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Environments in TransitionCambodia, Lao PDR,Thailand, Viet Nam

Programs Department (West)April 2000

© Asian Development Bank 2000 All rights reserved

The findings, interpretations, and conclusions expressed in thisstudy are entirely those of the authors and should not be attributedin any manner to Asian Development Bank (ADB) or thecountries it represents. The map that accompanies the text hasbeen prepared solely for the convenience of the reader. Thedesignations and presentation of material in them do not imply theexpression of any opinion whatsoever on the part of ADB or itsmember countries concerning the legal status of any country,territory, city, or area, or of the authorities thereof, or concerningthe delimitation of its boundaries or its national affiliation.

Cover design: Ram CabreraCover photograph/ ‘Mekong River’: Ali M. AzimiEditing: Joyce M. Mendez/Cynthia A. DiazLayout: Ram Cabrera/Wickie BaguisiSecretariat support: Lucy R. Pery

The Asian Development Bank encourages use of the materialpresented herein, with appropriate credit.

Published by the Asian Development BankP.O. Box 7890980 Manila, Philippines

ISBN 971-561-294-6Publication Stock No. 030200

ContentsForeword iAbbreviations iiAcknowledgements v

INTRODUCTION 1

Basic Characteristics 3ENVIRONMENTAL SETTING AND PRIORITY AREAS

FOR ENVIRONMENTAL ACTION 7

Transboundary Issues 7ADB’s Regional Assistance Initiatives 8Forests and their Utilization 9

Cambodia 9Lao PDR 10Thailand 13Viet Nam 14

Biodiversity and Protected Areas 16Cambodia 16Lao PDR 17Thailand 21Viet Nam 21

Water Resources 23Cambodia 23Lao PDR 26Thailand 27Viet Nam 28

Coastal and Marine Resources Management 30Cambodia 30Thailand 31Viet Nam 32

Urban and Industrial Pollution 34Cambodia 34Lao PDR 36Thailand 37Viet Nam 40

Energy 42Cambodia 42Lao PDR 44Thailand 45Viet Nam 45

ENVIRONMENTAL POLICIES AND INSTITUTIONAL FRAMEWORK 49


DEVELOPMENT FRAMEWORK FOR ENVIRONMENTAL ACTION 63


BIBLIOGRAPHY 77

APPENDIX

Strategic Implementation Plans for Action 81Cambodia 83Lao PDR 89Thailand 97Viet Nam 111

Tables

Table 1: Population Growth in Mainland Southeast Asia (‘000) 2Table 2: Environmental Regional Technical Assistance: GMS Program 8Table 3: Forest Cover in Cambodia, 1969-1997 9Table 4: Regional Distribution of Forests in Lao PDR 11Table 5: Classification of Natural Forest in Viet Nam 14Table 6: Forest Cover by Three Administrative Categories of Forestland, 1995 14Table 7: Changes in Forest Cover by Main Forest Type 1976-1995 22Table 8: Selected Estimates of Cambodia’s Freshwater Fisheries 24Table 9: Current Systems of Fisheries Management in the Tonle Sap Area 25Table 10: Cultivated and Irrigated Areas by Type, 1997 27Table 11: Distribution of Irrigation Command Area by Type of System, 1997 27Table 12: Geographic Distribution of Irrigation Command Area, 1995 27Table 13: Protected Areas within or Affecting Cambodia’s Coastal Zones 30Table 14: Institutional Roles in Urban Environmental Management in Cambodia, 1999 34Table 15: Key Health and Social Statistics 37Table 16: Structure of Energy Consumption, Cambodia, 1995 42Table 17: Consumption of Wood and Charcoal, 1995 43Table 18: Household Consumption of Wood Energy, 1995 (wood energy equivalents) 43Table 19: Potential Hydropower Sites in Cambodia 43Table 20: Hydropower Plant in Operation 44Table 21: Existing and Potential Institutional Overlaps in Coastal Zone Management in

Cambodia 51Table 22: Current and Potential Overlaps Among Legal Provisions in Cambodia’s Coastal

Zone Management 51

Foreword

Countries of mainland Southeast Asia–Cambodia, LaoPDR, Thailand, and Viet Nam–have one of the mostdiverse biotic and cultural environments in the worldtoday. They provide habitat to exotic species of endemicplants and animal life. Having rich aspirations, these coun-tries are at varying stages of development. They havesignificant resource endowments, stable politicaleconomy, and cordial relationships with neighbors. Inthe past, rapid economic changes and social conflicts haveadversely impacted the region’s natural resources. In itsassistance program, ADB is keen to identify the key envi-ronmental issues in each of the countries and determinehow best the donors could assist priority environmentalissues.

In addressing this challenge, ADB’s ProgramsDepartment (West) undertook baseline studies on the stateof the environment in Cambodia, Lao PDR, Thailand,and Viet Nam with the assistance of environment agen-cies of these countries. The country environment reviews(CENRs) are primarily intended for internal use inaddressing environmental issues during preparation ofoperational programs and policies. They are also usefulfor development practitioners. In this technical

monograph, the CENRs of these four countries arebrought together in an attempt to build a subregionalenvironment perspective.

The study provides an overview of environmentalissues with a view to enhancing sustainability throughimproved resource management. The report includesinformation on issues pertaining to forest and policyissues, biodiversity and protected parks, water resources,coastal and marine resource management, urban andindustrial pollution, and energy use. Policy and institu-tional framework in each of the countries are described,along with the actions needed for their resolution.The Appendix summarizes the key issues and therequired investment and technical assistance for eachcountry.

We thank governments, officials, policymakers,scholars and researchers, NGOs, civil society, anddonors in each of the four countries for promotingenvironmental protection and sustainable use of naturalresources. I also take the opportunity to thank theOperations and Policy Coordination Unit of ProgramsDepartment (West) for its initiative in mainstreamingenvironmental issues in ADB’s operations in Region West.

YOSHIHIRO IWASAKI

DirectorPrograms West Department

i

ADB Asian Development BankAPHEDA Australian People for Health, Education and Development AbroadASEAN Association of Southeast Asian NationsAusAID Australian Agency for International DevelopmentBMA Bangkok Metropolitan AdministrationBMR Bangkok Metropolitan RegionBOD biochemical oxygen demandB bahtCOS country operational strategyCPAWN Center for Protected Areas and Watershed ManagementDCTPC Department of Communications, Transport, Post and ConstructionDF&W Department of Forestry and WildlifeDOF Department of ForestryEdC Électricité du CambodgeEdL Électricité du LaosEGAT Electricity Generating Authority of ThailandFAO Food and Agriculture OrganizationFPR Forest Policy ReformGDP gross domestic productGEF Global Environment FacilityGMS Greater Mekong SubregionGOV Government of Viet NamGwh Gigawatt-hourha hectareHCMC Ho Chi Minh CityICAD integrated conservation and developmentI M F International Monetary FundIUCN International Union for the Conservation of Nature

(now the World Conservation Union)JICA Japan International Cooperation Agencykm kilometerkm2 square kilometerLao PDR Lao People’s Democratic RepublicLARREC Living Aquatic Resources Research CenterLTD Land Transport Departmentm3 cubic meterMAF Ministry of Agriculture and ForestryMAFF Ministry of Agriculture, Forestry and FisheriesMARD Ministry of Agriculture and Rural DevelopmentMCTPC Ministry of Communications, Transport, Post and Constructionmg/l micrograms per literM I H Ministry of Industry and HandicraftsM I M E Ministry of Industry, Mines and Energy

Abbreviations

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MOAC Ministry of Agriculture and CooperativesM O E Ministry of EnvironmentMOFI Ministry of FisheriesMOSTE Ministry of Science, Technology and EnvironmentMOWREM Ministry of Water Resources and MeteorologyMPA marine protected areaM P I Ministry of Planning and InvestmentMPWT Ministry of Public Works and TransportMRC Mekong River CommissionMRD Ministry of Rural DevelopmentMW megawattMWR Ministry of Water ResourcesNAREBI Natural Resources and Biodiversity InstituteNBCA National Biodiversity Conservation AreaNEA National Environment AgencyNEC National Energy ConservationNEPO National Energy Policy OfficeNESDB National Economic and Social Development BoardNGO nongovernment organizationNTFP nontimber forest productNWRC National Water Resources CommitteeOECF Overseas Economic Cooperation Fundp.a. per annumPM10 particles of less than 10 microns diameterPPTA project preparatory technical assistancePPWSA Phnom Pehn Water Supply AuthorityPRC People’s Republic of ChinaRBO river basin organizationRETA regional technical assistanceRFD Royal Forest DepartmentRGC Royal Government of CambodiaRID Royal Irrigation DepartmentSIP strategic implementation planSTEA Science, Technology, and Environment AgencyTA technical assistanceTDRI Thailand Development Research InstituteTSP total suspended particulatesug/m3 micrograms per cubic meterUNDP United Nations Development ProgrammeUNICEF United Nations Children’s FundUNTAC United Nations Transitional Authority in CambodiaWB World BankWWF World Wide Fund for Nature

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Acknowledgements

A team of individual staff consultants and staff ofthe Asian Development Bank (ADB) prepared thisstudy.

Ali Azimi of ADB guided the study design anddrafted the report. Will Knowland, Jeremy Carew-Reid,Ivan Ruzicka, and Anthony Zola prepared country re-ports for Thailand, Viet Nam, Cambodia, and Lao PDR,respectively, on which the report is largely based. Theteam expresses its appreciation to numerous individualsin Cambodia, Lao PDR, Thailand, and Viet Nam fortheir cooperation and invaluable advice in the prepara-tion of the reports. The team wishes to thank inCambodia: His Excellency Mok Mareth, Minister ofEnvironment; To Gary, Secretary of State; Kock Savath,Deputy-Director General; Ing Hok Lim, DeputyDirector General; Bernard O’Callaghan, Mekong RiverCommission; David Ashwell, IUCN; Patrick Evans,FAO; Wayne Gum, Wetlands International; and RonPetocz, independent consultant.

In Lao PDR, the team wishes to thank H.E. NoulinhSinbhandit, Acting President, STEA; MonemanyNhoybouakong, Director, STEA; Soukata Vichit,Director General, STEA; Stuart Chape, IUCN; PeterStevens; and Gordon Claridge, IUCN.

In Thailand, the team appreciates the assistance fromSunthad Somcheviata, Permanent Secretary, MOSTE;Sirithan Parirojbariboon, Deputy Permanent Secretary,MOSTE; Saksit Tridech, Director General, PollutionControl Department; Wanee Samphantharak, DeputySecretary General, MOSTE; Orapin Wongchumpit,Director, MOSTE; Petipong Pungbun Na Ayudhya,Permanent Secretary, MOAC; Tongroj Onchan, Presi-dent, Thailand Environment Institute; and ManidaUnkulvasapaul of World Bank.

In Viet Nam the team appreciates the assistance fromNguyen Van San, Institute of Ecology and BiologicalResources; Vu Minh Hoa, Centre for Resources andEnvironmental Studies; Dr. Nguyen Chu Hoi, HaiphongInstitute of Oceanography; Dr. Truong Manh Tien, NEADeputy Director; and Professor Le Que An.

The team received invaluable support from BrahmPrakash. The team also expresses its appreciation to thefollowing colleagues at ADB: Kazu Sakai, FilologoPante, Jr., Myo Thant, Alessandro Pio, Craig Steffensen,Toru Tatara, Brent Dark, and Bob Dobias.

Joyce Mendez edited the report, Ram Cabreraprepared the cover design and layout with assistance fromWickie Baguis,i and Lucy Pery provided secretarial support.

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CHAPTER 1

Introduction

ENVIRONMENTS IN TRANSITION—Cambodia,Lao People’s Democratic Republic, Thailand,and Viet Nam—was prepared to provide aperspective on environment and naturalresource management issues confronting coun-

tries along the Mekong River and to recommend a set ofapproaches to address these issues. The report is basedon national baseline studies—Country EnvironmentReviews (CENRs) undertaken by Asian DevelopmentBank (ADB). Governments in the region, policymakers anddevelopment practitioners may find the report, in whole orin parts, useful. The objectives of the CENRs were to assessthe trends and impacts of environmental problems in thesecountries and to provide a strategic framework for improv-ing national environmental management within the contextof their development priorities.

The report is aimed primarily at enhancing thesustainability of their environments through improvedresource management and focuses on issues pertainingto forest and policy issues; biodiversity and protectedparks; water resources; coastal and marine resources man-agement; urban and industrial pollution and energy use.

ENVIRONMENTS IN TRANSITION is organized in fourchapters. Chapter 1 provides an overview of the basiccharacteristics of the four countries. Chapter 2 ana-lyzes and describes the extent of environmental stressand emerging problems. Chapter 3 provides the policyand institutional framework for improvements andinterventions. Chapter 4 summarizes the environmen-tal action and priority needs for their resolution and italso sets out a strategic framework and recommenda-tions for addressing the key issues identified in eachcountry. The recommendation for priority environ-mental program and policy initiatives are summarizedunder four sets of matrices for each country and are

illustrated in the Appendix. Each of these action plansconstitutes the development framework for the majorenvironmental subsector and presents opportunities fordevelopment assistance.

Cambodia, Lao PDR, Thailand, and Viet Nam—countries of mainland Southeast Asia—not only sharecommon borders, but also resources and environmentalimpacts varying in intensity and magnitude. These coun-tries play hosts and are repositories of the earth’s dimin-ishing habitats, now under threat. The Mekong Basinhas arguably the most diverse biotic and cultural land-scape in the world today. The residual impacts of theIndochina conflict coupled with the extraordinary paceat which economic development has been taking placeover the last decade has meant that the contradictionbetween economic growth and environmental protection,and between winners and losers on both sides of the equa-tion, are exposed to an extraordinary and volatile degree(Bryant and Parnwell 1996). These countries whilesharing a number of attributes, represent a diversity ofaspirations, stages of development, resource endowments,political economy, and bilateral relationships with theirneighbors. Fundamental political and economic changestaking place in each country have brought adverseenvironmental impacts to the region’s shared resources.

Economic growth as a national goal with minimalenvironmental considerations, has been pursued aggres-sively by national leaders, seeking to replicate east Asianpatterns of growth and industrialization (Hirsch 1998).Such a path has led to serious environmental consequencesin these countries: widespread deforestation, pollution ofwaterbodies, degradation and indiscriminate conversionof agricultural lands, poor air quality in the urban areas,declining fish and wildlife population in the hinterlands,and dislocation of populations.

Introduction

2 Environments in Transition

Table 1: Population Growth in Mainland Southeast Asia (‘000)

% % % % %Annual Annual Annual Annual Annual

Country 1980 Growth 1985 Growth 1990 Growth 1995 Growth 2002 Growth 2005

Cambodia 6,500 2.26 7,330 2.89 8.570 2.43 9,756 2.06 10,879 1.70 11,890Lao PDR 3,200 2.32 3,620 2.76 4,200 2.40 4,774 2.64 5,500 2.51 6,290Thailand 46,720 1.88 51,580 1.60 56,080 1.45 60,460 1.27 64,543 1.13 68,422Viet Nam 53,720 2.05 59,870 1.92 66,233 2.13 74,104 1.93 82,014 1.73 89,784MSEA Region 110,140 2.00 122,400 1.88 135,083 1.88 149,099 1.70 162,936 1.53 176,386

Source: World Bank 1997.

The Mekong River is the defining element and itsbasin has long been one of the world’s great food sources.Some 80 percent of the basin’s population of 60 millionpeople are engaged in agriculture and depend directly onthe natural resources base for their livelihood and well-being. The lives of perhaps 300 million people in south-east Asia and southwest People’s Republic of China(PRC) depend on its production.

Stakeholders promoting economic growth are cog-nizant of the social, environmental, and economic impli-cations of the subregion. Riparian nations, donorgovernments, and multilateral organizations thatsupport development in the basin attach environmentalmanagement requirements to the projects they fund, inorder to ensure sustainable development. However, thebenefits and costs of development are spread unevenly,for a number of reasons: (i) unequal levels of develop-ment; (ii) unequal social structures within the countries;(iii) social, spatial, temporal, and environmental exter-nalities; and (iv) development that puts economic growthbefore equity and sustainability. As this report shows, akey feature compounding the problem is that environ-mental management institutions in the riparian countriesare behest with incomplete policy and regulatory frame-work, limited technical capacity, and issues related to en-vironment governance.

The interplay of population and economic growthon the environment is clearly evident. Table 1 illustratesthe projected population growth in the countries of main-land Southeast Asia. Once richly endowed, they have invarying degrees undergone natural resource degradationand depletion, which parallels approximately eachcountry’s population size and level of their economicdevelopment. At one end of the spectrum is Viet Nam,whose high population growth has contributed largely tothe depletion of the country’s valuable forests despite aneconomy only beginning to rise from the ruins of war. InThailand where population densities are moderate buthas had impressive economic growth, much of the

resource degradation has been the result of the lack ofappropriate policies to hold unbridled economic devel-opment. On the other end of the spectrum, Lao PDRand Cambodia with low population densities provideexamples of resource degradation to a lesser extent, butalso encumbered by weak policies and institutions.

Many of the inequities and dilemmas spawned byeconomic growth are not issues of competition amongdifferent social actors over resources. In many cases,these disputes arise over the unintended consequences ofresource use and encroachment, the “side-effect” ofextractive or infrastructure development. Fish migrationsupset by the construction of dams, downstream river sedi-mentation, siltation or flooding caused by loggingactivities, air pollution from thermal power, industrialemissions and effluent discharge and their impact onnearby communities— are examples of “externalities”whose costs have been borne by individuals and communi-ties other than those reaping the benefits (Hirsch 1998).

Although environmental and resource managementis largely the reserve of nation states, the four countriesare also subject to globalization forces that are changingthe nature of environmental management. On one hand,the most significant impact is limiting the unilateralpolicy-making capability of nation states by market andpolitical pressures to maintain or gain competitiveness.On the other, globalization and the internet are emerg-ing as key instruments in information diffusion and coa-lescing the international and national civil societies toenvironmental sustainability.

As the most commonly recognized forum of envi-ronmental advocacy and action, nongovernment organi-zations (NGOs) play a role in curbing the tendency forunrestrained exploitation of resources. Several modes ofNGOs operate in these countries and provide this stew-ardship role: some are mainstream organizations imple-menting large-scale projects and involved primarily withwildlife conservation such as World Wide Fund forNature (WWF); others are alternative community-based

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organizations working along the areas of community for-estry. In Thailand, NGOs have mushroomed to becomethe environment’s strongest advocates. In Cambodia themajor involvement by NGOs in the 1990s has comple-mented and in many cases guided the directions foractivities of development agencies. While NGOs in the LaoPDR and Viet Nam are in their nascent stage, internationalNGOs are active and vocal in their concern over ecologicaland social dislocations caused by dams and large infrastruc-ture projects.

Except for Thailand, the media in all three countriesare in their fledgling stage. They nevertheless play acatalyst role. The press in Thailand has been influential infocusing on environmental issues and lending weight tomajor campaigns, a reflection of the high level of awarenessin the country (Hirsch 1998).

Environmental institutions have grown with the bu-reaucracy, largely encouraged by donor incentives. In allfour countries the institutions are being decentralized withfunctions and responsibilities transferred to provincialenvironment agencies. However, unclear delineation ofresponsibilities between new or newly expanded environ-mental ministries and traditional resource-based depart-ments of government such as agriculture and fisheries,has discouraged efficient environment management. Aweak tax base, an overstaffed and underpaid civil service,and lack of technical training and expertise in govern-ment line agencies have collectively hindered economicdevelopment from being tempered by environmentalresponsibility, and ramifications of this are emerging. InThailand and Cambodia, tensions within the ministriesof Agriculture and Environment have arisen from theunclear separation of regulatory and economic functions.

