, double checking fund request and – if needed – reviewing grant agreements. In addition it is
the responsibility to review no-objection letters, monitor and supervise TFF projects in term of finance,
support the audit ToR and the selection of the audit firm. Regarding operational planning and reporting the
advisor will prepare financial analysis for financial reports, prepare budget plans for loan projects and
assisting in the preparation of the TFF annual work plan.

(67) One program officer also resigned his job, leaving a big gap for the human resources. TFF advertised in
NGO resource database and VN newspaper and is currently (Status March 2010) collecting CV’s for the
position of the new PO. So far no suitable person could be identified. The donor will be updated frequently.

(68) Position of full time TFF Deputy Director is still pending due to just finished restructuring of MARD’s
organization and the new Directorate of Forestry. A decision about a new deputy director is expected to be
presented at Aprils BoD (2011).




TFF Annual Report 2010                            23
2.3    BoD Meetings

(69) The 10th Board of Directors Meetings was conducted in April, the BoD#11 on 19th of November. Minutes
and follow ups were circulated among the TFF stakeholders and all related information was published on the
TFF website. The key milestones, important information and relevant activities were regularly updated to
TFF donors upon occurrence and donors were invited to come to important events of TFFMU and projects,
particularly project’s review missions, final evaluations or field missions. Donors were also updated about
broader sector information and invited to other events organized by MARD or FSSP’s partners.

(70) Future BoD meetings need good possibilities for a lively a discussion among donors as well as the
stronger interaction between the 5 BoD members. The BoD is not only for final decision making but also an
opportunity for lively discussion and therefore “new” and “life” decisions or revise prior made decisions.

(71) The donor agreed with the new report format after BoD#10. The evaluation of TFF projects’
contributions to the national forest strategy is considered not an easy task because TFF funded projects is
relatively small comparison to a very huge strategy. But with the new output reporting summarizes directly
how the outcomes of the different TFF project contribute to the five programs of the VFDS.

(72) Regarding portfolio and off-portfolio it was concluded that FLITCH (GA021) need to be supported by
TFFMU for an external mid-term review as well as the fund cut due to TFF regulations. Discussion and
preparation meetings will be conducted in March / April 2011 with the donor to fix the next procedures.


2.4    Fund utilization and portfolio management

(73) In 2010 an amount of 4.399.890 EUR of fund was received by the donors.

(74) The CBBC project lasts from March 2007 to June 2010 (GA 018/07) including a three months no-cost
extension. The final evaluation report on the project "Development, piloting and institutionalization of
national short term training curricula to improve capacity of sector agencies in forest and biodiversity
protection and law enforcement” has been carried out by Mr. Doan Diem and Dr. Pham Quoc Hung with the
support of leaders and experts of the CBBC project, Tam Dao National Park, Phong Nha-Ke Bang National
Park and the FPD of Vinh Phuc, Tuyen Quang and Thai Nguyen provinces in May 2010. The report was
prepared and translated into English in June 2010.
The Lam Dong final review mission is currently running (March 2011), the report is expected to be finalized
before the upcoming April BoD#12.
For FLITCH (GA021) the internal first six month review meeting was organized in HCMC from 15 th to 16th of
July. The supervision mission to assess implementation progress and performance of the project was
conducted from 8th to 11th of March; the second supervision mission was conducted from end of October
into November 2010. The two Aide Memoires were circulated among stakeholders.
Two joint review missions with WB on the FSDP (GA025) were conducted from and from 19th to 29th April
2010 and from 16th of November to 4th of December 2010. Everything was documented, the two Aide
Memoires and management letters circulated to the donors. Donor and MARD agreed on an extension for 1
year FSDP (0.8 Million / 1 year) and the VCF component with 1.2 million for 2 more years.
The FORMIS project inception workshop was launched in February 2010, the project is progressing well. The
FORMIS master and work plan for 2010 were approved in March 2010. These big milestones of different
project closings, termination and new topics emerged together with the long vacancy of the financial expert
position have caused more works then anticipated to the TFFMU. The new WP was approved in January
2011.




TFF Annual Report 2010                          24
(75) Beside the routine work the TFFMU continues revised and approved different project work, financial
and liquidity plans, inquiries for guidance and requests for disbursement of funds. The reviewing of the draft
reports, preparation and sent comments for clarification and amendments to projects was continually done.

(76) A Commune Development Fund workshop was initiated TFFMU aiming at sharing lessons learnt and
experience on establishing, running and operating CDF among those established within different TFF funded
projects.

