Van Kien Chuong Trinh - Eng

Royal Danish Embassy
Danida
Vietnam Denmark Development Cooperation in the Environment (DCE) 2005 - 2010
Final PROGRAMME DOCUMENT
104.VIETNAM.806
December 2004
COVER PAGE Country Title of Document National Agency Duration Starting Date Overall Support : : : : : : Vietnam Sector: Environment Development Cooperation in the Environment Ministry of Planning and Investment 5 years July 2005 DKK 250 million
The development objective of Development Cooperation in the Environment (DCE) is: "Implementation of the National Strategy for Environmental Protection secures sustainable livelihoods and improved living conditions for poor people". Description: DCE has been designed in accordance with recently revised Danish Aid Management Guidelines, adopting a sector programme approach. It retains the aim of promoting sustainable development and alleviating environmental degradation, but poverty reduction has now become an overarching objective. Four out of five DCE components have been formulated through the extension of existing Danish Environmental Assistance projects. Components include: Pollution Control in Poor Densely Populated Areas Environmentally Sustainable Development in Poor Urban Areas Cleaner Production in Industry Sustainable Livelihoods in and around Marine Protected Areas Capacity Development Support for Environmental Planning and Management
DCE has been formulated in-line with Government of Vietnam and Danida policies and priorities. It is integrated with the national sector framework, specifically the National Strategy for Environmental Protection and the national Comprehensive Poverty Reduction and Growth Strategy and draws upon lessons learned from previous and on-going projects and sector programmes in Vietnam. It has been designed to assist in facilitating the achievement of Government of Vietnam targets for economic growth and poverty alleviation in an environmentally sustainable manner. The density of poverty in Vietnam is highest around urban centres, river basins and the coastal areas. Demographic forecasts demonstrate increasing levels of urbanisation, with the proportion of the population living in urban areas increasing to around 45% by 2020 (and continuing to grow into the future). The urban poor are often obliged to live in the most polluted areas, often under worse conditions than the rural poor, in respect to access to basic services, clean water etc, in addition to having lost much of their social capital. DCE will pilot activities that assist in building capacity for regional environmental management, whilst improving the livelihoods and living conditions for the poor. Demonstrations will include working models on the inclusion of gender development, HIV/AIDS awareness, and good governance in local development approaches. DCE is therefore concerned with providing regional examples, owned and implemented by the full range of stakeholders, that generate improvements to living conditions in poor highly populated areas, and that are replicated to further sites following DCE completion. Criteria for the selection of provinces included poverty index, previous Danida experience, population densities, and level of environmental degradation. The programme will focus on a few provinces in north (Thai Nguyen, Phu Tho and Ha Nam), central (Nghe An and Quang Nam), and south (Ben Tre starting in year three) Vietnam.
VIETNAM-DENMARK: DCE
FINALPROGRAMME DOCUMENT 2005-2010
TABLE OF CONTENTS (Cover Page) List of Abbreviations Map of Vietnam Executive Summary 1. 1.1. INTRODUCTION Context of this Document 1 1 1 2 2 4 4 4 5 5 5 7 7 7 8 8 8 9 9 9 10 11 11 11 11 13 13 13 14 14 14 15
1.2. Background 1.2.1. Assessment of the Ongoing Activities 1.2.2. Sector Programming on Environment 2. 2.1. 2.2. NATIONAL SECTOR CONTEXT Economic and Social Context Environmental Context
2.3. Administrative and Legislative Context 2.3.1. Political Structure 2.3.2. Partners with Responsibilities in the Environment Sector 2.3.3. Legislative Framework 2.4. 2.5. 2.6. Policy Context Sector Budgets and Environmental Financing Other Contributors of Financial and Technical Support
2.7. Status of Cross-Cutting Issues and Priority Themes 2.7.1. Relevant Issues and Themes 2.7.2. Gender Equality 2.7.3. Good Governance 2.7.4. HIV/Aids 2.7.5. Other Priority Themes 3. AGREED ASSISTANCE
3.1. Overall Strategy 3.1.1. Moving to a Sector-Wide Approach 3.1.2. Strategic Focus 3.2. Poverty Alleviation and Cross-Cutting Issues 3.2.1. Mainstreaming Poverty Alleviation 3.2.2. Measures to Address Cross-Cutting Issues 3.2.3. Measures to Address Priority Themes 3.3. Ownership and Use of Demand-Responsive Approaches 3.3.1. Promotion of Ownership 3.3.2. Demand-Responsive Approaches
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3.4.
Geographic Focus
15 16 16 16 17 17 18 18 19 20 21 21 21 21 22 23 23 23 24 24 24 24 25 25 26 26 26 26 27 27 28 28 28 29 29 29 29 30 30 31 32 32 32 32
3.5. Programme Content 3.5.1. The Programme Development Objective 3.5.2. Selection and Development of Components 3.5.3. Immediate Objectives 3.5.4. Opportunities for Alignment 3.6. Technical Assistance 3.6.1. General Approach to Technical Assistance 3.6.2. Contracting International TA 3.6.3. Demand Responsive Contracting of Short-term TA 4. COMPONENT CONTENT
4.1. Programme Components 4.1.1. Introduction 4.1.2. Component Strategies and Design Principles 4.1.3. Selection of Demonstration Projects 4.2. Pollution Control in Poor Densely Populated Areas 4.2.1. Basic Framework 4.2.2. Purpose and Strategy 4.2.3. Management Arrangements 4.2.4. Implementation Plan 4.3. Environmentally Sustainable Development in Poor Urban Areas 4.3.1. Basic Framework 4.3.2. Purpose and Strategy 4.3.3. Management Arrangements 4.3.4. Implementation Plan 4.4. Cleaner Production in Industry 4.4.1. Basic Framework 4.4.2. Purpose and Strategy 4.4.3. Management Arrangements 4.4.4. Implementation Plan 4.5. Sustainable Livelihoods in and around Marine Protected Areas 4.5.1. Basic Framework 4.5.2. Purpose and Strategy 4.5.3. Management Arrangements 4.5.4. Implementation Plan 4.6. Capacity Development Support for Environmental Planning and Management 4.6.1. Basic Framework 4.6.2. Purpose and Strategy 4.6.3. Management Arrangements 4.6.4. Implementation Plan 5. BUDGET
5.1. Component Budgets 5.1.1. Summary Budgets 5.1.2. Activity Based Budgets
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5.2. 5.3. 5.4. 6. 6.1. 6.2.
Programme Supervision and Coordination Budgets Unallocated Funds Summary Programme Budget PROGRAMME MANAGEMENT AND ORGANISATION Overall Approach Organisational Structure
33 33 34 35 35 35 37 37 37 38 38 38 39 39 39 39 41 41 42 42 42 43 43 44 44 44 45 45 46 46 46 47 47
6.3. Management at Programme Level 6.3.1. Programme Coordination Committee 6.3.2. Programme Support Office at Central Level 6.3.3. Programme Implementation Manual 6.3.4. Provincial Programme Support Office 6.4. Role and Responsibilities of the Royal Danish Embassy
6.5. Management of Components 6.5.1. Central Level 6.5.2. Provincial Level 6.6. 7. 7.1. 7.2. Management of Demonstration Projects and Use of NGOs FINANCIAL MANAGEMENT AND PROCUREMENT Overview Budget Management
7.3. Fund management 7.3.1. General 7.3.2. MOFA/RDE 7.3.3. The PSO/PPSOs 7.3.4. The Line Ministries 7.3.5. Management of Funds for Demonstration projects 7.4. 7.5. 7.6. Fund Transfers from RDE to MOF/EFD Financial reporting Procedures for Procurement
7.7. Auditing Procedures 7.7.1. Internal Audit 7.7.2. External Audit 8. 8.1. MONITORING AND REPORTING Approach to Monitoring
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8.2. 8.3. 8.4. 8.5. 8.6. 9. 9.1. 9.2. 9.3. 9.4. 9.5. 10. 10.1. 10.2. 10.3.
Joint Programme Reviews Programme Level Monitoring Component Level Monitoring Indicators and Verification Reporting ASSESSMENT OF KEY ASSUMPTIONS AND RISKS Context Partners Involvement and Institutional Issues Sustainability Misuse of Funds and Corruption Development and Immediate Objectives IMPLEMENTATION PLAN Timing of Key Events Inception and Phasing in of Ongoing Projects Programme Implementation Chart
47 48 48 48 49 50 50 50 50 51 51 52 52 52 52
Bibliography Annex A Job Description for Long-term International Technical Assistance
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LIST OF ABBREVIATIONS ADB AR CCC CDS CITES CM CMO CPI CPRGS CSC CSU CTA DAF DANIDA DCE DEA DKK DONRE DOST DPC DPFA DSA EMP EPSF EU EIA FAO GDP GOV GSO ILTA ISGE IUCN LMPA MARD MDG MOC MOET MOF MOFA MOFI MOI MONRE MOST MPAs MPI NA NEA NSEP NSC ODP ODA PCO PCC PCDA Asian Development Bank Annual Review Component Coordination Committee Capacity Development Support for Environmental Planning and Management Convention on International Trade in Endangered Species Component Manager Component Management Office Cleaner Production in Industry Comprehensive Poverty Reduction and Growth Strategy Component Steering Committee Component Support Unit Chief Technical Advisor Development Assistance Fund Danish International Development Assistance Development Cooperation in the Environment Danish Environmental Assistance Danish Kroner Department of Natural Resources and Environment Department of Science and Technology (in a provincial administration) District Peoples Committee Demonstration Projects Fund Administrator Daily Subsistence Allowance Environmental Management Plans Environment, Peace and Stability Facility (of Danida) European Union Environmental Impact Assessment Food and Agriculture Organization of the United Nations Gross Domestic Product Government of Vietnam General Statistical Office International Long-term Advisor International Support Group on Environment The World Conservation Union Sustainable Livelihoods in and around Marine Protected Areas Ministry of Agriculture and Rural Development Millennium Development Goals Ministry of Construction Ministry of Education and Training Ministry of Finance Ministry of Foreign Affairs Ministry of Fisheries Ministry of Industry Ministry of Natural Resources and Environment Ministry of Science and Technology Marine Protected Areas Ministry of Planning and Investment National Assembly National Environment Agency National Strategy for Environmental Protection National Steering Committee Ozone-depleting substances Overseas Development Assistance Provincial Component Office Programme Coordination Committee Pollution Control in Poor Densely Populated Areas
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PFMA PIM PPC PPSO PSO PSU RDE SDU SFMO SME SOE SOER SSCI TA UK UNDP USD VAT VEPA VEPF VND WWF
Programme Financial Management Adviser Programme Implementation Manual Provincial Peoples Committee Provincial Programme Support Office Programme Support Office Programme Support Unit Royal Danish Embassy Environmentally Sustainable Development in Poor Urban Areas Shadow Fund Management Office Small and Medium Scale Enterprise State Owned Enterprise State of the Environment Report Small Scale Cottage Industry Technical Assistance United Kingdom United Nations Development Programme United States Dollar Value Added Tax Vietnam Environment Protection Agency (at MONRE) Vietnam Environmental Protection Fund Vietnamese Dong World Wide Fund for Nature
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Provinces of Vietnam with Danida sector support
ENVIRONMENT PROGRAMME PROVINCES
North: Thai Nguyen, Phu Tho, Ha Nam Central: Nghe An, Quang Nam
South: Ben Tre (from year 3)
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EXECUTIVE SUMMARY Introduction This programme document outlines the agreed cooperation between the Governments of Denmark and Vietnam in the Environment Sector for the five-year period from mid 2005 to mid 2010. The cooperation builds on the ongoing Danish support to Vietnams Environment Sector that has committed more than DKK 330 million since 1997. The new programme, to be called Development Cooperation in the Environment (DCE), will be supported with DKK 250 million of Danish funds. DCE retains the aim of promoting sustainable development and alleviating environmental degradation, but poverty reduction is an overarching objective. The poverty focus has been established by reference to Vietnams Comprehensive Poverty Reduction and Growth Strategy and will be monitored against Vietnams Millennium Development Goals. The preparation period for this programme was compressed to allow the programme to be appraised and approved by the end of 2004. Most of the programme development was undertaken between January and May 2004 by RDE, working closely with national partners in a Programme Task Force and Component Working Groups. The findings were subject to wider consultation through workshops, bilateral meetings, and desk review at each level and at each stage of design. Background During the past decade, Vietnam has undertaken a programme of comprehensive economic reform. These reforms have facilitated remarkable success in achieving high levels of sustained economic growth, eliminating widespread hunger and attracting large inflows of overseas direct investment. The rate and sustainability of the growth is threatened by declining environmental quality, particularly of surface waters, and unsustainable use of natural resources. Moreover, pollution is blighting the lives of millions of residents and workers in and around densely populated areas. The challenge facing the Government of Vietnam (GOV) is therefore to bring pollution under control and restore environmental quality without undermining economic growth or its development and poverty reduction strategy. GOV is in the process of revising environmental policy. A National Strategy for Environmental Protection has been issued that sets targets for environment improvements, linked to Vietnams Millennium Development Goals and the Comprehensive Poverty Reduction and Growth Strategy. NSEP identifies four overarching objectives: To reduce pollution gradually to comply with international norms by 2020 To improve environmental services To restore and preserve habitat (especially forests) To join international efforts to protect the environment Its strategy for achieving these objectives centres around mobilising society to become more involved in environmental protection, increasing its capacity to do so, and providing the legal and technical instruments that are needed. DCE is designed to support this strategy. Strategy and Content The programme development objective is to ensure that: "Implementation of the National Strategy for Environmental Protection secures sustainable livelihoods and improved living conditions for poor people". DCE has therefore been designed to be an integral part of Vietnams national sector framework, taking care to ensure that due attention is given to alleviating poverty and securing the livelihoods of poor men and women. The intention is to facilitate a process to which multiple donors can contribute but which is ultimately owned and directed by GOV. The development objectives at both programme and component
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levels represent, therefore, a vision of the future over a 10 -20 year horizon, outcomes of the GOV directed efforts of many partners. Vietnamese partners and Danida reviewers have emphasised that past and on-going assistance has addressed priority environmental needs, although without necessarily integrating poverty alleviation, and has generally been very valuable. The approach to programme development has been, therefore, to build on the existing portfolio, where it matches DCE objectives and priorities, but to reorient and expand the scope to integrate poverty alleviation and to address the cross-cutting issues and priority themes that are central to Danish development assistance policy. DCE strategy is to assist a gradual implementation of the National Strategy for Environmental Protection by coordinating with other donors and GOV to ensure that the environmental management framework is complete and that capacity is developed in the full range of stakeholders. The components each direct resources to different aspects of the framework and mobilise a wide array of stakeholders. The objectives and parts of the framework that they target are set out in the following table.
Component Pollution Control in Poor Densely Populated Areas Component Development Objective The quality of the environment within poor densely populated areas is subject to effective local control and maintained at acceptable levels. Main Aspect Targeted Policy development and regulatory framework at central level Policy implementation and organisation of institutions at provincial level Environmentally Sustainable Development in Poor Urban Areas Cleaner Production in Industry Environmentally sound and participatory techniques are used to develop, implement and achieve compliance with plans for urban land use and environmental service provision. The livelihoods of people working in and living around industrial enterprises benefit from controlled pollution and improved resource use of industrial enterprises. Important habitats and associated biodiversity in Vietnams marine and coastal waters are being restored and protected without compromising the livelihoods of surrounding poor and vulnerable communities. Stakeholders have the capacity to play an effective role in the implementation of the National Strategy for Environmental Protection . Urban planning Environmental service provision Large-scale Industrial Production Small-scale and household industrial production Participatory Natural Resource Management
Sustainable Livelihoods in and around Marine Protected Areas Capacity Development Support for Environmental Planning and Management
Capacity Development in the Environment
Opportunities for Alignment MONRE has initiated an International Support Group on Environment to unify national and international investment in the environment under one policy framework and to channel resources to the highest priorities. Average international contribution to the environment (excluding investment) is around USD 40 million per year. Much of this addresses the priority needs in the forestry and terrestrial biodiversity areas. Several interventions are underway where Danish funds have been used together with multilateral, bilateral and NGO resources. Future opportunities are expected and activities to identify and take advantage of them are built into component design. In addition, integration and cooperation both between complimentary sector programmes (i.e. business, water and fisheries) and across programme components has been a sought. Cooperation will include targeting the same partners with complementary activities and sharing Technical Assistance.
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Poverty Focus Poverty and environmental degradation are often interlinked: Access to natural resources and a healthy environment is a precondition for long-term poverty reduction, whilst poverty reduction is necessary for sustainable management of natural resources and the environment. Poverty reduction implies selective targeting of the poor, and helping them to reduce their vulnerability, improve their livelihoods, empower themselves, and make progress toward a permanent move out of poverty. The programme will assist environmental sector activities to become pro-poor. It will ensure that the needs and priorities of the poor are mainstreamed into the further development of national policy and regulation on the environment and into the development of capacity at all levels. Furthermore, all programme investments will target the poor directly and promote sustainable community-based actions in poor densely populated areas. This will include targeting pollution hotspots, particularly around poor settlements. GOV Comprehensive Poverty Reduction and Growth Strategy highlights the role of improved environmental conditions and services in poverty reduction and growth and has been used to suggest potential indicators to assess the effectiveness of programme interventions. Cross-Cutting Issues and Priority Themes Gender Equality: Gender equality and womens rights and empowerment issues, are mainstreamed in the programme. Decisions regarding priorities and resource allocation, and planning and programming, will take account of gender issues. Tools developed during component implementation will be explicitly inclusive of gender criteria. Environment: All programme components aim to improve some aspect of the environment of Vietnam. It is possible, however, that demonstration projects could damage other environmental resources or have adverse distributional effects. Environmental Impact Assessments will be carried out in compliance with relevant local law and international good practice. Good Governance: DCE components strengthen decentralised environmental decision-making and management, and GOV implementation of national environmental laws and plans. The direct benefits sought include greater local input into policy implementation and improved control of environmental resources. DCE will co-operate with NGOs both to benefit from their community level knowledge and as a way of promoting public involvement. AIDS/HIV: All programme capacity development and awareness raising activities present opportunities to increase AIDS awareness. DCE design and implementation procedures will ensure that these are exploited. Other Priority Themes: Aspects of the themes of globalisation, armed conflicts, and children and youth may require an environmental policy or legislative response during the lifetime of the programme. The policy dialogue with the partner will remain alert to such issues and the Programme Advisor and the Royal Danish Embassy programme coordinator will be prepared to offer technical assistance on the development of appropriate instruments. Provincial Focus DCE will focus most of its resources on a limited number of provinces. This will reduce the administrative burdens of the programme whilst allowing it to become a significant influence and a familiar presence in the provinces in which it is concentrated. Criteria for province selection included the poverty status and national priority, the capacity to benefit from and absorb programme assistance and the extent of Danish experience in the province, in environment and other sectors. It was also important that the components have opportunities to operate in the same locations and develop synergies. During years one and two the programme will be concentrated in Northern Vietnam (Thai Nguyen, Phu Tho and Ha Nam) and the central region (Nghe An and Quang Nam). Extension of activities to an additional province in Southern Vietnam (Ben Tre) will be considered in year three.
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Management Programme strategy and overall direction will be determined and coordinated by Ministry of Planning and Investment and Ministry of Natural Resources and Environment in partnership with Royal Danish Embassy in a Programme Coordination Committee. The Programme Coordination Committee will be guided by a committee of the other ministries involved in programme implementation, or otherwise directly concerned. It will also supervise and monitor programme progress towards its objectives and provide feedback to the partner governments. A Programme Support Office will assist the Programme Coordination Committee in its operations. It will also act as a service provider for the components, supplying management tools and expertise as well as acting as a conduit for the exchange of information and ideas. A Programme Implementation Manual will be prepared by the Programme Support Office during the Inception Period. This will be the key instrument for carrying out its coordination and monitoring functions. Overall management of component content, planning and expenditure will be the responsibility of a Component Steering Committee, operating through a Component Management Office. The Chair and Director of these will be provided by the central ministry in which the component is anchored. Provincial participation will be coordinated through a Provincial Programme Support Office anchored in the relevant Provincial Peoples Committee Vice Chairmans Office. Provincial representatives will also be included in the Component Steering Committees. Management of demonstration projects will be exercised at the level of implementation. This may require engaging directly with community level organisations and NGOs who will be offered training where necessary. Budget and Financial Management Total DCE support amounts to DKK 250 million. Partnership contributions will be negotiated on a caseby-case basis determined by the character of the components. Contributions will be encouraged in kind as staff, office space and other, as appropriate. Beneficiaries of demonstration projects will provide 10-50% partner funding, in cash or in kind. The overall breakdown of support is shown in the table below.