Basic Characteristics

Economic Performance

The late 1980s was a landmark period for the economies ofthe countries. Thailand achieved its remarkable double-digiteconomic growth during the period, marking the country’sdefinitive shift from an agrarian to an export-drivenindustrializing economy. While all this was happening, thesocialist states of the region were also shedding their com-mand-economy structures and embracing market-orientedpolicies. Overall population growth of the countries weremoderate during the period, and this is projected to continueto steadily slow down (see Table 1 in the previous section).

There was a reversal of the economic trend in 1997when Asian currencies began to crash one by one, trig-

gering a financial crisis of the proportion that rockedmost Asian economies. Though the crisis started inThailand, Viet Nam, Lao PDR, and Cambodia—countries with nonconvertible currencies or stockexchanges and with largely rural and agarian populations,were gradually dragged into the crisis as foreign investments,tourism, and exports linked to Asia fell (Lamb 1998).

The long-term implications of the Asian crisis onthe environment remains to be seen. The crisis has exac-erbated as well as created new problems, for instance, asthe cost of kerosene mounts, people are turning to woodfor fuel—driving the poor to degrade the environment tosurvive (Sunderlin 1998). Environmental degradationtends to most directly hurt the poor, by way of pollutedand unsafe water, inadequate sanitation, erosion and flood-ing, toxic waste, and indoor air pollution. For policy pre-scriptions, the poor are most appropriately seen as victimsof the mounting environmental degradation and onlysecondarily as potential contributors (Dauvergne 1999).

Cambodia initiated efforts to reorient its economyin the mid-1980s. Features of this reorientation includeeconomic liberalization, changing role of the public andprivate sectors, and trade reform, including stabilizationof the exchange rate. Complemented by generous donorassistance, liberalization measures and structural reformshave resulted in considerable progress made in the pastfew years, and expedited the country’s transition to a mar-ket-oriented economy. Cambodia however, still faces anumber of challenges as it progresses from the path ofrecovery to sustainable growth and development. Theeconomy remains predominantly rural and agriculture-based, hence vulnerable to vagaries of climate. Domesticresource mobilization is low and public investment drivenprimarily by donor assistance. Underlying these issues isthe task of reducing widespread poverty even as thepopulation rapidly multiplies.

Dependence of the Lao PDR on trade withThailand has made the country victim of theregional financial crisis. Since 1997, macroeconomicconditions in the Lao PDR have deteriorated severely. AWorld Bank source reported inflation rates of 180 per-cent, the highest in the world (World Bank 1999). Thevalue of the kip, the Lao currency, has fallen to less than30 percent of its value in mid-1997, hence it has becomedifficult to find merchants and entrepreneurs willing toaccept payments in local currency. Until the financial crisis, the economy was growing relatively rapidly, thoughthere is optimism it will return to pre-crisis growth levelsas neighboring ASEAN economies recover.

Timber, electricity, and coffee, key exports, make up70 percent of foreign exchange revenues in the Lao PDR.

Introduction


Timber accounted for more than 40 percent of exportearnings over the past decade. Illegal logging has causedthe Government annual losses in revenues in excess of$20 million. Timber royalties made up over 16 percentof total fiscal revenue in 1994/95, while in 1995, exportsof timber and wood products reached $88 million, morethan 25 percent of the country’s total export receipts(World Bank 1997). In 1996, forest products accountedfor an estimated 28 percent of the Lao PDR’s totalexports. Composition of the GDP by sector are asfollows: agriculture, 56 percent; industry, 19 percent; andservices, 25 percent.

Thailand’s economy grew at an annual averagerate of 7.3 percent from 1965 to 1989, and by 7.8 percentfrom 1980 to 1995, nearly twice the growth rate of otherlow- and middle-income countries for the same period.The impressive growth is widely believed to have beenthe result of prudent macroeconomic management andstable foreign exchange rates. Three sectors—preservedand canned seafood; textiles, garments and leather prod-ucts; and electrical goods—accounted for 75 percent ofeconomic growth. From 1960 to 1995, a period of lessthan four decades, Thailand’s per capita incomes grew bynearly a fourfold. The number of people living below thepoverty line was reduced dramatically, from 17.9 millionto 6.8 million, or from one-third of the population to amere 10 percent from 1988 to 1996.

By the mid-1990s, Thailand’s economy was becom-ing progressively more industrialized, and its culturehighly urbanized and linked to international markets.Beneath this picture of market-based economic success,major structural imbalances had begun to surface in early1997. Lax regulation in the banking and finance sectorand misjudgments in exchange rate policy have beenblamed for the serious recession the country experiencedbetween 1997 and 1998, the height of the crisis. Under-lying these visible and well-publicized lapses were dis-concerting social and environmental trends. By 1996 over92 percent of total poverty registered in the rural areas,77 percent concentrated in the north and northeast sectionof the country. One of five persons in the northeast, or19 percent lived below the poverty line. Poverty reductionrates were also slowing down and national income distribu-tion becoming increasingly skewed. By 1992, the share ofpersonal income of the richest 10 percent of the popula-tion was 28 times that of the poorest 10 percent (WorldBank 1999).

In the conventional economic sense, the recessionhas been overcome with impressive speed in Thailand.Real GDP declined by 0.4 percent in 1997, and by8 percent in 1998. The combined effects of International

Monetary Fund (IMF)-led adjustment assistance and apackage of austerity measures, financial reforms, andgovernment-stimulated spending appear to have takenhold. In 1999, real GDP was set to grow at slightly over3 percent; a 5 percent growth is expected this year. Infla-tion is expected to remain at 6-7 percent but fiscalbudget shortfalls and current accounts for internationalbalance of payments should be moderate. Overall, theprospects augur well for the economy, which shouldgradually improve over the medium term and couldaccelerate further as the Asian regional economicsituation improves (ADB 1999).

In the mid-1980s, Viet Nam’s economy wasperforming poorly despite substantial infusion of Soviet as-sistance. This prompted the country’s leadership to initiatechanges in both foreign policy and domestic economicmanagement, as embodied in the Doi Moi launched in 1986.In 1998 this was accelerated further with the policy shifttowards a market-oriented economy. Viet Nam registered astrong economic growth following these structural adjust-ments. The economy, however, was not immune from theimpact of the Asian crisis, which affected both its exportsand foreign investment inflows and substantially reducedits economic growth to 4-5 percent, by ADB estimates.While this growth performance is relatively better byregional standards, the lowering of economic growth un-doubtedly affects the country’s capacity to increase employ-ment, redistribute income to the rural areas, and furtherreduce poverty in the next few years.

Cultural Heritage

All four lower Mekong Basin countries are small in size,but each one is a country of great ethnic diversity with adominant ethnic majority. The Lao PDR is an ethnicmosaic of 68 lowland (Lao Loum), upland(Lao Theung), and highland (Lao Suung) ethnic groups,each with associated ethnic distinctions and cultivationpractices. Viet Nam is no less diverse: 54 ethnic groupsof distinct languages, customs and modes of productioncoexist in Viet Nam. The Kinh or the Viet, concentratedalong the plains and deltas where they are founders ofwet rice cultivation, are the dominant ethnic group(87 percent), followed by the Muong and the Thai whooccupy the largest area of land to the south.

Cambodia is less ethnically diverse in the lowlandsand has been reduced by conflicts that have targetedthe Chams and ethnic Vietnamese. Rattankiriprovince in the eastern highlands is substantiallyethnically rich, with several dozen ethnic groupscoexisting side by side.

5

These are largely Buddhist countries and share com-mon economic, political, and social heritage, derived inpart from their common Indian association. VietNam’s civilization and form of government suggeststhe influence of a strong Sino tradition. The Frenchcolonial period, in contrast, has had minimal impacton traditional patterns of society, government, andreligion to the populace of the Mekong valley (Cady1996). The Thai and the Lao inhabitants of theMekong Valley are identical and come closest to aLao culture, characterized as a provincial variant ofSiamese civilization, from where they derive commonethnic roots.

Human Resources

Cambodia has a population of 11.3 million as of 1998(ADB 1999), and a population density of 47 persons persquare kilometer (sq km). The country is basicallyagricultural; 90 percent of the people live in the ruralareas and subsist on agriculture, which employs74 percent of the labor force. The population is smallbut rapidly growing, and subsistence farming alonemay not be enough to supply its food requirements inthe next few years. War has had a tremendous negativeimpact on the quality of Cambodia’s skilled humanresources. Training the workforce to acquire theinstitutional capacity to manage its natural resourcesin a rational and more sustainable way is an urgentconcern.

Thailand’s population was 61.2 million as of1998, though annual growth rate has slowed down to 1.0percent from 1.9 percent in the 1980s (ADB 1999), largelyon account of a family planning program. The WorldBank forecasts Thailand’s population to reach 68 mil-lion by year 2005, and 82 million by 2025. Twenty-threepercent of the population is urban. Agriculture employsthe largest, though declining proportion of the country’sworkforce. Scarcity of skilled workers and of mid- to high-level management professionals is a persistent problem.Education has not helped provide the solution. The drop-out rate at secondary school level is high and worsenedduring the recent Asian economic crisis, with only28 percent enrolling as against 86 percent enrolled inprimary school.

The Lao PDR (with a population of 4.95 millionand a population density of 19 persons per sq km in 1998)has one of the smallest populations and lowest popula-tion densities in all of Southeast Asia. Though small, thepopulation is remarkably culturally diverse. As many as68 ethnic groups prevail, the majority being ethnic Laom;

other dominant ethnic groups include the Hmong,Mon-Khmer, and Yao. During the 1980s the populationgrew at an average annual rate of 2.5 percent; recent pro-jections reflect growth rates of between 2.4 and 2.6 percentover the next decade. At current growth rates, the populationwill reach 5 million by 2005. The pace of population growthis higher in the rural areas where fertility rates are high.

Agriculture employs 80 percent of the Lao PDR’sworkforce, the service and industry sectors collectivelyemploy 15 percent. The country’s human resource baseis limited, both in numbers and levels of skill, notwith-standing the remarkable progress the country has achievedsince 1975. Low productivity and limited incomes aremajor constraints and both are linked to the vicious cycleof poverty and environmental degradation (Lam 1994).

Viet Nam is among the most densely populatedcountries in the world today, with an estimated popula-tion of 78.1 million (1998), growing at an annual rate of1.8 percent (ADB 1998). The majority of the populationhave settled along the fertile coastal plains and deltasof the Red River in the northeast, and the Mekong inthe south, where densities average between 300 and500 persons/sq km. The hilly regions along thecountry’s western border are sparsely populated,mainly by ethnic minorities.

A quarter of the country’s population reside inthe urban areas. High population density and unevenpopulation distribution have taxed the environmentalcapacity of the land. Agricultural production is con-strained by limited land and by the pressures of a highand increasing population. Under present growth ratespopulation is expected to double in 30 years. This willrequire conversion of additional arable lands intosettlements, which in turn will further reduce the areaallotted for food production.

The quality of life in both of Viet Nam’s urban andrural areas is jeopardized as imbalances between popula-tion, natural resources, and development widen. Prob-lems of health, food and water supply, waste management,energy, housing, among others, compete for theGovernment’s attention and need to be addressed holis-tically. Lack of access to essential amenities and servicesand persistent, widespread poverty have driven large num-bers of Vietnamese to overexploit their natural resources.Yet for a low-income economy with a gross domestic prod-uct (GDP) per capita of around $355 (1999), social indi-cators in Viet Nam are at par with countries ofconsiderably higher per capita incomes. The widelyacknowledged UN Human Development Index, forexample, rated the country 122 out of 174 countries in1998, despite a much lower GDP ranking.

Introduction


Physical Geography

Cambodia is a small and compact country in the penin-sula of mainland Southeast Asia. The country covers aterritory of 181,035 sq km bordered by Thailand on thewest, Lao PDR on the north, and Viet Nam to the east.The Mekong River and the Tonle Sap (or Great Lake)dominate the Cambodian landscape, along with threemountainous regions: the Elephant and Cardamommountains in the southwest, the Dangrek Mountainsalong the northern border of Thailand, and the EasternHighlands in the northeast. A hundred kilometer longchannel, sometimes called the Tonle Sap River, links theTonle Sap at the capital to the Mekong River. From mid-May to early October (the rainy season), the MekongRiver rises, backing up the Tonle Sap River and causingit to flow northwestward into the Tonle Sap, which swellsfrom 3,000 sq km to over 7,500 sq km area. But as thewater level of the Mekong falls during the dry season, theTonle Sap reverses its flow and the waters of the lakedrain back into the Mekong in a recycling process ofnature that makes the Tonle Sap one of the world’s richestsources of freshwater fish.

Thailand (total area: 513,115 sq km) covers muchof the central, southern and western parts of mainlandSoutheast Asia. The country is bordered on the north andwest by Myanmar, on the north and east by the Lao PDRand Cambodia, and to the south by Malaysia and theGulf of Thailand. Central Thailand comprises the flatplains of the Chao Phraya River estuary, an area ideal forrice growing. To the northeast the plains rise to meet the

Khorat Plateau and the mountain ranges in the northernand southern regions. The eastern coastline runs alongthe Gulf of Thailand for about 1,500 km from theeastern tip of Trat Province to the Malaysian border.The West Coast stretches for about 560 km along theAndaman Sea, from Ranong to Satun.

The Lao PDR is a small and landlocked country(total area: 236,800 sq km) situated at the heart of theIndochina Peninsula. To its north is the People’s Repub-lic of China (PRC), to the east Viet Nam, Cambodiaborders its south, and Thailand and Myanmar share itsWestern border. It is a country of rolling mountains andplateaus (over 70 percent of its territory), of which two-thirds are forested. Most of the population have settledalong river valleys. The Mekong River traverses the entirelength of the Lao PDR and provides fertile floodplains foragriculture and also serves as a main artery of transport.

Viet Nam, situated on the east coast of the Indochinapeninsula, covers an area of 331,114 sq km and lies alongthe western shore of the South China Sea, bordered bythe PRC to the north, the Lao PDR to the west, andCambodia to the southwest. It is a long and narrow stripof country dominated by semi-arid plateaus and barrenmountains, with stretches of tropical rain forests.Agriculture is the country’s economic base, on whichsome 80 percent of the population depend, yet only 20-30 percent of the total area is arable. This includes thedensely populated Red River valley to the northeast, thecoastal plains of the central region, and the Mekong Riverdelta to the south. The terrain is predominantly hilly ormountainous.

Bibliography

ADB, Asian Development Outlook, Update, Manila, 1999b.______, “Cambodia: Progress in Recovery and Reform,”

1997.______, “Prioritization, Design and Implementation of GMS

Interventions in the Environment Sector,” OperationsEvaluation Office, 1999b.

Royal Forestry Department, “Thai Forest Sector Master Plan”,Royal Thai Government, Bangkok, 1993.

Bryant R. and M. Parnwell, eds. (1996) Environmental Politicsin Southeast Asia, London: Routledge.

Cady, J. Thailand, Burma. Laos & Cambodia, New Jersey, 1996.Dauvergne, P., “The Environment in Times of Crisis”, 1999.

Sunderlin, W. , “Between Danger and Opportunity”, 1998.Hirsch, P and C. Warren, eds. (1998) The Politics of Environ-

ment in Southeast Asia, London: Routledge, 1998.Lamb, D., Indochina finds it’s not immune to Asia Crisis,

L.A. Times, 15 February 1999.Royal Thai Government, Ministry of Science, Technology and

Environment (MOSTE), Office of Environmental Policyand Planning (OEPP), Policy and Prospective Plan forEnhancement and Conservation of National EnvironmentalQuality, 1997-2016, Bangkok, 1997.

World Bank (WB), Thailand Social Monitor, January 1999.

7

TransboundaryIssues

Riparian states historically shared the resourcesof the Mekong River Basin, however, sub-sistence based use of resources were sustain-able from an ecological standpoint and ledto few conflicts of resource exploitation

affecting the welfare of another. Presently, with new tech-nologies and production systems, imperatives of eco-nomic growth combined with globalization andpopulation growth, have profound social, environmentaland economic implications for the subregion.

Although the level of economic development differsamong the four countries, a number of environmentalissues are common to all or some of them. Critical amongthese are issues relating to deforestation, loss ofbiodiversity, degradation of water resources, and coastalresources. The geographical and geopolitical significanceof these issues vary from local, national, and subregionalvantage points. As part of a regional river basin, the coun-tries share some of the resource concerns that, beingtransborder in nature, may be geopolitically sensitive.

On the subregional scale, utilizing the waterresources of the Mekong River could emerge as adominant issue in the new millennium.

The past decade of the Mekong Basin developmenthas been marked by the conflicting and disintegratedinterests of riparian states. The promise of hydroelectric-ity exports has prompted the Government of the Lao PDRto set as a goal the completion of 23 dams by year 2010, togenerate over 18,000 megawatts (MW) of hydropower.The Asian economic crisis has adversely effectedMekong development projects since struggling Asian

countries especially Thailand’s pivotal role became con-strained. Thailand’s per capita income is roughly ten timesthat of the other countries. Further upstream, the People’sRepublic of China (PRC) has its own plans to constructsix large dams along the River and another nine along itstributaries to generate a total of 20,000 MW of electricityfor Yunan province. The dams are being built for hydro-power rather than irrigation purposes, implying continuousrelease of water. Thailand also had plans to build dams alongthe lower reaches of the Mekong, although the plans havebeen stalled by NGO opposition. Meanwhile the four otherLower Basin States are concerned about the reduction offlow these dams could cause during the dry season. Concernhas also been expressed that existing and proposed waterdiversion and hydropower dam projects will alter theMekong Basin’s hydrologic cycle permanently.

Each of the downstream countries have their ownspecial concerns. The environmental consequences of theprojects are being borne not only by local inhabitants butalso by those living and farming downstream in theMekong Delta. Viet Nam is concerned that reducedwater flow could lead to saltwater intrusion farther up theMekong delta during the dry season, which could threatenits rice production. Cambodia is concerned aboutincreased sedimentation of the Tonle Sap. For the LaoPDR, the Mekong is a “navigational backbone;” inaddition, hydropower earns for this country nearly a quar-ter of its total foreign exchange revenues through its saleof electricity to Thailand. Given its low potential for ex-port-oriented industries because of a lean and generallyunskilled labor force, the lack of economies of scale forcommercial manufacturing, also the inadequacy of exist-ing communication infrastructure (including the lack ofa seaport), hydropower is likely to remain its major sourceof export revenue, with the Mekong as its life source.

Environmental Settingand Priority Areas forEnvironmental Action

CHAPTER 2

Environmental Setting and Priority Areas for Environmental Action


The Mekong River Commission (MRC) hascompleted preparing an overall framework WaterUtilization Program (WUP) for this communalresource, as specified in the Agreement of Riparian States(MRC 1998). The WUP was conceived as a long-termprogram to plan, develop and implement rules for therational utilization of the Mekong River and proceduresand processes in support of implementation. The pro-gram covers planning and modeling and monitoring andmanagement of the river basin.

A subregional strategy for Cambodia, Lao PDR,Thailand, and Viet Nam, given striking similarities inculture, ecology, and status of economic development ofthese countries, may effectively promote developing amulti-country biodiversity protection program with em-phasis on developing human resources and transboundaryreserves, and establishing collaborative biological inven-tories and monitoring systems. In this respect, Thailandcould share its knowledge base with its neighbors.However, its biodiversity is fast disappearing and its logban policy is threatening the biological resources of itsbetter endowed neighbors.