(77) VNDOF: On 21st of February 2010 the TFFMU submitted the final DoF proposal documents to the Vice
Minister also to the donor. The documents incorporated also the comments from donors. The request was
made for 352.000 EUR, whereas the answer of the donor was that they could agree on some activities and
would allow 176.000 EUR after consideration the relevance and effectiveness of the project. Because this
amount would not be sufficient to cover for all anticipated costs / activities and it would create considerably
more effort to split up the activities the DoF will inform TFF soon if a financing in the future is needed or not
(Status March 2011). TFFMU will then immediately inform the donor.

(78) TFF’s support to FSSP: The proposal on which the donor agreed was send to ICD. TFF is currently waiting
for approval.

(79) CFM II: For a second phase of TFF’s former CFM project the former disagreement on the last version of
the proposal the VNDoF was informed by TFFMU to revise the proposal in regard to donor comments. So far
no new / revised proposal was submitted to TFF.


2.5     Operational planning and reporting

(80) With effective collaboration between TFFMU staff and valued comments and suggestions from the
donors, the new reporting and planning formats are introduced and approved also trough the new OM by
MARD. The new planning format applied to the TFFMU reflects mandates of the TFFMU specified in the new
MoU. The project report format was also adjusted accordingly.
Plans and reports of projects are uploaded to TFF database regularly, while TFFMU reports are posted to
FSSP website twice per year upon issuance.
The annual Work Plan and Budget for 2010 was approved by the BoD. New budget plan and financial report
were agreed between TFF donors and TFFMU for application to TFF. The TFFMU received all semi-annual
and annual reports 2010 from TFF projects and other report inputs from TFF MU. Different TFF publications
and communication means were published.

(81) According to the TFFMOU, the third evaluation mission will be conducted in 2011. Preparation meetings
for this evaluation are expected to be hold with the donor in first quarter of 2011.


2.6     Communication and Public Relation

(82) In cooperation with the FSSP all necessary information about TFF reports and activities were posted on
the website. The TFF was frequently represented on different thematic workshops, forum and conferences
as well as in papers and publications from various donors or governmental bodies for example on the
International Biodiversity Day in Ba Vi national park or the Regional Conference on sustainable forest
development in a changing climate.

2.7     TFF into VNFF



TFF Annual Report 2010                             25
(83) The new Funds will not be a replacement of but rather additional to other funds already established
under international agreements which shall “prevail”. The Decree goes beyond establishing one national
VNFF by opening up the possibility to create Funds at provincial level, which are outlined to some detail in
the Decree, and “encourages” the creation of such Funds at the district, commune and even village level.
MARD Decision No.114/2028/QD-BNN of 28th of November 2008 officially established the VNFF at national
The Board of Directors will be composed of 7 representatives of MARD, including the Vice minister in-charge
of Forestry as its chairman, plus one representative each of MoF and MPI. The Controlling Unit will be
appointed by Minister of MARD upon proposal of the Vice minister in-charge of Forestry. The Director of the
Management Unit, to be appointed by the Minister of MARD, must not necessarily be a MARD Officer and
may work on a full-time basis. Funding of the VNFF explicitly includes donor sources and trust funds as well
as obligatory contributions, which may provide a landing ground for resources from PES and or PFES.
VNFF will mobilize resources of the society for forest protection and development, contributing to realizing
the guideline on forestry socialization. The VNFF will furthermore raise awareness about, and responsibilities
for, forest protection and development for those benefiting from forests or involved in activities that have
direct impacts on forests. Last but not least the VNFF will increase forest owners’ capacity and efficiency in
forest protection, use and management, contributing to implementing the forestry development strategy
VFDS. VNFFs will be a state financial institutions with “legal person status” and authority to run their own
bank and treasury accounts. The National VNFF will be fully MARD-owned: Its Management Council is
appointed chaired by MARD; its Control Board reports to MARD, and the “Fund Management Apparatus”
will be established at the Forestry Department. Ministry of Finance (MoF) and Ministry of Planning and
Investment (MPI) will have some oversight functions and one seat each on the Management Council of the
National Fund. VNFFs at the provincial level will be set up by the Province People’s Committee (PPC) and run
by either the Agricultural and Rural Development Service at provincial level or the PPC itself. Provincial-level
Funds will be supervised by MARD’s central-level VNFF. Provisions on funding differ substantially between
the National VNFF and the provincial-level entities: The National Fund shall receive an initial capital stock of
VND 100 billion from the State budget via MoF which is, however, not to be spent on projects and
replenished but to be maintained as capital (to be “preserved”).
So far the VNFF consist of a BoD and the VNFF MU consisting of one director and one accountant. For the
time being the GoV considers different options, one among is that the future Director of VNFF will be also
the director of the (future) TFF. Two different teams shall exist; one separate TFF team responsible for
specials tasks related to TFF and a second – independent – VNFF team. So far the VNFF learned a lot from
the existing TFF experience especially on regulations and the mandate and function of BoD and VNFF
management unit, lessons learned, adapted TFF Regulations and PIM / OM. An inter-ministerial circular
between MoF and MARD is currently under preparation.

