Economist Consultant

USAID SUSTAINABLE FOREST MANAGEMENT PROJECT

INDEPENDENT CONSULTANT SCOPE OF WORK

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A. DAI ORGANIZATION AND VALUES

DAI Global LLC. is a development company with corporate offices in the United States, the United Kingdom, EU, Nigeria, Pakistan, and Palestine and implementing project operations worldwide including Vietnam. DAI tackles fundamental social and economic development problems caused by inefficient markets, ineffective governance, and instability. DAI works on the frontlines of global development, transforming ideas into action and actions into impact. We are committed to shaping a more livable world.

DAI and its employees are committed to confronting racism and holding ourselves accountable for positive change within the company and in the communities, cultures, and countries in which we live and work. DAI is committed to attracting and retaining the best employees from all races and backgrounds in our continued effort to become a better development partner.

DAI upholds the highest ethical standards. We are committed to the prevention of sexual exploitation, abuse, and harassment as well as other ethical breaches. All of our positions are therefore subject to stringent vetting and reference checks.

B. PROJECT BACKGROUND

DAI is implementing in Vietnam the USAID Sustainable Forest Management Project (the Project) to work with the Government of Vietnam (GVN), with MARD as its main counterpart, to reduce carbon emissions associated with deforestation and degradation of natural forests, and increase carbon sequestration by improving timber plantations management. The Project will implement a “Green Prosperity” approach that strengthens local communities’ ability to protect their natural resource base and reduce emissions while building a strong foundation for sustainable livelihoods and equitable economic growth.

The Project will work in seven provinces (Lao Cai, Son La, Hoa Binh, Thanh Hoa, Nghe An, Quang Tri, Quang Nam) and focus on five objectives:

1. Improve and expand community forest management
2. Increase conservation-friendly enterprises in forest-dependent communities
3. Increase functionality of law enforcement system for forest crimes
4. Improve production forest management practices
5. Mobilize domestic resources for forest management and protection

The Project will be implemented during the period 2020-2025 by DAI in collaboration with RECOFTC and Preferred by Nature as partners, with the Ministry of Agriculture and Rural Development (MARD) as the counterpart and the Management Board of Forestry Projects (MBFP) as project owner.

C. RATIONALE

The Forestry Law (No. 16/2017/QH14) was approved by the 14th National Assembly on November 15, 2017 and came into force on January 1, 2019. Decree No. 156/2918/ND-CP, approved and promulgated by the Government on November 16, 2018, is one of the key legal documents that guides the implementation of the Forestry Law. The Decree regulates in detail several Articles in the Forestry Law that are related to:

1. Criteria for forest identification, forest classification and forest management regulations;
2. Allocating forests, leasing production forests, changing forest types, changing forest use; purposes to other purposes, recalling forests;
3. Forest fire prevention and control;
4. Objects, forms of payment, level of payment for forest environmental services; adjustment, exemption or reduction of payment for forest environmental services; management and use of financial resource from payment for forest environmental services;
5. Tasks, organizational structure, mechanism of management and financial use of the Forest Protection and Development Fund;
6. Investment policies for forest protection and development.

After over three years of implementation, upon reflection of concerned actors, who face difficulties in implementing the provisions of Decree 156, MARD, by issuing the Decision No. 5254/QD-BNN-PC dated 31 December 2021 on the Plan of developing legal documents of the Ministry of Agriculture and Rural Development in 2022, assigned the Vietnam Administration of Forestry (VNForest) to lead the revision of the Decree. Following MARD’s Decision, VNForest assigned the Department of Legal Affairs and Inspection (DLAI) to act as the focal point for the review and revision of provisions related to points 1 and 2; and the Forest Protection and Development Fund (VNFF) to point 4, 5 listed above.