Assessment and monitoring of development impactson natural resources, especially of transboundary nature,require quality baseline data of which very little is avail-able in Cambodia, Lao PDR, Thailand and Viet Nam. Adiagnostic study for the river basin area conducted by theMekong River Commission (MRC 1997) found data tosupport basin river planning and management on thewhole inadequate, fragmented and outdated, and this hasput considerable constraints to any analysis includingenvironmental assessments.

ADB’s RegionalAssistance InitiativesConcerted efforts have been made by ADB to identifyand support subregional initiatives. The establishmentof the Working Group on the Environment marked animportant initiative on the part of ADB’s GreaterMekong Subregion (GMS) program to establish aninformal forum to promote and facilitate subregionalcooperation in environment among the participatingcountries including Cambodia, Lao PDR, Thailand andViet Nam. The potential for subregional cooperation inthe Mekong countries led ADB to formulate the GMSprogram in 1992/93. Although the program’s initial em-phasis was on improving physical linkages among theGMS countries, other transboundary concerns have sincebeen included into the program’s scope. Under its

Table 2: Environmental Regional TechnicalAssistance (Greater Mekong Subregion) Program

Structure of Approval Financing

Project Date ($ million)

RETA 5622:Subregional Environmental February 1995 ADB (JSF): 1.0Monitoring and Information UNEP: 1.0System (SEMIS GMS govts.

(in kind): 2.0

RETA 5684:Subregional Environmental May 1996 ADB (JSF):0.80 Training and Institutional Norway: 0.75Strengthening in the GMS Finland: 0.10(SETIS) GMS govts

(in kind): 0.7

RETA 5771:Poverty Reduction and December 1997 ADB (JSF): 1.0Environmental Management Finland: 2.2in Remote GMS Watersheds GMS govts.

(in kind): 0.6

RETA 5783:Strategic Environmental March 1998 ADB (JSF): 0.6Framework for the Switzerland: 1.0Greater Mekong Subregion UNEP

(in kind): 0.03GMS govts.(inkind): 0.27

RETA 5822:Protection and December 1998 ADB (JSF): 1.0Management of Finland: 0.65Critical Wetlands GMS govts.in the Lower Mekong Basin (in kind): 0.4

GMS - Greater Mekong subregion, JSF - Japan Special Fund, RETA -regional technical assistance, UNEP - United Nations EnvironmentProgramme

environmental component, five regional technicalassistance (RETA) projects have been, or are beingimplemented (see Table 2).

Assistance on a subregional level to strengtheningenvironmental monitoring and information (Regionaltechnical assistance [RETA] 5622) and providingenvironmental training and institutional strengtheningin the GMS (RETA 5864), two projects just completed,have contributed to building the capacity of the environ-ment agencies. Besides technical assistance to GMScountries, other non-GMS assistance (Coastal andMarine Environmental Management in the South ChinaSea, RETA Nos. 5552 and 5712), implemented in twophases between 1995 and 1999, have substantially ex-panded the number of participating countries and ADB’s

9

understanding of the major management and policy is-sues in the coastal zone. It also laid the framework forpossible investment activities.

In an evaluation study of the GMS environment pro-gram by ADB, it was noted that the environmental com-ponent has created increased environmental awarenessbetween individual GMS countries. The thrust of theprogram has been in developing mechanisms for datasharing and developing subregional environmental stan-dards. The major transboundary investment potentialsof GMS has propelled the program’s environmental com-ponent to a position of considerable importance. Thoughnot central to the GMS program, the environmental com-ponent has become its essential supporting element. Itsucceeded best in facilitating professional contacts andcreating a common environmental language across thesubregion. The financial cost of this achievement mayhave been high but the benefits of institutional goodwilland a more efficient debate across the sub-regional boundaries have been commensurate to the cost.As the GMS environmental efforts moves in the direc-tion of environmental management, it will be handicappedby the absence of reliable data. There is a need to findways of collecting, assembling and exchanging criticaloriginal data rather than dealing mainly with the manipu-lation of secondary data. For a program aiming to ad-dress transboundary impacts, it should be a source ofconcern that neither the GMS governments nor the do-nors have a good idea of the magnitude of transboundaryflows of goods, people, wildlife, etc. The gap between thesophisticated aims of the GMS environmental compo-nent and the field reality must not get any bigger, andideally, should start getting smaller.

Forests and theirUtilization

Cambodia

By comparison with its neighbors, Cambodia remainswell endowed in forest resources. The economic andenvironmental consequences of massive deforestationelsewhere in Southeast Asia served to turn the attentionof the development community to the risk of the samehappening in Cambodia as the country set about liberal-izing its economy. To this was added the concern withareas leased out for logging to the private sector, and thedeclining fiscal contribution of forestry that coincided,paradoxically, with an expansion of forest concession hold-

ers during 1994-1996. Forest revenues that accountedfor 14 percent of total government revenues in 1994generated less than 5 percent by 1996. The apparentmismanagement of the sector and the dissipation of itsrevenue spurred a review of the entire sector’s governanceby IMF, World Bank, Food and Agriculture Organization(FAO) and the United Nations Development Programme(UNDP) in 1995 and 1996. A subsequent series ofmeasures have created breathing space and a genuineprospect of a better regulation of the sector, especially itsindustrial component. However, the causes of deforestationand forest depletion in Cambodia extend well beyond aflawed forest concession policy and it would be ingenu-ous to expect recent policy changes to be a cure-all.

Much has been said about the decline of Cambodia’sforest reserves since the beginning of the decade (WorldBank 1996, ARD Inc. 1998). Official data and best esti-mates present the picture in Table 3.

Policy discussion has been handicapped by the con-tinued absence of reliable data on the extent and compo-sition of standing forests, a reflection of, among otherthings, problems of access until recently to areas underconflict without which remotely sensed data (of whichthere are many) cannot be unambiguously interpreted.

Equally uncertain are estimates of forestry output.From well below 1 million cubic meters (mm3) perannum (p.a.) in the 1980s, industrial log production in-creased to over 4 mm3 in 1997, of which over half wereexported either as logs or sawn wood, mainly to Thailandand Viet Nam, much of the exports illegal. These figurescontrast with the annual allowable cut in 1969 of only 0.6mm3 or estimates of aggregate sustainable cut of around1.0 mm3 p.a. used at the time of the Forest Policy Review(FPR). There can be little doubt about the seriousness ofovercutting that has been done in the mid-1990s. Behindcountrywide aggregates, however, lies a more complex

Table 3: Forest Cover in Cambodia, 1969-1997

EstimatedForest Cover

Year (million ha) Source

1969 13.4 Institut de la Recherche Forestiere,based on forest inventory, quoted inChanrithy (1997)

1991 12.3 Mekong Secretariat and Ministry ofAgriculture, Forestry and Fisheries

1993 11.2 Mekong Secretariat, based onLandsat imagery

1997 10.6 ARD Inc. (1998) best estimates

MAFF - Ministry of Agriculture, Forestry and Fisheries.



reality of spatial differentiation in forest quality and theextent of mismanagement. The production and exportsregistered a marked decline in 1998 and 1999 followinga more determined enforcement of the log export banand a number of other developments.

Total production of fuelwood, sold as such or as char-coal, in the mid-1990s was estimated at about 6 mm3

equivalent p.a. (World Bank 1996), of which about halfwas estimated to have come from forest areas, the balancecoming from nonforest areas and household lots. Fuelwoodproduction has been the main cause of deforestation in somelocations, including the environmentally crucial ones suchas the inundated forest of Tonle Sap.

Deforestation and its causesThe loss of forest cover in Cambodia is the result of anumber of factors, most of which echo the deforestationexperience elsewhere in Asia. The causes include thecontinued practice of shifting cultivation by a growingnumber of upland dwellers (especially in the northeast ofthe country), clearing of forest for agriculture, often afteropening of forest areas for industrial logging, indiscrimi-nate logging by industrial and small- scale operators, andpersistently high demand for fuelwood met under a defacto open access management regime. The remedies todeforestation are as complex as its causes, a lesson ADBhas learnt over the years, but one that deserves to berestated.

Policy developmentsGovernment policies governing access to forest resources,especially by industrial operators, have claimed the lion’sshare of attention because they offer the greatest prospectof short-term effectiveness. By contrast, activities directedat a large number of individuals and families whose dailysubsistence and commercial activities, too, affect the over-all condition of the country’s forests, are much lessresponsive to policy change, especially in the short run.

The FPR has been the principal engine of policychange in Cambodia. Its outcome has been a temporarysuspension of new forest concession awards, repeal of anumber of concession agreements entered into during1994-1997, formulation of a new policy of more trans-parent and efficient system of concession allocation,enactment of a program of monitoring and illegal logcontrol, and legislative redrafts, all accompanied bysustained dialogue between funding agencies and theGovernment and near-exemplary coordination amongagencies. A full and detailed analysis of these develop-ments is available (e.g., ARD Inc., 1998) and little pointwould be served by repeating it here.

Among the less fully developed components of theFPR package is the management of forests by commu-nities and the corresponding institutional, regulatory, andtraining prerequisites. Apart from other problems, com-munities with the traditional right of access (as well asthose lacking them) are faced with unclear rights underindustrial forest concessions. The framework for com-munity forestry needs to be created in tandem with re-form of industrial forestry on the one hand, and withpolicies on rural development on the other. Herein liesthe main difficulty. The FPR has made recommenda-tions for environmentally more sound management ofconcession areas but has said relatively little about the oper-ating regimes suitable for forest areas adjacent to protectedareas.

On the institutional side, some progress has beenmade in clarifying the protection mandates of theDepartment of Forestry and Wildlife (DF&W) and theMinistry of Environment. With the creation of the pro-tected area system in 1993, a seemingly simple solutionwas to make MOE responsible for protected areas whileretaining DF&W’s responsibility over other forestareas. However, in the poorly supervised field condi-tions of Cambodia, logging as well as wildlife poachingoften cross the boundaries between the two jurisdictions.Furthermore, of the two branches of government,DF&W has greater access to funding and stronger fieldpresence. As a result, enforcement of environmental pro-visions in protected areas often relies on the goodwill(and staff) of DF&W. The complex nature of the inter-dependence between the two branches is recognized anda promising start has been made recently in creating jointDF&W and MOE task forces to deal with control ofillegal logging (RGC 1999). Despite recent progress,much more clarity is needed.

Lao PDR

The Lao PDR suffers from a number of environmentalproblems, the most important of which are related todeforestation. Expanding commercial exploitation offorests, plans for additional hydroelectric facilities,foreign demand for wild animals and nontimber forestproducts (NTFPs) for food and traditional medicine,and a growing population, all place increasing pressureon Lao’s forest resources.

To meet these challenges, the Department ofForestry (DOF) has prepared a “Forestry Vision to2020” document that sets forth the strategies and mea-sures for sustainable forest management. Also related toforest management, DOF staff is formulating forestland

11

use and management plans in consultation with villagecommunities, in which the villagers have been trained byDOF to guide forest concessionaires in logging operations.A total of 47 forest management plans will be prepared by2000. Some villagers have already earned income fromimplementing these forest management plans.

StatusMost of the Lao PDR was once forested. MacKinnon &MacKinnon (1986) estimated 68 percent comprisedevergreen forest, 23 percent mixed deciduous, and 7 per-cent dry dipterocarp. By 1992, coverage of these foresttypes were 5 percent, 35 percent, and 5 percent, respec-tively, revealing a dramatic decline in evergreen forest.(Berkmuller et al. 1995) An estimated 85 percent of theLao PDR is covered by vegetation not currently underactive management, much of which is secondary. Theremaining 15 percent comprise urban areas, permanentagriculture, and active shifting cultivation.

Less than 50 percent of the total forest area has goodquality forest. The remaining forest area with a crowndensity above 20 percent is distributed among differentregions of the country (Table 4). Through its forestlandallocation program, the Government is attempting tosettle people on arable land to encourage livelihoods frompermanent agricultural activities. The Government has agoal of retaining 17 million hectares under forest cover.

The central and southern regions retain some of thehighest proportions of forest cover in Asia. However,much of the remaining natural forest is degraded andunder shifting cultivation.

The following are the main forest types today:� dry evergreen: northern Lao PDR� tropical montane evergreen: along highland areas of

the Annamite Mountains and Bolovens Plateau� lowland semievergreen dipterocarp: the Mekong

River Plain� tropical montane deciduous: scattered areas in the north� dry dipterocarp: southern Lao PDR

� mixed deciduous: southern Lao PDR� forest on limestone: small areas in the Annamite

Mountains� pine forest: small areas in the Annamite Mountains� subtropical montane: small areas in northern Lao PDR

All forestland is classified as one of five forestlanduse types established by the Forestry Law, namely,� protection forest: for protecting watersheds and

preventing soil erosion;� conservation forest: for protecting and conserving

biodiversity, as well as historical, cultural, tourism,educational, and scientific research;

� production forest: for satisfying economic andsocial development needs, meeting people’s liveli-hood requirements for timber and other forestproducts on a sustainable basis and withoutsignificant negative environmental impacts;

� regeneration forest: young fallow forest for regen-eration and maintenance, for increasing the total areaof mature forest; and

� degraded forestland or barren land: land withoutforest or areas of heavily damaged forest, classifiedfor tree planting, permanent agriculture, livestockproduction, or other purposes, according to nationaleconomic development plans.

Deforestation ratesPopulation growth, slash-and-burn cultivation, andoverexploitation of forest products are becoming increas-ingly unsustainable. This syndrome, combined withuncontrolled logging, forest fires, and the effects ofwartime bombing and chemical defoliation, has greatlyreduced both the forested area and also the quality ofmuch of the remaining forest.

In the 1940s, 70 percent of the land area was underforest cover. In the forest inventory of 1989, forest coverhad declined to 47 percent. The most recent forest coverestimate is 40-41 percent (unofficial), which wasprepared in 1999 based on satellite imagery and otherdata from 1997. The total area of forests is approximately8.5 million ha, while another 8.2 million ha representspoor growth areas, less dense wood, and shrub land (Stibig1997).

A 1996 analysis suggests that “mature” forests—defined as areas with at least 20 percent canopy cover anda 30 meter canopy—cover an estimated 40-41 percent ofland although the official figure remains at 47 percent.This is based on an estimate of forest cover in 1989 usingsimilar methodology. Thus, the national forest estateseems to be contracting at about 0.5-0.7 percent per year.Under this definition, there is very little “mature” forest


Table 4: Regional Distribution of Forestsin Lao PDR

Item North Central South Total Area

Total land area(million ha) 9,821 7,229 6,630 23,680

Total forest area(million ha) 3,563 3,739 3,866 11,168

Forest cover(percent ) 36% 52% 58% 47%

Source: Forest Inventory, 1989..


north of 19º30’N (about the latitude of Xieng Khouangtown). The largest and least disturbed blocks of forestremaining are all in or south of the Nam Theun catch-ment (DOF 1999). Over the past 50 years,forest cover has declined from about 70 percent of theland area to the current official figure.

Deforestation not only destroyed at least 150,000–160,000 ha of valuable forest annually in the 1980s, butalso caused erosion—leading to siltation of reservoirs,navigation channels, and irrigation systems down-stream—and reduced groundwater levels.

Causes of Deforestation

LoggingMost of the logging that takes place in the Lao PDR isnot based on systematic management, planning, and care-ful inventories. In many areas where logging takes place,the forest is not regenerated. Overexploitation is causedboth by legal and illegal operations. At present, most ofthe valuable forest is located inside protected areas, wherecommercial harvesting is naturally not allowed. Conse-quently, the remaining production forest areas are underheavy pressure from loggers (Forestry Law Lao PDR1996)

For logging and forest produce utilization, the De-partment of Forestry (DOF) provides the following gen-eral instructions (Country Economic Review, ADB 1998).� logging is allowed only in areas with forest

management plans,� clear cutting is allowed only if necessary,� replanting and/or good maintenance of logging

areas,� efficient harvesting methods and minimizing of

logging residues through maximum use of cut trees,and

� collection of NTFPs is regulated by specificregulations of agencies concerned.

Logging quotasCommercial wood harvesting in the Lao PDR is basedon annual logging quotas. These quotas set the limitsfor volumes that may be logged in the country and arebased on assessment by individual provinces, the Min-istry of Agriculture and Forestry (MAF), theTourism Authority of the Lao PDR, the Ministry ofFinance, and the Office of the Prime Minister. MAFissues logging quotas and distributes them to the prov-inces as provincial quotas. This comprises the requi-site provincial logging plan. In reservoir areas ofhydropower dams, logging also is limited by quotas

(ADB Regional Technical Assistance [RETA 5771],1998).

Timber royalties formed 13.9 percent of governmentrevenues in FY1997 (Lao: Country Economic Review,1998) and are a major part of the domestic revenuecollection for the Government. Despite the vital role oflogging revenue, the setting of quotas is not transparentand actual criteria are not disclosed. A recent examina-tion of the decision-making process revealed that quotasare based on fiscal needs of the Government and the needsof state-owned enterprises (SOEs) in terms of supplycontracts and available logging capacity. Provincialauthorities play a role in granting provincial quotas byallocating logging sites. They are prone to be influencedby powerful logging firms and do not possess adequateinformation on which to base the selection of sites. Thus,the commercially most attractive logging sites areselected with little or no consideration of sustainabilityissues. The whole quota allocation process is not clearlyunderstood even by officials involved and is character-ized by covert influence and bargaining among variouspublic sector institutions. The final quota is decided bythe Office of the Prime Minister and not by forestryauthorities (ADB RETA 5771, 1998).

The official volume harvested in FY1997 was661,700 m3 and the quota for FY1999 is 450,000 m3,with significant volumes (an estimated 50 percent) beingderived from hydroelectric development sites rather thandesignated production forests. The logging of dam sitesis financially attractive since no regeneration of forests isrequired ( ADB RETA 5771, 1998).

As a result of the inadequate resources availablefor forest inventory, the central role played by SOEs,and large-scale logging in hydroelectric developmentsites, DOF does not have final control over utilization offorest resources in the Lao PDR. In essence, DOF hasbeen marginalized in some segments of the logging policyprocess in the country (ADB RETA 5771, 1998).

Shifting cultivation The Government’s desire to preserve valuable hardwoodsfor commercial extraction and to protect the forest envi-ronment, and the international concern about environ-mental degradation and the loss of many wildlife speciesunique to the Lao PDR, have motivated efforts toprohibit shifting cultivation throughout the country. Thispolicy affects significantly the livelihoods of uplandvillagers dependent on cultivation of upland rice. Tradi-tional patterns of village livelihood rely on forest prod-ucts as a food reserve during years of poor rice harvestand as a regular source of fruits and vegetables. The

13

Government has restricted the clearing of forestland forshifting agriculture since the late 1980s and is attempt-ing to resettle upland farming villages in lowland loca-tions where paddy rice cultivation is possible. However,both the Government’s inability to ensure compliancewith the measures and the attraction of Thai money forforest products inhibit implementation of the restrictions.

Rural households (an estimated 85 percent of allhouseholds are in rural areas) remain highly dependenton forest products for their livelihoods and much forest-land is being used for shifting cultivation. An estimated 6percent of the Lao population practices shifting cultiva-tion, a traditional form of agriculture, predominantly inthe mountainous regions of the country (ADB CountryAssistance Plan 1999) for their subsistence. Populationdensity in the upper watersheds has progressivelyincreased as people have been forced to relocate andexpand agricultural cultivation into forested land due toarmed conflicts, population pressure, and land degrada-tion in indigenous areas.