Category Cost Head Programme Support Office and Supervision Pollution Control in Poor Densely Populated Areas Environmentally Sustainable Development in Poor Urban Areas Cleaner Production in Industry Sustainable Livelihoods in and around Marine Protected Areas Capacity Development Support for Environmental Planning and Management Unallocated Total * Includes review and auditing costs
Technical Assistance 8.3 13.9 8.3 11.5 6.3 10.9
Operating costs* 14.7 9.9 8.5 9.2 8.9 2.7
Investments
Contingency 0.4 4.6 2.8 3.8 1.6 0.8
Total 24.0 65.0 40.0 55.0 26.0 20.0 20.0 250
Budget in Million DKK 0.6 36.7 20.4 30.4 9.1 5.7
Any necessary Programme and Component support staff will be recruited by the Government of Vietnam (GOV) following remuneration to be agreed between the GOV and RDE, but paid from the programme budget. Programme related travel will be reimbursed according to EU - guidelines. Annual budget approval will be the responsibility of the Programme Coordination Committee assisted by the Programme Support Office. Component policy-making, coordination of activities, annual budget approval and allocation of budget within the component rests with the line ministries responsible and the Component Steering Committees.
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Funds will be channelled, in the first instance, to a Programme Account controlled by the Ministry of Finance, and from there to bank accounts for the Programme Support Office and the Components. All funds transferred from the Programme Account will be administered by the recipient organisations using their own accounting systems. The Components may direct funds for demonstration projects to third parties, subject to suitable safeguards. Royal Danish Embassy will appoint an external auditor to carry out an annual external audit of the financial reports. Monitoring and Supervision DCE will make use of GOV targets for environment and sustainability improvements, which are in turn linked to Vietnams Millennium Development Goals and the Comprehensive Poverty Reduction and Growth Strategy. At the national level indicators will monitor developments in the national sector framework, programme inputs and the overall impact of DCE on the development objective. Joint Programmes Reviews will be undertaken in years one, two and four so that both governments can assess the progress of the programme towards the agreed objectives and make recommendations for changes. They will also provide an opportunity to decide how unallocated funds should be utilised and to consider major revision to components. Assumptions and Risks Ongoing policy, institutional and legislative reform, coupled with real investment in the sector, shows that GOV commitment to the environment and sustainability is continuing and secure. Main risks relate to: Difficulties working at decentralised levels where availability of staff and resources may be constrained and there is the potential for conflicts over jurisdiction and around the DCE approach to compensation for GOV staff and management at the level of implementation Sustainability, if funds needed to maintain DCE interventions are not be forthcoming and the capacity established by the programme is allowed gradually to dissipate Corruption or misappropriation of funds, especially indirectly by demanding payment for permits or approvals, can cause delays and waste of technical assistance External factors disrupt national development or change priorities, and delay achievement of the objectives Risk factors have been addressed in DCE design and measures to reduce them have been developed. Implementation Plan The detailed programme organisational structure and remuneration structure for necessary support staff employed by the Government of Vietnam but paid for by the programme will be finalised by the RDE and MPI as soon as possible. The programme is expected to begin in July 2005, with the appointment of an International Long-Term Programme Adviser and the establishment of the Programme Support Office. There will be a six-month inception period during which a Programme Implementation Manual will be developed and where detailed budget will be prepared for each component. The Pollution Control in Poor Densely Populated Areas, Cleaner Production in Industry and Capacity Development Support for Environmental Planning and Management components will begin during the inception period. Two other components (Environmentally Sustainable Development in Urban Areas and Sustainable Livelihoods in and around Marine Protected Areas) will be started gradually by expanding the ongoing projects and will be fully operational by the end of 2005. A Joint Programme Review and evaluation in 2009 will determine how Denmark-Vietnam cooperation in the environment should proceed after the scheduled ending of DCE in July 2010.
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1.
INTRODUCTION
This programme document covers the period 2005-2010. The document was prepared in consultation with partners with a view to ensuring a high degree of ownership at all levels. The aim is to set out an agreed focus and strategic principles that are to govern the content of development cooperation in the environment between Denmark and Vietnam over the coming years. It also outlines systems and tools for managing implementation and monitoring effectiveness. The detailed programme organisational structure and remuneration structure for necessary support staff employed by the Government of Vietnam but paid for by the programme will be finalised by the RDE and MPI as soon as possible. 1.1. Context of this Document
This document describes the agreed cooperation between the Governments of Vietnam and Denmark in the environment (Development Cooperation in the Environment DCE). The DCE programme follows on from earlier Danish Environmental Assistance (DEA) outlined in Section 1.2 below. The preparation period for this programme has been accelerated, taking place between January and May 2004, to allow the programme to be appraised and approved by the end of 2004. As a result some programme development activities have been carried out in parallel and some of the survey work has been postponed until programme inception. Instances of such deviation from the norm are documented where they occur, nevertheless the document complies fully with the recommendations and requirements set out in the Danish Aid Management Guidelines (AMG) (1st Edition, August 22, 2003). The development process is depicted below.
Compressed Preparation Period Oct Nov Dec Jan Feb Mar Apr May
Decentralised Pollution Control in Densely Populated Areas Preliminary Programme Component Expanded Concept Paper
Report on Programme Feasibility
Programme Description
1.2.
Background
Since 1997 DEA has been provided through the Environment, Peace and Stability Facility (EPSF) under the framework elaborated in the Danish Strategy for Regional Environmental Assistance in Southeast Asia. The DEA programme was developed over a number of years and is described in the document Danish Environmental Assistance to Vietnam 2000-2004 approved by the Board of Danida in June 2001.
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The document specified that the DEA would focus on four thematic areas: Biodiversity Conservation and Sustainable Management of Natural Resources Sustainable Management of Coastal Zones and Marine Protected Areas Sustainable Development of Urban Areas and Industry Environmental Education and Awareness
Over the past six years, projects have been prepared in each of these thematic areas. By July 2003, the programme comprised 18 projects at various stages of the cycle (preparation to completion). Total support has amounted to over DKK 330 million, of which DKK 130 million of support remains to be implemented (December 2003). 1.2.1. Assessment of the Ongoing Activities
A recent evaluation of DEA to South East Asia, in which an Annex is devoted to assessment of the Vietnam programme, reported that the programme was highly valued, both by beneficiaries and by cofinancing partners. It further found that DEA had introduced good approaches into the treatment of cross-cutting issues, and had generated policy lessons of value, both to the Government of Vietnam (GOV) and also other donors. It singled out achievements in capacity development for particular praise. As part of the current preparation for programme restructuring, a thorough review of the programme structure, content and management arrangements was undertaken. The focus was on drawing lessons for future component and programme design, but the review was able to confirm the main conclusions of the Evaluation Report. It also noted that GOV partners were very content that the project portfolio was targeting areas of highest environmental priority. For this reason, all but one of the DCE components are built around recently completed and ongoing projects under the DEA programme. 1.2.2. Sector Programming on Environment
Following the introduction of new policies by the Danish Government in 2002, the budget and modalities for EPSF funded assistance have been under review. It has now been decided that EPSF will be succeeded by a facility that will be focussed on three thematic areas: (i) (ii) (iii) urban and industrial environmental management sustainable energy and management of natural resources
DCE assistance committed to Vietnam for the period mid 2005 to mid 2010 amounts to DKK 250 million. As described in A World of Difference: New Priorities in Danish Development Assistance 20042008, it retains the aim of promoting sustainable development and alleviating environmental degradation, but poverty reduction has now become an overarching objective. Moreover, the assistance has been developed using a sector programme approach. The poverty focus has been established by reference to the national Poverty Reduction Strategy Paper, which in Vietnam has been realised as the national Comprehensive Poverty Reduction and Growth Strategy (CPRGS). Effectiveness of DCE in this regard will be gauged by use of Vietnams Millennium Development Goals (MDG), targets for which are included in the CPRGS. DCE targets the poor directly and promotes sustainable community-based actions in poor densely populated areas. In parallel, it targets pollution hotspots, particularly around poor settlements. The sector programme approach requires that DCE be part of Vietnams national sector framework, integrated with GOVs environment programme - specifically the National Strategy for Environmental Protection (NSEP). Activities will concentrate on priorities identified within NSEP that contribute significantly to poverty reduction and improve environmental health conditions of the poor. DCE components have been developed through working alongside the national agencies responsible for the implementation of these aspects of the NSEP. The key to long-term programme sustainability is
therefore national ownership of assistance activities. Furthermore, where interventions include demonstration projects, investments in infrastructure or service provision, criteria have been adopted to ensure activities prioritise the poor. The priorities outlined under the NSEP and CPRGS are primarily urban and poverty related (or concerned with forest restoration and protection which are addressed by the development objectives of other donors operating in the country). The DCE development objective has, therefore, been structured as follows: "Implementation of the National Strategy for Environmental Protection secures sustainable livelihoods and improved living conditions for poor people". DCE has followed an iterative development process working closely with national partners. It has been formulated through a significant level of consultation, including workshops, working group meetings, review and appraisal at each level and stage of design. Ministry of Planning and Investment (MPI), together with the Ministry of Environment and Natural Resources (MONRE) are the primary programming partners. However, many other ministries, committees and general departments as well as associated local-level agencies also have responsibilities towards the environment and these organisations were invited to join MPI and MONRE to form a Programme Task Force which has guided preparation. DCE will continue to build on this productive relationship throughout its implementation stages. Together with MPI and MONRE, members of the DCE Task Force include representatives from: Ministry of Construction (MOC), Ministry of Education and Training (MOET), Ministry of Foreign Affairs (MOFA), Ministry of Fisheries (MOFI), Ministry of Industry (MOI), Institute of Urban and Rural Planning, Institute of Chemistry, Research Institute of Mines and Metallurgy, and the Office of Government (International Cooperation Department).
2. 2.1.
NATIONAL SECTOR CONTEXT Economic and Social Context
The national income of Vietnam, as measured by Gross Domestic Product (GDP), has been growing at an average of around 6% per annum since 1990 and reached 485 USD per capita in 2003. Vietnam remains an agrarian society, with around 65% of the labour force working in agriculture, forestry and fisheries, although the share of agriculture in GDP is only 22% and diminishing. The service and industry sectors now account for most of the national income (38% and 40% respectively) and industrial production is growing rapidly. Vietnam is one of the most densely populated countries in Asia with a population of nearly 81 million people. Most of these belong to the Kinh people (ethnic Vietnamese), while the remainder (around 16%) comprise more than 50 different ethnic minority groups, most of whom live in the more remote and mountainous areas of the country. It is commonly estimated that just over two thirds of Vietnams current population live in rural areas, concentrated in the two main rice-growing deltas: the Red River in the north and the Mekong in the south. During the past 30 years, however, people have begun to move from rural to urban areas seeking available land and work. The urban population is now growing rapidly (at a yearly rate of around 3.7%). Migrants are often non-registered and illegally settling, restricting the availability of reliable data, nevertheless, according to the Vietnam Development Report 2004, approximately 5 million people moved from rural to urban areas between 1999-2003. Vietnam has made remarkable progress across a broad range of socio-economic development measures. The most impressive is the fall in the poverty rate from well over 70% of the population in the mid-1980s to around 29% in 2002. Poverty varies regionally, both in terms of severity, and in the proportion of the urban to rural divide. The density of poverty is highest among the rural-urban migrants, in the river deltas, and along the coast. They are often obliged to live in the most polluted and least attractive areas in and around towns and cities: along polluted rivers, road, railways, in slums, near dumps and industrial areas. They often live under worse conditions than the rural poor (in respect to access to clean water and other natural resources, sanitation, housing, public services, etc.), and although they may have increased income and better employment opportunities in urban areas, they have often lost the social capital inherent in their village communities. 2.2. Environmental Context
Vietnam stretches over 1600 km along the eastern coast of the Indochinese Peninsula with a total land area of about 33 million hectares. Two thirds of the country is mountainous or hilly but most of the population lives in the northern, central and southern plains or along the long coastal strip. The wide variety of its bio-geographic zones has made it one of the ten most biologically diverse countries in the world. Recent economic gains have brought with them the usual environmental problems associated with rapid economic and population growth including loss of natural habitats, overexploitation of natural resources and pollution from industrial and domestic wastes. Natural forest cover has fallen from 43 to 33% of land area over the last fifty years, and habitat loss (through encroachment) is contributing to a rise in the number of threatened species. The countrys rich coastal and marine ecosystems are also under threat with a loss of some 80% of mangrove forests, and virtually all of the coral reefs at risk from over fishing and pollution. The supply of potable water is well below demand in both rural and urban areas. In 2000, just over half of the population had access to safe water, and only half of these had piped water facilities.
Surface, ground and coastal water quality is declining due to untreated discharge of industrial and domestic wastewater and agricultural run-off. Waste generation has become an increasing problem in both small towns and cities. Waste is collected from only just over half of households, and is disposed of in open dumps and landfills, mostly without treatment together with hazardous industrial and healthcare wastes. Major industry often relies on outdated and heavily polluting technology and increased production has often outpaced any pollution control technology. Small-scale cottage industries, originally promoted to boost the incomes of agricultural households, are located within residential areas creating localised pollution hotspots. The rapid increase in motorised transport has been accompanied by significant localised air pollution especially in the large cities. 2.3. 2.3.1. Administrative and Legislative Context Political Structure
The Communist Party serves as the main political force offering policy guidance to the National Assembly (NA) and the GOV. The NA is the supreme lawmaking body with 450 members. Elected every 5 years, it approves major development objectives and economic growth targets, and appoints the President, the Government and the Prime Minister. Vietnam is divided into more than 60 provinces (64 as of April 2004). Each province has an elected Peoples Council that proposes candidates for a Provincial Peoples Committee (PPC), which is the highest administrative office at provincial level. The PPC has taxation authority, and is a recipient of Government funds for social and development purposes. Each line ministry has a provincial department that is responsible to both its central administration and the relevant PPC. Similarly each province is subdivided into several (4-22, average 9.5) administrative districts with a District Peoples Committee (DPC) and, occasionally, sub-departments of technical ministries. Districts are further sub-divided into communes and then to villages or wards. At village/ward level, the Head of Village/Ward is the link between the commune administration and the local community and the representative of the state administrative system at grass root level. He/she has an important role in reconciling state law and traditional rules and, therefore, in local activities concerned with the protection of natural resources. 2.3.2. Partners with Responsibilities in the Environment Sector
A new Ministry of Natural Resources and Environment (MONRE) was established in January 2003 to undertake the state functions of management of land resources, environment, water resources and minerals. The reorganisation of MONRE is ongoing as changes in the legal framework are necessary to complete the transfer of areas of responsibility from other ministries. A similar reorganisation has begun in the provinces and districts but completion is expected to take some time. Several other ministries retain significant roles in the sector (some as partners in on-going DEA projects). The MPI formulates national economic policies, prepares and monitors all socio-economic development plans and reviews major projects. In addition it is the initial entry point for all Overseas Development Assistance (ODA) to Vietnam, screening all donor assistance proposals and monitoring on-going projects. Within MPI, the Department of Science, Education, Natural Resources and Environment (DSENRE) is responsible for environmental issues. DSENRE has been the partner agency for the DEA.
MOC is the Government body performing the state management functions in: Construction, construction materials, housing and office buildings, architecture, urban construction planning, rural construction planning, urban infrastructure and urban public utilities services. MOFI is responsible for development, management and conservation of marine resources within Vietnams jurisdictional waters. MOFI has a responsibility for State management of all fisheries, including inland waters in coastal provinces and in the sea. It is the coordinating agency for one of the current DEA projects involving the identification and management of Marine Protected Areas. MOI is the Government body performing the state management functions in the industries including machine buildings (Mechanical), metallurgy, electricity, new energy, renewable energy, petroleum, mining, chemical industry (including chemical-pharmaceutical), industrial explosives, consumer products, food industry and, processing industry in the whole country. MOI also has a research function housed across 28 centres and institutions and, also includes a new Directorate for Industrial Environmental Health and Safety. Ministry of Agriculture and Rural Development (MARD) is concerned with agriculture and forestry in rural areas and this has included management of water resources, forests and terrestrial protected areas as well as rural water supply and sanitation. MARD plays a key role in the implementation of several protected area management programmes under DEA-Vietnam as well as in the Agriculture and Water Sector Programme Support. Ministry of Finance (MOF) provides unified State management in the fields of finance, accounting and State budget in Vietnam. Its role in ODA projects is to ensure that the agreed counterpart funding is made available to the GOV partners. MOET is responsible for overall policy-making and coordination within the educational system, and has approval privileges for all curricula in schools and universities. Other potential partners/contributors to areas where Danida and Vietnam cooperate in the environment sector include international and national NGOs. These may be directly involved in the programme as implementers or partners, or benefit through involvement in capacity development activities. International NGOs, of which more than 500 are registered with the GOV Committee for NGO Affairs in Vietnam, constitute an important reservoir of experience, particularly for community level actions. Many of them implement projects on rural and agricultural development, livelihood improvement, poverty reduction, gender empowerment, water and sanitation, and operate nationwide including in DCE provinces. In Vietnam many of the roles that might be played by NGOs are filled by mass organisations such as the Fatherland Front, the Women's Union, and the Youth Union, which, although they are organised and funded by the government, are largely grassroots focused and representative of local views. They play a key role as the political base of peoples power and many GOV social objectives, including poverty reduction and the provision of municipal services, are implemented through such groups. Other organisations that wish to operate legally as NGOs are required to register with and be supervised by a government entity, although they may have their own administrative structure and financing. Many of these are also active in the environment sector. All these types of NGOs will be involved in DCE activities, as implementers, TA providers and beneficiaries. Their involvement will be particularly valuable in implementation at commune level and in activities such as mobilising communities, raising awareness, development of indicators, and programme monitoring. They will also be given the opportunity to contribute to and benefit from capacity development.
2.3.3.
Legislative Framework
The existing Law on Environmental Protection of Vietnam came into force from January 1994. In 1996 a decree was enacted which greatly expanded the range of penalties for violation of environmental laws and regulations relating to EIAs and audits, conservation of natural resources, trade in endangered species, exploration and mining, and a wide range of pollution infringements. This decree has not yet been fully implemented, however, and MONRE is now leading an effort to revise the framework legislation and is aiming to submit a new Environmental Protection Law to the National Assembly sometime in the first half of 2005. Vietnam is increasingly participating in activities related to international environmental conventions and has included its obligations in this regard in the NSEP. 2.4. Policy Context