Upon request of VNForest, the USAID-funded Sustainable Forest Management Project will support  VNFF by providing 04 consultants who help conducting necessary assessment, review of current policies on payment for forest environmental services (PFES), including the services of carbon sequestration and storage (C-PFES), and propose evidence-based revisions to the current regulations in Decree 156:

• Consultant 1: Policy consultant as team leader
• Consultant 2: Forestry consultant
• Consultant 3: Economist consultant
• Consultant 4: Forestry consultant on guidance of developing forest environmental services maps

This Scope of work (SOW) is intended to detail the tasks of Consultant 3 as part of the overall consultancies on PFES and CPFES to be provided.

D. OVERALL GOAL

The consultant is responsible for proposing payment rates for emissions caused by domestic or international companies or paid for by organizations and the distribution mechanism of the amount of payment to eligible recipients. The rates and mechanism will be integrated into the amendment of section related to carbon sequestration and storage services by forest. The consultant will also review the existing payment distribution by hydropower plants and propose a revised payment mechanism based on water contribution in the catchment area and the sediments reduction as the result of forest protection in the catchment area. The consultant wills also be responsible for carrying out economic impact assessment for the proposed amendments/supplementation of the corresponding clauses and articles in Chapter V, Decree 156/2018 covering payment for forest environment services and for the operation of the forest protection and development fund.

E. TASKS OF CONSULTANT

• Propose the minimum payment level for carbon sequestration and storage services by forests applied for domestic carbon trade and for international carbon transfers;
• Propose mechanisms for collecting, managing the payment, and distribution payments for participating recipients; 
• Propose revised payment-based water contribution in the catch area and sediment reduction as results of forest protection in the catch area as point c, article 2, annex VII, justify and show foundation to regulate this proposed revised payment;
• Draft articles for the revised Decree 156/2018 related to payment levels for emission caused by domestic or international buyers, and articles related to revised payment distribution based on water contribution and sediment reduction services of forest; propose PFES payment redistribution mechanism for area having payment that is higher than 2 times of state support cost norm in the same province/district;
• Assess economics impact for amendments in Chapter V, Decree156/2018/ND-CP;
• Justify the amendments in the Decree when having comments from Ministries, provinces, and  Government members.

More specific tasks of consultants are:

1. Develop implementation workplan and prepare questionnaire

The economist consultant will work with other team members to develop workplan for revising Decree 156/2018/ND-CP to submit to VNFF and the Project. The workplan is approved by VNFF and the Project. The consultant will prepare questionnaire to consult provincial stakeholders for economic impact assessment with relevant amendment content.

2. Research and evaluate, propose of payment level,  payment mechanisms

The economist consultant should coordinate with forestry consultant to complete one report proposing payment level, payment mechanism for CPFES. The report is integrated with report done by the forestry consultant. The economist consultant needs to conduct following activities

2.1.   Literature review

• Review relevant documents, previous researches on payment for forest environmental services policies, and on forest carbon sequestration and storage services;
• Review the research of VNFF on the value of water contribution in the catchment area and the sediment reduction as the result of forest protection in the catchment area to propose distribution mechanism of PFES payment among catchment areas.

2.2.  Assess the potential for carbon trading revenue, carbon credit potential buyers

• Based on the calculation of the potential for carbon sequestration and storage by forest types provided by the forestry consultant, the economist consultant will calculate potential revenue from domestic carbon trading,  and international transfer for each type of forest;
• The economist consultant,together with the policy consultant and forestry consultant, will propose mechanisms to mobilize the maximum carbon trading revenue from domestic emission companies. This mechanism may include mandatory or voluntary mechanisms for both domestic and international carbon market;
• Estimate potential revenue from carbon trading and transfer by types of forest owners who are qualified to join carbon transfer or trading.

2.3.   Propose the level of payment

• The economist consultant, together with the forestry consultant and policy consultant will identify potential carbon credits buyers who are Vietnam or international emission companies or organizations   in voluntary or mandatory markets;
• Based on group of credit buyers above, the economist consultant proposes    appropriate and suitable prices for carbon trading or transfer by forest owners and provide justification for proposed prices;
• Propose cost norm to monitor and report, verify and validate the volume of carbon sequestered and stored by forest. The cost norms should be different for the domestic and international markets.