Thailand

Through the middle of the twentieth century, Thailandwas a heavily forested country. However, deforestationhas progressed in recent years at a rate faster than anyother country in the region except Nepal. By officialestimates, forest cover decreased an average of 400,000ha per year (Ministry of Science, Technology andEnvironment [MOSTE] 1997), from 53.3 percentforest cover in 1961 to 25 percent in 1998. Thesefigures fail to include the degradation of remainingforest areas—where the most valuable timber,wildlife, and other forest products may have beenexploited, but sufficient trees remain to count forsurvey purposes.

In 1989, following a major landslide and floodingdisaster in the south of Thailand, believed to have beenexacerbated by the denudation of forests, a completelogging ban was imposed by the Cabinet. This wasunprecedented anywhere in the world. The ban hashelped slow the rate of forest destruction, but has notstopped it. Illegal logging continues, along with en-croachment by farmers. Forest fires, usually started toclear areas for cultivation, are also a problem; in 1994,they affected some 784,000 ha, equivalent to 5.6 percentof the total forest area. The rate of deforestation slowedfrom 0.9 percent per year, pre-1989, to 0.4 percent peryear just after the ban, and was down to 0.2 percent peryear between 1995 and 1998, averaging 400,000 ha peryear over the four decades (NSO 1998).

The forests in northern Thailand have been mostseverely affected, with forest cover decreasing by nearly6 percent there between 1985 and 1995. Nationwide,some 1.3 million households in 12,360 villages have beensurveyed within National Forest Reserves, occupying nearly13 million ha (Royal Forestry Department [RFD] 1993).Thus somewhere between 8 and 16 percent of the popula-tion, or 5-10 million people, illegally occupy forestlands(statement of the Director-General, RFD, before the For-eign Correspondents Club of Thailand, 1999).

Policies and ProgramsThe National Forest Policy sets a target of 40 percent oftotal land area. Of this amount, 15 percent would be con-servation forest and the remaining 25 percent commer-cial or productive forests. Approximately 13.6 million hahave been classified as national parks or wildlife sanctu-aries (RFD Director-General, 1999). Although refores-tation programs are being implemented, the rate ofreforestation—currently approximately 18,162 ha peryear (RFD, 1998 official contract)—is only about6 percent of annual deforestation, which during the 1990shas averaged about 320,000 ha per year. To reach thetarget goal of 40 percent therefore will require a signifi-cant increase in investment and effort. No target date hasbeen set.

The Royal Forest Department (RFD) was estab-lished in 1896 by King Rama V to ensure that teak andother valuable forest products would be well managed.During the early days of its operations, RFD dependedon concessionaires to undertake forest management andutilization, including logging, natural regeneration,reforestation and protection. Forests not under conces-sion were protected by controlling their utilization andby punitive actions as defined in forestry laws (ForestAct, 1941 and the National Forest Reserve Act, 1964).RFD expanded its operations and administrative func-tions over time, as technical aspects of forestrydevelopment expanded. Its organizational structureevolved in response to changes in administrative require-ments and conditions, such as the 1989 ban on loggingconcessions and its reorientation toward forest conserva-tion. RFD has five technical bureaus, several administra-tive sections, and 21 regional forestry offices. At the locallevel, RFD has 75 provincial forestry offices and over500 district forestry offices. In 1995, 8,687 officers and8,073 permanent employees staffed RFD. The Wild Ani-mals Reservation and Protection Act of 1992 (originallypromulgated in 1960) and the National Parks Act of 1961are currently perceived to be the most effective laws avail-able for forest protection.



Today, however, the agency is heavily criticized fromboth within and without. Other agencies have stepped into fill some of its mandates. For example, the WatershedClassification System was introduced, surveyed, and pro-moted through the Cabinet by the Ministry of Scienceand Technology’s Office of Environmental Policy andPlanning (MOSTE-OEPP). Currently, the FisheriesDepartment is pushing to take responsibility for nationalparks on islands and in coastal areas. Within the Minis-try of Agriculture and Cooperatives (MOAC) itself, anew generation of leadership is emerging and attemptingserious reforms. Of particular importance for forestrymanagement, a Natural Resources and Biodiversity In-stitute (NAREBI) has recently been established to oper-ate as an independent agency within MOAC to facilitateand coordinate natural resource management programsamong all of its line agencies and to serve as the principalcontact point for other government agencies concernedwith natural resource management issues.

Viet Nam

Over 60 percent of Viet Nam’s land area, some 19 mil-lion ha, is classified as forestland, mostly in the uplandand mountainous areas located in the west and north ofthe country. Yet, of this area only 8.3 million ha or25 percent of the country is natural forest, about 1 mil-lion ha or 3 percent is plantation, and the remaining“forestland” is “bare” (covered with shrub or grasses).The northwest is the most severely affected, although allregions have large areas of treeless land. Thirty percentof Viet Nam is classified as “bare” land and less than1 percent has original forest cover.

Forest lossDeforestation has been widespread for several decades,with 50 percent of the forest cover lost during the 40-yearperiod 1943-1983. Loss of natural forest cover duringthe period 1976-1990 averaged about 190,000 ha per yearacross the whole country, but this rate may havedeclined over the current decade.

Forest loss has been rapid in the northern and south-ern regions and is proceeding at an increasing rate in thecentral highlands. Natural forests are mainly concentratedin the highlands (Tay Nguyen), in central and southeast-ern Viet Nam. The Northwest and the Northeast regionshave suffered particularly severe forest loss. In thesemountain areas, the forest cover is only 13.5 percent and16.8 percent, respectively, with some provinces losingalmost all their forest cover. Son La has only 9.8 percentforest cover and Cao Bang only 11.2 percent.

The declining diversity of forest systemsDespite these serious losses, Viet Nam still has a diverseforest flora due to its wide range of climatic and topographicconditions. The main forest types are shown in Table 5.

For administrative purposes, forestland is dividedinto three categories: production forests, protectionforests, and special use forests. Production forests areearmarked for use according to approved managementplans. Protection forests are designated to protect landand water resources in critical areas and their use isrestricted. Special use forests are mostly nature reservesand national parks managed for biodiversity and conser-vation. They include sites of cultural, historic, andscenic importance. In each of these categories, tree coveris seriously depleted (Table 6).

Forest usesForestry accounts for about 2 percent of GDP in VietNam. This figure understates the importance of forestryand forestlands in the rural economy. Forests meet muchof the energy needs of the rural population, with some15 million cubic meters of fuelwood harvested every year.Natural forests in particular provide a wide range of

Table 5. Classification of Natural Forests in VietNam

Forest Type Area (ha)

Closed broad-leaved tropicalevergreen and semi-deciduous 5,648,600

Closed broad-leaved deciduouslowland and sub-alpine tropical 935,000

Closed tropical conifer, conifer andconifer-broad leaf mixture 155,100

Closed tropical bamboo and bamboo-broad leaf mixture 1,464,800

Mangrove 34,700Melaleuca 13,600

Total natural forest 8,251,800Plantation 1,050,000

Total forest cover 9,301,800

Source: FIPI (1995); MARD (1997).

Table 6. Categories of Forestland, 1995(million hectares)

Forest With Forest WithoutClass Cover Cover Total

Special Use Forest 0.7 0.2 0.9Protection Forest 2.4 3.3 5.7Production Forest 6.2 6.2 12.4

Total 9.3 9.7 19.0

Source: Forest Inventory and Planning Institute (FIPI), (1995).

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forestland. Of this area, 6,293 ha were natural forests,7,888 ha were plantation forests, 494 ha were bambooforests, and 5,123 ha were grass and shrubs. Between20,000 and 30,000 ha of forest are burned each year, withup to 100,000 ha being burned in certain years (San andGilmour 1999).

Infrastructure development. As much as30,000 ha of forests are lost each year with the creation ofreservoirs for hydroelectricity and irrigation (World Bank1995). The construction of power lines and major roadshas also resulted in forest losses.

War. Bombs, herbicides, and use of heavy machin-ery destroyed about 4.5 million ha of forests during thewar of 1961-1975 (World Bank 1995).

Institutional challengesIn the early 1990s, the Government of Viet Nam recog-nized the decline of natural forests as threatening its ruraldevelopment objectives. A major spending program wasdevised to reverse the impacts on downstream agricul-tural water and, to a lesser extent, on fisheries. In 1993,the Government launched the “Re-greening the BarrenHills Program (327)”. The program identified refores-tation and watershed protection as primary objectives,implemented through land allocation to smallholdersunder Resolution No. 10 NQ.TW.

As of end of 1997, the Government had spent some$137 million on Program 327. Yet it had difficultiesachieving its goals, largely due to institutional constraintsincluding� a top-down, bureaucratic approach;� constantly changing program objectives;� stalled land allocation processes that had failed to

involve local people;� insufficient and untimely funding;� poor technical capacity;� failure to recognize the wider development aims of

resource-poor households who need an overall inte-grated development approach; and

� scarce land resources.In 1998, the Government introduced the “Five

Million Hectare Program” that seeks to continueProgram 327 with some modifications. To the year 2010,$2.5 billion has been earmarked for the program, whichaims to increase forest cover to 43 percent and focuses onreforestation through natural forest regeneration. In thepast, reforestation of bare land had been conducted withlimited success through plantations. Plantations continueto be a key objective, but the “Five Million HectareProgram” has taken a first step in recognizing the ben-efits of better natural forest management. By controlling

nonwood products, ranging from bamboo to medicinalplants. About 20 million people live in or around forestsin Viet Nam and derive a substantial part of their foodand income from forestland. In addition, the economicimplications of forest loss to soil erosion, sedimentation,maintenance of water quality and availability, and tobiodiversity loss are not reflected in national accounts. Itis the pivotal natural resource for the maintenance ofecosystems on which overall development depends.

In the past, state forestry enterprises were respon-sible for forest management and logging and paid littleattention to sustainable management and regeneration.Ethnic minorities living in the forest areas and migrantfarmers from the delta areas also contributed to defores-tation. Strategies of effective forest management need toconsider both the underlying and immediate causes offorest loss and degradation which incude:� Poverty: Rural poverty forces the poor to overuse

forest resources for subsistence and marketing;� A lack of arable land: Viet Nam has reached the limit

of land suitable for cultivation;� Limited government capacity: the Ministry of

Agriculture and Rural Development and provincialand district Forest Services do not have the capacityto manage and protect forests; and

� Limited local rights over forests: the ability of localpopulations to manage forestland responsibly isconstrained by an inadequate system of land useplanning and land tenure in forest areas.The following lead to most of the more immediate

causes of forest loss and degradation:Migration of people to forested regions associ-

ated with clearing and encroachment for agriculture.Direct environmental impacts include reduced forest area,loss of topsoil, watershed degradation, loss of plant andanimal species, and loss in natural water regulation. In-direct effects include the sedimentation of rivers, lakes,dams, and coastal waters as well as the loss of carbonsequestration capabilities of the forest.

Fuelwood collection degrades forests andlimits regeneration. If converted to area equivalents,fuelwood harvesting would account for six times as muchforest harvesting as commercial logging (World Bank,1995).

Logging and illegal harvesting offorest products. Mismanagement of commercialoperations degrades forests and opens the way for illegalactivities, immigration, and conversion to agriculture ofproduction, special use, and protection forest.

Fires. During the dry season of 1997-1998, a record1,681 fires throughout the country degraded 19,819 ha of



the serious environmental degradation caused by forestloss and mismanagement, the Government hopes thatrural development objectives across the country can beput back on track. Institutional constraints remain(UNDP/MPI 1999).

Biodiversity andProtected Areas

Cambodia

Ashwell (1997) has described Cambodia’s biologicalheritage elegantly:

“Cambodia possesses many features of internationalsignificance. It retains one of the highest propor-tions of land as natural habitats (forest and wet-lands) in the world, and one of the least disturbedcoastlines in continental Asia. Currently, over 45habitat types have been characterized and mappedfor the country.

The landscapes of Cambodia have provided the Cam-bodian people with a wealth of natural resourcesfor many centuries. The maintenance of these land-scapes has ensured the stability of Cambodian soci-ety and culture through the protection of soil, theregulation of hydrological regimes, and the provi-sion of a vast range of natural products. Theseresources remain of fundamental importance to thesubsistence of Cambodia’s predominantly ruralpopulation, and to the future development of thenation.

The extent of dependence upon plant resources isone illustration…. Of the 2,300 species of plantsdescribed in Cambodia, approximately 40 percenthave a traditional use, primarily as food and medi-cine. Over 220 of these species are major compo-nents of the 45 habitats of the country. Theyprovide opportunities for sustained income throughcommunity participation in natural resourcemanagement, especially in protected area and bufferzone management.”In addition, the country is believed to have over 130

mammal and more than 500 bird species. A substantialnumber of these are of international conservationsignificance.1 Some 300 species of freshwater fish havebeen identified, of which 215 are in the Tonle Sap. Thisbiological heritage, however, is threatened by the loss ofhabitats through commercial and community uses.Deforestation, as always, is the most common threat.

Wildlife capture is common in most parts of Cambodia,regardless of the management status of the areas involved.Wildlife trade with Thailand and Viet Nam has been amajor concern for years. In several instances, especiallyin the southwest of the country, the loss of biodiversity isexacerbated by immigration from densely populatedeastern provinces.

Protected Areas SystemFrom the ecological viewpoint, Cambodia can be dividedinto seven relatively homogeneous biodiversity regions,namely (i) southwestern coastal ranges and marinewaters, (ii) northern lowlands, (iii) northeastern forests,(iv) Kompong Cham, (v) Mekong Delta region,(vi) Tonle Sap floodplains, and (vii) northwesternregion.2 Of these, regions (i), (iii), and (vi) are consid-ered of higher priority for conservation action than therest.

Protection of habitats is not new in Cambodia. Priorto 1957, about one third of the country had been sub-jected to some form of inventory and classified into 173forest reserves and six wildlife reserves. Many sitesrecently declared protected areas were well known toCambodian society as places of recreation and natureconservation early in the century. A 10,800-hectare areaaround Angkor temples was declared a national park in1925, the first in Southeast Asia.

In 1993, King Norodom Sihanouk decreed a newNational Protected Area System, giving the Ministry ofEnvironment authority to supervise, develop, andmanage an area of 3,327,200 ha in cooperation with theMinistry of Agriculture. The new system designates sevennational parks, nine wildlife sanctuaries, three protectedlandscapes, and three multiple-use management areas(World Bank, 1997). The 1993 Royal Decree 126 on“The Creation and Designation of Protected Areas” des-ignates 23 areas of fragile and critical habitats constitut-ing a total of 19 percent of the country. Four managementcategories were distinguished, namely (i) national parks,(ii) wildlife sanctuaries, (iii) protected landscapes, and(iv) multiple-use management areas. This framework isthe basis for developing a national protected system inCambodia.

1 Cambodia signed the Biodiversity Convention in 1994, the Convention on Interna-tional Trade in Endangered Species (CITES) convention in 1977, and the RamsarConvention in 1999. The three Ramsar sites exist in Cambodia: Koh Kopit in KohKong, the Mekong River north of Stung Treng, and Boeng Chhmar. The Tonle Sapitself is classified as an international biosphere reserve.

2 Of these, regions (iv), (v) and (vi) have a high or moderately high population densityand have been the geographic focus of ADB’s interventions until now.

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Constraints to biodiversity protectionThe promulgation of the decree was a major achieve-ment. It has ensured, for instance, that no logging con-cessions have been issued in protected areas although itcould not prevent illegal logging from taking place there.Not unexpectedly, a number of problems remain. Theseare briefly described below.

The selection and delineation of protected areasembodied in the decree was based on information avail-able in the early 1990s. That information was incompleteand uncertain. As a result, adjustments of boundaries oradditions are now necessary that would better representthe existing natural habitats.

The system of protected areas that emerged in 1993was largely administrative; the ability of the State toeffectively manage these areas emerging much moreslowly. The first national park to be inaugurated was Ream,in 1995. The preparation of management plans andformal adoption of national parks for managementcontinues to be dependent on foreign funding and to date,only about 20 percent of the total area designated asprotected is under some form of active management.

The State’s inability so far to manage protected areashas not been countered (with the exception of the Angkorecocultural site) by innovative ways of financing the pro-tected area system. The potential for making protectedareas an engine for economic development in buffer zonesis yet to be realized even if much preliminary thinkingalong these lines has taken place. The concept requires thatthe protected area of interest be made a part of a wider zoneand a wider complex of resources to be managed. This oftenallows the benefits of conservation activities to be capturedby linked activities and partly “recycled.” For instance, whereprotecting a classified watershed safeguards the hydroelec-tric potential of a nearby facility, an opportunity is createdfor some of the electricity revenue to be recovered by thearea’s “conservationists.” This logic leads to favoringdevelopment of clusters (either clusters of protected areasor clusters of protected and nonprotected areas). However,it also demands considerable planning and coordinationcapacity at the local level that, for now, is missing.

Lao PDR

Accidents of geography have endowed the Lao PDR withunusually rich biological diversity. The country is highlymountainous, which creates wide variations in climate,soils, and ecological niches, leading to locally adaptedand diverse biota.

Primary forest provides a substantial natural habitatfor a wide variety of flora and fauna. Some 9,000 to 10,000

species of mammals, reptiles, amphibians, birds, fresh-water fish, butterflies, and vascular plants are believed toinhabit the forested areas. According to the InternationalUnion for the Conservation of Nature (IUCN) inSoutheast Asia, the Lao PDR is second to Cambodia inspecies density, and ranks fourth, after Thailand,Myanmar, and Viet Nam in species endemism. The LaoPDR has been identified as home to 25 species of endan-gered mammals and birds. The Kouprey and the Javanrhinoceros, both among the most seriously threatenedlarge mammals in the world, are thought to survive in thesouthern part of the country. Wetland surveys reveal thatsome of the country’s more than 25 wetland areas supportpopulations of endangered species such as the Siamesecrocodile (Crocodylus siamensis) and the eastern form ofthe Sarus Crane (Grus antigone) (Claridge 1993).

In terms of faunal biodiversity, the Wildlife in the LaoPDR: 1999 Status Report (Duckworth, et. al.) producedby IUCN, Wildlife Conservation Society (WCS), andthe Center for Protected Areas and Watershed Manage-ment (CPAWN), states that a total of 319 out 1,140 spe-cies included in the review are of national or globalconservation significance: 67 percent of the large mam-mals, 53 percent of the bats, 6 percent of the insectivora,14 percent of the murid rodents, 22 percent of the birds, 25percent of the reptiles, and 2 percent of the amphibians.

Biodiversity conservation efforts are of recent originin the Lao PDR. The CPAWN was established by DOFin 1986 to undertake surveys of wildlife and their habi-tats. Recognition of the program by the National For-estry Action Plan prepared in 1990-1991 enhanced theCPAWM’s importance as part of the forestrymanagement and conservation program implementedduring the 1990s. Field studies operated through theCPAWM helped to identify the best remaining forestareas and wildlife populations, and also led to the discov-ery of several new species of mammals during the 1990s,such as the saola and large-antlered muntjac.

