Forestry Sector Capacity Development Project
in Lao PDR
Project Document
17 June 2010
1
TABLE OF CONTENTS
1.
Background of the Project ..................................................................................................... 3
2.
Project Strategy...................................................................................................................... 4
3.
Project Design........................................................................................................................ 4
4.
5.
3.1
Overall Goal ..................................................................................................... 4
3.2
Project Purpose.................................................................................................. 4
3.3
Outputs and Activities ........................................................................................ 5
3.4
Preconditions .................................................................................................... 8
3.5
Project Duration ................................................................................................ 9
3.6
Inputs ............................................................................................................... 9
3.7
Project Design Matrix (PDM)............................................................................ 10
3.8
Tentative Plan of Operation ............................................................................... 10
Project Implementation Structure ........................................................................................ 10
4.1
Overall Structure ............................................................................................. 10
4.2
Joint Coordinating Committee (JCC).................................................................. 10
Ex-ante Assessment ............................................................................................................. 11
5.1
Relevance ....................................................................................................... 11
5.2
Effectiveness ................................................................................................... 12
5.3
Efficiency ....................................................................................................... 12
5.4
Impact ............................................................................................................ 12
5.5
Sustainability .................................................................................................. 13
ANNEX 1: Project Design Matrix (PDM) .................................................................................. 13
ANNEX 2: Plan of Operation (PO)............................................................................................. 13
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1. Background of the Project
Lao economy has been growing rapidly mostly due to influx of foreign direct investments in
hydropower, mining and plantation sectors as the robust regional growth continues. Accordingly,
land and forest use changes have given significant impacts on forest management.
The Government of Lao PDR (GOL), especially MAF and DOF have introduced policies and
legislation of the forestry sector based on the Forest Strategy 2020 and the Laws of Forestry and
Wildlife. To bring the policies and legislation into concrete actions, capacity development for
formulation of implementation measures such as ministerial regulations and technical guidelines,
and for field level implementation is needed.
In 2010, GOL formulated Strategy on Climate Change of the Lao PDR. Regarding this strategy,
Reducing Emissions from Deforestation and Forest Degradation and carbon stock enhancement
(REDD+) has emerged as an important issue in the forestry sector. GOL considers that REDD+
mechanism is one of the promising means to both strengthen management capacity of the forestry
sector stakeholders at all levels and improve local people’s livelihood and their forest
conservation activities, which lead to sustainable forest management. In order to prepare REDD+
implementation mechanism, new capacity and institutions, such as forest carbon assessment and
monitoring, carbon tenure and benefit sharing, promotion and registration of local activities, and
revenues distribution, are required for the forestry sector in line with international agreements and
guidelines under UN Framework Convention on Climate Change (UNFCCC).
In order to support forestry sector management and planning and to facilitate implementation of
some key strategic priority actions with respect to the Forestry Strategy 2020 (FS2020), MAF,
JICA and Swedish International Development Cooperation Agency (Sida) have implemented the
Forestry Strategy 2020 Implementation Promotion Project (FSIP) form 2006 to 2010. Although
FSIP has made significant contributions to improvement of forestry sector planning,
implementation, coordination, and collaboration through various project activities, some
activities clearly need further support. On this basis, GOL requested GOJ to implement a new
project, Forestry Sector Capacity Development Project (hereinafter referred to as “the Project”)
with a focus on capacity development of the forestry sector through promoting implementation of
FS 2020.
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2. Project Strategy
The Project is implemented in accordance with the following strategies:

The Project aims at capacity building of DOF staff through assisting formulation,
implementation, and monitoring of policies and legislation, which are related to the FS 2020
and the MAF 5 year plan (2011-2015) as well as REDD+.

The Project plays an important role in coordination among relevant stakeholders of the
forestry sector including relevant authorities of GOL as well as development partners and
initiatives.