GOV is in the process of revising environmental policy. Strategies for environmental protection and sustainable development have been prepared in the form of the NSEP to 2010 and a draft National Environmental Action Plan 2001-2005, the former having recently received Prime Ministerial approval. The documents set new targets for environment and sustainability improvements, linked to Vietnams MDG and the CPRGS. They also offer a commitment to make more resources available for implementation of environment priorities. NSEP identifies four overarching objectives: To reduce pollution gradually to comply with international norms by 2020 To improve environmental services and paying particular attention to surface water and drainage dioxin contamination, soil, and urban greening To restore an ecological balance through restoration and preservation of habitat (especially forests) and increased use of renewable power generation To join international efforts to protect the environment through implementing international agreements and codes of practice in relation to industry (ISO 14001), genetic modification, and to eliminate the import of hazardous wastes Its strategy for achieving these objectives centres around mobilising society to become more involved in environmental protection, increasing its capacity to do so, and providing the legal and technical instruments that are needed. In parallel, GOV is committed to strengthening community participation in local development decisions. Recent legislation (Decree No. 79/2003/ND-CP) sets out procedures for informing and consulting communities on development and land use plans and for ensuring their participation in deciding on, supervising and inspecting certain construction projects. 2.5. Sector Budgets and Environmental Financing
Government spending on the environment sector can be difficult to determine with any precision because activities are financed through many different agencies and may occur under several cost categories. In 2002, total current expenditure by GOV was close to VND 79,000 billion (USD 5.2 billion). Some VND 1,800 billion (USD 134 million) of this was allocated to the category science, technology and environment, but comparison with spending in 2003 suggest that less than 4% of this allocation would be expended on interventions categorised as environmental. Defining the environment sector by the sub-headings used in the NSEP, these include: pollution prevention, control, treatment, disposal and remediation protection and sustainable use of natural resources (excluding forestry and commercial activities) nature conservation and biodiversity protection actions to improve environmental management capacity actions to encourage public participation others including disaster mitigation and poverty alleviation
Most funds are provided through provincial budgets and capital investments, although information on these is not available. Centrally managed current expenditure allocated through MONRE and other line ministries on these items comprised VND 70 billion (USD 5 million), in 2003, or roughly 0.1% of total current expenditure. GOV is currently exploring a number of opportunities for revenue generation in the environmental sector starting with potable water charges that are expected to generate up to VND 100 billion (USD 7 million) per year. The Vietnam Environmental Protection Fund (VEPF) has been established to utilise part of the revenue collected and use it in the co-financing of environmental investments. A large proportion of environmental funding (as defined above) still comes from ODA since around USD 2.1 billion, 5% of total ODA, is committed to environmental projects, implying an average expenditure of around USD 40 million per year. 2.6. Other Contributors of Financial and Technical Support
MONRE has initiated an International Support Group on Environment (ISGE) within its International Cooperation Department. This group is intended to unify national and international investment in the environment under one policy framework and to channel resources to the highest priorities, while minimising overlap. The other significant (over US$1 million) bilateral programmes in the general area of environment, more than 20 of which relate to an aspect of afforestation or forest management, include: Germany, Netherlands, Belgium, Japan: Social Forestry and Afforestation Germany, Netherlands, Japan: Natural Resources Management Germany, Netherlands: Coastal Zone Management Canada, Switzerland and Sweden: Industrial Pollution Management Canada, Switzerland and Sweden: Environmental Management Capacity Development
Major multilateral activities that affect the environment sector include the following (bolded items are cofinanced by Danida): EU: Social Forestry, Urban Planning in the Mekong Delta provinces (recently approved) World Bank: Waste Water, Capacity Development, Pollution Control, Coastal Wetlands Restoration and Protection UNDP: Environmental Management, (Agenda 21, environmental strategies and capacity development and education, disaster management, biodiversity and sustainable energy), Poverty and Environment Study Asian Development Bank (ADB): Capacity Development for Pollution Minimisation, Coastal Zone Management
Danida has previously worked, and in some cases is still involved, in every one of these areas. In each case, however, activities are complementary or in far-separated locations. 2.7. 2.7.1. Status of Cross-Cutting Issues and Priority Themes Relevant Issues and Themes
In all countries the way that environment sector issues impact on the everyday life and living conditions of all the population is greatly influenced by policy and culture in the areas of Gender Equality and Good Governance (democratisation and human rights). Also of relevance in the sector in Vietnam is the issue of HIV/AIDS, because sectoral activities will present opportunities to address the pandemic at little incremental cost. Other priority themes (globalisation, armed conflicts, and children and youth) are of less immediate concern in the sector, but merit some attention.
2.7.2.
Gender Equality
Vietnam has produced a National Strategy and Plan of Action for Advancement of Women that records significant progress in gender equality. Women account for 48% of those in formal employment and have a literacy rate of 90.6% (compared to 95.3% for men). They comprise around 26% of national assembly members (the highest in Asia) and, while their level of participation decreases in local administrations, it is still substantial (21% at district level and 16% at commune level). The picture is not all positive, however. Womens average income is only 78% of that of men, and they tend to be confined to the least stable, transitory jobs. Gender equality is still not enshrined in all aspects of the legal framework. Womens participation in higher education is limited and their social opportunities are constrained by disproportionate responsibility for household maintenance. Poverty and cultural resistance to change traditional gender roles still persists particularly in rural areas, and among the poor, both rural and urban, communities. Therefore, although Vietnamese women are very much involved in and contribute to the formal and informal economy, gender equality is still not seen in all segments of society. This is of particular concern in the environment sector because environmental degradation often affects the health and well-being of women and children more severely. Moreover, the poor, women in particular, are highly dependent on the environment for their livelihoods and survival (food, income, energy, medicine, building materials). 2.7.3. Good Governance
Environmental degradation often impacts directly on the health and living conditions of those affected. Remediation therefore presents an opportunity to readily mobilise communities to work together and to take actions that immediately affect their everyday lives. There is a strong tradition of communities working together to achieve local development objectives in Vietnam and the NSEP emphasises the need to mobilise the whole society in environmental protection work and the importance of social organisations .and civil society The organisations and legal framework to mobilise and involve people in environmental decision-making and management are in place (see Section 2.3). There is also some movement towards the development of a more recognisably independent civil sector. The main constraint is capacity and awareness in all aspects of environmental management, and at every level of stakeholder from central government down to individuals. 2.7.4. HIV/Aids
The incidence of AIDS and HIV infection in Vietnam is significant, although the levels have not yet reached the critical levels of some other countries. Ministry of Health estimated that the total number of HIV infections in Vietnam was 59,000 in 2002 (the United Nations estimate was 150,000). The AIDS pandemic is a huge source of human misery and places a burden on the entire population, not least on women providing health care for the chronically ill. Impacts to the poor are also compounded both in terms of the proportion of the poor contracting the disease, but also in respect to the effect of illness or death on a poor household, which can be devastating within an already vulnerable situation. The growth and spread of HIV and AIDS in Vietnam has been highest among intravenous drug users. However, estimates suggest that the majority of new infections are now sexually transmitted, and that transmission has increased among female sex workers. Currently the only technical means to prevent sexual transmission of HIV is the proper use of condoms. These are, however, often of limited availability outside major cities and may cost too much for poor people. DCE design and implementation procedures will ensure that, where appropriate opportunities arise to increase AIDS awareness, they will be exploited. (For example Danidas International Programme of Action Against HIV/AIDS supports activities such as awareness raising in the workplace, which can be introduced within the Cleaner Production in Industry (CPI) component). All capacity development and awareness raising activities present such opportunities, as do many demonstration projects, particularly those concerned with the CPI component and the component Pollution Control in Poor Densely Populated Areas (PCDA), and interventions have been designed accordingly.
2.7.5.
Other Priority Themes
The themes of globalisation, armed conflicts, and children and youth are all relevant in Vietnam, but only of limited direct relevance to activities in the environment sector. Globalisation: Vietnam embraces the concept and is pursuing policies of industrial expansion and increased exports. In the environment sector, the need to participate in and implement international agreements has been made a priority of the NSEP. Other globalisation issues that can be expected to affect future policy in the sector concern trade and environment, in particular the increasing prevalence of environmental labelling and the use of environmental and social criteria by multinationals in supply-chain management. Armed Conflicts: There were several major conflicts involving Vietnam in the latter half of the twentieth century, but the country has not been directly engaged in a war since 1979. The direct consequences of war (refugees, destruction of infrastructure, social disruption etc.) have therefore, largely receded. One remaining effect of direct relevance to the environment sector is the residue of chemical defoliants used during the American war. These chemicals are blamed for birth defects and a variety of health ailments among the exposed population. Moreover, a large area of land remains unsuitable for agriculture due to contaminated soils. Clean up of the contamination is a priority of NSEP. Children and Youth: Vietnam has a high rate of literacy, which among people aged 15 and over is currently in excess of 90%. This is largely due to high levels of early school attendance - as of 2000, the population of primary education graduates was just over 80%. However, the majority of Vietnams young people enter into employment from around the age of fifteen, with only 17% graduating secondary education. There are also a number of children engaged in labour from very early ages, particularly in rural communities where their additional income can be vital to household survival. Demographic data show an increase in the overall numbers of urban youth (though this is not outside of the national urbanisation trend). Street children remain in the major urban centres, but the issue is being actively addressed by GOV through increased orphanage and outreach programmes placing children with relatives or adoptive families. In respect to the environment young people are particularly vulnerable to pollution, especially in the early years of physical and mental development, and these risks are generally more prevalent in poor urban areas. For example, exposure of children to air pollution (particularly to very small airborne particulates like PM10) during periods of lung development has been shown to increase susceptibility to respiratory diseases in later life, while chromic intakes of led pollution from motorised transport can stifle mental maturity. Human Rights: The Vietnamese reform process has promoted a range of improvements within the human rights area. At the same time, the Vietnamese authorities are increasingly willing to enter into dialogue with regard to human rights. In 2002, the government issued a decree, known as the grassroots decree, which aims to strengthen democracy in local communities. The decree contains a set of procedures for public hearings and other elements intended to involve the populace more into decisionmaking procedures. Despite significant improvements, however, issues are still reported relating to freedom of expression, for example, and limitations placed on the right of association and assembly. Moreover, even though the constitution pledges religious freedom, the government attempts to restrict the activities of some religious societies.
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3. 3.1. 3.1.1.
AGREED ASSISTANCE Overall Strategy Moving to a Sector-Wide Approach
Vietnamese partners and the evaluations so far undertaken (see Section 1.2.1) have emphasised that past and on-going DEA projects were focussed in the right areas and have generally been very valuable. The approach to DCE development has been, therefore, to build on the existing portfolio by transforming the larger projects gradually into DCE components, where they fit into design objectives and priorities. Otherwise, they will be allowed to continue as individual projects, while being managed inside the DCE framework and concluded with a phasing-out period, during which measures will be taken to consolidate benefits and promote sustainability, as necessary. This process has resulted in the formulation of five DCE components. Details of components are provided in Chapter 4, with full components documents comprising Appendix A, A1-A5. The absorption of DEA projects into the DCE programme is demonstrated below.
DCE Components Pollution Control in Poor Densely Populated Areas (1) (PDSA) DEA Projects Environmental Information and Reporting Environmentally Sustainable Development in Poor Urban Areas (SDU) Improved Solid Waste Management Industrial and Urban Development in Viet Tri City Capacity Development for Urban Planning and Management (1) New component, though existing project phased in (2) Project completed though new component builds on outputs Cleaner Production in Industry Sustainable Livelihoods in and around Marine Protected Areas (LMPA) Ho Mun Marine Protected Areas Project Support to Marine Protected Areas Network in Vietnam Capacity Development Support for Environmental Planning and Management (CDS) Capacity Development and Programme Management Can Tho University University of Aarhus Link in Environmental Sciences
(CDI) Mitigation Measures in the Building Materials Industry (2) Industrial and Urban Development in Viet Tri City
The remaining DEA projects are accommodated in several ways. Two projects in the Ca River Watershed will be completed by the end of 2005. It is planned to enlist an international NGO, using funds from Danidas NGO window to design and implement a follow-up project that will consolidate the experience gained. The project 'Environmental Education in the Schools of Vietnam' with Ministry of Education and Training will be sustained by other Danida funds and absorbed into the National Environment Program for Schools. The elements in Vietnam of the Indochina Tree Seed Program will be completed in the beginning of 2005 and thereafter included in the Agriculture Sector Program Support. 3.1.2. Strategic Focus
Vietnam is rapidly transforming into a modern industrialised economy. A major challenge is, however, to manage the accompanying adverse social and environmental effects that would, if unchecked threaten the rate and sustainability of the transformation. It is already apparent that the most threatening trends are
rapid, unplanned urban development, declining environmental quality, particularly of surface waters, and unsustainable use of natural resources. Policy responses to these challenges have been appropriate and timely in the production of a strategy - the NSEP - an action plan and the commitment of resources. Vietnam is a highly ordered society. The root cause of much of the continuing and widespread environmental degradation is lack of capacity to predict and understand the consequences of decisions rather than deliberate neglect or failure to comply with the law. GOV recognises this and puts capacity development amongst the whole society at the heart of its NSEP. DCE supports this approach through its choice of partners and its implementation strategy. Following the Capacity Development in Environment (CDE) approach, where capacity in the environment represents the ability of individuals, groups, organisations and institutions to address environmental issues (OECD-DAC, 1995), the components each promote integrated solutions and mobilisation of a wide array of stakeholders, but from a different entry point in the environmental management framework. PCDA and LMPA work through regulators, SDU through planners, CPI through polluters. CDS supports each component and facilitates integration of the programme outputs. Furthermore each component is designed to maximise its impact and effectiveness by directing most of its investments to a few locations whilst ensuring that they test and inform national policy. Each of the components has, therefore, a presence in the responsible line ministry that will work with local government agencies to develop demonstration interventions. These interventions will generate improvements to living conditions in poor highly populated areas, and will be owned and implemented by the local stakeholders, and their results will enable policy makers to design, cost and roll out policy initiatives more quickly. DCE has been developed to support GOV in NSEP implementation, taking care that due attention is given to alleviating poverty and securing the livelihoods of poor men and women. The substance of DCE strategy follows from these considerations and may be summarised as follows: To contribute where the need is greatest and where Danida can be particularly effective, especially by building on the ongoing and recently completed projects started under the previous DEA programme (only the PCDA component is completely new) To ensure that specific capacity development and awareness raising needs are built into each component, whilst ensuring coordination, consistency and state-of the-art expertise across the programme as a whole To focus interventions at the decentralised level (province, district, commune) whilst ensuring that they are designed to test and inform national policy, and to facilitate the communication systems that will bring their results to the attention of policy-makers To work at the decentralised level, through components managed by regulators, polluters and civil society respectively, to develop integrated solutions to environmental problems To assist GOV to mainstream poverty alleviation into Environmental Sector decision-making in Vietnam and to ensure that supported interventions are focussed on improving the living conditions of the poor To use demonstration projects to raise the capacity for planning, management and implementation of environmental interventions in the full range of stakeholders, including NGOs and to strengthen the influence and convening power of Department of Natural Resources and Environment (DONRE)
3.2. 3.2.1.
Poverty Alleviation and Cross-Cutting Issues Mainstreaming Poverty Alleviation
Degraded environments, including home and working environments, as often have severe negative effects on poor people. Their health, food security, work capability and livelihood activities may all be impaired as well as their self-respect and their capacity to lift themselves out of poverty, or to act to improve degraded environmental conditions. Poverty and environmental degradation are, therefore, often interlinked: access to natural resources and a healthy environmental is a precondition for long-term poverty reduction, whilst poverty reduction is necessary for sustainable management of natural resources and the environment. Poverty reduction implies selective targeting of the poor, and helping them to reduce their vulnerability, improve their livelihoods (where a livelihood comprises the capabilities, material and social resources, and activities required for a means of living), empower themselves, and make progress toward a permanent move out of poverty. This implies pro-poor development policies and planning and actions. The programme will assist environmental sector activities to become pro-poor. It will ensure that the needs and priorities of the poor are mainstreamed into the further development of national policy and regulation on the environment and into the development of capacity at all levels. Furthermore, all programme investments will target the poor directly and promote sustainable community-based actions in poor densely populated areas. This will include targeting pollution hotspots, particularly around poor settlements. Vietnams MDG and CPRGS, highlight the role of improved environmental conditions and services in poverty reduction and growth. The programme will seek to support and promote those elements within the NSEP that contribute significantly to poverty reduction and improve environmental health conditions of the poor. The CPRGS has been used to help develop targets and indicators to assess the effectiveness of programme interventions in this regard. Where the programme activities include demonstration projects, investments in infrastructure or service provision, criteria will be developed to ensure interventions prioritise the poor. 3.2.2. Measures to Address Cross-Cutting Issues
Gender Equality: Gender equality and womens rights and empowerment issues, are mainstreamed in the programme. Decisions regarding priorities and resource allocation, and planning and programming, will take account of gender issues. Tools developed during component implementation will be explicitly inclusive of gender criteria. Quotas for womens participation have been factored into demonstration projects and stakeholder meetings, and the needs of both men and women will be considered in all training and capacity development activities to ensure that their participation provides equal chances to benefit from and contribute to programme components. Environment: The programme is located within the environmental sector and all its components have immediate objectives that aim to improve some aspect of the environment of Vietnam. Danida investments into infrastructure or other physical developments require Environmental Management Plans (EMP) to ensure that laws are obeyed and good practice is followed. Their function is to avoid actions that needlessly damage other environmental resources and to mitigate any adverse distributional effects caused when new facilities are constructed. It is not however envisaged that DCE will require an internal EMP as component demonstration projects are targeting enhancements to environmental planning and management activities, rather than the provision of physical infrastructure. Nevertheless, DCE is designed so that demonstration projects will also be identified through demand responsive approaches. Should an EMP be necessary as a result of potential projects identified and selected by project partners and other stakeholders at provincial levels, then allowance will be made for this on a component specific basis.