Protected areas systemBiodiversity is being protected through the establishmentof 20 protected areas (referred to by most people in DOFas National Biodiversity Conservation Areas—NBCAs)based on criteria developed by the IUCN, comprising12-14 percent of the land area, of which 12 areas cur-rently are receiving international funding support. Anintegrated conservation and development (ICAD) ap-proach is being used to manage several of the protectedareas—an approach that is reported to be frequently inconflict with government policies. The ICAD approachis being implemented as a pilot under the World Bank/



Global Environment Facility (WB/GEF) project in fourprotected areas. Donor funding is being used to supportpreparation of protected area management plans, technicalassistance, rapid biodiversity appraisal, zoning of protectedareas (including land use classification), training of DOFprotected areas management staff, and infrastructure andcivil works.

In addition to the centrally designated protectedareas, large areas have been designated as protection orconservation forests at the provincial and district levels,some of which will be upgraded to official protected areastatus in the future. Together, the protected areas and theprovincial and district conservation and protectionforests cover 8 million ha or 76 percent of the land in theforestry sector.

Sustainability of the protected area system:Assessment and adaptabilityAlmost all of the Lao protected areas have had some formof faunal biodiversity assessment over the past six years(that is, in addition to the original survey work thatidentified priority areas pre-1993). However, there isstill a major information gap in relation to knowledgeof the detailed botanical aspects of biodiversity, notonly in the NBCAs but also throughout the countryin general. The most recent botanical overview of thecountry dates to 1960. Enhanced knowledge throughfurther biodiversity assessments will assist manage-ment of individual protected areas and also contrib-ute to refinement of the system. There is alreadysufficient knowledge of some areas, such as Nam EtNBCA in Houaphan Province, to indicate that theremay be justification in reducing the size of the areas.Conversely, in other areas it may be necessary toexpand existing boundaries as a result offurther survey work or other factors. However, if theviability of the Government’s biodiversity conservationstrategy (yet to be comprehensively defined in the forth-coming Biodiversity Strategy and Action Plan) is to bemaintained, other mechanisms need to be considered.

Where NBCAs are identified for potential expan-sion because of biodiversity factors, other mechanismsshould also be considered. These include declaration ofbiological “corridors” as well as “biosphere reserves.”The biological corridor concept is particularly impor-tant to conserve stretches of habitat between NBCAs,enabling movement of wildlife from one area to another.This approach has been recommended by IUCN in thecase of Nakai-Nam NBCA (1997/98), with corridorslinking Phou Hin Boun (Khammouane Limestone) andHin Nam No NBCAs in Khammouane Province. In

general, there is considerable potential for the formationof corridors not only between NBCAs but also betweenNBCAs and provincial conservation forests, and torecognize provincial reserves as the second tier of thenational protected area system. With respect to biospherereserves, there is certainly scope for their creation in someparts of the Lao PDR, potentially linked to establishingof Natural World Heritage Sites. Likely candidatesinclude the Nakai-Nam Theun-Phou Hin Boun-HinNam No NBCA complex in Khammouane Province,and the Xe Piane NBCA-Siphandon Wetlands-DongKanthung complex in Champassak Province. However,the national capacity to implement even basic planningand resource management is extremely limited. Long-termcapacity developments will therefore have to go “hand-in-hand” with other protected area support initiatives.

Although many of the ethnic groups in the Lao PDRhave traditionally used and exploited the biologicalresources that surround them, the increasing intensity ofexploitation in recent decades is having a severe impacton the country’s biodiversity, especially the faunal diver-sity. Instances of traditional conservation resourcemanagement can still be found (e.g., protection or pro-hibition on consumption of certain species, maintenanceof sacred forests) and people are aware of a decline inpreviously abundant resources.

Protected areas, or NBCAs, did not exist prior toOctober 1993. The communities in the areas declaredunder Prime Minister’s Decree 164 suddenly wereliving in areas where restrictions on many of their liveli-hood practices would have to become the norm: clearingof forest and hunting of protected species. Unlikeprotected areas in many countries, there is no involun-tary resettlement of communities in the Lao PDR. Thereis recognition that sustainable use of specific naturalresources can continue and that people from these com-munities can and should participate in managing theNBCAs. There remains a very large gap between theseprinciples and reality—largely because of the impover-ishment of the people on the one hand, and the inabilityof the Government at central and provincial levels todeliver the kind of development support that is re-quired, on the other. However, forging the links be-tween conservation objectives and local developmentneeds and mechanisms is one of the most challengingaspects of biodiversity conservation in the Lao PDR.All donor and multilateral projects have highlightedthe long-term requirements of biodiversity conser-vation through protected area establishment and man-agement, training of protected area staff, and modestdevelopment support to specific NBCAs.

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Constraints to biodiversity protectionThe Lao PDR has until recently been sheltered frommany of the forces acting to reduce biodiversity. Examplesof these forces include improved commercial rice variet-ies, commercial logging that destroys habitat, large-scaleresource development, and agro-industry. However, asthe economy of the Lao PDR opens up to the outsideworld, all this is beginning to change rapidly, and threatsto the country’s biodiversity resources are emerging. Spe-cific constraints to the protection of biodiversity in theLao PDR include the following:

Forest managementThe Government has taken steps to enforce controls toconserve forestry resources. However, anecdotal evidenceand observation in various parts of the country suggestthat government policy and regulations are difficult toenforce. Decentralization of power to provincial govern-ments and the semi-autonomous operations of regionalmilitary development companies make communicationof policy and enforcement of regulations by central au-thorities difficult.

As one of the last countries in Asia with substantialreserves of high value timber, the Lao PDR is attractingconsiderable interest from other countries in the region,in particular Republic of Korea, Malaysia, Taipei,China,Thailand, and Viet Nam. Large, well-financed compa-nies from some of these countries are granted timber con-cessions without demonstrating the ability or willingnessto ensure that sound forest management is implemented,such as effective codes of logging practice; and that landuse planning is used in resource allocation.

Agricultural impactsImpacts of agricultural land use on biodiversity resultfrom a number of often interrelated factors: changingpatterns of traditional land and resource use, subsis-tence and income supplementation by farmers throughuse of NTFPs, and commercialization of agriculture.Until recently the Government had committed itselfto a policy of ending shifting cultivation by the year2000; however, the time frame to achieve this objec-tive was clearly unrealistic and a moderated approachis being considered to dealing with the issue. Mostrecently the Government has indicated that the year 2020is a more realistic target date (DOF officials, as quoted,July 1999).

The implication for conservation could be agreater impact on natural resources adjacent to thesettlement areas as families both intensify and broadentheir harvest of forest and wetland products to raise

income to supplement their rice production and replaceNTFPs, or for direct alternative subsistence purposes.Where this occurs near or within protected areas, the in-tegrity of the areas’ conservation values will be severelycompromised.

Large-scale agroforestry investments by foreignfirms have also resulted in the clearing of severalhundred hectares of secondary forests on the BolovensPlateau in Champassak near Paksong outside theprotected area. Large-scale activity of this nature thatalienates local communities from their traditionalresources is likely to increase pressure on the resourcesof nearby conservation forests.

Agricultural pesticide use will have an increasingimpact on natural systems unless controls are enforced.Although banned in the Lao PDR, the organophos-phate methyl parathion is produced in Thailand andsold illegally in the Lao PDR to farmers and villagers(I. Baird, personal communication to Claridge). DDTis also used by rice farmers (Claridge 1996). Thesetoxic chemicals are not only used, with a lack of train-ing and protection, on crops but also to poison aquaticresources as a harvesting method. In many villagescropland is physically adjacent to or linked throughfood chains to water resources, forests, and other natu-ral ecosystems (especially wetlands), so the continu-ing use of these chemicals poses a serious threat tobiodiversity values as well as human health.

Hunting and wild products harvesting andtradeDespite the retention of extensive forest habitat and thediscovery of new species of large mammals, biologicalresources generally are under threat, and wildlife inparticular is subject to intense pressure even with arelatively low overall human population density. Thereis a long tradition of hunting in the Lao PDR, andrural communities are also dependent on hunting andharvesting of wild products to supplement seasonalrice harvests, especially those communities dependentupon the vagaries of climate to support upland riceproduction. There seem to be few if any tax of wildvertebrates not used by at least some (and in manycases, many) ethnic groups, be it for food, medicineor in trade.

Commercialization and trade in wildlife productshas also increased as prices have risen and access topreviously remote areas improved. Wildlife survey teamsthat come to the Lao PDR are, unfortunately, alwaysimpressed by the paucity of wildlife in otherwiseapparently intact forests.



WetlandsWetlands in the Lao PDR play an extremely importantrole in the subsistence and commercial economy of thecountry. Although wetland resources are important in allparts of the Lao PDR, including the mountain rivers andstreams, it is in the lowlands where their value is particu-larly high, since much of the lowland forests have beencleared for agricultural use. As with NTFPs in forestedareas, the availability of wetland resources provides animportant social security or welfare mechanism in timesof rice deficit as well as an ongoing source of plant prod-ucts and protein (fish, crustaceans, turtles, frogs, andinsects). The biodiversity of wetlands plays a critical rolein supporting human development. As well as biologicalvalues, wetlands also have essential roles in transporta-tion, flood amelioration, hydropower generation, andprovision of potable water. For this reason the manage-ment of wetlands is usually complex and subject to theinvolvement of a number of government sectoral agen-cies as well as local communities. Wetland conservationefforts have included cooperative management arrange-ments with local people, such as the approach beingimplemented by the Lao Community Fisheries andDolphin Protection Project in Khong District inChampassak Province (Baird 1996).

The biological resources of wetlands come underthe same kinds of pressure as terrestrial resources, towhich they are usually ecologically linked. Claridge(1998) reports a number of critical issues affectingwetlands and the resources that they support:� unsustainable fishing practices—use of gill nets,

blast fishing, fishing with poisons, pumping out ofwetlands (a move away from traditional practices insmall wetlands to use of large irrigation pumps inlarge wetland areas), inappropriate use of wing traps,impacts on migratory fish species;

� introduction of exotic fish species (carp and Tilapia)into natural wetlands;

� hunting of wildlife and migratory waterbirds;� trading in wetland wildlife (turtles, tortoises, native

fish species, Siamese Crocodiles) with Thailand andViet Nam acting as both pipelines for othercountries, including PRC, as well as directly absorb-ing some of the trade itself;

� the impact of dams, for example: drying out ofoverflow wetlands which are important fish breed-ing and nursery areas, decrease in or loss of fish stocksthrough blocking migration or changing waterquality, possibility of increased vector-borne diseasessuch as malaria and liver fluke, impacts on riceproduction;

� weed infestation, such as the large-scale invasion byMimosa pigra in Savannakhet;

� abuse of DDT, methyl parathion, and otherpesticides, including their use as tool for harvestingaquatic fauna;

� the increasing threat of pollution as more industrialdevelopment is established in the Lao PDR,especially in major urban centers along the MekongRiver, and inadequate water quality standards imple-mented, if they are implemented at all;

� a range of concerns related to irrigation projects,including: soil-related physio-chemical issues(salinization, alkalinization, water logging, sedimen-tation, and erosion); loss of fauna and flora inwetlands deprived of water by irrigation reservoirs;impacts resulting from the use of agrochemicalsassociated with the production of irrigated crops;and socioeconomic aspects, such as relocation ofpeople in or out of affected areas;

� increasing sedimentation of rivers, streams, andreservoirs, with poor forestry practices associatedwith commercial logging and slash-and-burnagriculture the most likely cause.

Fish and other aquatic resourcesThe Government acknowledges the importance of fish asthe primary source of protein in the diet of the Lao people,particularly in rural areas. The annual consumption ofaquatic animal protein was estimated in the mid-1980s tobe approximately 10 kg per capita. The ecosystems of thewetlands of the Mekong River Basin are very productive,providing wide-scale fisheries and many other aquatic floraand fauna, and also supporting populations of rare andendangered species of waterfowl, mammals, fish, rep-tiles, and amphibians. Mekong River Commission(MRC) studies indicate that the basin’s wetlands pro-vide critical habitats for many endemic fish and other wild-life species, making their protection a key issue inbiodiversity maintenance. A Living Aquatic ResourcesResearch Center (LARREC) has been established inVientiane with Danish Government support, under theNational Agricultural and Forestry Research Institute, tofurther basic research initiated by the MRC on the identi-fication of fish resources of the Lao PDR.

Preliminary studies suggest that many or most ofthe mountain tributaries of the Mekong River containtheir own endemic fish fauna that could be endangeredby logging operations and hydropower development.There is anecdotal evidence that fish catches are declin-ing. The most common explanations offered by villagersfor depletion of fisheries include: (i) overfishing, due to

21

increasing numbers of visitors from urban centers;(ii) changes in river flow, caused by watershed deforesta-tion and an increase in obstructions for small-scaleirrigation schemes; and (iii) reduced water quality(usually increased turbidity), attributed mostly to the in-troduction of upland cash crops and road-buildingprojects. No scientific data appear to be available toconfirm catch reductions or alleged causes, but theallegations appear to be reasonable (MAFF 1999).

The Nam Ngum is one of the major tributaries ofthe Mekong River. Construction of the Nam Ngum 1hydropower project blocked the migration of native fishspecies and the subsequent reservoir has been stockedregularly with freshwater fish species. A total of 130species have been recorded in the Nam Ngum reservoirthat annually yields an estimated 1.4 million tons of fish,of which some 800,000 tons are commercially marketed,generating a cash value of $800,000. Biodiversity studiesin the Nam Ngum 2 and 3 hydropower sites haverecorded 19 species of indigenous river fish fauna in theNam Ngum River north of the reservoir. Of this num-ber, seven species have been frequently recorded.Construction of the Nam Ngum 2 and 3 hydropowerprojects will further impact on natural fish migration andadversely affect species density and distribution. Thegreatest potential for fisheries development in the NamNgum watershed following hydropower development willbe through aquaculture, primarily in the upperwatershed. (Lao Agricultural Strategy Study, ADB 1999).

Thailand

Thailand straddles the land gate linking the Asian conti-nent and the Indo-Malayan biogeographical regions, anditself contains 15 distinctive terrestrial biomes as well asa diversity of freshwater and marine habitats, so it is richlyendowed with flora and fauna species. Seventeen differ-ent ecosystems, including mountain forests, limestoneforests, peat swamps, teak, bamboo, and mangroveforests are found in Thailand. These habitats contain anestimated 10,000-13,000 vascular plants and 86,000 ani-mal species, of which 5,000 are vertebrates.

Given the tremendous changes in use of land, coastal,and water resources—including the loss of two-thirds offorest cover in just 40 years—significant loss of speciesdiversity and quantity is inevitable. A number of endemicspecies—species that occur nowhere else in the world—have already become extinct, including three species ofshrimp, one fish, one reptile, eight birds, and two mam-mals. Some 100 species of plants are considered endan-gered, 600 rare, and 300 vulnerable. Endangered species

of animals include 20 freshwater and 9 marine fishes,2 amphibians, 10 reptiles, 39 birds, and 39 mammals(MOSTE 1992). RFD has taken measures to conservethe biodiversity by establishing protected areas. Two actshave formed the basis of Thailand’s conservation strat-egy: the Wild Animals Reservation and Protection Actof 1960, and the National Park Act, 1961 (TDRI 1995).The first national park was established in 1962 under theAct in 1961 and presently there are 77 national parkscovering an area of 39,283 sq km.

Viet Nam

While covering less than one percent of the earth’ssurface, 10 percent of the world’s mammal, bird, and fishspecies are found in Viet Nam. Forty percent of the 12,000local plant species are endemic. Viet Nam’s forests con-tain the highest avian and primate diversity in mainlandSoutheast Asia. The recent discovery of four new speciesof large mammals in the provinces of Nghe An and QuangBinh reinforce the global significance of the country’s richbiodiversity; only three other new mammal species havebeen discovered on the earth this century.

While the country’s species diversity is exceptionalat around 23,000 terrestrial and aquatic species in all, so,too, is the rate of species and habitat loss, currently thehighest in the region. Of all of Viet Nam’s endemicspecies, 28 percent of mammals, 10 percent of birds, and21 percent of reptile and amphibian species are endan-gered (GOV 1994). Species loss is an indicator of overalldegradation of ecosystem and genetic diversity.

Deforestation is the main cause ofbiodiversity loss in Viet NamAs forest habitats are degraded, the complex fabric ofspecies associations that they support unravels to the pointwhere the decline of many species to extinction becomesirreversible.

While most forest types have experienced signifi-cant decline in area, some of the less well representedtypes have suffered particularly severe losses. For example,Melaleuca forests have lost 72 percent of their 1976 area(Table 7). Mangrove forests have diminished by 63 per-cent over the same period. Already, for some terrestrialand aquatic species, this extent of habitat loss and othercontinuing pressures of exploitation are the end.

Threats to biodiversity include agricultural encroach-ment on natural forests, logging, hunting, and fishing,the collection of nontimber forest products (fuelwoodcollection, for example, is the main threat to biodiversityin many forest areas), inappropriate land uses, pollution,



and trade in wildlife. The devastating effects of wildlifetrade are only beginning to be appreciated. In one year toJune 1977, the Government reported that 69,000 ani-mals of different species were sold in Viet Nam or abroad.That record of confiscation represents only 5-10 percentof the total trade, indicating more than 700,000 individualanimals being taken from their natural environment eachyear (UNDP/MPI 1999).

A wide variety of endemic agricultural species ofplants and animals are threatened through shifts tomonoculture. Farming on land better suited for otherpurposes is one of the most serious growing threats tobiodiversity, for example, shrimp ponds in mangroves;rice cultivation in highly acid sulfate soils and wetlandsystems; and upland crops on steep watersheds orbiodiversity rich forests.

Declining economic benefitsfrom biodiversityAbout 5,000 plant and 1,000 fauna species in Viet Namhave economic uses. The wider gene pool is also of greateconomic value and has the potential to make a moreimportant contribution through research and productionof medicines, essential oils derived from plants, and otherproducts. Yet, biodiversity contributes most to the nation’seconomic development through “free ecosystem services,”including watershed, soil and coastal protection, climateand water regulation, environmental stability, and carbonsequestration.

All those existing or potential economic benefits ofbiodiversity resources are declining, most before theirfull value has been appreciated.

The three main government initiatives to safeguardbiodiversity resources are:

� better forest management: reforesting and rehabilitat-ing forestland to reestablish its economic andecological functions;

� better water management: introducing integrated plan-ning structures and approaches to watershedmanagement; and

� better management of protected areas: identifyingimportant terrestrial, coastal, and wetland ecosystemsto be protected.Policies relating to the first two measures were

outlined in previous sections. In each of these twosectors—forests and water-effective management ofprotected areas and their buffer zones is of mountingimportance to the maintenance and sustainable use ofbiodiversity resources.

Protected areas In 1997, the Government undertook to increase the num-ber of terrestrial protected areas from 87 to 101 and toincrease the size of most units. This initiative wouldincrease the total area from 1.1 to 2.2 million hectares,amounting to 6 percent of the country. A tentative list ofthe 101 proposed protected areas is under review, includ-ing the closure of 21 existing areas that are considered toretain few biodiversity values, and the expansion of morethan 60 others of significance.