2.4.    Propose distribution mechanisms of payment

The economist consultant, together with policy consultant, will propose distribution mechanisms of payment for the revenues from carbon trade and transfer and distribution of payment for different forest environmental services. Proposed mechanisms include:

• Payment distribution from trading carbon in the domestic market (voluntary and mandatory)
• Payment distribution from transferring carbon to international buyers (emission companies and organizations)
• Payment distribution according to water contribution and sediment reduction in the catchment areas to ensure more equality and payment level reflect real value of watershed as in Point c, Article 2, Annex II; justify for the proposed redistribution mechanism and carry out impact assessment.

3.         Draft amendment for the decree

The economist consultant needs to provide relevant information of payment level, proposed carbon credit buyers/sellers, payment distribution mechanism to policy consultant so that the policy consultant can draft amendments and related annexes for the Decree. The information to be provided includes:

• Proposed carbon credit buyers (emissions companies, or organizations) paying for forest carbon sequestration and storage services in domestic and international markets);
• Payment mechanism for different type of carbon credit buyers, credits trading or transfers);
• Recipients of payment from carbon trading/ transfer (types of forest owners);
• The price paid for each ton of carbon sequestered or stored by different types of forest (protection forest, production, special use), by types of market (domestic, international), and by type of payment (voluntary, mandatory);
• Distribution mechanism for PFES payment that is higher than two times of state cost norm for forest protection.

4.         Assess economic impact of the amendments

The economist consultant needs to carry out economics impact assessment of any amendment in Chapter V of the Decree 156 as below but not limited to:

• Assess the economic impact of redistribution of PFES payment based on water contribution and sediment reduction as result of forest protection in the catch area;
• Assess economics impact of carbon trading to forestry sector, domestic and international potential buyers;
• Assess economics impact of other amendments in Chapter V proposed by the other consultants.

5.         Participate in workshops, technical meetings, field trips

The economist consultant will participate in different technical meetings held by VNFF/VNFOREST, regional and national workshops to finalize the draft amendment of Decree156/2018. The consultant also needs to present findings of the assessment and research for proposed amendment mentioned above.

• To collect further information from provinces, the economist consultant will need to join field trips and prepare questionnaires for data collection;
• The economist consultant and other consultant team members need to prepare documents to submit in different technical meetings with Editorial Team, workshops and to Central Government Office.

6.         Provide justifications for proposed amendment

The economist consultant should coordinate with the policy consultant to justify the amendments, and feedback tocomments of the Ministries and provinces, and Government Office.       

F. LOCATION

Hanoi with travel to provinces

G. CONSULTATION TIME (LOE) AND DELIVERABLES

H.         REQUIREMENTS

I. APPLICATION SUBMISSION

Individual interested are requested to submit:

1. A CV in English and Vietnamese
2. A cover letter in English indicating why they are suitable for this position current contact details of at least three referees
3. Scanned copy of related degrees

via email to our recruitment email at [email protected]. Please quote the position title in the subject line: “Candidate’s full name _ Decree 156 _ Economist consultant”

Application deadline: 5.00pm (Hanoi time), date 22/04/2022

Note:If being recruited, the candidate will have to provide DAI with a release letter with authorized signature and stamp from current employer to certify that candidate will not receive salary from current employer/or take unpaid leave during the implementation of this consultancy assignment candidate commits to carry out the assignment outside normal working hours. This release letter is required for candidate who are currently working for government agencies only.

For more information about DAI, please visit the www.dai.com website.

DAI is an employer that applies equal opportunity/affirmative action with a commitment to diversity. DAI does not discriminate in employment based on race, color, religion, gender (including pregnancy and gender identity), national origin, political party, sexual orientation, marital status, disability, genetic information, age, parental status, veteran status, or other incompetence factor.