Good Governance: Many of the previous programme interventions in Vietnam have contributed to good governance. DCE will continue in this regard, having developed components that strengthen decentralised environmental decision-making and management, and GOV implementation of national environmental laws and plans. The direct benefits sought include greater local input into policy implementation and improved control of environmental resources. There is some movement towards the development of a more recognisably independent civil sector, however, that is beginning to work with some of the international NGOs. DCE has co-operated with some of these NGOs and will continue to do so, both to benefit from their community level knowledge and as a way of monitoring opportunities to work with local NGOs. The private sector is developing rapidly in Vietnam. DCE will connect with local enterprise in several ways, and capacity development activities and demonstration projects will seek to involve both the Small and Medium Scale Enterprise (SME) and Small Scale Cottage Industry (SSCI) communities. Furthermore, wherever appropriate and feasible, links to both the Danida Private Sector and Business Sector Support Programmes will be exploited, and services including consulting, will be contracted from national organisations. 3.2.3. Measures to Address Priority Themes
AIDS/HIV: Danidas International Programme of Action Against HIV/AIDS supports the implementation of concrete activities, such as awareness raising in the workplace. DCE design and implementation procedures will ensure that, where appropriate opportunities arise to increase AIDS awareness, they will be exploited. All capacity development and awareness raising activities present such opportunities, as do many demonstration projects, particularly those concerned with cleaner production. Indigenous Peoples and Ethnic Minorities: The poor in Vietnam include many minority groups living in isolated communities. Programme activities will include special provision, where relevant (amongst the programme focus provinces Thai Nguyen and Nghe An have many such communities), to reach disadvantaged and isolated groups, involve them in planning and ensure that they have every opportunity to benefit from programme implementation. Other Priority Themes: Aspects of the themes of globalisation, armed conflicts, and children and youth may require an environmental policy or legislative response during the lifetime of the programme (environmental labelling might be drawn up to meet particular export requirements for example, or contaminated soils might need to be directed to specially designated areas of a landfill). The policy dialogue with the partner will remain alert to such issues and Programme Advisors will be able to offer technical assistance on the development of appropriate instruments. 3.3. 3.3.1. Ownership and Use of Demand-Responsive Approaches Promotion of Ownership
Experience in Vietnam has shown that, for interventions to be successful and sustainable, the direct beneficiary must feel a strong degree of ownership of the process and outputs. Measures to secure this started with the DCE preparation process, which has been a joint effort. Implementation will build on this, with joint reviews and supervision activities. To promote ownership at local level, local partners should have appropriate input into the selection and the design of interventions, management of consultants, budget management, and procurement of goods and services. Other measures will include taking a comprehensive approach towards capacity development for decentralised environmental management, and changing the way that the success of interventions and consultants/advisors is assessed, i.e. to focus on outcomes rather than outputs (see also Chapter 8). Partnership contributions have also been sought as a tool to confirm and promote ownership. Contributions will be negotiated on a case-by-case basis determined by the character of the component, though it is expected that a contribution of 10-15% of total component support would be likely.
Contributions will be encouraged either in the provision of staff or in direct financial contribution. Requirements at the provincial level will vary significantly, and will be dictated, in part, by the nature of component demonstration projects. The modalities will be elaborated as DCE is implemented. 3.3.2. Demand-Responsive Approaches
An essential part of securing beneficiary ownership and willingness to sustain programme interventions will be to ensure that programme resources are deployed in response to a genuine demand. Component management systems and arrangements for selecting demonstration projects have been developed with this aim in mind. Potential beneficiaries will be informed of areas in which demonstration projects are planned and encouraged to prepare proposals for funding. Training and technical assistance will be offered to ensure that the proposals are feasible and comply with the aims and approaches of the particular component and the programme in general. Target communities or groups (poor, minority, women, civil society) can be given special assistance. Demonstration projects will only be initiated after a fully elaborated proposal has been received and approved. All components will use this model for identifying and selecting demonstration projects. The procedures will be fully elaborated in a Programme Implementation Manual (PIM), after further consultation with national and provincial partners. The proposal will, however, certainly include details of the implementation, management, supervision and financial management arrangements, the beneficiary contribution, the plans for long-term maintenance, and any other information necessary to assess the viability, sustainability and effectiveness of the intervention 3.4. Geographic Focus
DCE will focus most of its resources on a limited number of provinces. This focus will reduce administrative burdens whilst allowing a significant influence and a familiar presence in the provinces in which it is concentrated. The selection criteria used in the identification of focus provinces has included: Danida experience in the province (including previous and on-going environment projects and programmes in other sectors) Extent and nature of other donor activities in the province GOV priority, and needs identified in the NSEP Absorptive capacity of provinces and match of provincial needs with DCE focus Opportunities for component complimentarity Poverty and MDG index Industrial hotspots and prevalence of SSCIs
As part of the early selection process a matrix was formed to assist in short listing suitable provinces (see DCE Feasibility Report). The quantitative analysis was supported by discussions, and provinces were subsequently selected from the short list together with MPI and other DCE partners. While DCE provinces represent some of the highest scoring groupings from the analysis, selection could not be as tight as might otherwise have been desirable because commitments made to ongoing project partners have been respected. A total of six provinces were selected as partners. Each will have access to support from all the components (except LMPA, which will only operate in coastal areas). During years one and two the programme will be concentrated in Northern Vietnam (Thai Nguyen, Phu Tho and Ha Nam) and the central region (Nghe An and Quang Nam). Extension of activities to an additional province in Southern Vietnam (Ben Tre) will be considered in year three.
3.5. 3.5.1.
Programme Content The Programme Development Objective
The overarching objective of Denmarks development policy is to create lasting improvements in the living conditions of the poorest sections of the worlds population through poverty reduction1. DCE targets poverty and the environment and is aligned with the national sector framework. Activities will concentrate on priorities identified within the NSEP that contribute significantly to poverty reduction and improved environmental health conditions of the poor. The programme development objective has, therefore, been structured as follows: "Implementation of the National Strategy for Environmental Protection secures sustainable livelihoods and improved living conditions for poor people". The assistance provided through the programme represents Danish support to Vietnamese endeavours in the environment sector. The intention is to facilitate a process to which multiple donors can contribute but which is ultimately owned and directed by GOV. The development objectives at both programme and component levels represent, therefore, a vision of the future over a 10 -20 year horizon, outcomes of the GOV directed efforts of many partners. 3.5.2. Selection and Development of Components
Partners in GOV were asked to lead the development process, with Technical Assistance (TA) from Danida. Selection of components gave greatest priority to the following: The potential to achieve poverty alleviation as well as environmental goals The opportunity for interventions to build upon what Danida has already achieved The opportunity to address current GOV priorities (notwithstanding the position of the intervention in NSEP) The urgency of the matter for ODA Correspondence between the size of investment needed and that available in the programme Clarity of institutional responsibility and availability of a willing partner The potential for cross-sectoral co-operation with other Danida Sector Programmes Significant relevant technical expertise in Denmark and the Asian Region Workshops were held with stakeholders (see Section 2.6) to identify component contents. The results were developed and refined through numerous working group meetings with international experts, national experts and anchor ministries. Component design was then finalised through a series of drafts each being subject to comment from component working groups, international experts and RDE. A DCE completion workshop was also held to offer partners from all provinces the opportunity for feedback on overall programme design. The following sections describe the scope and contents of the components developed through this process.
See Partnership 2000 http://www.um.dk/publikationer/fremmedsprog/English/policy-strategy/15.asp
3.5.3.
Immediate Objectives
Given that assumptions hold, and the programme components are implemented successfully, then the Immediate Objectives of the programme will derive from the Development Objectives of its components. These are as follows: The quality of the environment within poor densely populated areas is subject to effective local control and is maintained at acceptable levels The livelihood of people working in and living around industrial enterprises benefit from controlled pollution and improved resource use of industrial enterprises Environmentally sound and participatory techniques are used to develop, implement and achieve compliance with plans for urban land use and environmental service provision Valuable habitats and associated biodiversity in Vietnams marine and coastal waters are being restored and protected without compromising the livelihoods of surrounding poor and vulnerable communities DCE partners have enhanced capacity to play an effective role in the implementation of the NSEP. The approach to poverty alleviation within each component has been addressed through the targeting of activities to the poor and at the local level, for example community level demonstration projects; community based management; capacity development in participatory approaches for the poor; poverty analysis; and the prioritisation of gender and labour issues. 3.5.4. Opportunities for Alignment
Building on experience and capacity developed through previous and on-going Danida sector programmes, and other development assistance, plays an important role in DCE advancement. In addition, integration and cooperation both between complimentary sector programmes (i.e. business, water and fisheries) and across programme components has been a strategic aim. The PCDA component will facilitate the close coordination of the capacity development activities of each DCE component, and develop training activities targeting the strengthening of GOVs environmental management functions at the local level. The following opportunities for alignment with Danida sector programmes have been identified (the components are elaborated in Chapter 4):
PCDA - lessons to be learned from the Water Sector programme in respect to water supply and drainage projects in densely populated areas, and UNDP Poverty and Environment Initiative
SDU - opportunities for linkage to Private Sector programme through mixed credit loans and other combined grant and loan mechanisms to finance demonstration projects. Lessons to be learned from willingness to pay studies under the Water Sector programme, and EU Urban Environment Project CPI - opportunities for sharing systems being developed under the new Business Sector support programme, and specifically the integration of demonstration projects in Nghe An province
LMPA - links to livelihood improvements for fishing communities under Water Sector training programmes, and also to the Environmental Resources and Aquaculture component of the Fisheries Sector programme CDS - uses training modules from all components and experience of DEA co-operation with educational establishments
Prospects for complimentarity across DCE components have also been exploited. The CPI and the PCDA component for example, provide complementary support for improved environmental management in terms of meeting compliance objectives (from the perspective of industry) and building capacity in the enforcement of regulations (from the perspective of the local environmental regulator). In addition, these components also facilitate development of capacity around industrial ecology concepts targeting local industrial clusters, and monitoring of the effectiveness of Cleaner Production advancements. Moreover, a programme unit in each partner province (see Section 6.3) will provide a mechanism to coordinate (combining, carrying out in parallel or phasing) demonstration projects from each of the components so as to demonstrate integrated solutions. 3.6. Technical Assistance 3.6.1. General Approach to Technical Assistance
DCE has given careful consideration to the use of TA with a view to ensuring an appropriate balance between support that is provided in the form of TA and support to local investments that directly benefit poor people. In Vietnam there is an expanding reservoir of well-qualified local consultants. This will be utilised, when practical, to increase the efficiency of TA and to give additional support to the development of local capacity. International consultants will only be used where their understanding of comparable situations in other countries and their specialist skills bring substantial added value. Moreover, where international TA is used, the emphasis will be on skills transfer and assisting institutions and individual counterparts to develop capacity that can be sustained without further support. Each component that uses international TA therefore has an exit-strategy whereby the TA will be gradually reduced and the role taken over by local partners. The challenge is to ensure that the component managers have qualified support at hand when needed to use resources efficiently and in accordance with the overall implementation plan, but have sufficient latitude to take control when they are ready. The programme will achieve this balance through the following design principals: 1. The programme and each component should have access to an advisor who is resident full-time in Vietnam, even if not full-time employed an the specific advisor role. This will be achieved by combining advisor roles where the skill sets required are very similar The programme will promote further development of capacity in the national consulting sector. Actions towards this will include making sure that international short-term TA is always paired with local TA so that the local partners benefit from on-the-job training. Other measures will include inviting consultants to training courses, workshops and study tours (private sector consultants will be asked to make an appropriate contribution to the cost) and helping to establish a register of qualified consultants (as part of the CDS component)
2.
The implications of these principles for the programmes long-term advisors are as follows: The Programme Advisor will be permanently present in-country but will divide his/her time between programme coordination and acting as advisor on the CDS component The three largest components (PCDA, CPI and SDU) will have access to a full-time advisor for the first two years of implementation, before the phasing out process begins. Thereafter in the case of PCPA and SDU, an advisor will be recruited who can fulfil both component advisor roles, giving 50% of his/her time to each The CPI will component will have a full-time advisor for the duration of the programme because the types of interventions planned and the partnership with MOI are new to Denmark-Vietnam cooperation and will need careful supervision by an experienced practitioner. It is expected, however, that increased partner management capacity will allow the component to operate in more provinces in the later years of implementation The LMPA Component Advisor will be reduced to a half-time role starting at the beginning of 2007, since this component will have already benefited since 2003 from the input of a full-time advisor under the DEA programme
3.6.2.
Contracting International TA
Several options are available for contracting international TA. The most commonly used may be summarised as: Company Contracts, typically contracts between MOFA, Copenhagen and consulting companies awarded after a competitive tender process Danida Advisors, contracts between Ministry of Foreign Affairs or RDE and individual consultants who may be identified by advertisement and selected by a panel after interview KR Rules Contracts, limited value, short-term contracts at set fee and expense rates that may be offered on a sole-source basis to individuals or companies to undertake specialist tasks Typically, in past Danida supported programmes in Vietnam, where the need is for an international longterm adviser plus a specific range of international and national short-term advisers, a Company Contract has been employed to supply and manage the TA and to manage procurement of most of the equipment. The consulting company takes responsibility for all technical inputs, administrative issues and quality control. Where the need is for an international long-term adviser alone, or with unspecified shortterm inputs, the RDE has often managed the contracting. Then short-term consultants are identified by the Adviser in cooperation with the RDEs Programme Coordinator. In both these models, partner ability to take part in, or even influence, key decisions can be limited and therefore local ownership is compromised, unless mechanisms to prevent this are put in place. If hiring is left totally to Component Management, however, there is a risk that the best-suited consultants will not be identified and that contract management will be less efficient. DCE will contract international TA to suit the needs of each component. Where full-time, long-term experts are needed, Danida Advisors will usually be preferred. Where advisors are needed who can be flexible in varying their inputs to suit the needs of the component, Company Contracts will be sought. For short-term inputs of highly specialised inputs or unusual combinations of skills are required, KR Rules Contracts may be considered. Local TA, both long-term and short-term will be managed as individual hires by the PSO or Component Management, in accordance with good practice recruitment guidelines to be elaborated in the PIM.
The following table sets out the likely the preferred contracting options as the needs currently appear.
Location Programme Advisor International TA Required Full-time Advisor Specialist short inputs PCDA Full-time Advisor and repeated short inputs Part-time Advisors (EIR) SDU CPI Part-time Advisor and repeated short inputs Full-time Advisor Inputs on demand LMPA CDS Part-time Advisor and repeated short inputs Part-time Advisor and repeated short inputs Preferred Contracting Option Danida Advisor KR Rules Contracts Consulting company Consulting company Consulting company Danida Advisor Consulting company pool of experts KR Rules Contracts Consulting company Danida Advisor
3.6.3.
Demand Responsive Contracting of Short-term TA
DCE will develop a PIM that will specify management arrangements and procedures to guide all component implementers. These will require that the provision of short-term international TA be demand-responsive. The intention is that component and activity managers should control timing and content of inputs. In general, the intention is to favour contracting mechanisms that make advisors available on a needs basis, so that they are deployed in response to the demands of the components.
4. 4.1. 4.1.1.
COMPONENT CONTENT Programme Components Introduction
Following the strategy and process outlined in Chapter 3, DCE has developed five components, supporting immediate and future priorities of the national sector framework, as identified in the NSEP. Components include: Pollution Control in Poor Densely Populated Areas (PCDA) Environmentally Sustainable Development in Poor Urban Areas (SDU) Cleaner Production in Industry (CPI) Sustainable Livelihoods in and around Marine Protected Areas (LMPA) Capacity Development Support in Environmental Planning and Management (CDS)
Sections 4.2 4.6 below summarise DCE components, outlining the basic framework, the purpose and strategy and management arrangements of each. Detailed descriptions of each component are provided separately in full Component Documents in Appendices A.1-A.5. 4.1.2. Component Strategies and Design Principles
All DCE components have incorporated into their design the overall principles and strategies set out in this document. Each Component Document sets out its own approach to ensure that implementation matches these design criteria. Key features that are common to all components are outlined below.
Principles Addressed in DCE Poverty Alleviation Measures Included in all Component Design Areas where the poverty-environmental degradation linkages are most marked will be targeted - polluted, degraded, resource- poor and unhealthy sites and solutions will be sought that improve living conditions and livelihood opportunities Demonstration projects will be prioritised according to pro poor selection criteria, so that vulnerable groups receive direct benefits Awareness raising and demonstration projects will address emerging issues that increasingly threaten the poor and vulnerable such as SARS-like epidemics and Avian Bird Flu Gender Equality A gender policy and gender awareness training will be developed for all partner institutions and staff The process of developing tools (policies, regulations, procedures etc) and action plans will include analysing and addressing men and womens concerns together and separately, and considering the way that their separate needs should be addressed Planning and implementation of interventions will take into account the specific role of women in households and society and their concerns in relation to the planned activities . Public awareness, consultation and participation initiatives will take particular care to ensure that women are involved, including the setting of quotas and the recruitment of NGOs that specialise in mobilising women Good Governance Implementation strategies support decentralisation, participation of communities, and local decision making Interventions will be managed at the level of implementation Partnership will be developed between local governing bodies and community based groups through participatory/consultative process as part of a strategy to assist local government mobilise for decentralisation