Viet Nam has made progress in protected area man-agement. Management boards have been established for10 national parks and, over the past 10 years, manage-ment plans for parks have increased from 20 to 44. Oncea plan is prepared, a government budget is allocated forimplementation. Staffing of protected areas has increasedand, since 1994, more than 900 rangers have receivedtraining. Three training centers have been established

Table 7. Changes in Forest Cover of Main Forest Types from 1976-1995 (Unit: 1,000 ha)

Year Increase/DecreaseType of forest 1976 1990 1995 1976-90 1991-95 1976-95

Natural forests 11,108 8,431 8,252 -2,677 -178 -2,855Evergreen broad-leaf and semi-deciduous forests 8,331 5,759 5,649 -2,573 -111 -2,682Deciduous forests 796 847 935 +51 +88 +14Conifer forests 181 135 155 -46 +20 -26Mangrove forests 91 73 35 -18 -39 -57Melaleuca on sulphate soils 48 34 14 -14 -20 -34Bamboo forests 1,174 1.048 846 -126 -202 -328Mixed woody & bamboo forests 429 499 619 +70 +120 +190Orchard forests 27 35 1 +8 -34 -26Planted forests 93 745 1,050 +652 +305 +957

Source: FIPI (1995). (-): decrease, (+): increase

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for the purpose. Biodiversity assessments have beenundertaken for 11 national parks and more than 40 otherprotected areas, and reviews of Viet Nam’s threatenedand endangered species have led to the publication ofspecies Red Books as an essential framework of indica-tors for monitoring the health of the country’s naturalsystems (IUCN/MOSTE 1999).

Despite these investments, most protected areas areunder increasing pressure from illegal forest exploita-tion—encroachment, logging, grazing, and non-timberproducts gathering. Biodiversity is declining in all parksdue to heavy human use.

Biodiversity regionsWhen so much needs to be done with few resources, strictpriorities must be set. On the recommendation of the1994 Biodiversity Action Plan, the UNDP/MPI 1999review of aid to the environment facilitated a process todefine biodiversity regions throughout the country, thento set priorities for action within each region andbetween regions according to agreed criteria.

Based on original vegetation cover, species compo-sition and distribution, and a number of other biophysi-cal characteristics, 19 biodiversity regions—10terrestrial and 9 coastal and marine, were identified.Regions in most urgent need of conservation action wereselected according to� level of biodiversity wealth,� level of threats to conservation of biodiversity

resources, and� feasibility of taking conservation actions (including

time frame and resources required).In order of priority, the four top ranking terrestrial

biodiversity regions that require attention from Govern-ment (as described in the UNDP/MPI 1999 review)are the following:

North Central. A typical feature of the regionis the long but narrow band between Truong Son rangeand the sea. Rich forest still covers a long strip of TruongSon range, near the Lao border. The varied relief ex-plains the rich biodiversity of the region. A number ofendemic and endangered species, such as Blue pheasantwith white tail Lophura hatinhensis and Hatinh monkeyTrachypithecus francoisi hatinhensis are found in the region.Over the past five years, two new mammal species, sao laPseudoryx nghetinhensis and the large muntjacMegamunticus vuquangensis have also been discovered inthe region.

Plateau Tay Nguyen. The region lies at theIndochinese junction between Viet Nam, the Lao PDR,and Cambodia and is biodiversity-rich. In the region can

be found many large mammals including elephant, tiger,panther, wild buffalo, and kouprey and rare plant species, forexample, Ginseng, Ngoc Linh, and the Dipterocarpaceae.

Northeast. The region’s diverse ecosystems rangefrom limestone mountains to low hills and narrow coastalplains and includes many picturesque sites of importantheritage value: Ha Long Bay area, Cat Ba Island, and BaBa Lake area. Fauna and flora of the region are very rich.A number of rare endemic species exist only here, such asmusk deer Moschus caobanghensil and snub-nose monkeyTrachypithecus avunculus. Forest cover was once around50 percent but has been seriously depleted due to shiftingagriculture and illegal logging.

Northwest. Although not extensive, the forestsof this region represent well-defined ecosystems at dif-ferent altitudes. Biodiversity has been seriously depletedbut 38 rare animal species and some precious plant spe-cies such as ginseng and Fokienia hodginsii remain.

The two biodiversity regions given highest priorityfor action fall within Viet Nam’s central economicregion.

Institutional constraintsIn the 1998 review of the Biodiversity Action Plan, theMinistry of Planning and Investment reported “a con-siderable gap between awareness and action. This can beattributed partially to a lack of coordination and unifiedaction and management on biodiversity conservationissues. Conceptually, ecologically sustainable develop-ment and biodiversity conservation have not been inte-grated into sectoral economic development plans and areconsidered only in a fragmentary manner. Scientificresearch is often unrelated to investment and policy mak-ing (and vice versa), and additionally, environmentalissues are often the last consideration in investmentdecisions. Typically, this results in environmental issuesbeing manifested as problems after the decisions havebeen made” (IUCN/MOSTE 1999).

Water Resources

Cambodia

Tonle Sap and fisheriesWater and its use define Cambodia: the Mekong River,the Tonle Sap River, and the Tonle Sap lake support agri-culture, fisheries, and transportation. Besides being thelargest permanent freshwater lake in Southeast Asia, theGreat Lake (or Beung Tonle Sap in Khmer) plays crucialeconomic and environmental roles in Cambodia and



beyond.3 In a unique fashion, the lake is connected to theMekong River and the ecosystem of the Mekong basin.The Tonle Sap River, about 120 km long,provides the physical link. Through it, the lake receiveswater during the Mekong’s high flow and, conversely,returns water into the Mekong once its flow recedes. Thesame link is vital to the migration of fish. Fish migrationsfrom the Tonle Sap into the Mekong River help restockfisheries as far upstream as Yunan Province in the PRCand many tributary rivers along the way (Dennis andWoodsworth 1992). During the rainy season, the Mekongis estimated to supply approximately two thirds of thelake’s total volume, the balance being supplied by otherrivers that flow into the lake from a total drainage area ofabout 67,000 sq km. Because of the flat topography of thearea, fluctuations in the volume of water stored in thelake result in large variations of the flooded surface area(from about 2,600 sq km during the dry season to 9,000-14,000 sq km during the rainy season). The area, tempo-rarily flooded, and its management is at the heart of attemptsto safeguard the lake and its productivity asexplained below.

Although estimates of the Tonle Sap fish catch aresurprisingly inaccurate and conflicting—varying fromless than 40,000 tons per annum to a figure twice as large,the difference accounted for mainly by undeclared catchby small fishermen—it is widely believed that the lakeprovides about two thirds of fish consumed in Cambodia(see Table 8). About a million people (15 percent ofCambodia’s population), are said to depend on the lake’sfisheries for their livelihood (Savath and Chanrithy 1999).The lake provides much more than fish; it is a reservoirof biological diversity that includes—besides fish spe-cies—birds and a number of wild animals. Many migra-tory species move back and forth within theMekong-Tonle Sap floodplain. This makes the manage-ment of Tonle Sap an issue of regional as well as nationalimportance. The lake has the status of an internationalbiosphere reserve.

The areas periodically flooded play a key role inmaintaining and renewing the lake’s productivity.4

Traditionally under forest, inundated during the rainyseason, and exposed during the rest of the year, theseareas are the breeding and feeding habitat for fish andother forms of life. The productivity of the lake is amongthe highest in the world due to a combination of highwater temperature, annual flooding, and the supportingrole of the inundated forest in stimulating the develop-ment of micro-organisms and phyto- and zooplankton.A significant loss of the inundated forest is, therefore, adirect threat to the lake’s productivity.

Fishing in the lake and the management of the en-tire inundated area are regulated by the Department ofFisheries (DOF) under the Ministry of Agriculture, For-estry and Fisheries (MAFF). Since Royal Decree 126 in1993, the whole of the Tonle Sap has been designated asa marine protected area. Fishing in the lake is seasonal(from October to May) and regulated. Table 9 showsthe three main management categories.

Review of main management andpolicy issuesThe inundated forests have come under increasingseasonal pressure in recent years for at least three differ-ent reasons. First, the demand for fuelwood for house-holds and artisan production, especially bricks, hascontinued to grow. Second, the riparian communities,traditionally dependent on fishing, have been increas-ingly marginalized as areas of open access have dimin-ished at the expense of fishing-lot operations. Third, theabsence of income-earning opportunities in areas awayfrom the lake has been at the root of increasing seasonalmigration towards the lake and conversion of inundatedforest to farming. Apart from the loss of forest cover, sovital to maintaining the productivity of Tonle Sap, the

3 The link of the Tonle Sap with the World Heritage site of Angkor are well beyond thescope of this report. Nevertheless, two points may be of relevance: First, the Tonle Saphas a significant eco-tourism potential because it complements the Angkor complex.Second, integrated management of the Angkor complex has proven possible, with thecreation of APSARA Foundation and the adoption of a Government-endorsed zoningplan. UNESCO acts as a secretariat of the International Committee for the Safeguardof Angkor. The legislative and regulatory coordination experience in the case of Angkoris directly relevant to future efforts to manage the Tonle Sap in an integrated manner.

4 The annual flooding of the Tonle Sap area is the most remarkable among the moregeneral occurrence of annual flooding in many other parts of Cambodia. The total areaof permanent wetlands in Cambodia and areas annually flooded exceeds 3 million hect-ares. Wetlands management in areas other than Tonle Sap is clearly important. Severalorganizations are involved in various aspects of wetlands management.

Table 8: Selected Estimates of Cambodia’sFreshwater Fisheries

Total RegisteredInland Tonle SapCatch Catch

Year (tons) Source (tons)

1940 120,000 Chevey and Le Poulin (1949) n.a.1957 130,000 Bardach (1959) n.a.1960 138,000 Department of Fisheries n.a.1970 100,000 Department of Fisheries n.a.1982 66,000 Department of Fisheries 40.0701991 75,000 Department of Fisheries 41,2001994 65,000 Department of Fisheries 38,5501998 111,000 Van Zalinge (1997) n.a.

200,000 FAO/MRC informal estimates

Source: Savath and Chanrithy (1999), NEAP (1998), FAO/MRC (1998).

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spread of farming in the inundated forest zone has broughtwith it a serious risk of fertilizer and pesticide runoff thatcould devastate the lake’s fishing potential.

By contrast, the sedimentation of the lake, often atthe forefront of public discussion, is largely the result ofseasonal flows of the Mekong and therefore outside thecontrol of Cambodian authorities. There is even contin-ued uncertainty about the rate of sedimentation and itschanges. Despite occasional calls for dredging of por-tions of the lake or the Tonle Sap River, most techniciansagree that such an approach would not be effective, letalone efficient. While subregional dialogue addressingthe much bigger issue of basin-wide rate of soil erosionmust continue, the answers to the Tonle Sap managementchallenge lie in domestic and local policies.5

A number of initiatives have been undertaken to coor-dinate and integrate approaches to the management of TonleSap. Notable among them is the creation of the Tonle SapCoordination Unit within the Ministry of Environment(MOE) and the formulation of the National WetlandsAction Plan by the Ministry of Agriculture, Forestry andFisheries (MAFF) and MOE. Several initiatives assistedby funding agencies, notably by the Food and AgricultureOrganization (FAO),6 have aimed at safeguarding the in-undated forest zone by a combination of measures thatinclude forest regeneration, controlled farming, and a moresecure access of lakeshore communities to fishing. Institu-tional conflict, mainly involving MAFF and MOE,remain, however. Absence of a decision-making body pur-suing a consisent approach to the management of the lake’sresources is among the chief drawbacks.

Notably missing from the policy and investment ini-tiatives around Tonle Sap has been the fisheries’ regula-tory framework and practices. Although the policy ofextending areas under commercial management has

much to recommending it in efficiency terms, there aredoubts about how truly competitive the auction process,used to allocate fishing lots, has been. With the annualvalue of the fisheries output placed at between $100-$200million, potential losses of revenue for the Governmentcould be very large. Information is insufficient on severalimportant aspects of revenue collection by the FisheriesDepartment. Also, limited official attention has been givento the wider ramifications of an emphasis on revenue gen-eration, in particular on the link between reduced accessto family fishing enterprises and the livelihood patternsaround the lake. Finally, there is evidence that harmfulfishing practices are increasingly used by both large andsmall operators (RGC 1996b).

Irrigation and catchmentmanagementThe country’s history is intimately related to the devel-opment of irrigation and remains a central concern tothis day. While water resource planning and utilization isof major national concern, more recently, water use inCambodia has acquired a subregional dimension as cer-tain water utilization schemes, having basin-wide reper-cussions, require unanimous approval of the membercountries of the MRC. The sector, especially its ruralcomponent (both irrigation and non-irrigation), has seenmajor involvement by NGOs in the 1990s complement-ing, and in many cases pointing to the directions for ac-tivities of development agencies.

ADB has been involved in Cambodia’s water re-sources, right from the resumption of lending in 1992.Among other things, a Special Rehabilitation AssistanceLoan addressed the most pressing among irrigationsubsector rehabilitation needs. A water sector and irriga-tion review was undertaken as part of the 1993 TechnicalAssistance Review of Agricultural Development Options.In the same year, an assessment was undertaken of watersupply and sanitation needs. Since then, investmentprojects in urban environmental improvement (heavilyfocused on water), community irrigation rehabilitation,and water resource development have been formulatedunder a project preparatory technical assistance (TA).An advisory TA is under preparation for institutional sup-port for water resource management. Taken together, theseinitiatives add up to a substantial sectoral portfolio that re-quires certain unifying themes and a review of broader waterresource utilization issues and rural aspects of water use.

Table 9: Current System of FisheriesManagement in the Tonle Sap Area

Category of Fishing Area Where Condition ofOperators Fishing Allowed Access

Large scale Within designated License required(industrial) fishing concessions Two-year permits

allocated viaauction

Medium scale Mainly in open access License required(artisanal) areas; Also in Certain adminis-

demarcated areas tratively deter-mined taxespayable

Small scale In open access areas Unregulated(family) only

5 A case in point is the runoff from gem-mining operations in Pailin, Samlot, and Tasangthat ultimately ends up in the lake.

6 Participatory Natural Resource Management in the Tonle Sap Region, Project GCP/CMB/002/BEL, initiated in 1995.



ADB-commissioned7 and other studies8 present thefollowing broad picture: In 1993, there were 920 irriga-tion schemes in Cambodia covering a total of 310,000ha. The area has expanded somewhat since then. Mostnew irrigation projects (storage systems and canals)are considered not economically viable and are of in-terest only in the longer term when other lower costmeans of increasing agricultural output have beenexhausted. Possible exceptions are Stung MongkolBorey, Stung Chinit, and Prek Thnot. Rehabilitationof existing systems is more attractive. Low-lift pumpsand shallow tubewells, and individual rather than col-lective management are seen by many as the best irri-gation solution for many years. In a number of cases,the legacy of technically unsound irrigation structuresbuilt during 1975-1979 has increased the cost of re-habilitation. While rehabilitation remains preferableto expansion of capacity, an even greater need is toensure that existing facilities are well managed andmaintained. This requires a fundamental change of ap-proach, explicit targets for financial management, andcreation of viable user groups.

Information regarding groundwater resources re-mains inadequate and views conflicting. Some assessments(e.g., ADB 1993) argue that no groundwater sourcesof sufficient potential for large-scale irrigation existwhile other reports (e.g., FAO 1999) take a muchmore optimistic view of the groundwater potential.The environmental repercussions of the spontaneousemergence of groundwater extraction for irrigationin parts of Cambodia (e.g., Battambang) have not beenassessed.

There is a critical need for a water resource de-velopment plan that would set the framework for theoptimal use of water resources and reconcile possibleconflicts of interest. With the creation of the Ministryof Water Resources and Meteorology (MOWREM)in 1998, a single agency now exists that is expected tobecome responsible for the preparation of a nationallong-term water resource development plan. Apartfrom its planning and resource allocation value, theavailability of such a document would strengthen theposition of the Cambodian National Mekong Com-mittee vis-à-vis those of the other riparian countriesin discussions over basin-wide development priori-ties.

The technical and supervisory capacity of theMinistry of Agriculture, Forestry and Fisheries(MAFF) to manage and implement irrigation de-velopment projects is weak, a weakness magnified by thenonexistence, until now, of cost recovery in irrigation.

That situation is set to change with the expected adop-tion in 1999 of an irrigation policy subdecree. Imple-menting the subdecree will be the greatest short-termchallenge facing the new MOWREM. This is insti-tutionally complex to implement, with the involve-ment of several ministries, most notably the Ministryof Industry, Mines and Energy (MIME) in watersupply provision and sanitation, the Ministry ofRural Development (MRD) in rural water supply,and the MOE, the latter particularly concerned byan increase in water pollution from nonpointagricultural sources and its monitoring.

Coordination among funding agencies in thesector has not been adequate. Cambodia has remainedunable to profit from potential synergies between thework of MRC and development agencies, as well assee the best lessons of NGO experience incorporatedinto routine programs of development agencies.

Rural water supply and sanitationThe majority of Cambodians will continue to live inrural areas well into the next century, but their watersupply and sanitation needs have attracted only modestfunding by development agencies, including ADB.Important work has been undertaken by internationalNGOs.

Lao PDR

The Lao PDR has Asia’s largest per capita volume ofrenewable water. At 66,000 m3/person, it is 20 times theregional average. Current use of 228 m3/person is only asmall fraction of the supply. Agriculture is estimated to con-sume 82 percent of the total withdrawal, followed by do-mestic use (10 percent), and the industry sector (8 percent).

IrrigationBy international standards, irrigation schemes in the LaoPDR are small. Six irrigation command areas have aservice capacity of 1,000 ha or more. The largest schemeservices only 4,500 ha. As of 1997, 15,500 irrigationschemes were operational, with a wet season servicecapacity of 164,273 ha, or 20 percent of the country’s800,000 ha of land cultivated annually (see Table 10).(Lao Agricultural Strategy Study, ADB 1999).

7 See, for instance, Water Resources and Irrigation, a component of Phase I of the Agri-cultural Development Options Review (1994). Although based on the situation at theend of 1993, much of the report retains its relevance.

8 A 1994 inventory (by WATCO of the Netherlands) listed 230 studies in the region,and identified 67 of relevance to Cambodia (including those with transboundary im-plications). See also MRC’s Rehabilitation and Development of the Hydrological Network(1992) and the UNDP-funded Irrigation Rehabilitation Study (1994).

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Six types of irrigation systems were identified in theADB Irrigation Subsector Review (ARCADIS 1998),namely:

A breakdown by type of irrigation scheme is foundon Table 11, as reported by the Department of Irrigationin 1997.

A breakdown by elevation region, upland versus low-land based on data from 1995, is presented on Table 12.Since 1995, relative percentages have not changedsignificantly.

The Government’s strategy for increasing the num-ber of irrigation command areas is to use gravity andpump schemes to increase water supply and irrigate moreland during the dry season (Vissia 1998), and to shift awayfrom large, capital-intensive schemes and move away fromgovernment-managed toward farmer-managed systems.ADB support to this strategy is being provided throughthe Community Managed Irrigation Systems Project and

ADB technical assistance (TA No 1764-LAO),Strengthening and Restructuring of Irrigation Develop-ment Project. The objectives of these projects are to as-sist the Department of Irrigation to improve schemeefficiency, cost recovery, and sustainability. Creation ofwater user associations and the promulgation of the 1997Water Resources Law that provides the legal frameworkfor the associations are important steps toward giving thesegroups financial autonomy, thus enabling them to achievesustainability (Agriculture Strategy Study, ADB 1998).

Thailand

About 90 percent of Thailand’s water use today is forirrigation; domestic use is 7 percent, and industrial just3.5 percent. From 1980 to 1990, use of water doubledfrom 20,530 million cubic meters (mm3) to 43,000 mm3,and has nearly doubled again during the 1990s. Despiteconsiderable government investment in development ofsurface waters, supply has not kept up with demand. Byofficial estimates, 50 percent of all villages lack sufficientwater for domestic consumption (Bangkok Post 1998); and inthe fertile lower Chao Phraya basin, only 35 percent of theirrigable area receives sufficient water for dry season irriga-tion. In the Bangkok Metropolitan Region (BMR),current groundwater pumping of 1.5 mm3 per day is nearlydouble the estimated sustainable yield of 800,000 mm3 perday from the aquifer. Yet the groundwater is being devel-oped further with government support; in the droughtyear of 1994 an estimated 50,000 irrigation wells weredug in the lower Chao Phraya basin alone.