(84) Information and experience about lessons learnt will be further shared in the future between TFF and
VNFF, particularly the development of legal documents to VNFF. New topics how to use and integrate
emerging issues regarding climate change were identified in different reports and shall be important for the
following years with special focus on new emerging topics like Payment of Ecosystem Services, Payment for
Forest Environmental services or REDD, the Reducing Emissions from Deforestation and Degradation. TFF
will draft a detailed hand-over plan with different options and will present it to the donor after completion.
For preparation TFF is currently waiting for reliable data about VNFF structure (human resources, task etc.).
Given the importance of VNFF, MARD leader requested VNDOF submit a comprehensive proposal with some
options for organizational structure for his consideration and approval. DOF already submitted the
documents to the Minister and now waiting for His response.

(85) It is agreed on that TFF will be integrated into VNFF as both funds aim to the same target of contributing
to implement the VFDS 2006-2020 and complying with the Hanoi Core Statement’s. BoD agreed with the
recommendation of integrating TFF into the VNFF in a way that ownership, regulation, operational principles
and staff of TFF shall be remaining. Aim is to utilize as much as possible and apply process and management
procedures being applied by TFF itself and TFF funded projects during developing process and management

TFF Annual Report 2010                            26
procedures for VNFF. In case of which TFF donors agreed to continue funding to TFF after 2012 and extend
the MoU or sign a new MoU the next major review mission is recommended to conduct next review mission
in early 2012 when the integration of TFF into VNFF is operational. This review mission would therefore
focus on verifying the integration and studying feasibility of integration of TFF into VNFF, for instance TFF
donors might provide contributions directly to VNFF and allow the closing the TFF.


2.8    Conclusion

(86) With the active support of the BoD members and donors the TFFMU, together in close collaboration
with the different projects, continually strongly support the preparation of policy tools like degrees,
decisions, circulars, strategies and training curricula. TFFMU’s duty for MARD and the donors in term of
responsible and effective portfolio management was performed smoothly and responsible especially -
beside the mentioned policy dialog - in supporting the implementation the programmes of the VFDS,
particularly active on the programmes policy, institutional, planning, financial, and monitoring frameworks
and sustainable forest management.
The actual organizational setting, decision-making and governance structure of TFF is sufficient and
adequate to perform the daily tasks. The frequency and amount of informal dialogue between donors and
TFF MU and donors and MARD was increased steadily over the past year and created mutual understanding
which improved the relationship.
TFFMU is actively supporting projects – single-funded and co-financed – and the whole portfolio highly
appreciates the guidelines and support from TFFMU which are provided in a good manner and good timing.
Those TFFMU activities directly support a positive and fruitful outcome of the projects supported.
Disbursements and disbursement projections as well as strategic advises regarding financial matters are one
of the main important areas of TFF. In general TTFFMU’ human resources used the fund and their tasks
accordantly to the donor and government regulations.



2.9    Recommendations

(87) With the new TFF regulations, new MoU, the new OM and the improved relationships between TFF,
MARD and Donor the TFFMU used to be fully operational in 2010. Nevertheless, due to the absence of a
second PO and the job contract termination of the Financial Advisor the TFF is currently lacking human
resources. With an expected new PO and a new financial advisor it is expected that TFFMU’s HR capabilities
will be strengthened and be used for an even more responsible fund management. This will ensure the
continuation of performance all related task for the BoD and the donor.

(88) Beside the main work areas – portfolio, financial and off-portfolio management – the TFFMU were
concentrating on a new strategic orientation for actual emerging additional topics to further improving the
forestry sector. The TFFMU and here especially to mention the deputy director put a lot of effort into
additional dialog with different stakeholders including good cooperation with the FSSP new possibilities for
funding on forestry and climate change to mitigating worst climate change consequences in Vietnam and
furthermore attract additional donors as well as capture additional financing. For the remaining TFF fund an
interesting and potentially feasible option is to concentrate on climate change and forests projects or REDD /
PES financing in Vietnam. To narrow the wide field of Climate Change and Forestry sector TFFMU will put
more efforts into these strategic issues the rest of 2010.

(89) The co-financed TFF projects took a large a share of the attention of the TFFMU and staff time but
through improved communication the performance improved strong in the past months; TFFMU will
continue and further strengthen the communication with the co-financed projects. Nevertheless, after the


TFF Annual Report 2010                           27
experience with the complexity of FLITCH; GA021 and FSDP; GA025 the co-financing for large scale projects
in future is not recommended.