Vertical and horizontal integration of lessons learned from pilot projects will inform policy formulation and strengthen implementation
Environment
Demonstration projects target local areas where health impacts are acute and local services are limited. Awareness raising and training provides a framework for assessing the trade-off between economic productivity and environmental effects and the potential distributional inequities inherent in such trade-offs.
AIDS/HIV Prevention
Messages relating to HIV/AIDS integrated with training and awareness raising activities where appropriate. Prevention of the spread of HIV/AIDS is addressed in pilot project formulation and implementation
Other Priority Themes
A discussion of how these issues (globalisation, armed conflict, children and youth, human rights) will be monitored by the component will form part of the inception report and any activities required included in the annual work plan. Subsequent work plans will contain an update. Component activities further the implementation of the NSEP, prioritise poverty alleviation in accordance with the CPRGS and measure success against Vietnams MDG. Technical Advisors will be assessed on success in skills transfer. Implementation is through existing local structures and integrated into partner work plans. Local expertise will be recruited, where available, to work alongside international experts and take over as soon as possible. Potential partners for all activities will be required to apply and, where appropriate, compete for component assistance. Some proportion of beneficiary contribution will always be required. Assistance will be made available to applying partners and special efforts will be made to reach and mobilise poor, vulnerable or marginalised groups.
National Sector Linkage Capacity Development and Skills transfer
Demand Responsive Approaches
Component adherence to these principles will be assured and guided by a PIM (see Sections 6.3.3 and 8.4). 4.1.3. Selection of Demonstration Projects
A programme office in each province (see Section 6.3.4) will help identify opportunities for demonstration projects and communicate these to the management of each component. Demonstration projects will be preferred that both further the objectives of the component and make a significant and sustainable contribution to the livelihoods of the poor. Demonstration projects funded by two or three different components (especially PCDA, SDU and CPI) may be clustered to generate a more visible improvement in selected areas and to demonstrate integrated solutions. Each of the components has indicated the kinds of demonstration projects that it will undertake and the mechanisms through which the interventions will be selected. Technical criteria for selecting each project will be established by the component on a case-by-case basis, depending on their objectives. Selection of the demonstration projects will also take into account the strategy of the programme by applying criteria to assess compatibility with programme strategy and overall approach. These will be elaborated in the PIM and will include: Relevance to poverty alleviation Potential to address cross-cutting issues and priority themes Demand for the intervention Cost-effectiveness and sustainability
4.2. 4.2.1.
Pollution Control in Poor Densely Populated Areas Basic Framework The quality of the environment within poor densely populated areas is subject to effective local control and is maintained at acceptable levels. Systems, tools and expertise are provided from central level that implement, regulate and support local pollution control in selected provinces. Selected DONREs coordinate and support effective pollution control in poor densely populated areas. Demonstration and replication of pollution control models improves the livelihoods of poor residents of densely populated areas.
Development Objective: Immediate Objectives:
Anchor: Provinces: Outline of support:
MONRE The programme provinces on demand Technical Assistance Investments Operating Costs Contingency Total DKK 13.9 million DKK 36.7 million DKK 9.9 million DKK 4.6 million DKK 65.0 million
4.2.2.
Purpose and Strategy
The development of small-scale, household industries has been encouraged throughout Vietnam as a source of alternative income for poor, often agricultural, households. In some densely populated areas, both rural and urban-fringe, the take-up of such industries by whole communities has given rise to severe pollution and to degradation or over-use of natural resource. The aim of this component is to help bring these areas under effective environmental management. This will be achieved by capacity development in MONRE, and its provincial departments (DONREs) to regulate polluting activities effectively and coordinate remedial actions. Policies, regulatory and economic instruments and guidelines will be developed at central level and then applied in three to four provinces. Stakeholders at district and community level will be empowered through training and awareness-raising to discharge their responsibilities towards the environmental more effectively. Demonstration projects will be carried out that address the most urgent priorities of poor stakeholders. Interventions will be selected that mitigate or remedy actual acute instances of environmental degradation within selected poor areas. The experience acquired will be used to develop models for replication in other situations and provinces. The ongoing Environmental Information and Reporting project will be extended as a sub-component to enhance provincial monitoring capacity and develop environmental indicators. At central level the component will support the process of decentralisation within MONRE and facilitate further development of a pollution prevention and control system for application at local levels. At provincial level, the component will support the selected DONREs to develop the capacity to carry out their mandate in pollution prevention. Training will be needed in core skills. On-the job-training will be particularly valuable. They will also coordinate a wide range of local stakeholders and be directly responsible for community awareness and participation activities. At local (district and community) level the component will fund demonstration projects that will not only improve conditions where badly needed, but will facilitate the mobilisation of communities and the
cooperation of partners. An important element of the strategy is to devolve responsibility for the improvement and protection of the environment to districts, communes and the community. 4.2.3. Management Arrangements
At national level, a Component Steering Committee (CSC) will be the formal mechanism for decisionmaking, including approval of budgets and plans, procurement and selection of demonstration projects. The Vice Minister (Environment), MONRE, will chair and members will be from relevant line ministries and provinces. Within the relevant department of MONRE, the ministry will appoint a component director who is at the director level of the relevant department. This department will manage activities with the aid of a Component Support Office and a full-time International Advisor. Technical Working Groups will be set up to produce key outputs and to coordinate with the Provinces on application of component instruments and Pollution Prevention and Control Plans. Provincial Directorates will be established under the leadership of the DONREs assisted by National Long-term Technical Advisers and other experts as required. They will also establish Technical Working Groups and liase with District Peoples Committees (DPC), district and commune level technical staff and community level partners (Village/Ward leaders, Womens Union, Youth Union, residents and others) involved in implementing demonstration projects. 4.2.4. Implementation Plan
An International Long-term Adviser (ILTA) will be based full time at MONRE for the first four years of component implementation, reducing to six months in the last year. National Long-term Advisers will be posted in each of the four participating provinces. A pool of International and National Short-term Advisers will provide 42 and 80 person-months respectively, on demand, in a range of technical areas, including economic and legal advisors. The component is expected to begin in July 2005 and last for five years. 4.3. 4.3.1. Environmentally Sustainable Development in Poor Urban Areas Basic Framework Environmentally sound and participatory techniques are used to develop, implement and achieve compliance with plans for urban land use and environmental service provision. MOC coordinates with MONRE and others to support the incorporation of environmental sustainability principles and participatory environmental decision-making into urban planning and service provision. Selected DOCs coordinate the incorporation of environmental sustainability principles and participatory environmental decision-making into urban planning and service provision. Demonstration and replication of participatory urban environmental planning models provides models for avoiding the most common obstacles to a healthy environment and reliable services for urban residents.
Development Objective:
Immediate Objectives:
Anchor: Provinces: Budget Outline:
MOC The programme provinces on demand Technical Assistance Investments Operating Costs Contingency Total DKK 8.3 million DKK 20.4 million DKK 8.5 million DKK 2.8 million DKK 40.0 million
4.3.2.
The urban population of Vietnam is growing rapidly. Around five million people moved from rural to urban areas between 1999-2003 and it is predicted that the next decade will see urban areas absorb more than a third of the population (against 22% today). The growth is largely unplanned. New migrants are often non-registered and illegally settling, there is increased pressure for natural resources on the urban rural fringes, and increased need for environmental services such as solid waste management and access to water and sanitation services. Enterprising urban dwellers generate income from small-scale or household industries but these often give rise to acute local pollution and place increasing pressure on an urban infrastructure that can no longer cope. The component will improve the living conditions of the urban community, particularly for the urban poor who are often located in areas without proper water and sanitation services and supporting infrastructure. The component will support, augment and expand the ongoing DEA urban environmental planning and management component initiated in May 2004. It will pilot the new urban planning methodology in three additional locations and further support training in urban planning for planning officials from the target provinces. The environmental aspects of urban planning will be strengthened with guidelines for transparency and active public participation in decision-making and for the integration of Environmental Impact Assessment (EIA). Specific EIA guidelines will be prepared and piloted for priority urban infrastructures such as sanitary landfills, cemeteries, wastewater treatment facilities, and healthcare waste management. The component will design and implement pilot demonstrations to correct urban environmental problem areas that are identified by stakeholders through a demand responsive process. Pro-poor priorities will be targeted. The successes and lessons learned from the pilot demonstrations will be disseminated to other urban localities for replication. Training in management and project implementation will be focused on the poor communities to increase their capacity for local management of the pilot projects. Local management will not only serve to anchor ownership in the poor communities but will also promote sustainability. Furthermore, local implementation will provide experience to neighbours who replicate the projects in their own homes and neighbourhoods. 4.3.3. Management Arrangements
The management structure will be essentially the same as that of the ongoing DEA component except that the provincial structure will be replicated in two additional locations: Nghe An and Phu Tho Provinces. Reporting arrangements will change, however, to match the requirements of the programme approach. The main difference is that advisors will not be responsible for management, either technically or financially. Their role will be to advise and support. A CSC will be chaired by a Vice Minister of MoC, with membership of representatives from MONRE, MOH, and MOI and other agencies directly involved in implementation. A national Component Director, who is a director of a MOC department, will take overall responsibility for implementation assisted by an ILTA and support staff, based in a Component Support Office (CSO).
In each of the three provinces, a Provincial Directorate will be formed managed by a Director from DOC. The Directorate will coordinate provincial pilot projects, supported intermittently by the ILTA and by a full time National . On a demand driven basis, international and national short-term consultants will be available to provide technical input to the Directorate. 4.3.4. Implementation Plan
The component will be merged with the DEA component, which began in May 2004 and was due to be completed in April 2007. Inception activities for the new component will be integrated into preparation of the annual work plan for 2006-7. The merged component will begin in July 2006 and additional national advisors will be posted to the new locations. A replacement international advisor and expanded pool of consultants will be recruited in January 2007, allowing some overlap with the current team. The International Advisor post will be phased out, reducing to half-time (six months in 2009 and three months in 2010). 4.4. 4.4.1. Cleaner Production in Industry Basic Framework The livelihoods of people working in and living around industrial enterprises benefit from controlled pollution and improved resource use of industrial enterprises. The capacity and commitment to implement Cleaner Production is established amongst key national players. Key elements of the national Cleaner Production strategy are effective in target provinces. Cleaner Production techniques are demonstrated and experience is used to refine the strategy and to replicate the policy in other provinces. Anchor: Provinces: Budget Outline: MOI The programme provinces on demand Technical Assistance Investments Operating Costs Contingency Total DKK 11.5million DKK 30.4 million DKK 9.2 million DKK 3.8 million DKK 55.0 million
4.4.2.
The impressive recent economic growth of Vietnam has been driven by industrial expansion. Industry has grown from 27% of GDP in 1992 to 39% by 2002, a five-fold increase in monetary terms (from USD 2.7 billion to USD 13.5 billion). The rate and sustainability of the growth is threatened by declining environmental quality, particularly of surface waters, and unsustainable use of natural resources. Moreover, pollution is blighting the lives of millions of residents and workers in and around industrial installations. The challenge facing GOV is therefore to bring pollution under control and restore environmental quality without undermining competitiveness or viability of its industry and thereby endangering the entire economy. This introduction of cleaner production techniques is more likely to achieve this than a short-term reactive legislation driven approach. The component will help prevention of pollution at source, by
ensuring efficient use of resources and use of environmentally sound and cost-effective practices within industry. Significant benefits can be achieved at no cost and low cost, as well as from investments in new technology. The main industrial pollution sources in Vietnam fall into two very distinct categories that require separate approaches: SMEs (mainly domestic production units, cooperatives and small private businesses) and large enterprises (often state owned heavy industries). Component development activities identified SMEs in densely populated areas and Large Enterprises in hotspot areas where pollution from enterprises has the most adverse impacts on the living and working environments of poor communities. Enforcement and compliance with environmental and Occupational Health & Safety regulations and the Labour Code within small enterprises is low. Many small business operations are in areas with no drainage and waste management infrastructure. Some operations should be relocated or closed down. The strategy to promote sustainable development of small enterprises is to work with regulators and industry advisors to improve existing permitting and inspection practices, to undertake auditing/inspection of facilities, and to assist in the development of improvement plans. The component will also work with enterprises themselves and develop organisation structures and networks to support them in improvement regimes. Demonstration projects will show how to attain improvements at low cost by the application of Cleaner Production systems. The Large Enterprise strategy will raise awareness and commitment from ministry level through to enterprise level by setting up and training a network of Cleaner Production advocates. Sector performance reports will benchmark enterprises against each other and where possible compare them with international performance standards. Sector performance reports will be produced and used to plan sector/enterprise improvement programmes. Commitment will be developed by demonstrating a Cleaner Production methodology that has two stages. Firstly an in house exercise identifies no cost and low cost opportunities that yield significant improvements and collect basic performance data. Secondly, specialist inputs are commissioned to analyse the information and use it to identify and evaluate opportunities for investment in technology. 4.4.3. Management Arrangements
Overall management of component content, planning and expenditure will be the responsibility of a CSC, with a Chair provided by the MOI, and a wider membership of institutions concerned with industrial development, pollution, health, environment, and social affairs. The CSC will operate through a Component Support Office (CSO) that will function as a Pilot Cleaner Production unit of MOI. The Component Director will be provided by MOI and supported by an ILTA. Provincial Component Offices (PCOs) will be established in each of the four component provinces within the DOI Industry Promotion Unit. A Provincial Manager from DOI will manage the PCO and coordinate provincial pilot projects supported by the ILTA (intermittently) and a full time National Advisor. A provincial Technical Working Group will be formed to support the selection and implementation of pilot demonstrations. 4.4.4. Implementation Plan
An ILTA will be based full time at MOI for the whole of component implementation. National Longterm Advisers will be posted in each of the four participating provinces. A pool of International and National Short-term Advisers will provide 34 and 84 person-months respectively, on demand, in a range of technical areas, including process optimisation specialists in target sectors and inspection and compliance experts. The intention is, over the first 18 months, to introduce production efficiency and management practices and support the costs of this (meters, measuring equipment, data recorders and computers). This will
stabilise existing production performance and the enterprise will be in a position to properly undertake and demonstrate cost benefit analysis for new technology. In the subsequent period, the final 42 months of the component, substantial investment in new technology will be undertaken at carefully selected demonstration sites. The component is expected to begin in July 2005 and last for five years. 4.5. 4.5.1. Sustainable Livelihoods in and around Marine Protected Areas Basic Framework Valuable habitats and associated biodiversity in Vietnams marine and coastal waters are being restored and protected without compromising the livelihoods of surrounding poor and vulnerable communities. An MPA network that covers the priority areas of Vietnams coastal waters is strengthened and effective management systems are in place. Vulnerable communities living in and around selected demonstration MPA sites are able to meet their livelihood requirements without having to deplete marine resources or degrade the environment. Vietnam fulfils its commitment to international effort to develop MPA networks and contributes experiences of addressing the needs of vulnerable communities. Anchor: Provinces: Budget Outline: MOFI Quang Nam (Cu Lao Cham) Technical Assistance Investments Operating Costs Contingency Total DKK 6.3 million DKK 9.1 million DKK 8.9 million DKK 1.6 million DKK 26.0 million
4.5.2.
Poor people living within the coastal zone and on small islands in Vietnam are particularly dependent on the goods and services provided by healthy ecosystems. However through poverty and ignorance they have been a major cause of the habitat destruction and over-fishing that now threaten their livelihood and well-being. Loss of productivity, disappearance of valuable fish species, disease outbreaks in cultured finfish and crustaceans, and greater exposure to storms and flooding are some of the common consequences of the damage caused to coastal and marine ecosystems. The main aim of the LMPA component is to help Vietnam to further develop its network of marine protected areas based on a strong legal framework at national level and an effective local management system at the provincial and site levels. The approach of the component will be to develop systems and procedures for the protection of priority sites that integrate local communities into their management (and specifically fishing communities that are dependant upon marine reserves as a source of food and income). Management systems in which the sustainable livelihood needs of local communities living in and around MPAs are fully recognised and supported will then be disseminated and used as models for replication to existing and planned MPA sites throughout the country. Strengthened coordination with the other protected area systems in the country, principally national parks, nature reserves and biosphere reserves, will also assist in the restoration and protection of marine and
coastal ecosystems and their resources, including biodiversity. Activities will include development of criteria to identify additional marine and coastal protected areas in order to represent Vietnams full range of marine and coastal habitats, and also the wider coordination with similar efforts at the Southeast Asian regional and global levels. 4.5.3. Management Arrangements
The current MPA project offices in MOFI will serve as the operational base for the LMPA component. The National Steering Committee (NSC) for the MPA Network, with a Vice-Minister of MoFI as its chairman, and expanded to include a representative from Ministry of Labour Invalids and Social Affairs (MOLISA), will guide the work of the component. Support to the MPA sites already developed, or in the process of being developed, will be implemented through the Provincial Management Boards for each sites and each board will send a representative to attend meetings of the NSC as an observer. Within guidelines to be provided by MOFI, the Management Boards will submit proposals for awareness raising, training, poverty reduction and monitoring activities, based on agreed priorities to achieve the component objectives. Management boards will also apply to MOFI for financial support to implement poverty reduction and awareness raising activities. Appraisal of proposals and supervision of their implementation will be undertaken by the component team and the pool of international and national advisers to be contracted on a needs basis. At provincial level, each MPA Management Board will be encouraged to adopt an integrated management approach involving cooperation between key departments and Civil Organisations. 4.5.4. Implementation Plan
The MPA project is ongoing. The component activities will be phased in gradually during the inception period of the programme. MPA project is due to undergo a mid-term review in late 2005. The Annual Work Plan produced for the review team, for 2006, will describe the component activities fully merged with the project. 4.6. 4.6.1. Capacity Development Support for Environmental Planning and Management Basic Framework Stakeholders have the capacity to play an effective role in the implementation of the NSEP. GOV policy makers in key DCE partner ministries have access to the modern tools that integrate environment and sustainability concerns into policy. In-service training based on DCE component activities is available to environmental management professionals in the public, private and nongovernment sectors. A model is piloted in at least two DCE components of effective public participation in planning and investment decisions that affect the environment. Anchor: MPI
Provinces: Budget Outline:
National Focus Technical Assistance Investments Operating Costs Contingency Total DKK 10.9 million DKK 5.7 million DKK 2.7 million DKK 0.8 million DKK 20.0 million
4.6.2.
The vision is that the NSEP will be implemented as planned, helping to achieve Millennium Development Goals and halting environmental degradation. This component will contribute by facilitating the creation of a sustainable knowledge base and a reservoir of skills based on DCE and other Danish-funded environmental interventions in Vietnam. Together with organisational and institutional reform, this will assist DCE partners and others to play an effective role in incorporating sustainability into investment and development decisions whilst paying due attention to the concurrent goals of alleviating poverty and securing the livelihoods of poor men and women. The component will to draw upon the many strands of capacity development activities ongoing in Vietnam, help to coordinate them with the other DCE programme activities and supplement them with customised materials. The aim is to contribute to the consolidation of the extensive array of environmental information and experience being generated in Vietnam so that it can be made available to stakeholders. The component will achieve this through a mix of primary and secondary research, human resources development, and practical application of customised tools to actual ongoing cases. Strategic principles are described at an overall programme level in the Programme Document. Elements that will be of particular importance to this component include the following: The component will make use of products from recent and ongoing projects (in particular the cooperation between Aarhus and Can Tho Universities), as far as possible, before investigating new models. The component will follow the CDE approach The component will complement and reinforce CD activities of the other DCE components (joint study tours, management training) Priority will be placed on attaining long-term sustainability of interventions, often through recruiting partners to take ownership of the materials developed and develop a business plan to carry the activities into the future. One avenue through which awareness will be raised will be through promotion of the component itself and the wider DCE programme through electronic, print and other media Particular attention will be paid to the development of capacity in reaching and mobilizing the poor The skills and experience of national and international NGOs will be accessed by using them as partners for training/awareness raising, and the further development of national NGO capacity will be supported. 4.6.3. Management Arrangements
The component is managed by a department within MPI and managed independently of the PSO. Some positions, however, may work with the PSO and with the component, namely: The Program Director
cum Component Director and the long-term adviser for the program and for the component. Other staff of the two offices is independent of each other. It is proposed that the component should be managed, at least for the first two years by the Programme Support Office (PSO). The PSO will have a director and an administrative arm from MPI (the anchor for the component) and a technical arm from MONRE (the other agency with a direct mandate in the areas covered by the component). The PSO will be in an ideal position to draw together the materials from the other components because this would, in any case, be part of its monitoring and support role. Moreover, it is proposed that the Programme Advisor would spend half of his/her time advising the component. For the component it may be advisable to establish CSC so that provinces could have an input into investment decisions. CSC members will be mainly concerned with reviewing and endorsing annual work plans and budgets as well as linkages with provincial level sectoral policies and strategic development goals. They could also play a role in dissemination and replication of good practice developed by activities in the component. 4.6.4. Implementation Plan
The component will begin along with the programme in mid-2005. First activities will be establishing a baseline of materials and information and predicting what materials are in the pipeline of this and other programmes. Some awareness raising and network building activities can also be carried out during this time. Then a plan can be constructed to develop training modules using and building on the materials available. From year two onwards a series of training modules can be offered and partners capacitated in their delivery. Already from the onset of the component implementation, training activities and other activities should base their activities using results and experience of the current project Capacity strengthening and Programme Management support for DSENRE, phase 1 and phase 2.
5. 5.1. 5.1.1.
BUDGET Component Budgets Summary Budgets
Total DCE support amounts to DKK 250 million. Partnership contributions will be negotiated on a caseby-case basis determined by the character of the components. Contributions will be encouraged in kind as staff, office space and other, as appropriate. Beneficiaries of demonstration projects will not be paid to participate in developing these projects, but will provide 10-50% counterpart funding, in cash or in kind, e.g. by contributing labour for the demonstration project in question. The overall breakdown of support for each component is shown in the table below.
Component Budgets
Component Cost Category Investment Operation* Contingency Subtotal Costs Danida Advisor Company Advisors National Advisors Subtotal TA Total * Includes review and auditing costs PCDA 36.7 9.9 4.6 51.1 0.0 11.2 2.7 13.9 65.0 CPI 30.4 9.2 3.8 43.5 4.5 5.1 1.9 11.5 55.0 SDU Million DKK 20.4 8.5 2.8 31.7 0.0 6.0 2.3 8.3 40.0 CDS 5.7 2.7 0.8 9.1 2.3 4.8 3.8 10.9 20.0 LMPA 9.1 8.9 1.6 19.7 0.0 5.0 1.4 6.3 26.0
This budget has been approved by the Board of Danida. Break down of the budget will be detailed during the inception of each component and approved by the PCC. If variations between the overall budget lines exceed 20 % the Board of Danida must be informed. 5.1.2. Activity Based Budgets
The component budget summaries, tabulated above, are consistent with activity-based budgets for each component, presented in full in the Programme Feasibility Report (Annex E). These activity-based budgets are presented in the format outlined below, where the activities are those indicated in the logical frameworks annexed to each Component Description.
Investment Cost Output A.1: Output A.2: A.1.1. Activity A.1.2. Activity A.2.1. Activity A.2.2. Activity Sub-total Contingency Total Technical Assistance Recurrent Costs Total
Although activities may be developed in more detail, revised or even eliminated during the Inception Period, the activity-based budgets may be considered a reasonable approximation of the funding necessary to produce each output at this stage. They therefore represent a useful check on the feasibility of implementing the components with the given inputs.
5.2.
Programme Supervision and Coordination Budgets
Budget is also provided for the supervision and coordination of the programme both through the PSO and a councillor at the RDE. The amounts are summarised in the table below.
Programme Supervision and Coordination Budgets