The 1993-1994 dry season brought a severe nation-wide drought. The water shortage became severe, espe-cially in the central basin where the Chao Phraya andPhitsanulok Irrigation Projects are located. In response,the Royal Irrigation Department (RID) establishedguidelines to allocate emergency water use within theChao Phraya basin. Solutions included diverting the flowfrom Mae Khlong watershed to the Tha Chin river,temporarily closing a dam to prevent saltwater intrusion,

Type of Irrigation Scheme Size

small-scale weirs less than 100 hamedium-scale weirs 100 to 1,000 hasmall- to medium-scale reservoirs 100 to 1,000 hamedium and large reservoirs greater than 1,000 hasmall-scale pumping up to 100 hamedium and large-scale pumping greater than 100 ha

Table 11: Distribution of Irrigation Command Areaby Type of System, 1997

Wet Season Percent ofType of No. of Irrigated TotalSystem Systems Area (ha) Area

Small dam 521 38,957 24Storage reservoir 263 16,304 9Pumping 292 46,157 28Watergate 60 4,325 3Traditional weir 14,331 57,374 35Stone weir 33 1,156 1

Total 15,500 164,273 100

Source: Department of Irrigation (1997).

Table 12: Geographic Distribution of IrrigationCommand Area, 1995

Size of Percent of TotalGeographic of Area Wet SeasonLocation (ha) Area

Total Irrigated Wet Season Area 150,000 100 percentLowland Irrigated Area 27,000 17 percentUpland Irrigated Area 123,000 83 percent

Source: World Bank (1997)

Table 10: Cultivated and Irrigated Areas by Type,1997

Type of Area Size of Area (ha)

annually cultivated land 800,000irrigated area, dry season 44,141irrigated area, wet season 164,272

Source: Department of Irrigation 1997.



Viet Nam

Viet Nam’s water resources are coming under stress, ananomaly, given that on an annual basis it has abundantwater. The country receives about 2,000 mm of rain eachyear, with parts of the central highlands reaching 3,300 mmper annum. The mean annual runoff totals 880 billion m3

and exploitable groundwater is estimated at 6-7 billion m3

a year. Currently, about 36 billion m3, or 90 percent of thetotal water withdrawals each year goes to agriculture, with10 billion m3 or 10 percent abstracted to meet municipaland industrial demand (World Bank 1996).

Rainfall is highly variable throughout the year, caus-ing floods, then drought of increasing severity. Rainfalloccurs in the six months from May to October, but about75 percent of the annual flow is generated in 3-4 monthswith 30 percent in one peak month. Water is abundant inthe wet season but is becoming scarcer in the dry season.Water quality is rapidly deteriorating in both rural andurban areas.

Causes of diminishing accessibility andquality of waterSurface water availability is uncertain. The Mekong andRed River carry 75 percent of annual runoff. Yet, morethan 90 percent of the Mekong basin lies outside of VietNam and 90 percent of its flow is generated outside thecountry. More than half of the Red River basin lies out-side the country and 35 percent of its flow originates inPRC. Water availability in these systems is beyond VietNam’s control and upstream countries are withdrawingincreasing amounts particularly during the dry season(World Bank 1996). Limited domestic storage capacitymakes Viet Nam especially susceptible to the water usepatterns of others.

Natural water regulation is being lost. Forest and waterresources are directly linked in natural systems. The lossof forests disrupts natural processes of water regulationand reduces the water storage capacity of rivercatchments. More than 50 percent of the seasonal fluc-tuation in rice production is related to increasingly vola-tile water flow due to upstream forest loss. More rapidrunoff and less water retention results in more pronouncedseasonal peaks and troughs in flow. Removal of forestcover in the watersheds of the Ba and Se San basins, forexample, has resulted in peak flow rate increases of 45-50 times, and a corresponding soil erosion increase of100 times (MWR 1994).

Watersheds are degrading. Forest loss, cultivation onsteep slopes, and associated soil erosion have wideimplications for water quality and availability. Increasing

expanding pumping for irrigation, boring shallow wells,and dredging ponds. The situation was alleviated in early1994, when unseasonal rain occurred in the northern,northeastern, and central regions.

Policy and programsWater resources administration in Thailand is supervisedby eight different ministries, with the National Economicand Social Development (NESDB) responsible for policyformulation and coordination at the national level. TheNational Water Resources Committee (NWRC) and aSmall-Scale Water Resources Development Subcommit-tee assist NESDB. In 1996, NWRC was established tocoordinate water resource management activities.NWRC has drafted a new basic Water Law, which isessentially complete, but has yet to be submitted to theCabinet for approval. The draft law calls for the estab-lishment of river basin organizations to facilitate man-agement of water within hydrological boundaries of majorriver basins.

In 1997, the Government completed a comprehen-sive Chao Phraya Basin Water Management Strategy thatsupports the early establishment of a Chao Phraya RiverBasin Organization. Given the dominating significance—and management complexity—of the Chao Phraya, thiswould necessarily be a broad umbrella organization. Thereis equal or greater need to establish effective river basin or-ganizations for all the main rivers of the country, includingfor the Ping, Wang, Yom, and Nan rivers, the major com-ponent tributaries of Chao Phraya itself.

Despite the creation of NWRC, there remains a sig-nificant overlapping of duties and responsibilities, withagencies frequently competing or simply following theirown set of rules and regulations. Often, these mandatesare contradictory. For example, the Department of Fish-eries (DOF) constructs fishponds in irrigation commandareas, including areas prone to salinity, which are man-aged by the RID. The concentration of fishponds causesunderground water tables to rise during the dry season,thus worsening the salinity problem.

Competition and conflicts over water consumptionbetween agriculture, industry, services sectors, and urbanand household consumptions are increasing. Water is be-coming increasingly scarce, and the Government facesboth supply-and-demand side challenges. There is gen-eral agreement on the need to promote management atthe basin level through increased participation of localusers, to protect key watersheds, and to improve collec-tion of water consumption fees based on real costs—anduse this revenue for the maintenance and conservation ofwater resources.

29

sedimentation reduces the life of storage reservoirs, raisesriver and stream beds and increases flooding, reduceswater available for irrigation and navigation and reducesthe quality and accessibility of water for municipal andindustrial uses. It also damages freshwater and marineecosystems, reducing and eliminating habitat andeconomic species.

Wetlands are degrading. Water resources and wetlandsare inextricably linked. The quality and maintenance ofone is essential to the other. Wetlands play a critical rolein water regulation. Without them flooding and droughtcan become more extreme. Without them, quality is lost,with water becoming acid and saline and unsuitable forhuman use. The ecological well-being of wetland sys-tems underpins a large part of the country’s economy. Yet,they are converted to agricultural land or simply ignoredin planning processes. They are being polluted by urbanexpansion, by chemical and fertilizer use from increas-ingly intensive agricultural practices, and by rapidlyincreasing industrial development. They are being over-used and disturbed by destructive fishing techniques andcleared for timber and shrimp ponds. Hydroelectricpower schemes in upland areas threaten downstream wet-land communities by disrupting natural river flow levels.

Water quality is deteriorating. Heavy silt loads reducewater quality for many uses. Soil entering rivers and otherwater bodies is the most universal cause of diminishingsurface water quality in Viet Nam. Untreated sewage isthe second most serious pollutant. Throughout Viet Nam,the bulk of human wastes directly or indirectly enter thewater stream untreated. This is especially a problemaround urban areas where human wastes comprise 70-90percent total organic load in river systems and water bod-ies. Industrial pollutants also enter surface andgroundwaters untreated and are a problem where thereare large plants or industrial concentrations. There hasbeen a trend from organic and degradable industrial wastesto those that are more toxic and persistent. Only five ofthe industrial zones throughout the country have centralwastewater treatment.

Saltwater intrusion is increasing. Another cause of re-duced water quality is mounting salinity in some coastalareas, particularly in the south, and around large citieswhere groundwater is being overused. Salinity becomesworse during dry seasons when there is insufficient flowto prevent backflow of seawater. Strong tides cause intru-sion up to 70 km inland and now affect some 2 million ha,damaging crops, limiting other economic uses of water,and degrading wetland ecosystems.

Future water demand will escalate. The pressure onwater resources will increase and associated problems

could become serious impediments to development. Thesituation is becoming worse because of:

Mounting population: Currently growing at about 2percent yearly, a doubling of the population over the next35 years will more than treble demand for water due to anincrease in per capita income, agricultural intensifica-tion, enhanced water and sanitation services, and associ-ated increases in food and energy consumption.

A growing economy: The 1997 growth in real GDPaveraged close to 8 percent annually. Despite a drop in1998, to 3.5 or 5.8 percent due to the Asian financialcrisis (depending on the source: UNDP 1999), the out-look over the next few decades remains good for theeconomy of Viet Nam. Growth in industry and theservices sector is expected to range from 7 to 10 percentwith the agriculture sector continuing to expand from 2.5to 3.5 percent. Agriculture will remain the main user ofwater, but by 2030 its share will drop to 75 percent withindustrial and domestic consumption increasing to sixtimes its current rate.

Growing economic importance of the industry sector. Rapidgrowth in the industry sector requires increased use ofnatural resources, particularly water as the key resourceunderlying most industrial activities and as the principalsink for wastes. Increased production, use of energy, andmore transportation and other infrastructure services allresult in more wastes and more pollution. Already, waterpollution is serious throughout Viet Nam, especially inrivers and canals near urban centers. Most industrialwastewater is discharged without proper treatment. Wa-ter pollution can affect both ecosystems and human health.Hazardous wastes are generated by the fastest-growingsectors such as steel, electronics, and chemicals. Thereare no systems in place for the handling, storage, or treat-ment of hazardous wastes in Viet Nam.

Institutional challengesThe water sector in Viet Nam is characterized by (i) manyagencies with a limited mandate; (ii) fragmented plan-ning, development, and management; (iii) a lack of regu-lation; and (iv) an absence of well-defined responsibilitiesfor water resource management and water service deliv-ery among the agencies concerned. In May 1998, theGovernment enacted a Water Resources Law to addressthese problems. The Law establishes specific institutionsand instruments for comprehensive water resource man-agement. These include (i) a National Water ResourcesCouncil (NWRC) as a high-level advisory body with arole in conflict resolution; (ii) river basin organizationsfor water resources planning on the basis of river basins;(iii) a system of water allocation through licenses;



(iii) a system of wastewater discharge permits; and(iv) an inspection system for the safety of dams and otherhydraulic works (ADB 1999).

Coastal and MarineResources Management

Cambodia

Current situationThe environment of the coastal areas is the result of acomplex interplay of activities in the hinterland affectingcoastal rivers, and those along the shore, be they man-grove forests, or beaches, including coral reefs, or seagrassbeds. Cambodia’s coastal resources and their manage-ment have attracted substantial foreign funding, includ-ing that by ADB (RETAs 5552 and 5712).

Apart from about 435 km of shoreline, 52 offshoreislands can be found in Cambodian waters, most of themuninhabited, some fringed by coral reefs and consideredpotential tourist or eco-tourism destinations. Cambodiaalso has remarkable mangrove forests covering nearly60,000 ha. Despite heavy and indiscriminate logging inthe Cardamom Mountains and other adjacent inland ar-eas throughout the 1990s, Cambodia is the sole place inmainland Southeast Asia where tropical forest stillreaches all the way to the seashore (as it does in the vicin-ity of Koh Kong). Coastal wildlife is believed to be stillabundant but, despite several years of external technicalassistance, still poorly documented. Over one million haof land within and close to the coast have some degree ofprotection status (Table 13). The International Unionfor the Conservation of Nature (IUCN) is assisting theGovernment in developing a management plan for theReam National Park. The Australian People for Health,Education and Development Abroad (APHEDA) is fund-ing mangrove replanting in selected villages.

Among the principal environmental problems encoun-tered are increased river and coastal sedimentation linked tologging in hinterland areas (including the Botum Sakor,Ream, and Bokor National Parks), and persistent pressureon coastal mangroves as a source of charcoal, or poorly regu-lated sites for shrimp aquaculture or salt farming. Signifi-cant beach pollution occurs in the vicinity of Sihanoukvilleand Kep, both important tourist destinations. The condi-tions of coral reefs and seagrass beds are only partly known.Dynamite fishing is practiced on an undetermined scale.There are, for now, few industries for industrial pollutionto be of major concern, but this situation could rapidly

change. Oil and gas exploration in the offshore areas hasrecently started, without fanfare but in earnest.

The problem of depletion of coastal fisheries is com-plex, partly because it is linked to illegal fishing by for-eign boats.9 In general, the productivity of Cambodiancoastal waters is believed to be in the decline, especiallyin terms of output per unit of effort (RGC, 1998), and atleast one foreign-financed fish-processing plant is saidto have closed on account of insufficient catch. How-ever, a generally weak infrastructure (roads, refrigera-tion facilities, etc.) is undoubtedly a contributing factor.Not unlike logging in the mid-1990s, the fisheries sec-tor is characterized by a large number of illegal opera-tors and illegal operating practices.10 As in most otherparts of Southeast Asia, small-scale fishing is increas-ingly being threatened by larger-scale operators.

Even more than in the case of Tonle Sap inland fish-eries, the statistics of output are perfunctory. All avail-able estimates are based on crude extrapolations.11

Poverty in coastal areas is believed to be widespread(Nelson 1999). What may be good for the environmen-tal status, namely, the absence of a good coastal road,contributes to the economic stagnation of the coastal area.

Table 13: Protected Areas within or AffectingCambodia’s Coastal Zones

Type ofProtected Location Province AreaArea (ha)

National Park Kirirom Koh Kong 35,000Botum Sakor Koh Kong 171,250Phnom Bokor Kampot 140,000Kep Kampot 5,000Ream Kampot 150,000W

Wildlife Phnom Aural Koh Kong 253,750Sanctuary Peam Krasaop Koh Kong 23,750

Phnom Samkos Koh Kong 333,750Multiple Use Area Dong Peng

Koh Kong 27,700

Source: Adapted from RGC (1998b).

9 The delineation of the exclusive economic zone (EEZ) remains a subject of territorialdisputes with Viet Nam and Thailand. Pending the resolution of these disputes, themanagement of EEZ is fundamentally handicapped.

10 RCH (1998b) estimates that about half of fishing boats in Cambodia do not havepermits and routinely use illegal fishing gear.

11 The total output of Cambodia’s coastal fisheries was officially put at 30,000 tons p.a.,i.e., about a third of total Cambodian fish catch. Informally, the actual catch is estimatedto be substantially higher (NEAP 1998). Besides, it is not clear whether these amountsrefer to the landings in Cambodia or to total catch. Some documents (RGC 1998b)estimate that no more than 20 per cent of the total catch is used for local consumption.

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expense of mangrove forests, beaches, coral reefs, andmarine resources which have been seriously degraded anddepleted.13 About 90 percent of mangrove wood is ex-ploited for making charcoal. Virtually no sustainable man-agement practices are currently in place or beingimplemented.

The Gulf of Thailand is one of the most productiveareas in the world, owing to its shallow depth and com-plex circulation patterns that create numerous localizedareas of upwelling and submergence. Fisheries catch andproduction increased at 4.3 percent annually from 2.0million tons in 1981 to 3.6 million tons in 1995. Most ofthis growth came from a dramatic increase in coastalaquaculture and freshwater culture fish production of 11.8percent per year. In 1995, 79 percent of fish productioncame from marine capture, 10 percent from coastalaquaculture, and 5 percent each from inland capture andfreshwater culture. By 1995, however, marine capture con-tributed less than 47 percent of the total Baht (B) 96million value of fish production, while coastal aquacul-ture contributed 43 percent, and the inland capture andfreshwater aquaculture subsectors each contributed about5 percent.

Despite the boom in aquaculture, the trend is down-ward for fisheries as a sector of the GDP. In 1997, fisher-ies GDP was B49.16 billion, or 14.7 percent ofagricultural GDP, and 1.4 percent of national GDP. Ex-port earnings from the fisheries sector was B166.60 bil-lion in 1995. In 1995, the number of coastal fisheryhouseholds in Thailand totaled 53,112; the number offishing boats was 54,538; and catch and production ofmarine fisheries was reported at 2.83 million tons. Thevalue of Thai shrimp and aquaculture exports totaled morethan B54 billion in 1997, up from B3.4 billion in 1985,and equal to 4.2 percent of the total value of all exports.Fish resources have been overexploited, so that catch perunit of effort has fallen from 265 kilograms per hour (kg/hr) in the early 1970s to 25 kg/hr at present. More than40 percent of marine capture consists of juvenile fish.

More than half (54 percent) of Thailand’s extensivemangrove forests, which provide natural nursery areasfor many species of fish and other aquatic life, were lostbetween 1960 and 1986.14 From a high of approximately13,000 ha/year of mangrove forest lost nationwide be-tween 1979 and 1986, the rate of decline slowed to 2,600ha per year between 1991 and 1993, and about 1,000 ha

The policy aspects of coastal zonemanagementIf problems of jurisdiction and allocation of responsi-bilities between some line ministries (e.g., MAFF andMOE) are complex, the institutional complexity is evengreater in the case of coastal zone management where nooverall management framework yet exists. All main min-istries have some role to play. However, coordinatingmechanisms and information exchange are being devel-oped with some success. Several foreign-funded projectsin the coastal area have relied on provincial workinggroups consisting of directors and deputy directors of theprovincial departments of MOE, Ministry of PublicWorks and Transport (MPWT), MAFF (especially thefisheries office), MRD, Ministry of Tourism, and Min-istry of Industry, Mines and Energy (MIME). Theseworking groups have proved that cooperation and coor-dination in coastal zone management are possible. Threecentral-level coordinating bodies now exist. They are(i) the National Committee for Land ManagementUrbanization and Construction, created in 1997 to regu-late construction activity based on a zoning plan; and(ii) the National Steering Committee for Coastal ZoneManagement under MOE. Set up in 1997, the commit-tee comprises line ministry representatives, provincialstaff, and NGOs active in the coastal zone to deliberateon various management issues requiring coordinatedresponse; and (iii) the Coastal Coordinating Unit withinMOE, one of several such units created to deal with adistinct environmental problem.12 Most day-to-daymanagement in the coastal zone is performed by MAFF,especially the Department of Fisheries. The jurisdictionaloverlap between MOE and MAFF, mentioned in thecontext of forestry, is present also in coastal areamanagement.

Thailand

Thailand’s 3,220 km coastline is highly diverse and natu-rally productive. Twenty-three of Thailand’s 76 provincesborder the coastline. Islands, estuaries, coral reefs, seagrassbeds, mangrove swamps, and sandy beaches have sup-ported some of the world’s most intensive traditional fish-eries, and much of Thailand’s modern tourism boom. Itis fair to say that exhausted resources at home spurred theThai fishing fleet to expand into deep-sea, internationalfishing in a big way, making Thailand one of the top tenfishing countries in the world.