The Project flexibly responds to issues emerging from international and domestic agenda
such as climate change and land and forest use changes.
3. Project Design
3.1 Overall Goal
The overall goal, which is expected to be resulted from the achievement of the Project purpose, is;
Sustainable forest resources management in Lao PDR is promoted.
Overreaching objective of FS 2020 is poverty eradication which is one of the major national
development goals. Sustainable forest resources management is a key element to support this
overreaching objective. Therefore, promotion of FS 2020 implementation will directly result in
promotion of sustainable forest resources management in Lao PDR.
It is suggested that the appropriate indicators to measure the overall goal should be determined
after the Project commencement.
The important assumption, which is out of the project control and will have major impact on
achievement of the overall goal, is identified below;

FS2020 cannot meet the new development challenges emerged in the forestry sector.
3.2 Project Purpose
The project purpose, which is to be achieved by the end of the project, is;
Implementation of Forestry Strategy 2020 and Strategy on Climate Change especially
REDD+ is promoted.
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The Project primarily aims at capacity development of DOF staff for forestry sector management
through formulation, implementation, and monitoring of policies and legislation set forth in the
relevant strategies. Therefore, it is expected that capacity development and implementation of
relevant strategies proceed side by side and bring about a synergy.
The project has set a following indicator to measure the project purpose:

The programs relevant to forestry sector, set by the MAF 5 year plan (2011-2015), are
implemented.
The 5 Year Plan for Agriculture and Forestry Development (2011-2015) is now at the stage of
finalization. With regard to forestry sector, its goals, programs and implementation measures in
the 5 Year Plan are set based on FS 2020. In addition, Strategy on Climate Change including
REDD+, which has been formulated just recently, does not conflict with FS 2020 and is regarded
as driving force for forestry sector management. Since the Project will terminate 6 years before
the target year of FS 2020, it is practical to use the progress level of the 5 Year Plan
implementation as an indicator for the project purpose.
The followings are the important assumptions for achieving the project purpose;

DOF staff, whose capacity is improved through the Project, continues to work for the
Department.

Forestry sector stakeholders other than DOF are not uncooperative toward implementation
of FS 2020 and Strategy on Climate Change including REDD+.

International donors continue to support implementation of FS 2020 and Strategy on Climate
Change including REDD+.
3.3 Outputs and Activities
The project aims to produce the following two outputs to achieve the project purpose.
Output 1:
Capacity of DOF for formulating plans, policies, and institutional framework for
forestry sector management including REDD+ is improved.
Output 2:
Capacity of DOF for managing implementation of selected strategic policies,
which identified as high priority in the FS 2020, Climate Change Strategy, and the
MAF 5 year plan (2011-2015), is improved.
It is assumed that management capacity consists of two major components; 1) capacity for policy
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and institutional planning, and 2) capacity for implementation management. Planning should be
followed by implementation and feedback from implementation should be incorporated into
planning. Therefore, overall capacity for forestry sector management will be achieved through
combination of above-mentioned two outputs.
The outputs will be addressed through a series of activities as described below.
(1) Output 1 and its activities
Output 1
Capacity of DOF for formulating plans, policies, and institutional framework for forestry sector
management including REDD+ is improved.
Activities
1-1 To facilitate formulation of the MAF 5 year plan
1-2 To assist Provincial Forestry Section in formulating provincial action plan based on the
MAF 5 year plan
1-3 To coordinate REDD+ related activities and prepare REDD+ implementation mechanism
1-4 To improve the existing funding mechanism such as Forestry and Forest Resource
Development Fund (FDF) and to identify additional funding mechanism for forestry sector
such as Payment for Environmental Services (PES)
1-5 To conduct stakeholder consultations such as Forestry Sub-Working Group
1-6 To participate in international and regional workshops/meetings related to forestry issues
1-7 To organize DOF staff training to improve basic competence to conduct above-mentioned
activities
1-8 To facilitate coordination of JICA’s assistance
Components of each activity are assumed as follows.
Details should be examined and
determined not only at the commencement of the Project but also during its implementation in
order to flexibly respond to the actual situation.