Million DKK Environment Councillors Office in RDE Operating Costs Councillors Office Operating Costs Councillors Share of General Expenses Subtotal Costs Technical Assistance Danida Advisor Company advisors National Advisors Subtotal TA Total Councillors Office Programme Support Office Operating Costs Investment Operation Contingency Subtotal Costs Technical Assistance Danida Advisor Company advisors National Advisors Subtotal TA Oversight Costs Reviews Auditing Subtotal Oversight Total Programme Support Office 4.0 0.3 4.3 17.3 2.3 4.8 1.3 8.3 0.6 3.8 0.4 4.7 3.0 0.0 0.2 3.2 6.7 3.1 0.4 3.4
Support includes programme management and technical reviews, component specific technical assistance, component specific support costs and investment funds, including capacity development and funds for demonstration projects. 5.3. Unallocated Funds
There are DKK 20 million (8%) of total programme funds that are unallocated in the current budget. These constitute a useful reservoir for interventions that may be needed as the institutional framework of environmental management in Vietnam becomes clearer in the coming few years. Discussions with partners have identified four major areas where these funds may be required including: Emergency response demonstrations More demonstrations of livelihood improvement interventions (in LMPA) Developing capacity to manage the national Environmental Protection Fund Implementation of the Aarhus Convention
5.4.
Summary Programme Budget
Combining the budgets outlined above, the total programme budget can be summarised as follows.
Category Cost Head Programme Support Office and Supervision Pollution Control in Densely Populated Areas Cleaner Production in Industry Sustainable Development of Urban Areas Sustainable Livelihoods in MPAs Capacity Development Unallocated Total * Includes review and auditing costs Technical Assistance 8.3 13.9 11.5 8.3 6.3 10.9 Operating costs* 14.7 9.9 9.2 8.5 8.9 2.7 Investments Contingency 0.4 4.6 3.8 2.8 1.6 0.8 Total 24.0 65.0 55.0 40.0 26.0 20.0 20.0 250
Budget in Million DKK 0.6 36.7 30.4 20.4 9.1 5.7
6. 6.1.
PROGRAMME MANAGEMENT AND ORGANISATION Overall Approach
The experience gained during the ongoing DEA suggested that the development of the new programme should be used as an opportunity to install a completely redesigned programme coordination structure. The intention is to streamline routine decision-making and trouble-shooting, and strive to use both partner and Danida senior management time efficiently, while retaining the involvement of all partners in strategic decision making and in facilitating the sharing of resources and experiences. Careful analysis, conducted jointly, suggested the following principles for design of the management system. Management, including financial management, of activities should normally be located at the level of implementation The number of meetings involving multiple agencies and provinces should be limited and involve only those with a direct interest in DCE or in the particular issues to be addressed Responsibility for management and implementation will reside with the Vietnamese partners. The TA will act as advisors (not implementers or managers) to designated full-time staff of the partner organisation Provincial component TA will be integrated into the normal working structures of the partner departments A PSO will support but not manage the components 6.2. Organisational Structure
The organisational structure is outlined below. Programme strategy and overall direction will be determined and coordinated by MPI and MONRE in partnership with RDE in a PCC. The PCC will be guided by a committee of the other ministries involved in programme implementation, or otherwise directly concerned. It will also supervise and monitor programme progress towards its objectives and provide feedback to the partner governments. A Programme Support Office (PSO) will assist the PCC in its operations both at central and provincial level. At central level its support function will include the coordination of international TA, the provision of a Programme Implementation Manual (PIM) with systems and practical guidelines for management, reporting, procurement and financial management. The PIM will also determine in details how to coordinate and share information between components to avoid overlap and how to utilise achievements and experiences between components. The PSO will play a strong role in this co-ordination. It will also act as a conduit for the exchange of information and ideas. In addition, it will coordinate Provincial Programme Support Offices (PPSO) in each of the provinces in which the programme will operate Overall management of component content, planning and expenditure will be the responsibility of a CSC, operating through a CMO. The Chair and Director of these will be provided by the central ministry in which the component is anchored. Provincial participation will be secured through the inclusion in the CSC of the Director of each PPSO, relevant PPC officials and representatives from line ministry departments.
DCE management structure is illustrated in the following figure:
Government of Denmark Government of Vietnam
Provincial Support Offices (PPSO)