(90) The new human resources (before the departure of the PO and the FA) have led to an increasing TFFMU
staff capacity in technical operations, the implementation of quality improvement and the general support
to projects. It is recommended to furthermore specify and allocate specific task to the human resources but
further improve at the same time the level of internal team cooperation. Team building measures, useful
internal instruments for effective Fund management and daily office work as well as training courses for
capacity building are highly recommended.

(91) The existing effective Forest Sector Support Partnership as an excellent communication platform should
be used systematically for feeding back information & lessons from TFF supported projects and furthermore
be used to gather actual developments to identify new issues and funding possibilities for TFF.

(92) TFFMU was created in a way to support the donor and manage the portfolio as well as all off-portfolio
activities in regard to the MoU, the operational management and the TFF regulations. Therefore the TFFMU
should be a trusted entity with the full right to implement own decision and run the TFF on a daily basis
without too much external interference. TFF leadership has the comprehensive ability to organize the best
work outcome based on the available data of daily working-life. Therefore the TFFMU kindly request that the
TFF donors change from a too fixed control to more mutual support & trust in the ability of TFFMU to run
the fond, allow own decisions in regard to management issues and encourage further the independent
management role of the TFFMU and TFF leaders. The TFFMU leadership should be allowed to make own
decision what is best for the TFF staff in regard to training and workshops with the general comments and
later agreement of the donor.

(93) If there are serious, time-critical and important issues it should be not supported by send letter directly
to MARD leaders without prior discussing with – or channeling trough – TFFMU leadership.




TFF Annual Report 2010                            28
  3 FINANCIAL REPORT

3.1    Annual Financial Data (1 s t of January to 31 s t of December 2010)
                            I)    INCOME                                             EURO
                                  Opening balance 01.01.2010                   1.135.316
                                  Received from Donors                         4.399.890
                                  Refunded from projects                             96.540
                                  VAT refund                                   28.792,27
                                  Interest refund                                     3.385
                                  Other income
                                  Gain/loss by Exchange rate                     (10.764)
                                                     Total Incom e             5.653.159


                            II)   DISBURSEMENTS                                4.634.636

                                                                                               Rem aining      Approved                         Actual
                                                                                                Budget          Budget      Disbursem ent   Expenditures
                           No                            Content           Overall Budget                                                                   Difference                  Note
                                                                                                 as of       2010 (revised)   s from TFF      by Project
                                                                                               01.01.2010       by TFF         to Project        2010
                            A                                B                   1                 2                3          Jan - Dec
                                                                                                                                   4             5            6=3-5                       7
                            1     Projects/Grants completted before 2010       2.772.149           175.091               -              -                                -
                            2     GA 016/06 - SPE                                    50.000         30.000               -              -                                -
                            3     GA 018/07 - CBBC                               596.406           163.906         160.000        161.299         124.517        35.483
                            4     GA 019/07 - LD                                 926.092           218.959         216.569        204.887         162.586        53.983
                            5     GA 020/07 - PPFP                             3.147.755         1.381.318         292.000        299.687         322.011       (30.011)
                            6     GA 029/09 - FORMIS                           1.798.636         1.698.636         423.000        416.000         437.759       (14.759)
                                                                                                                                                                             Cut dow n Euro 330,356
                            7     GA 021 - Flitch - FA                         6.009.644         5.169.952       1.402.000        851.569         786.921       615.079
                                                                                                                                                                             (BOD 11)
                                                                                                                                                                             Cut dow n Euro
                            8     GA 021 - Flitch - TA                         4.474.715         3.012.911         859.000        636.714         476.021       382.979
                                                                                                                                                                             1.525.285 (BOD 11)

                                                                                                                                                                             TA activities ended on
                                                                                                                                                                             31/12/2010 --> payment
                            9     GA 025/06 - VCF                              5.000.000         2.000.000       1.320.000        750.000         379.553       940.447
                                                                                                                                                                             w ill be moved to initial 4
                                                                                                                                                                             months of 2011

                           10     GA 025/06 - FSDP                             4.200.000         1.500.000       1.250.000      1.200.000         851.786       398.214
                           11     TFF MU                                                  -                        143.062        114.480         114.480        28.582
                                                     GRAND-TOTAL              28.975.397        15.350.773       6.065.631      4.634.636       3.655.634     2.409.997

                           III)   BALANCE                                      1.018.523
                                  Balance is presented by:                     1.018.523
                           3.1    Cash                                                    -
                           3.2    (+) Bank                                     1.121.340
                           3.3    (+) Receivables                                     8.256
                           3.4    (-) Payables                                  (111.073)
                                         Interest payables - unearmarked        (108.094)
                                         Interest payables - earmarked               (1.454)
                                         PIT payables                                (1.253)
                                         Others                                       (273)



                                                                                      Table 2: Financial Data 2010

TFF Annual Report 2010                                   29
3.2       Annual Planned Budget for 2011 and 2012
                                                                                                                                                          Currency: Euro