Activity 1-1 will be a preparatory work for the next MAF 5 year plan (2016-2020). It will
include; 1) data collection and review of the 5 year plan (2011-2015), 2) meetings and
consultations, and 3) drafting the plan.

In Activity 1-2, DOF staff will provide necessary guidance for the staff of Provincial
Forestry Section to formulate provincial action plan after the 5 year plan (2011-2015) is
finalized and targets of each province are set.

Activity 1-3 will include; 1) preparation of R-PP, various reports for FCPF, 2) REDD+
policy formulation and institutional development, 3) coordination among relevant
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stakeholders, 4) dialogue and cooperation with neighboring countries, and 5) information
dissemination and awareness raising of REDD+ mechanism at local levels.

Activity 1-4 will include; 1) to conduct case studies and learn lessons from other countries,
2) to examine possible funding mechanism, and 3) to make a suggestion to the government.

Stakeholder consultations in Activity 1-5 will include Forestry Sub-Sector Working Group
meeting and cross-sectoral consultations with policy makers.

Competence to be improved by Activity 1-7 will include, for example, data collection and
analysis.
Annual training plan should be designed based upon the needs of the staff.
Achievement of Output 1 can be measured by whether the activities for Output1 are appropriately
executed. The followings are the indicators of the Output 1.
1. The appropriate data collection and stakeholder consultation for the next 5 year plan are
conducted.
2. DOF staff conducts seminars/consultations for provincial staff about provincial action
plan formulation.
3. Documents required by FCPF and other relevant initiatives are prepared.
Coordination among relevant stakeholders is made.
4. Case studies and current practices of additional funding mechanism are examined.
5. Meeting with Forestry Sub-Working Group is regularly held (twice a year).
6. DOF staff is able to prepare necessary documents for the workshop/meeting before
participation and report after participation.
7. The training is held according to the annual training plan.
(2) Output 2 and its activities
Output 2
Capacity of DOF for managing implementation of selected strategic policies, which
identified as high priority in the FS 2020, Climate Change Strategy, and the MAF 5 year plan
(2011-2015), is improved.
Activities
2-1 To facilitate formulation of and to disseminate necessary legislation and guidelines for
implementing the strategic policies including REDD+
2-2 To manage, monitor and evaluate the implementation of the strategic policies including
REDD+
2-3 To develop an appraisal system for forestry investment proposals
2-4 To organize training of Provincial Forestry Section in information analysis, reporting,
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and project proposal preparation
2-5 To implement pilot projects for income generation of rural community through forest
activities
Components of each activity are assumed as follows.
Details should be examined and
determined not only at the commencement of the Project but also during its implementation in
order to flexibly respond to the actual situation.

Activity 2-1 will include various decree, instruction, and regulation. For example, Prime
Minister’s Decree on Protection Forest Management is now in preparation.

Activity 2-3 will aim at developing; 1) regulations on forestry investment, 2) guideline for
investors on how to prepare proposals and necessary documents to apply to forestry
investment, and 3) guidelines for DOF staff on how to evaluate the forestry investment
proposals.

For Activity 2-4, annual training plan should be designed based upon the needs of
provincial staff.

Activity 2-5 will include smallholder teak plantation management for group certification
and NTFP management
Achievement of Output 2 can also be measured by whether the activities for Output 2 are
appropriately executed. The indicators of Output 2 are as follows.
1. Necessary legislation and guidelines are prepared.
Awareness-raising activities are conducted.
2. Monitoring of the policy implementation in the forestry sector under the MAF 5 year plan
is reported.
3. Proposal format and guidelines are developed for investor.
Appraisal system is developed.
4. The training is held according to the annual training plan.
5. Outputs of the pilot projects are disseminated.
In order to bring the activities into the above two outputs successfully, the following is the
important assumption.