Each: Director (PPC) Natl.. Advisor (Danida) Accountant (Danida) Support Staff (Danida)
Programme Coordination Committee (PCC)

Vice Minister (MPI) Vice Minister (MONRE) Ambassador (RDE)
Interministerial Task Force

Ministry of Fishery Ministry of Construction Ministry of Finance Office of Government Ministry of Industry Ministry of Education and Training Others as appropriate
Phu Tho
Programme Support Office (PSO)
Nghe An
Programme Director (MPI) Intl. Programme Advisor (Danida) Programme Financial Controller (Danida) Administrative Co-ordinator (MPI) Technical Co-ordinator (MONRE) Support Staff (Danida)
Quang Nam
Ha Nam
PCDA SDU CPI LMPA CDS
Thai Nguyen
6.3. 6.3.1.
Management at Programme Level Programme Coordination Committee
PCC membership will be limited to MPI (chair), MONRE and RDE. This avoids the requirement for a formal steering committee that would demand senior management time from ministries that might have only tangential interest in the subjects under discussion, through the use of a small and more efficient decision-making group (PCC) that, where necessary, would consult with stakeholders who would normally be on any steering committee. The role of the PCC is to monitor and to coordinate DCE components. That is, to review after the fact, the performance of each component and feedback comments, to help keep the components aligned toward achieving national environmental improvement or poverty alleviation goals, and to make sure that lessons learned are disseminated and opportunities for synergy are taken. It will fulfil its functions, in part, by means of a Joint Programme Review when, along with Danida, it will assess progress in each component, recommend alterations or realignment and (exceptionally) investigate the need for reallocation of funds between components. The PCC will also comment on the 6-monthly programme progress reports that will be produced by synthesising the component progress reports. The remainder of its role is as a service provider to the components, with day-to-day management and administrative functions provided through a PSO. 6.3.2. Programme Support Office at Central Level
The PSO will be headed by a Programme Director. The Programme Director will be a full-time permanent employee of GOV who will devote around 25% of his/her time to DCE. Duties will include: Attend all component steering committee meetings Be responsible for facilitating dialogue and communication between components Ensure the dissemination of lessons learned Act as secretary to the PCC and ensure that its decisions are operationalised Promote DCE and raise awareness of its activities Manage the staff and operations of the PSO The Programme Director will be supported in Hanoi by an administrative coordinator and a technical coordinator, also devoting 25% of their time to the programme, who will be full-time staff members of MPI and MONRE respectively. The administrative coordinator will assist with interministerial coordination and all communication, reporting and information management at programme level. The technical coordinator will manage the programme liaison with MONRE, ensuring that policy and experience is exchanged with the most relevant departments and the ISGE. He/she will also assist with the technical evaluation of component plans and activities including attending CSC meetings, when required. A Danida Programme Advisor will be stationed in the PSO to advise the Programme Director and coordinators in all their duties. The Programme Advisor will also be responsible for the CDS component. He/she will be full-time, sharing time between programme coordination and CDS advice in around a 50:50 ratio. In addition, the PSO will be provided with administrative staff, including an office manager, accountant, secretary and driver employed by GOV following remuneration to be agreed between the MPI and RDE, but paid for from the Programme budget. It will also have a budget line for short-term consultants to provide special technical assistance (to design systems, procedures, communication strategies etc). The PSO will be provided with a dedicated office and communications by GOV. Danida will provide equipment, furniture, a vehicle and running costs.
Services to be provided by the PSO include: setting and monitoring indicators of DCE performance developing a PIM co-ordinate any assistance across components, including support from a financial service consultant maintaining a central database of reports and outputs providing a forum for dissemination of results (e.g. workshops) participating in CSC meetings (one non-voting observer) coordinating and supporting the PPSOs collecting, distributing and commentating on component progress reports assisting in setting up accounting systems that meet Danidas requirements addressing administrative problems that may affect all components (e.g. procurement) organising and supporting the Joint Programme Review 6.3.3. Programme Implementation Manual
A PIM will be prepared by the PSO during the Inception Period. This will be the key instrument for carrying out its coordination and monitoring functions. The PIM will provide systems, procedures and checklists to guide programme implementation at all levels. Major areas covered will include the following: Selection of demonstration projects Accounting procedures and reporting Progress reporting (format, timing) Procurement of goods and services Information management and internal communication Selection of indicators and monitoring The PIM will also issue updates based on experience of implementation (from any component) or in response to demand. These might address areas of immediate practical concern such as approaches to training, building partnerships or working with NGOs, etc. 6.3.4. Provincial Programme Support Office
In each province there will be a PPSO. The duties of the PPSO in the province would mirror those of the PSO nationally. In addition it would have specific responsibility for helping the Components identify demonstration projects that match the needs of the province. The PPSOs will be directed by the relevant PPC Vice Chairmen (ie those nominated by the PPC whose responsibilities include all or most of the provinces activities in the areas of environment, industry, planning and capacity development) and supported by a full-time national coordinator. The Vice Chairman will decide where the PPSO will be located (3 of the partner provinces have indicated that DONRE would be the preferred location). The direction of the PPSO is expected to require around 20% of one persons time. The Vice Chairman would probably choose to delegate a deputy but would be expected to retain overall control and lend authority as needed. In addition to the national coordinator, the PPSO will be provided with accountant, secretary/translator, employed by GOV following remuneration scheme to be agreed between MPI and RDE, but paid for from the programme budget. A budget will be provided for transport, office equipment and running costs. The PPC will provide office space and local communications. 6.4. Role and Responsibilities of the Royal Danish Embassy
In addition to its input within the PCC, RDE will also have the following function and responsibilities:
Play an active role in relation to donor coordination within the environment, as performed through the ISGE and other fora, as well as directly with other bilateral donors and multilateral institutions active in Vietnam Participate in meetings and workshops within and outside of DCE as relevant in the advancement of the DCE programme Participate in interviews and facilitate recruitment procedures for international TA Facilitate tender procedures necessary under demonstration projects and otherwise Draft board papers for submission of approval of projects Follow-up on Government-to-Government agreements for approved projects In liaison with MPI and MONRE, prepare and facilitate Annual Joint Programme Reviews and Technical Reviews Play an active role in maximising linkages and synergies between other Danish sector programmes, support for private sector development and mixed credits 6.5. 6.5.1. Management of Components Central Level
Responsibility for design, planning, and the achievement of component objectives and outputs at central level will reside with the CSC which will be chaired by a Vice-Minister from the component anchor organisation. The CSC membership will include agencies directly involved in implementation. CSC members would be mainly concerned with reviewing and endorsing annual work plans and budgets as well as linkages with provincial level sectoral policies and strategic development goals. They should also play a role in dissemination and replication of good practice developed by activities in each component. A national Component Director from the partner (Director level) would take responsibility for overall administration and financial management of the component, devoting around 25% of his/her time. He/she would be assisted by a Danida funded long term (though not necessarily full time) Component Advisor. It is expected that as the components progress, and internal capacity develops, the Component Director will require less assistance from the Component Advisor. The Component Advisor input will therefore be either gradually reduced to 50%, as in the PCDA and SDU components or redeployed to expand component scope, as in the CPI component. The Component Director will take responsibility for preparing and monitoring annual work plans and budgets of the Component. The time of the Component Director and the CSC, any sitting or attendance fees, as well as office accommodation and communication costs will be provided by GOV as part of the partner contribution. Support staff will be employed by GOV following remuneration to be agreed between MPI and RDE, but paid for from the programme budget. Short-term consulting inputs and funds for activities in support of the smooth and efficient running of the component will be provided by Danida. 6.5.2. Provincial Level
Participating provinces may apply to take part in programme activities through any component. The Component Director will identify areas in which the component wants to test policies or approaches or to develop models through demonstration projects (these will include the development of capacity in provincial organisations) and set out conditions that they expect to be met by participating provinces and criteria for selecting provincial partners. The PPSOs will then consider whether these match priorities in the province and mobilise provincial departments to prepare a response. The CSC will then select the optimum response(s) using a transparent methodology based on the PIM, component work plan, budget, risk etc. 6.6. Management of Demonstration Projects and Use of NGOs
More detail on provincial demonstration projects and for other activities at the district and community level are further described within the Component Descriptions. In principle, however, day-to-day management will be exercised at the level of implementation, which means that localised demonstration
projects will generally be managed at district and community level. Also, opportunities to engage directly with community level organisations and NGOs will be generated, where appropriate, by use of suitable demonstration project selection criteria.
7. 7.1.
FINANCIAL MANAGEMENT AND PROCUREMENT Overview
Financial management will be carried out by each recipient, in accordance with the relevant guidelines issued by the Danish Ministry of Foreign Affairs (MOFA) or by GOV, where applicable. Financial management includes: Budget management Fund management Reporting Procurement Audit
In general, financial management will take place at three levels, as indicated in the cash flow model, and the flow of funds will be organized through the same levels: Funds will be transferred from the RDE in Hanoi to a bank account with the Vietnamese Ministry of Finance (MOF), External Finance Department (EFD). The MOF transfers funds from this account to commercial bank accounts that will be established by each of the participating ministries and the PSO and designated for DCE programme use only. When the participating ministries organise programme activities, within the ministry or with outside parties, they will fund these activities using the aforementioned designated commercial bank accounts.
Transfers of funds from the RDE to the MOF will be made in USD, whereas funds will be transferred from MOF to the line ministries and the PSO in VND. Transfers to the Provincial Programme Support Offices (PPSO) will be made from the PSO account, at central level. Financial management is the responsibility of the GOV, i.e. MOF, line ministries etc. and the GOV rules for the financial management must be applied. Any proposals for support in improving these rules and procedures will be considered sympathetically by RDE. Additional staff for this task, if required, can be recruited as per GOV rules, but may be financed out of the programme budget. A Financial Service Consultant/Company (FSC) will be contracted by the programme to assist in the overall financial management of the programme. This service will be co-ordinated by the PSO and will provide assistance to the line ministries and other recipients of programme funds where required. The final structure will be subject to agreement with the PCC. Fund transfers from the RDE to the Programme bank accounts are recorded as contribution, and the recipients will account for the utilization of the funds, using their own accounting systems and agreed procedures. Bank interest, gained on bank holdings, is not to be considered as part of the programme finance and must returned to RDE at the end of every fiscal year. Funds not considered spent for activities according to approved programme budget or other agreements between the programme administration and MOFA/RDE, must be refunded to MOFA. The PCC decides whether and when any repayment must be made. GOV staff participation in programme implementation part of GOV contribution. For GOV staffs programme related domestic duty travel and participation in in-country meetings, transport, payment and settlement of allowance will follow the EU guidelines section A.2 and paid for out of programme budget.
Programme related travel for GOV staff outside of Vietnam shall be guided by the cost norms issued by Danish Ministry of Finance, and paid for out of programme budget. Detailed procedures for management of funds will be elaborated during the programme inception and laid out in a Manual for Fund Management as part of the Program Implementation Manual. 7.2. Budget Management
7.2.1 General The total budget indicated in the Government agreement between Denmark and Vietnam on funding of DCE is in Danish Kroner (DKK), while the local cash flow will be maintained in USD and VND. However, it is the DKK budget that must be adhered to irrespective of currency fluctuations. All transactions will be consolidated in DKK in the accounting system of the MOFA. RDE regularly issues official exchange rates memoranda, which must be used when accounting for transactions with the RDE, such as fund transfers, budget and expenditure control, travel expense claims, etc. The overall budget for components is specified in the Programme Document and ratified by a Government-to-Government Agreement. Major changes can be proposed by the JPR and endorsed by the PCC, but may need to undergo appraisal. If it is thought that reallocation of funds or major changes to inputs, activities and outputs may be necessary, a technical review should be commissioned to prepare an analysis and recommendations for the JPR. The allocation of unallocated funds is decided by the PCC. Though according to GOV rules, increases of programme budgets by more than 10 percent (or more than USD 1 million for investment projects and USD 100,000 for TA projects) will be subject to prior GOV approval. Allocation of contingencies up to 20% of the available amount can be decided by the Component Steering Committee. Larger amounts must be approved by PCC. According to MOFA rules, RDE must approve the use of all contingencies and unallocated funds. 7.2.2. The PCC The utilisation of the total budget must be monitored by the PCC and proposal for adjustments made as soon as components realize that there may be significant deviations. Changes that require additional resources or adjustment of the development objective will need the approval of the PCC. 7.2.3. The Line Ministries The line ministries of the relevant components will prepare the annual budgets for their components, based on an annual work plan, following the budgeting process that begins June 10 and covers the fiscal year (the same as the calendar year). During this process they are expected to present their budgets to the PCC for the following fiscal year. The budgets will be endorsed by the PCC latest by the end of the year. The programme budgets will be prepared following the rules administered by their Finance and Accounting Departments. The advisers will assist with this process. Copies of the final budgets will be forwarded to the PSO for consolidation. 7.2.4. The PSO The PSO and PPSOs follow the structure outlined in 7.2.3. 7.3. 7.3.1. Fund management General
The funds disbursed by MOFA and RDE will be managed according to the MOFA rules that apply to the actual payment. There will be specific arrangements related to the partner administration model and
transfers from RDE to MOF and from there to the line ministries/components. The line ministries receive the funds for the approved budget, and will transfer funds to the various participating agencies. The PSO at central level will transfer the funds to the PPSOs as per approved budgets. The model for flow of funds described below places responsibility for tracking of expenditure and management of funds on partner organisations at three levels: Funds managed and transferred through the MOF The line ministries and PSO Provinces/demonstration projects and PPSOs
The flow of funds is described schematically in the following diagram.