                                                                                             Rem aining
                                                           Overall Budget Dibursem ent                      Planned       Planned
                                                                                               Fund
 No                            Projects                    (com m itm ent  from TFF to                     budget for    budget for                     Note
                                                                                               as of
                                                             to project)   projects as                       2011          2012
                                                                                             31.12.2010
                                                                          of 31.12.2010

                                                                    1             2            3=1-2           4             5                            8

  A     Com pleted projects                                        4.425.824

  B     Ongoing/New projects

  1     GA 019/07 - LD                                              926.092      911.888          14.204       14.204

  2     GA 029/09 - FORMIS                                         1.798.636     516.000       1.282.636      769.341        513.295

  3     DOF                                                         250.000           -          250.000      125.000        125.000   Based on revised DOF proposal

  4     FSSP CO                                                     100.000           -          100.000       50.000         50.000

  5     CFM phase 2                                                1.600.000          -        1.600.000      800.000        800.000   Based on concept note

  6     GA 025/06 - VCF extended phase                              840.000           -          840.000      840.000

  7     GA 025/06 - FSDP extended phase                             560.000           -          560.000      560.000

  8     GA 021 - Flitch - FA                                       6.009.644    1.691.262      4.318.382     2.041.946     2.276.436

  9     GA 021 - Flitch - TA                                       4.474.715    2.098.517      2.376.198     1.914.705       461.493

                                                                                                                                       remain EUR 950.000 compared with
 10     GA 025/06 - VCF                                            5.000.000    3.750.000      1.250.000      300.000                  commitment


                                                                                                                                       remain EUR 300.000 compared with
 11     GA 025/06 - FSDP                                           4.200.000    3.900.000        300.000                         -     commitment


 12     TFF MU                                                      738.647      398.647         340.000      170.000        170.000
                                                                                                                                       This figure will be clear after TFFM U
 13     Contingencies                                                                                         552.962         33.981   received final financing report by
                                                                                                                                       31/6/2011

        Sub -TOTAL (B)                                            26.497.734   13.266.314     13.231.420     8.138.158     4.430.205

                                Total                             30.923.558   13.266.314     13.231.420     8.138.158     4.430.205


  I     Total budget for 2011 and 2012                                         12.568.363

  II    Opening balance in TFF on 1.1.2011                                      1.018.523

  III   Total fund request to donors in 2011, 2012 (III = I-II)                11.549.840

  IV    Total rem aining com pared w ith donors' com m itm ent on 1.1.2011 11.549.840

  V     Difference (V=IV-III)                                                         -
                                                                                            Table 3: Planned Budget for 2011 and 2012



TFF Annual Report 2010                                                  30
   4 CONCLUDING REMARK
(93) It can be seen that there is continually success in management and operation of TFF during the busy
year of 2010, to mention are especially:


      Periodic meetings of working groups between FSSP, Partners and TFFMU for Climate Change and
       REDD issues,
      Operational Manual finalized and approved,
      GA029 (FORMIS) is fully working, frequent meetings were hold,
      Final evaluation was conducted to GA018,
      Final evaluation for GA019 Lam Dong prepared,
      Joint review missions with WB on the FSDP (GA025) project were conducted,
      The management of TFF portfolio and performance of almost all TFF funded projects have
       significantly been improved in 2010,
      The human resources of TFF will be improved accordingly to ensure smooth working conditions,
       selection of Financial Expert and Program Officer is ongoing,
      TFF Operation and management manual for TFF projects, BoD and TFFMU was sent to donor and
       MARD for endorsement, OM finally approved in June 2010,
      FLITCH / ADB review missions,
      General improvement of communication and cooperation between TFF and donor.

TFF will continue to ensure alignment with GoV procedures with agreed sector priorities and the three
development programmes of the Vietnam Forestry Development Strategy VFDS, namely the sustainable
forest management and development program, the forest protection, biodiversity conservation and
environmental services development program and the wood processing and trade program. TFF will
continually ensure the effective implementation of grant funded activities and monitoring their performance
to secure achievement of TFF - and therefore the VFDS – objectives. TFFMU acknowledges and appreciates
the support provided by MARD, the donors and all other parties involved during the last years.