DOF staff who is engaged in the project activities continues to work for the Department.
3.4 Preconditions
The preconditions, which are requisite for starting the Project and implementing the activities, are
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as follows.

Project counterpart personnel are assigned as planned.

The number of DOF staff does not decrease extremely.

Budget of DOF is not extremely reduced.

Budget disbursement of GOL to DOF is not delayed significantly.
3.5 Project Duration
The Project will start right after the termination of FSIP. The project duration is 4 years from
October 2010 to September 2014.
3.6 Inputs
The both parties, namely the Government of Lao PDR and Government of Japan make following
contribution to the project implementation.
(1) Lao Government
-
-
Project personnel

Project Director

Project Manager

Staff of Planning and Cooperation Division, DOF
Two rooms at DOF in Vientiane including electricity, air conditioning, water supply and
necessary telecommunication facilities are provided.
-
Administrative and operational cost, as necessary to implement the Project, is prepared.
(2) Japanese Government
-
Long-term experts are dispatched, serving exclusively for the Project in the following
fields.

Chief advisor / Forestry policy

Forest Management / Project Coordinator
-
Short-term experts are dispatched as required in the course of project implementation
-
Training opportunities in Japan for the counterpart staff is provided
-
Machinery, equipment and materials, as necessary to implement the Project, is
provided.
-
Necessary cost for the activities other than the cost born by Lao Side is provided.
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3.7 Project Design Matrix (PDM)
The project design is summarized as Project Design Matrix (PDM) attached as Annex 1.
3.8 Tentative Plan of Operation
The project is operated according to the Plan of Operation (PO). Tentative PO is attached as
Annex 2.
4. Project Implementation Structure
4.1 Overall Structure
The Project will be run basically under the jurisdiction of DOF. The Project office is provided in
the DOF premise. Close administrative and technical collaboration will be made with other
organizations under MAF, relevant organizations of Lao PDR, and other development partners.
4.2 Joint Coordinating Committee (JCC)
The Joint Coordinating Committee (JCC), which is established at the beginning of the project, is
the mechanism to oversee the project implementation and inputs. The details of the JCC are as
follows.
(1) Functions of JCC
JCC is held at least once a year or whenever necessity arises. The main roles of JCC include:

to approve the Plan of Operation and the annual work plan of the Project;

to review the overall progress of the project activities as well as the achievement of the
above-mentioned annual plan; and

to review and exchange views on major issues arising from or in connection with the Project
and recommend corrective measures.
(2) Membership
JCC consists of following members.
i.
Chairperson: Director General, DOF, MAF
ii.
Co-chairperson: Chief Representative, JICA Laos Office
iii.
Lao Side
-
Project Director: Director General, DOF, MAF
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-
Project Manager: Director, Planning and Cooperation Division, DOF, MAF
-
Representative from Department of Planning, MAF
-
Following members of Secretariat for FS 2020 Implementation:

Representative from National Agriculture and Forestry Extension Service
(NAFES)

Representative from National Agriculture and Forestry Research Institute
(NAFRI)
iv.

Representative from National University of Laos (NUOL)

Representative from National Land Management Authority (NLMA)
-
Representative from Ministry of Planning and Investment (MPI)
-
Representative from Ministry of Finance (MOF)
-
Other officials designated by MAF
Japanese Side
-
JICA Experts of the Project
-
Other relevant personnel designated by Chief Representative of JICA Laos Office
5. Ex-ante Assessment
As a result of ex-ante project evaluation, the overall relevance of the Project is regarded high.
The ex-ante evaluation was conducted from the viewpoint of five evaluation criteria; relevance,
effectiveness, efficiency, impact and sustainability.
The evaluation result of each criterion is
summarized below.
5.1 Relevance
The relevance is high.