Ministry of Finance - External Finance Dept, EFD
MOFA Copenhagen Consulting Companies Danida Advisors Pollution control MONRE
Danish Embassy
Programme Account, EFD
Programme Support Office
Sustainable Urban Dev. MOC
Cleaner Production MOI
Marine PA MOFI
Capacity Support MPI
Provincial Prog. Support Offices
Demo Projects
Demo Projects
Demo Projects
Demo Projects
Demo Projects
7.3.2. MOFA/RDE Disbursements made directly by MOFA/RDE are: Payments for advisers, contracted by MOFA Payments for companies/consultants, contracted by MOFA Procurements, if required Payment of External Auditors
These payments will be debited directly to the components by the RDE, and quarterly accounts of these expenditures will be forwarded to all components with a copy to PSO for consolidation into one programme budget. The FSC will assist with the consolidation work. 7.3.3. The PSO/PPSOs In general, fund procedures for the PSO are as outlined in section 7.3.4. The PSO receives funds from the MOF and will establish accounting procedures to facilitate the financial management. PPSOs will follow the established accounting procedures and report to the PSO. The FSC will assist them to do this work. The role of the FSC in this process will be that of quality assurance and verification of line ministries compliance with the rules of financial management being implemented in Vietnam.
7.3.4. The Line Ministries Component line ministries will utilise their own accounting system to account for the programme activities. However, if their existing accounting software is unable to accommodate these activities, separate accounting software for the particular purpose can be procured. Which-ever solution is chosen, the system must be able to handle budget lines for the programme and provide the financial reports as required. The FSC will provide any necessary assistance. Once their annual budget is approved, a request for transfer of funds for the first quarter of the financial year will be forwarded by the line ministry to the MOF, who will transfer the funds requested from the programme bank account. This bank account will handle recurrent as well as capital expenditures to be disbursed by the involved agencies. The procedures followed should be: 1. The Component Support Office of the line ministries will provide quarterly work plans and budgets to the MOF together with requests for funding. The Programme/ component advisers will assist the line ministries to incorporate the component activities in the ministry/ department work plans. 2. The MOF will transfer funds to the bank accounts of the respective line ministries quarterly, or as otherwise requested, provided they have a positive balance. A copy of the fund request should be forwarded to the PSO for consolidation and overall programme reporting. 7.3.5. Management of Funds for Demonstration projects Funds for demonstration projects will be channelled using the financial management systems of the line ministries. Such funds can be used to finance activities related to their own institutional, planning and policy capacity strengthening or it can be transferred to institutional agents for implementation of agreed activities. Whatever the case, the concerned recipient will retain overall responsibility for financial management and reporting to the concerned ministry. Each project will include a funding plan based on procurement schedule and work plan. The concerned line ministry will include the funds in its quarterly allocation and receive them into its bank account, prior to disbursing to the implementer, in accordance with the plan. The implementing organisation should use its own accounting procedures to report expenditure to the concerned line ministry, provided that these are GOV approved. Capacity development is an important theme of DCE and transparent, effective management of funds is a significant element to both capacity development and good governance. Therefore, where the implementing agency does not have adequate procedures or is judged to lack the necessary capacity (as may be the case for some community-based organisations or local NGOs, for example) the concerned ministry with the support of the advisers, if necessary, should organize training in basic accounting systems. The FSC will assist with this as required. When the financial management arrangements of the proposed implementing agency have been approved and a demonstration project is ready to be launched, the relevant line ministry transfers funds to the bank account of the institution in charge of the demonstration project. Procurements, if any, will be in accordance with the approved arrangements, and will involve the Procurement Agent, appointed by the RDE. 7.4. Fund Transfers from RDE to MOF/EFD
The cash flow from RDE for the programme implementation will be organised by funds being channelled to a Programme Bank Account opened by the MOF/EFD to handle activities under the programme. This
Bank Account will be controlled by the MOF/EFD within their normal financial management system for handling government revenues from ODA operations. The RDE will transfer funds quarterly to the MOF/EFD-DCE bank account, according to an annual consolidated budget approved by the DCE with a breakdown into quarters. The transfer of funds from RDE for activities in the work plan for a particular quarter will take place in the preceding quarter. MOF/EFD will then make transfers to the designated bank accounts, of the involved line ministries, in accordance with their requests, so long as they are in-line with their respective approved annual budgets. The first fund transfer to MOF and from there to each programme line ministry will cover estimated expenditure for two quarters. The MOF will account for the disbursements from their DCE programme bank account quarterly, using their own accounting structure and update the balance available for further disbursements. The consolidated accounts will be forwarded by the MOF to the RDE one month in advance of the next quarterly request for transfer of funds to the programme account. 7.5. Financial reporting
The recipients of funds will carry the accounting responsibility based on agreements approved by the programme management. The FSC will assist the recipients to establish the procedures, which will include quarterly reports on: Funds received, spent, balance Disbursements with a breakdown according to the approved budget Forecasts for the remaining part of the financial year Budgetary control on funds available, disbursed, planned and estimated end balance
The reports should be forwarded to the PSO and in parallel copies should be sent to MOF, where the FSC will assist with consolidation, assure the conformity of the reports to agreed formats and otherwise control the quality of the reports. The consolidated reports will be forwarded to the PCC with a copy to RDE. 7.6. Procedures for Procurement
Procurement of goods and services financed by Danish funds transferred through the MOF to the participating ministries will be done according to the procurement rules agreed between GOV and RDE. All equipment to be purchased should conform to existing regulations of Vietnam and in accordance with procurement guidelines set by Danish MOFA and should be based on specifications provided by the programme. A procurement agreement must be signed between the participating agencies. MOFA wishes the greatest possible openness and transparency in connection with procurement. The general rule is that procurement route shall be the most financially favourable possible, taking quality into account. At the same time procurement shall be as appropriate as possible for the location. Such considerations include access to service, repair and spare-part facilities, technical status and the development effect, which may be obtained by procuring from local industry. For procurement of goods reference should be made to Guidelines for Procurement (MOFA, 2004). Procedures for procurement will be outlined in full in the PIM, including thresholds for routine procurement. Procurement of the services of national and international consultants follows rules and regulations, set by the MOFA. Air tickets must be purchased through the travel agent, appointed by RDE.
7.7. 7.7.1.
Auditing Procedures Internal Audit
RDE reserves the right to audit all components for expenditure of funds provided by MOFA/RDE, whether used directly or transferred to a third party. The internal audit is guided by the Guidelines for Internal Audit issued by the RDE in August 2004, and may cover all operations of the components to which finance and accounting is relevant. The internal audit may be carried out by the Danish Auditor General, Head of Financial-Accounting Section or Financial Controller of RDE. The objectives of the internal audit are to provide reasonable assurance concerning authorisation, recording, safeguarding, reconciliation and valuation. The internal audit will be carried out as and when required in accordance with an audit plan approved by the PCC. The result of the audit must be documented in an Audit Report to be submitted to the PCC and the audited component. 7.7.2. External Audit Each year the RDE will contract an external auditor to carry out an annual external audit of the financial reports. This audit will include checking of assets of the components. The Terms of Reference for the audit will be prepared by the RDE and will be forwarded to components for information. The auditor will send the audit statement to the head of Financial-Accounting Section of RDE, and RDE will forward a copy of this statement to partners as appropriate. All cost of auditing will be met from the component budgets. The programme management will mobilise partners involved in all programme activities as required to cooperate with the auditor in providing all necessary information. Audit work will cover all transactions within a given calendar year. At the termination of a component, a final audit must take place within 3 months of closure, or as agreed according to a plan to be outlined in cooperation between the component and the PCC. The plan will include appropriate contractual arrangements with the component accountant to ensure his/her assistance to the final audit.
8. 8.1.
MONITORING AND REPORTING Approach to Monitoring
DCE is integrated with GOV environment programme - specifically the NSEP. NSEP sets new targets for environment and sustainability improvements, linked to Vietnams MDG and the CPRGS, and DCE indicators need to reflect these. At the national level indicators will therefore need to monitor: developments in, and implementation of the national sector framework, particularly where this might affect the assumptions on which the programme strategy is based the overall rate and completeness of supply of both Danida and partner inputs the overall impact of DCE on the development objective, and specific impacts on poverty and cross-cutting issues
Indicators can be either quantitative or qualitative, and may use adjectives like successfully implemented, effectively applied, adequate, improved, or well functioning. This is particularly likely in relation to development objectives, which can be difficult to quantify and often need several more indicators than objectives lower down in the programme hierarchy. Where adjectives are used attention will be paid to developing clear understanding of their meaning, and wherever possible, quantifying definitions. At the component level performance questions will need to be developed together with DCE stakeholders (including communities and beneficiaries) during implementation, and indicators designed and refined accordingly. Basic performance questions (in relation to the objective hierarchy) will include: Activities what has the intervention done? Outputs what has it delivered? Outcomes what has it achieved? Effect what is the contribution to the immediate objective?
For an indicator to be useful it will need to be representative and reliable, and be able to indicate both the effect and efficiency of DCE interventions. Measuring efficiency and effect requires indicators that can determine whether inputs have been used in the best possible way to achieve outputs and outcomes, and to what extent the intervention has contributed to the immediate objective of the component (and the programme as a whole). Account will also need to be taken of the receptiveness of an indicator to standardised monitoring and measurement techniques that directly reflect the objective concerned, and the need to derive conclusions about the unique contribution arising from Danidas support. In short indicators chosen for the programme will need to adhere to the mnemonic: M - measurable O - objective V - verifiable I - integrated T - time bound 8.2. Joint Programme Reviews
JPRs will be undertaken in years one, two (month 30) and four (month 48). The primary purpose is for both governments to assess the progress of the programme and properly ensure that it focussed on agreed priorities. The reviews will also assess the work plans and budgets for the following 18 months and make recommendations to the PSO regarding DCE implementation. JPRs will determine the necessity or otherwise of Technical Reviews addressing any specific issues or problems that may be
identified during the evaluation process. A Technical Review may also be undertaken at the discretion of the PSO or CMO after the Inception Phase, around Month 10-12, to determine the appropriateness of the component guidelines and the detailed work plans. Technical Reviews will normally be scheduled to produce information and recommendations for a JPR. During year four the JPR will be undertaken in month 48 (ie 12 months before the end of the programme), and will be combined with an appraisal of the programmes content and possible continuation. This will include an evaluation of each component upon its completion. In addition to an overall review of DCE effectiveness, the JPR will provide an opportunity to decide how unallocated funds should be utilised to consider major revision to components, where this is warranted based on their performance against indicators and taking into account the evaluations of stakeholders. In exceptional circumstances, the JPR may also decide, with the approval of the PSO, to create a new component or terminate an existing one. A new component will require a Component Description to be prepared in-line with Danida Guidelines and to be appraised by both governments. 8.3. Programme Level Monitoring
The programme will monitor effectiveness at programme level using the poverty and environment indicators and targets set in the NSEP. Initial indicators for the programme as a whole, and their means of verification, have been suggested within the DCE Feasibility Study. Some of the programme indicators will need to be used as headline indicators, ie composite estimates of the value of a complex variable. To supplement these, the Programme Advisor should develop simple indicators during the inception phase of the programme, together with the partners and stakeholders through a series of workshops and seminars. 8.4. Component Level Monitoring
At component level, indicators to monitor inputs and outcomes have been incorporated into the logical frameworks that are fully elaborated in each of the component documents (see Appendix A, A1-A5). A baseline will be established during the inception phase of each component and indicators, targets and means of verification will be refined in discussion with programme stakeholders (including communities and beneficiaries). The PSO will be instructed to prepare a PIM to ensure that all involved in programme supervision, management and implementation will have access to appropriate guidance. Guidance on monitoring will focus on: Development of indicators that measure effectiveness and outcomes as well as inputs and outputs Involvement of stakeholders, including communities and beneficiaries, in development and monitoring of indicators Methods of assessing poverty and environment linkages and of measuring change The value of measurable, objective, verifiable and time-bound indicators Monitoring systems that are effective but do not unnecessarily divert resources away from programme objectives 8.5. Indicators and Verification
The programme management and the executing agencies will use the period up to the first annual review to establish the indicators and the system for verification and feed-back. Tracking and verification of indicators must be a joint activity between partners. Some indicators may require specially commissioned studies to investigate and track. This would only be the case where no suitable surrogate indicator could be found, and the information sought was vital to the Development Objective of DCE. Tracking the direct effects of environmental actions towards poverty alleviation may be such an area. Moreover, the information gained might be of great value to Danida in
planning activities elsewhere. The Programme Advisor should determine whether field studies, specially commissioned from RDE resources, would be a cost-effective enhancement of the verification effort. Verification may also involve other donors through meetings of the ISGE. 8.6. Reporting
The overall tool for monitoring DCE progress is the JPR (see Section 8.1). In addition, regular reports will be produced throughout the period of DCE implementation for each component, and for the programme as a whole, including the following. By the Director of Each Component: an inception report semi-annual progress reports for the component annual work plans for the component By the Programme Director (with the Programme Advisor): an inception report semi-annual progress reports (for the programme) annual work plans (for the programme) By the Embassy Co-ordinator: yearly focus issues paper for the JPR By the PCC (MONRE, MPI and RDE): Terms of Reference for the JPR Technical Review Working Papers JPR Agreement Progress reporting should be succinct and should emphasise achievements measured in relation to defined indicators for the individual components and include a summary of financial status. The layout and content of each report will be specified in the PIM and should conform to the recommendations in the AMG.
9. 9.1.
ASSESSMENT OF KEY ASSUMPTIONS AND RISKS Context
Danish programme partnerships in Vietnam have generally proceeded well. Ongoing policy, institutional and legislative reform, coupled with real investment in the sector, shows that GOV commitment to the environment and sustainability is continuing and secure. Experience also shows that donor co-ordination to avoid duplication is effective and that counterpart funding once committed can be relied upon. There are however some risks that are inherent in trying to implement environment programmes in lowincome countries and others that arise due to the way Danida programme funding interacts with GOV systems and approaches to governance. The assumptions that programme design depends upon in these areas and the way risks management has been built into programme design are discussed below. 9.2. Partners Involvement and Institutional Issues
The DCE is designed to develop capacity that will be sustained over the planning horizon of the programme and beyond. Key assumptions for this to happen are that there will be willing national partners at every level to work on the programme who will take the experience gained and integrate it into future work in the sector. Past experience in Vietnam, revalidated in the Feasibility Study, has shown that these assumptions are reasonable and realistic. Factors that might pose a risk include: Availability of staff and resources: Provincial administrations report that it can be difficult to recruit sufficient suitably qualified staff to the departments responsible for meeting environmental objectives. At the same time, the workload of the staff that they do have is increasing due to greater provincial responsibility for environmental management and the environmental challenges of rapid development. For these reasons, together with budget constraints, unqualified staff has sometimes been transferred to fill vacant positions. This situation presents both a risk and an opportunity. Integration of component activities into the work plans of the partners relieves burdens and builds staff morale. Consultation and continual involvement of provincial partners in programme development, planning and implementation will reduce the risk of unexpected burdens being placed on staff and resources. Jurisdictional conflicts: GOV allocates areas of responsibility and funds for intervention vertically, by productive or economic sector (MOC for example is responsible not only for construction, but for the mining, production and distribution of construction materials). Environmental interventions are essentially cross-cutting and many DCE activities will be more efficient if they work across sectors. This is understood by programme partners and included in the design of components. It is still possible, however, that jurisdictional conflicts may arise during implementation. These would cause delays and might reduce the value and the sustainability of interventions. Difficulties working at decentralised levels: The programmes approach to implementation is to find partners at the implementation level and develop their capacity to manage interventions and sustain the outcomes achieved. Partners are expected to contribute and neither GOV staff compensation nor salaries for substantive positions are paid. This is in line with official GOV policy but the management culture of provincial officials may need some time to adjust. Misunderstandings in this area could lead to denial of permissions and reluctance of people at lower administrative levels to take part in the programme. The risk has been mitigated by the programmes focus on provinces where Danida is known and its working methods are appreciated. 9.3. Sustainability
Vietnam is still a low-income country, albeit a rapidly growing one, and has many urgent priorities competing for limited funds. National budgetary allocations for environmental institutions are currently relatively small and are far outweighed by donor contributions in the sector. There will always be a risk, therefore, that funds needed to maintain the institutions that the DCE is helping to develop, will not be forthcoming and that the capacity established by the programme will gradually dissipate. A similar risk
relates to the maintenance of demonstration projects. The programme design mitigates these risks by focussing on interventions that support, or at least do not conflict with, the industrially oriented economic growth strategy of GOV. Programme activities will also include an assessment of the economic costs and benefits of various approaches to regulation and monitoring the actual economic effects of programme outputs. 9.4. Misuse of Funds and Corruption
A recurrent theme of the Annual Consultations between the Governments of Denmark and Vietnam has been the need to combat corruption and prevent corrupt practices. The governments noted that good governance, including transparency and a free press, is crucial in this regard, and that Vietnam had had considerable success in exposing a number of high profile incidents. Nevertheless, attempts to misappropriate funds, especially indirectly by rent-seeking (demanding payment for permits or approvals), remains a risk. Delays and ineffective use of TA are the common results. These risks are addressed in DCE design by use of transparent decision-making and reporting, and by employment of a full-time Programme Financial Controller and accountants in each component management office. In addition there will be regular internal audits and yearly independent audits. 9.5. Development and Immediate Objectives
The programme objectives were formulated in the context of the ongoing modernisation and restructuring of Vietnams economy and governance. They rely on basic assumptions that the economic situation in Vietnam, the policy of the government and the policies of international donors and financing organisations continue along their current paths. It is also assumed that the objectives remain valid and retain their priority as the economy grows. These are reasonable assumptions, clearly articulated in international policy forums and national development planning. There is a risk that external factors may disrupt national development or change priorities, but these would probably act only to delay achievement of the objectives. If for some reason overall development objectives cannot be achieved, however, there is little risk that programme funds would be totally wasted. Many programme activities and investments will have an immediate effect on the living conditions and health of the poor that has a value independent of the larger picture.
10.
IMPLEMENTATION PLAN
10.1. Timing of Key Events The timing of report production must take into account the fiscal years of Denmark and Vietnam, the timing of the Annual Negotiations between the governments, and the consequent timing of the JPR. Ideally, the JPR should take place a few months prior to the Annual Consultations and in good time to influence the national budget preparation. It should also avoid major holidays as far as possible. On the Vietnamese side, if funds can be committed by the end of May, they can be included in the next years budget flow. The timing of preparation and appraisals should take account of these considerations. All of these suggest that key events should be scheduled as follows: Key Dates and Proposed Schedule
Key Dates Vietnam Fiscal Year: Denmark Fiscal Year: Annual Negotiations Proposed Schedule Modification to Components Identification/Preparation Missions (if needed) Pre-appraisal (if needed) Appraisals Coordination Committee Meetings Joint Programme Review Date January 1 to December 31 January 1 to December 31 October (one week)
October-February October-November December/January March/April May and October (at a minimum) June (7-10 days)
10.2. Inception and Phasing in of Ongoing Projects It is expected that the appraisal and approval processes will be completed and a government-to government agreement signed, by the end of 2004. At this point, the recruitment of the long-term international advisors Programme Advisor and advisors for PCDA and CPI) should commence so that they can be deployed by the scheduled beginning of the programme on 1st July, 2005. Ongoing DEA projects will either be merged into the components or run in parallel with the programme. In the case of the LPMA and the SDU components, the advisor of the relevant ongoing project will be instructed to prepare a merged component/project work plan. The Inception period will be six months, ending December 31st 2005. Key activities during this period will include: The production of a PIM The production of detailed annual work plans for each component and the PSO The establishment of programme and component offices The recruitment of national staff The preparation of baseline studies for each component 10.3. Programme Implementation Chart DCE component implementation periods, monitoring and review activities, report delivery, and personnel deployment are depicted in Figure 10, overleaf.
Figure 10 Programme Implementation Chart

Im plem entation Plan 2005 Com ponent Im plem entation Periods Pollution Control in Poor Densely Populated Areas Cleaner Production in Industry Environmentally Sustainable Development in Poor Urban Areas Sustainable Livelihoods in and around MPAs Capacity Development Support for Environmental Planning and Management M onitoring/Review Activities Coordination Committee Meetings Joint Programme Reviews Report D elivery Inception Reports Semi-Annual Reports Annual W ork Plans & Programme Report ILTA Deploym ent Combined Programme and CDS Advisor Full Time PCDA Advisor Combined PCDA and SDU Advisor CPI Advisor Half Time LMPA Advisor 2006 2007 2008 2009 2010
Bibliography DANIDA Aid Management Guidelines, September 2003 http://www.um.dk/danida/amg/ DANIDA Danish Environmental Assistance to Vietnam 2000 2004, March 2001 DANIDA Danish Strategy for Regional Environmental Assistance in South East Asia, 1997 DANIDA Evaluation of Danish Environmental Assistance to South East Asia, August 2003 The Economist Intelligence Unit, Vietnam Country Profile 2003 http://www.economist.com/countries/Vietnam/profile.cfmfolder=Profile-Economic%20Data FAO, Women in Agriculture, Environment and Rural Production http://www.fao.org/Gender/Ffiles/Vie.pdf NEA/Government of Vietnam, National Strategy for Environmental Protection and Sustainable Development 2001-2010, June 2000 http://www.nea.gov.vn/English/state/VN_Orienting-Plan2001-2005.htm NEA/Government of Vietnam, National Environmental Action Plan 2001-2005 Government of Vietnam, Comprehensive Poverty Reduction and Growth Strategy, 2001 General Statistical Office, Statistical Yearbook 2001 Partnership 2000 http://www.um.dk/publikationer/fremmedsprog/English/policy-strategy/15.asp http://www.um.dk/danida/partnership2000/ UNAIDS, UNICEF, WHO Epidemiological Fact Sheets on HIV/AIDS and Sexually Transmitted Infections 2002 UNDP Compendium of Environmental Related Projects 2003, and MPI/UNDP Study on Aid to the Environment Sector, 1999 UNDP, Human Development Report, 2003. http://www.undp.org/hdr2003/ UNEP, State of the Environment Report, Vietnam 2001 http://www.rrcap.unep.org/reports/soe/vietnam/ Vietnam Development Information Centre http://www.vdic.org.vn World Bank, Vietnam Living Standards Survey 1997 1998 World Bank, Vietnam at a Glance 2003 http://www.worldbank.org/data/countrydata/aag/vnm_aag.pdf World Bank, Vietnam Environment Monitor, 2002 download from - http://www.nea.gov.vn/English/state/VEM_2002/ http://mail.saigon.com/pipermail/vnforum/2003-July/001634.html Ministry of Planning and Investment/NATIONAL ASSEMBLY Vietnamese Labour Code 23 June 1994 (as amended 2 April 2002), effective 1 January 2003 http://www.global-standards.com/Resources/VNLaborCode1994-2002.pdf
Annex A
Job Description for Long Term International Technical Assistance
Job Description for Programme Advisor/CDS Component Advisor Overall objective: The Programme Advisor will have a dual role in this programme. In addition to the overall Programme Advisor role, he/she will also carry out the Component Advisor function for the CDS component. Overall, it is expected that the Advisors time will be divided 50:50 between these two roles, but the balance may change over time, with the Programme Advisor role taking up to 75% of the time during the inception period. The Advisor as Programme Advisor will have two major objectives. The first of these will be to support the national Programme Director (delegated from MPI) in coordinating the programme in accordance with the Programme Document. Advice and support, including coaching and on-the-job training, will be given on the required methods, procedures, tools and expertise needed to support programme implementation. He/she will also advise the Programme Director and the PSO staff on the management of the PSO, procurement issues and production and quality control of all PSO outputs. The second major objective will be providing the RDE, through the environment councillor, with the information and advice it needs to supervise the programme, to coordinate with its other cooperation programmes and to fulfil all of its reporting obligations. In addition, the Advisor will contribute to the dissemination of programme activities and the provision of policy advice to partners in programme implementation. As Component Advisor for the CDS component, the Advisor will assist the component management team to ensure that the component objectives, outputs, activities are implemented correctly, according to schedule and within the budget allocations. The Component Advisor and Component Director will jointly ensure that the components activities are planned and implemented in a coherent manner and consistent with Vietnams and Danida policies and the demand driven approach. Jointly, they will be responsible for the planning, budgeting and reporting to Danida on the component activities. The Component Advisor will assist in ensuring a high professional quality of all activities implemented under the component. The Component Advisor will furthermore make sure that RDE is kept fully informed of component issues and that the needs and requirements of Danida and RDE are met, in relation to oversight, supervision and compliance with policy and procedures. The component is a key part of the programme, supplying services and multiplying the effectiveness of capacity development activities undertaken as part of the other programme components. It will therefore be essential to maintain regular and effective communication with other component management teams through meetings and joint activities. The Advisor will be based in MPI in Hanoi. Qualifications: Academic degree at Masters or Ph.D. level with a background in public (environmental) policy and administration, and/or an academic field directly relevant to capacity development in the environment. Profound knowledge of and experience from capacity development and training activities Minimum 15 years' working experience from related and relevant fields Familiarity with environmental policy issues in developing countries and the regulatory, economic and technical instruments used in environmental management Experience in the management of externally funded development projects, and management skills and experience in staff supervision, and managing collaborative facilitation between diverse interest groups Working experience and familiarity with Vietnamese conditions Familiarity with Danida procedures, AMG, or similar
Appendix A
Component Documents: A.1 Pollution Control in Poor Densely Populated Areas A.2 Environmentally Sustainable Development in Poor Urban Areas A.3 Cleaner Production in Industry A.4 Sustainable Livelihoods in and around Marine Protected Areas A.5 Capacity Development Support for Environmental Planning and Management

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Royal Danish Embassy

Vietnam Denmark Development Cooperation in the Environment (DCE) 2005 - 2010

Final PROGRAMME DOCUMENT

FINALPROGRAMME DOCUMENT 2005-2010

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5.2. 5.3. 5.4. 6. 6.1. 6.2.

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Bibliography Annex A Job Description for Long-term International Technical Assistance

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Provinces of Vietnam with Danida sector support

ENVIRONMENT PROGRAMME PROVINCES

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Capacity Development in the Environment

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Technical Assistance 8.3 13.9 8.3 11.5 6.3 10.9

Operating costs* 14.7 9.9 8.5 9.2 8.9 2.7

Contingency 0.4 4.6 2.8 3.8 1.6 0.8

Total 24.0 65.0 40.0 55.0 26.0 20.0 20.0 250

Budget in Million DKK 0.6 36.7 20.4 30.4 9.1 5.7

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Report on Programme Feasibility

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NATIONAL SECTOR CONTEXT Economic and Social Context

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Other Priority Themes

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AGREED ASSISTANCE Overall Strategy Moving to a Sector-Wide Approach

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