TFF Annual Report 2010                          31
ANNEX I
Detailed TFF format: Detail 1st of January to 31st of December 2010:

                                                                From :     01. Jan 10             To:       31. Dez 10



                          I)   INCOME                                           EURO
                               Opening balance 01.01.2010                  1.135.316
                               Received from Donors                        4.399.890
                               Refunded from projects                         96.540
                               VAT refund                                     28.792
                               Interest income                                 3.385
                               Other income                                      -
                               Gain/loss by Exchange Rate                    (10.764)
                                             Total Incom e                 5.653.159

                          II) DISBURSEMENTS FROM TFF TO PROJECTS

                                                                                                                         Utilization                   Gain(+)/
                                                                                        Disbursem ent                                                  Loss(-)      Refunded
                                                                         Estim ated                        Actual         Advance
                                                                                           from TFF                                        Total          by          from      Note
                                                                          Budget                        Expenditure           to
                                                                                         to Projects                                      Utilized    Exchange      Projects
                                                                                                        by Projects       activities
                                                                                                                                                         Rate
                          A                       B                          1               2               3                 4           5=3+4          6            7         8
                         TFF directly funded projects
                           1 Projects/Grants completted before 2009
                           2 GA 016/06 - SPE                                                                                                                (941)       7.690
                           3 GA 018/07 - CBBC                                160.000          161.299        124.517                 -      124.517          676       44.851
                           4 GA 019/07 - LD                                  197.366          204.887        162.586           (52.082)     110.504        9.280            -
                           5 GA 020/07 - PPFP                                292.000          299.687        322.011                 -      322.011        1.320       43.999
                           6 GA 029/09 - FORMIS                              400.000          416.000        437.759                 -      437.759       12.268            -
                         TFF co-financing projects
                           7 GA 021 - Flitch - FA                          1.184.000          851.569         786.921         220.014     1.006.935            -
                           8 GA 021 - Flitch - TA                            694.120          636.714         476.021                       476.021            -
                          10 GA 025/06 - VCF                               1.134.240          750.000         379.553                       379.553            -
                          11 GA 025/06 - FSDP                                824.640        1.200.000         851.786                       851.786            -
                                           GRAND-TOTAL                     4.886.366        4.520.157       3.541.154         167.932     3.709.086       22.602       96.540

                          III) Disbursem ent                               4.634.636
                               For projects                                4.520.157
                               For TFF MU activities                         114.480

                          IV) BALANCE AT TFF                               1.018.523
                              Balance is presented by:                     1.018.523
                              Cash
                              (+) Bank                                     1.121.340
                              (+) Receivables                                  8.256
                              (-) Payables                                  (111.073)
                                      Interest payables - unearmarked       (108.094)
                                      Interest payables - earmarked           (1.454)
                                      PIT payables                            (1.253)
                                      Others                                    (273)




TFF Annual Report 2010                                       32
ANNEX II
Summary of TFF Fund commitment, disbursement to project and remaining balance
                            From :                 1-Jan-10              To:     31. Dez 10



  I)    INCOME                                         EURO
        Opening balance 01.01.2010                 1.135.316
        Received from Donors                       4.399.890
        Refunded from projects                        96.540
        VAT refund                                    28.792
        Interest refund                                3.385
        Other income                                     -
        Gain/loss by Exchange Rate                   (10.764)
               Total Incom e                       5.653.159

  II)   DISBURSEMENTS FROM TFF TO PROJECTS

                                       Overall     Approved                                                              2010
                                                                   Opening
                                       Budget       Budget                   Disbursem ent             Utilization                Gain(+)/ Refunded
 No              Content                                           Balance                                                                             Balance   % of fund       Note
                                        (Total      2010 by                     from TFF      Actual    Advance         Total     Loss(-)    from
                                                                  01.01.2010                                                                         at Projects utilization
                                     Com m itm e     MARD                      to Project  Expenditure      to        Utilized      by     Projects
  A                 B                     1            2               3            4           5            6         7=5+6         8         9    10=3+4-7-8-9 11=7/2            8
TFF directly funded projects
       Projects/Grants completted
   1                                   2.772.149              -
       before 2010
   2   GA 016/06 - SPE                    50.000           -          6.749              -                                          (941)      7.690          (0)     0%       Terminated
   3   GA 018/07 - CBBC                  596.406     194.419          8.743        161.299      124.517          -     124.517       675      44.851          (0)    64%       Completed
   4   GA 019/07 - LD                    926.092     197.366          9.761        204.887      162.586    (52.082)    110.504     9.280           -      94.864     56%
   5   GA 020/07 - PPFP                3.147.755     292.000         67.643        299.687      322.011                322.011     1.320      43.999           0    110%       Completed
   6   GA 029/09 - FORMIS              1.798.636     512.219        100.366        416.000      437.759          -     437.759    12.268           -      66.339     85%
       FSSP CO                                                                                                                                                 -
TFF co-financing projects                                                                                                     -
   8   GA 021 - Flitch - FA            6.009.644   1.184.000        343.577         851.569      786.921   220.014    1.006.935        -           -     188.211     85%
   9   GA 021 - Flitch - TA            4.474.715     694.120        158.507         636.714      476.021         -      476.021        -           -     319.200     69%
  10 GA 025/06 - VCF                   5.000.000   1.134.240        312.718         750.000      379.553         -      379.553        -           -     683.165     33%
  11 GA 025/06 - FSDP                  4.200.000     824.640        375.604       1.200.000      851.786         -      851.786        -           -     723.818    103%
             GRAND-TOTAL              28.975.397   5.033.004      1.383.668       4.520.157    3.541.154   167.932    3.709.086   22.601      96.540   2.075.597