The project purpose and the overall goal are in line with relevant policies of GOL. First, the
5 Year Plan for Agricultural and Forestry Development (2011-2015), which is currently at
the stage of finalization, sets 4 development goals as 1) enhancement of food security, 2)
production of agriculture and forestry commodity, 3) allocation of sustainable production
patterns and rural development, and 4) sustainable forest and forest resources management.
The Project is well consistent with the fourth goal. Second, Strategy on Climate Change of
the Lao PDR states that improvement of forest management is one of the key adaptation and
mitigation strategies toward climate change.

The project follows Japan’s assistance policies for Lao PDR. Country Assistance Program
for Lao PDR sets six priority areas of assistance. “Developing rural regions and sustainable
use of forest resources” and “improving administrative capacity and institution building”
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are included in these priority areas. In addition, GOJ supports the efforts of GOL to adapt to
climate change, reduce GHGs emissions and to achieve economic growth in a compatible
way based on the Cool Earth Partnership which established between both countries in 2008.

The target group of the Project is the staff of DOF. Capacity development for forestry sector
management, which is their primary task, is most essential for them. Therefore, the target
group is appropriately selected and the project meets the needs of the target group.
5.2 Effectiveness
The effectiveness is expected to be high.

The Project logically designed maintaining means-end relationship between its outputs and
project purpose. Overall capacity of DOF staff for forestry sector management, from policy
formulation to implementation and monitoring, is developed by attaining output 1 and 2.
Then, DOF is able to implement FS 2020 and Strategy on Climate Change including REDD+
more appropriately and effectively. Therefore, probability to achieve the project purpose is
high.
5.3 Efficiency
The efficiency is expected to be high.

The main actors to conduct all Project activities, which are identified by DOF as high priority
in the forestry-related strategies, are DOF staff. In other words, their capacity will be
improved through “learning by doing” according to their own priority. In addition, no
special equipment or machinery is required for implementation of the Project.

Cost efficiency is expected by utilizing local resources and assets of FSIP. First, DOF will
provide tow rooms for Japanese experts as same as FSIP including electricity, air
conditioning, water supply and necessary telecommunication facilities. Second, outputs of
FSIP such as counterpart personnel who have conducted various activities in FSIP are to be
utilized. Third, collaborative relationships build by FSIP with international donors and
NGOs are expected to continue.

DOF agreed to have further discussion with other donors to seek co-funding for DOF to
accelerate effective implementation of the Project.
5.4 Impact
Following impacts are foreseen.
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
Implementation of FS 2020, Strategy on Climate Change including REDD+ will directly
result in promotion of sustainable forest resources management in Lao PDR. Therefore,
probability to achieve the overall goal is high.

DOF staff will directly benefit from the Project in terms of their capacity building. In
addition, since some Project activities (activity 1-2 and 2-4) intend to help capacity
development of provincial staff, they will indirectly benefit from the Project.

Pilot projects (activity 2-5), which are planned to include smallholder teak plantation
management for group certification and NTFP management, will improve incomes of
participant farmers.
5.5 Sustainability
Sustainability is expected to be high.

The Project activities are the tasks which DOF has to perform on a daily basis even without
the Project. Roles of DOF as a main actor of forestry sector management will not change in
future. Therefore, if DOF staff, whose capacity is improved by the Project, continuously
conduct and evolve the activities, the effects of the Project will sustain.

Public investment of GOL is heavily dependent on foreign assistance, and the forestry sector
is not an exception. It is highly possible that support of international donors for the forestry
sector will continue especially in terms of global issues such as climate change and
biodiversity. In addition, Forest and Forest Resource Development Fund, Payment for
Environmental Services (PES), and forestry investment are potential sources of fund for the
forestry sector. If incentive mechanisms for REDD are established, it can be also utilized.
Therefore, financial sustainability is expected to some extent.

There is a possibility that some of DOF staff whose capacity is improved by the Project will
leave their positions. In that case, achievement and effects of the Project may be threatened.
6. ANNEX 1: Project Design Matrix (PDM)
7. ANNEX 2: Plan of Operation (PO)
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