 III)   Disbursem ent                              4.634.636
        For projects                               4.520.157
        For TFF MU activities                        114.480

 IV)    BALANCE AT TFF                             1.018.523
        Balance is presented by:
        Cash                                               -
        (+) Bank                                   1.121.340
        (+) Receivables                                8.256
        (-) Payables                                (111.073)
Note: The negative figures in column "advance to acitivities" are repay from the amount advanced to activities in the previous period. When activities completed, actual


TFF Annual Report 2010                                                     33
ANNEX III
VAT Report
                                                                                                                                         Currency: Euro
                     VAT paid/ refunded before 2010                                         2010
                                                                                 Amount of VAT submitted for   VAT refunded Jan - Dec
     Projects code                                     VAT paid by projects
                           VND            Euro                                             refund                      2010
                                                            VND         Euro          VND           Euro          VND           Euro
Projects completed       350.433.900     13.233,90                                                                                       refunded to TFF
TFF GA 020               209.582.000         8.569     251.895.000       9.509      251.895.000       9.509     408.260.411     15.711 refunded to TFF
TFF GA 018                 4.765.620           179         67.004.384    2.607       67.004.384       2.607                              not refunded by tax department
TFF GA 019               395.226.383        15.062     112.361.375       4.228      112.361.375       4.228                              refunded by tax department
TFF GA 029                                             395.960.161      14.899      395.960.161      14.899
                         960.007.903        37.043     827.220.920      31.244      827.220.920      31.244     408.260.411     15.711




TFF Annual Report 2010                                34
ANNEX IV
Summary of Donor fund committed, plan and received

                                                                                                                                             Currency: Euro



                                                                                            Total Fund      Rem aining
                                                          Fund received        Fund                                           Fund           Fund
                                          Total                                              Received      com m itm ent                                  Planned Fund
                         Donors                               as of          received                                       Requested     Requested
                                      com m itm ents                                           as of          as of                                           2012
                                                            31.12.2009         2010                                          Q1 2011      Q2,3,4 2011
                                                                                            31.12.2010      31.12.2010

                                            1                  2                3             4=2+3           5=1-4            6                               7


              1. Un-earm arked fund         26.223.558        11.773.258        3.199.890     14.973.148       11.250.410       300.000       6.520.205        4.430.205



              The Netherlands                6.830.000         5.130.000        1.700.000      6.830.000



              Finland                       11.669.914         2.019.914         600.000       2.619.914        9.050.000       300.000       5.320.205        3.429.795



              Sw eden                        1.717.492         1.717.492                -      1.717.492              -             -



              Sw itzerland                   6.006.152         2.905.852         899.890       3.805.742        2.200.410                     1.200.000        1.000.410



              2. Earm arked fund             4.700.000         3.200.570        1.200.000      4.400.570          299.430           -          299.430              -



              Finland                        4.200.000         2.700.570        1.200.000      3.900.570          299.430                      299.430



              The Netherlands                   500.000            500.000              -        500.000              -



              3. Total (1+2)                30.923.558        14.973.828        4.399.890     19.373.718       11.549.840       300.000       6.819.635        4.430.205




TFF Annual Report 2010                           35
ANNEX V
TFF internal rating

                                                               Rating
   Name       TFF Grant Code   Result # of activities    Activities                                               Rating
                                                                                    Number                       1 2 3 4
                                                        Year            1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

  Name       TFF Grant Code    Result # of activities    Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Rating
CBBC        GA018/07             1           8                      x x x x x x x o                    1 2 3 4
                                                           Q-Rating 2 2 2 2 2 2 3 4                         x
Ranking:
     1      Very Good            2           3                      x x x
     2      Good                                           Q-Rating 2 2 3                                               x
     3      Average
     4      Poor                 3          15                      x x x x x x x x o o x x x x x
                                                           Q-Rating 2 2 2 2 2 2 2 3 0 2 2 2 2 2 2                       x
Ranking:
     1      Very Good            4           6                      x x x x n x
     2      Good                                           Q-Rating 2 2 2 3 4 2                                         x
     3      Average
     4      Poor                 5          11                      x     x   x   x   x   x n x n x x x
                                                           Q-Rating 2     2   2   2   2   2 0 2 4 2 3 2                 x
   Name      TFF Grant Code    Result # of activities    Activities 1     2   3   4   5   6 7 8 9 10 11 12 13 14 15 Rating
Lam Dong    GA019/97             1           6                      x     x   x   x   x   x                        1 2 3 4
                                                           Q-Rating 2     2   2   2   2   2                          x
Ranking:
     1      Very Good            2           8                      x x x o o x x x
     2      Good                                           Q-Rating 2 2 2 2 2 2 2 3                                 x
     3      Average
     4      Poor                 3           x                      x o o o o o
                                                           Q-Rating 2 2 2 2 2 2                                     x

                                 4           2                      x x
                                                           Q-Rating 2 2                                  x
  Name       TFF Grant Code    Result # of activities    Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Rating
PPFP        GA020/08             1           3                      n n n                              1 2 3 4
                                                           Q-Rating 4 3 2                                   x
Ranking:
     1      Very Good            2           8                      n n n n n n n n
     2      Good                                           Q-Rating 2 2 3 3 3 4 3 2                                     x
     3      Average
     4      Poor                 3           3                      n n n
                                                           Q-Rating 3 2 3                                               x




TFF Annual Report 2010                              36
   Name     TFF Grant Code   Result # of activities    Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Rating
FLITCH     GA021/07            1           7                      o o o o o o o                      1 2 3 4
                                                         Q-Rating 4 4 4 4 4 4 1                              x
Ranking:
     1     Very Good           2           7                      o o o o o o o
     2     Good                                          Q-Rating 2 3 4 4 4 2 4                               x
     3     Average
     4     Poor                3           1                      o
                                                         Q-Rating 2                                       x

                               4           6                      x x   x n x x
                                                         Q-Rating 2 3   2 4 2 2                             x
   Name     TFF Grant Code   Result # of activities    Activities 1 2   3 4 5 6 7 8 9 10 11 12 13 14 15 Rating
FSDP       GA025/06            1           3                      x x   o                              1 2 3 4
                                                         Q-Rating 2 2   4                                   x
Ranking:
     1     Very Good           2           5                      o o o o o
     2     Good                                          Q-Rating 1 2 1 1 1                           x
     3     Average
     4     Poor                3           2                      o o
                                                         Q-Rating 2 1                                     x

                               4           2                      x x
                                                         Q-Rating 2 2                                  x
  Name      TFF Grant Code   Result # of activities    Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Rating
FORMIS     GA029/09            1           7                      x o o o o o o                      1 2 3 4
                                                         Q-Rating 3                                       x
Ranking:
     1     Very Good           2           5                      x x o x x
     2     Good                                          Q-Rating 3 3 4 3 3                                   x
     3     Average
     4     Poor                3           3                      x x x
                                                         Q-Rating 3 3 3                                       x

                               4           2                      o o
                                                         Q-Rating 4 4                                             x

                               5           8                      x o o xx x o x o
                                                         Q-Rating 3 4 4 3 3 4 3 4                                 x




TFF Annual Report 2010                            37
ANNEX VI – Performance Evaluation Matrix
             TFF Grant Code             1) Progress              2) Coordination / Management       3) Disbursement Rate         4) Contribution to Sector Policy Development
                                                 Reporting
                                 Previous          Period       TFFMU –     CPMU –     CPMU -     Previous     Reporting        Policy                            Training
                                                                                                                                              Workshops
                                   Year          (Actual vs.     CPMU       AA / TA    Province     Year        Period       Development                        Capacity Dev.
                                                    Plan)
               GA 021/06
              Component 1

              Component 2
                                                                 Good        Good       Good
              Component 3

              Component 4

                    Ø

                   Max              6                 18           8           8          8          6             18             8               8                   8

                 Points             6               18            8           8           8          6             18             8               8                   8
                  Sum                       24                               24                               24                                      24
                  Total                                                                                  96
                 Rating                                                                            Very Good

Explanation:
1) Progress: < 30% = 6 Points / 30 -50% = 12 Points / > 50% = 18 Points / If progress performance increase compared to previous year: + 6 points
2) Coordination / Management: Good = 8 / Average = 4 / Poor = 3
3) Disbursement rate: < 30% = 6 Points / 30% -50% = 12 Points / > 50% = 18 Points / If disbursement rate increase compared to previous year: + 6 points
4) Contribution to the sector: Depends strictly on the project (Min: 1 Component; Max: 4 Components)
         1 Component: Max:          24 points        = < 30% = 6 Points / 30 -50% = 12 Points / > 50% = 24 Points
         2 Components: Max:         12 points each = < 30% = 3 Points / 30 -50% = 6 Points / > 50% = 12 Points
         3 Components: Max:         8 points each    = < 30% = 2 Points / 30 -50% = 4 Points / > 50% = 8 Points




TFF Annual Report 2010                                     38

				
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