This intensive growth has come about through ex-cessive and inappropriate expansion of capture fishing,shrimp aquaculture, industry, tourism, and harbors at the

12 Other technical coordination units (TCUs) within MOE exist, e.g., the TCU forthe Tonle Sap.

13 Office of Agricultural Economics, 1995.

14 TDRI 1987. Thailand Natural Resources Profile.



per year between 1993-1996. Currently, only 167,000 haremain.15 Remote sensing data indicate two-thirds (66percent) of this decline was due to the combined effect ofclear-felling for timber, firewood, and charcoal; clearingfor aquaculture; salt evaporation ponds; road and portdevelopment; and mining.16 The single largest end use(32 percent) was shrimp farm development. This highpercentage may be an understatement of shrimp farming,many ponds are developed from former mangrove areasalready cleared for other purposes.

Policy and programsThe Department of Fisheries (DOF), founded in 1947under the Fisheries Act, has traditionally focused on de-velopment and promotion and only very recently haveDOF programs emphasized management and conserva-tion. The rapid development of aquaculture was led bythe private sector, principally small farmers with inputsfrom major livestock feed producers. There has been littleintervention or oversight on aquaculture by DOF or otheragencies.

The Royal Forestry Department (RFD) is respon-sible for managing the island and coastal parks and sanc-tuaries—marine protected areas (MPAs). An estimated60 percent of Thailand’s coral reef areas and other im-portant marine habitats such as seagrass beds, marineturtle nesting sites, and mangrove forests are locatedwithin the 18 designated MPAs. Capture fisheries andeven aquaculture continue to encroach on these protectedareas, but tourism also does serious damage, especially tocoral reefs.

Viet Nam

Viet Nam has 29 coastal provinces (out of a total of 63provinces) with 3,200 km of coastline dominated by theRed River Delta to the north and the Mekong RiverDelta to the south. The coastal zone extends 10 km ormore inland, up to the point of the tidal influence onrivers, streams, and wetlands. Some 300,000 ha of tidalmarshes associated with the delta are mangrove forests.Viet Nam generally has four mangrove zones with highlydiverse plant formations. They are found in the northeastaround Hai Phing (39,400 ha), along the coast of the RedRiver Delta (7,000 ha), in the coastal zone of central VietNam, the northern mangrove forests of the Red River Delta(46,400 ha), and the mangroves of Vung Tau (14,300 ha).

A significant level of economic activity occurs in thesecoastal and marine areas. Many of Viet Nam’s valuablewetland resources—on which much of its agriculture andfisheries activities depend—occur in the coastal zone.

More than 50 percent of the protein intake of theVietnamese comes from fish harvest of more than onemillion ton each year, around 70 percent of that comes fromthe sea. ‘Capture’ fisheries production has decreased, yetthere is considerable potential for increased aquacultureproduction as currently only half of the suitable areas arebeing used for the purpose (World Bank 1998). A rapidlyincreasing urban population in search of jobs live along thecoast where many industrial zones are located. Coastal andmarine areas are also key attractions of the country’s tour-ism industry and, with the development of new deep-seaports they provide the main transport facilities forregional and global trade.

Viet Nam’s 29 coastal provinces are uniformlyexperiencing a decrease in productive coastal andmarine natural resources. A 1999 survey by ADB ofcoastal communities revealed decreasing biological re-source base in areas inhabited by coastal households. In22 provinces the decline is severe, with an increasingnumber of species extinction and declining trends in lo-cal and national coastal biodiversity. And more disputeshave also been reported within and among communesover access to shrinking resources (ADB Outlook, 1999b).

Nearshore fisheries are heavily exploited and areharvested at unsustainable levels, while inshore fishstocks have collapsed and catch per unit effort is alsodecreasing. Overfishing has degraded marine ecosystemsand significantly reduced biodiversity in Viet Nam.The situation is aggravated by destructive fishingmethods, including the use of poisons and chemicals,which have destroyed breeding grounds in coastalzones and inhibited the capacity of fisheries stocks toregenerate.

Aquaculture could replace natural capture as aprincipal source of protein. Yet, degradation of coastalmarine habitats, especially of wetlands and mangroveforests caused by unsustainable aquaculture practices,threatens even this potential. Mangrove deforesta-tion, construction of poorly planned water manage-ment systems, saline intrusion, and outbreaks ofdisease in ponds all undermine coastal marine re-sources and viable economic uses of the zone. Indus-trial and urban development and pollution, fisheries,agriculture, forestry, mineral exploitation, energy de-velopment, shipping, and tourism are in varied ways con-tributing to degrading the natural coastal and marinesystems on which much of these activities depend. And

15 Royal Forest Department, 1996. Forest Statistics of Thailand, 1996.

16 Conclusion reached by Joint Working Committee of RFD, DOF, DLD and NRC.

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Viet Nam has no integrated policy or institutional frame-work to manage these impacts at the present time.

Resource use zoningUnlike the mainland, the marine areas of Viet Nam arenot zoned according to function, activity, and level of pro-tection. Technical assistance provided by ADB forCoastal and Marine Environmental Management inthe South China Sea has arrived at the observationthat the open access nature of fisheries and the declin-ing marine biological resources tends to create a cha-otic “free for all” environment that encouragescomplete lack of restraint in marine resource harvest-ing. Traditional fishing grounds and methods havebeen overrun by those able to afford more advancedharvesting equipment (ADB 1999c). Similarly, criti-cal coastal habitats are ill-defined and overrun by adhoc and opportunistic uses. Some shipping routes andproposed protected areas are an exception to the openaccess “rule.”

Integrated area wide planningAdministrative jurisdiction over marine areas are not welldefined in Viet Nam. There are no laws setting out mari-time responsibilities or marine areas covered by coastalprovinces and no formal recognition of marine cus-tomary rights or roles of local communes in manag-ing coastal marine resources. Planning andmanagement of maritime areas is a central govern-ment function that continues to operate on an uncoor-dinated sectoral basis. Fisheries, transport, tourism,and energy sectors, for example, often operate withconflicting objectives. Setting priorities between thembecomes an arbitrary process.

Enforcement of existing lawsDestructive fishing methods along with the inabilityof authorities to control their operation have been iden-tified as key issues in 21 of Viet Nam’s 29 coastal prov-inces, and as a major source of community conflict.Staff, budgets, and equipment are insufficient to con-duct surveillance and enforcement functions. In ad-dition, fines and other measures taken against violatorsof fisheries regulations are not punitive enough anddo not serve as sufficient deterrents. No effective con-trols over land-based sources of pollution have been noted.

Policy framework for marine protectedareasThere are no laws providing for MPAs, even as exten-sions of terrestrial parks. Until 1999, the Ministries of

Science, Technology and Environment (MOSTE), Ag-riculture and Rural Development (MARD) and Fisher-ies (MOFI) were each responsible for aspects of marineresource management. The protection and managementof areas of high biodiversity values was not a clear man-date of any of these Ministries, hence little was done alongthat area. The situation has improved somewhat as theMOFI has been given overarching responsibility formarine protected areas. National policies and an activeprogram of protected areas planning and managementremains lacking, however.

There are 20 existing coastal and marine protectedareas in Viet Nam, covering 223,000 ha yet the level ofresources and active management attention given to theseareas are variable, piecemeal and often lack follow-through action. The 1998 Government review of ADB’sbank assistance plan (BAP) gave a high future priority toextending the system of marine and coastal wetland pro-tected areas and buffer zones (IUCN/MOSTE 1999).

Viet Nam has nine coastal and marine biodiversityregions. Three have been identified for highestpriority conservation action (UNDP/MPI 1999).� Mong Cai to Do Son: including Cat Ba, Halong Bay,

and the Ton Kin archipelago in the northeast part of thecountry.

� Dai Lanh Cape to Vung Tau Cape: The coastal zoneoffshore from Khanh Hoa and Ninh Thuan prov-inces in south central Viet Nam, consisting of capes,small deltas, small lagoons, and bays.

� Vung Tau Cape to Ca Mau Cape: Including Con Daoisland and the mangrove forests of the Mekong delta.The MOFI and the National Environment Agency

(NEA) are finalizing a proposal for the Governmentto establish an additional 15 marine and 64 coastalwetland protected areas with special emphasis on cer-tain priority biodiversity regions. The proposal isbeing refined with support from ADB, to include theextensive upgrading of 21 highest priority protected ar-eas, with nine new ones, through a host of actions thatinclude biological and socioeconomic assessments, man-agement plans, zoning, boundary demarcation, and in-frastructure (ADB 1999).

This formal recognition by the Government of theimportance of coastal and marine protected areas comesfrom a growing appreciation of the critical role of theseareas in developing the coastal zone. There is little doubtas to the direct and indirect economic values of coastaland marine biodiversity to the national and local econo-mies, but the key role of protected areas in safeguardingand managing these essential resources is only nowbeginning to be understood and to take shape.



Table 14: Institutional Roles in UrbanEnvironmental Management in Cambodia, 1999

Investment Area/ InstitutionalPolicy Concern Responsibility

Sanitation, drainage Departments of the Ministryof Public Works andTransport (Drainage andSewerage Division) in eachprovinceMunicipality of Phnom Penh

Solid waste Departments of the Ministryof Public Works and Transport(Waste Management Division) ineach provinceMunicipalities of Phnom Penhand Sihanoukville

Urban water supply Unit of Potable Water Supplywithin the Ministry of Industry,Mines and Energy in selectedtowns other than Phnom Penh(Battambang, K.Cham,K. Thom, Sihanoukville,Takeo)Phnom Penh Water SupplyAuthority under the Ministryof Interior Urban PlanningComité National del’Aménagement du Territoire,d’Urbanisme et de ConstructionBureau des Affaires Urbaines

Urban development Municipalities of Phnom Penhand Sihanoukville (Departmentsof Urbanisation and Construction)Provincial governments

Urban environmental Ministry of Environmentmonitoring

Environmental awareness Ministry of Education, Youth andEducation and SportMinistry of Environment

Urban and IndustrialPollution

Cambodia

For over 30 years, very little investment has been pouredinto maintaining, let alone improving Cambodia’s urbanenvironment, once among the best in mainland South-east Asia. Since the country’s political life more or lessstabilized, private investment in home improvement andconstruction has easily outstripped investment in publicinfrastructure. Cambodia continues to live off inheritedurban assets that are quickly deteriorating (if some ofthese are not already disintegrated), putting at risk boththe health of people in the urban areas and discouragingforeign investment from a lack of support infrastructure.

The Land Law promoted by UNTAC in 1992 cre-ated legal basis for ownership and transfer of land andurban development. To facilitate urban planning, the Lawon Land Management, Urbanization and Construction(CNATUC Law) was enacted in 1994, seeking to bal-ance often competing demands of urban and rural devel-opment and to provide legal basis for constructionactivities. The law also seeks to promote tourism whileprotecting the natural environment.17 A series of hierar-chical urban master plan structures are provided in eachprovince under the Law, with oversight provided at theCentral government level. Despite developments in leg-islation, however a number of weaknesses persist. Withsmall exceptions, there is no comprehensive or equitablesystem of land registration in the urban or semi-urbanareas and as a result, a potentially valuable enabling toolfor urban financing is not available in Cambodia.

A relatively complex institutional structure exists forplanning and implementation of urban projects. In gen-eral, administrative powers and responsibilities are di-vided imperfectly between line ministries, municipalities,and provincial governments; only rarely are these respon-sibilities devolved further, such as in instances where solidwaste management has been placed under the jurisdic-tion of district town authorities. All maintenance, reha-bilitation and development work within provincial urbanareas are handled by the branch office of the line ministry.On the positive side, while funded by the central govern-ment ministry, the branch office typically liaises with theProvincial Governor who chairs multisectoral task forcesand committees. Many provincial town activities reflectthe broader consensus as a result. Institutional responsi-bilities in Cambodia are summarized in Table 14.

More important problems than fragmented institu-tional responsibilities are those relating to financial andoperational management. Not only are the key institu-tions technically weak, virtually no mechanisms for costrecovery are in place to ensure sustainable urban envi-ronmental services.

The nature of environmental problems created byinadequate sanitation in Cambodia’s towns and urban

17 The Ministry of Tourism has its own zoning strategy for Cambodia based on eighttourism development areas.

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centers strike chords close to home in other urban cen-ters of Asia and for this reason deserves some restate-ment for emphasis. The contamination of shallowgroundwater sources, as in many cities of Asia, is the re-sult of inadequate wastewater and solid waste disposal.Over 80 percent of existing sewage/stormwater drains inCambodia’s urban centers are no longer functioning(Chanrithy 1997).

Urban environmental problems are exacerbated bythe continuing migration of populations to urban ar-eas, especially Phnom Penh, despite continued un-der-investment in urban infrastructure. Sections offlood protection levees have been occupied by squat-ters, many of them migrants, degrading water banksat a time when the threat of flooding (which is relatedto deforestation of the upper catchments) is a distinctpossibility. More people have occupied land over natu-ral drainage paths and canals, restricting water flowsand creating sanitation problems. This has aggravatedproblems of flooding and deteriorating sanitationwhich directly affect public health and the quality ofurban life.

Unplanned settlements outside the main leveesystem in Phnom Penh threaten the system of naturaldrainage which has served as traditional environmen-tal safeguard against floods for many years. To ad-dress this, important and relevant experience may bedrawn from development projects on low-cost im-provements in urban neighborhoods (involving CAREand AusAID, for example), which provide models thatprove major urban improvements need not be pro-hibitively expensive.

In all provincial towns, most existing infrastruc-ture—already limited to begin with—are in urgentneed of rehabilitation. Urban planning is practicallynonexistent and very little knowledge goes around onthe causes and effects of environmental degradationalthough awareness of deterioration is very much felt.In small towns a substantial number of people occupyunsuitable areas and aggravate environmental and sani-tation problems. With the partial exception ofSihanoukville, Kompong Thom, Kompong Cham, andBattambang, no more than elementary systems ofwater supply and sewerage exist.18

Solid waste managementThe situation in Cambodia resembles that in a num-ber of other developing countries. With the exceptionof Phnom Penh, Sihanoukville, and Battambang, solidwaste collection is extremely patchy in all other urbanareas in Cambodia and usually only limited to public

market areas. Waste disposal is far from comprehensiveand adequately organized. Dumpsites are chosen oppor-tunistically with little regard for their management. Solidwaste services have been privatized in Phnom Penh andBattambang, with mixed success in Phnom Penh. Thesubdecree on solid waste management has just been is-sued in April 1999, but is already considered flawed andrequiring amendments and operating guidelines to allowit to be applied by Cambodian municipalities.

Hazardous waste managementThe widely publicized case of hazardous waste dumpingby a foreign company on Cambodian territory in 1997 isindicative of the virtual absence then of regulatory provi-sions and enforcement capability to deal with the prob-lem of hazardous waste. Possible stockpiling of toxicmaterials, for example, pesticides, is probably a more se-rious problem at present than generation of hazardouswaste which are now largely limited to metallic sludgefrom electroplating, certain dyestuffs, oil residues, andbatteries.

Industrial and mobile source emissionsLimited industrial pollution abatement has taken placein Cambodia. Since there are few industries, the situationis not as urgent with the exception of how to deal withhazardous wastes. The situation is beginning to change,even if municipal discharges continue to dwarf industriesin terms of pollution load. A subdecree on water pollu-tion control was issued in April 1999.

Among new developments has been the growingproblem of air pollution in Phnom Penh, linked mainlyto the rapidly increasing volume of traffic. The PollutionControl Department of the Ministry of Energy (MOE)is weak and inadequate to deal with this problem which,in addition, requires effective coordination among sev-eral government agencies.

No inventory of pollution discharges is currentlyavailable, making it difficult to calibrate regulatory pri-orities. On the surface, the relatively small number ofestablishments classified as industrial (108, as of 1997)makes it easier to gain headway through direct regula-tion. However, if the experience of other countries is toserve as some sort of basis, the combined pollution loadof establishments classified as family-owned or handi-crafts may be a more significant contributor of pollutionyet a more difficult one to manage by direct monitoringand enforcement.

18A wastewater treatment plant has been renovated in Rottenberg in 1995 with assis-tance from the European Union and could serve as a model for other urban areas.



MiningThe field conditions, let alone the environmental repercus-sions of gem-mining operations around Pailin, have not beenassessed technically even if much anecdotal evidence sug-gests serious environmental impacts caused by sedimenttransport into the Tonle Sap.19 With the re-establish-ment of government control over the area, the environ-mental dimensions of mining operations—patterns ofimpact, scope for modification of existing practices,rehabilitation possibilities, among others—ought to beassessed in addition to revenue and employment thesemining activities generate. Environmental provisions ofthe Mineral Resource Law need to be strengthened andthe respective roles of the Ministries of Environment(MOE) and Industry, Mines and Energy (MIME) inregulating and supervising the mining industry will have tobe more fully elaborated.

Lao PDR

Deteriorating urban conditions in the Lao PDR as aresult of economic and physical growth is sufficientreason for concern. The population of the Lao PDR’surban areas is rapidly growing, at rates higher than thenational average. The capital, Vientiane, is growing at 3.9percent per year and that of Savannakhet, the country’ssecond largest urban center, has doubled from 30,000 to100,000 between 1975 and 1995, an annual growth rate ofabout 3.5 percent (National Statistical Center 1998). Presentdevelopment trends point to increased urbanization,rural-to-urban migration and expanding industrial and tour-ism sectors, which are anticipated to lead to exponentialincreases in solid waste-related environmentalproblems for the country in the immediate future.

Solid wasteThe Ministry of Communications, Transport, Post andConstruction (MCTPC) is the government agency directlyresponsible for solid waste management at the national level.MCTPC is represented at the provincial level by theDepartment of Communications, Transport, Post andConstruction (DCTPC). Administrative arrangementsdiffer for each province and individual districts may bedesignated implementing agencies in some cases. Althoughmunicipalities do not exist officially, urban areas create defacto municipalities, recognized as having special needsmanaged through a municipal committee chaired by theprovincial governor. This committee designates animplementing agency for waste management issues. InLuang Prabang, Thakhek, and Pakse, the implementing agencyis the district. In Savannakhet it is the DCTPC, (UNDP 1996).

Legislative basis for solid waste management in eachtown is enforced by a provincial decree. The decree as-signs a responsible agency or committee and a generalscope of work and sets rates to be collected from house-holds, government offices, and commercial enterprisesfor the collection of wastes.

Common problems associated with solid waste man-agement in Vientiane and secondary towns manifest them-selves at three levels (UNDP 1996):� degradation of the quality of urban surroundings that

impedes the functioning of the physical environmentand induces people into accepting deteriorated con-ditions as normal; and

� lack of a sound financial and material resource basein municipalities and districts, including a sufficientstock of essential equipment and human resourceswith the capacity to manage solid wastes.Solid Waste Generation: Average urban waste produc-

tion is 0.7 kg per capita per day, consisting of approxi-mately 30 percent organic material, 30 percent plastic,15 percent paper, and 25 percent glass, cans and othermetals. Hazardous and toxic wastes such as batteries, oldpaint cans, aerosols, and other refuse also are mixed withthese wastes. No waste segregation is required, the loworganic material content in municipal solid waste reflectsthe efficiency of an agricultural lifestyle where even inthe urban areas large fractions of food wastes are used asanimal feed.

Solid Waste Collection: Domestic and commercialwastes are collected from various premises and placed inbins along main roads for pick-up by the responsible gov-ernment agency or by a private waste collection companyspecially subcontracted for the purpose. These wastesusually have the same composition. The waste is thentransported to a designated dump site located between 2and 20 km from an urban area. Collection services chargeanywhere between 200 and 500 kip per month (1996),with progressively higher collection rates for commer-cial enterprises. Collection services generally reach only10 percent of all urban households for a number of rea-sons:� services are underfinanced;� residents are reluctant to pay the monthly collection

charge and thus dump indiscriminately or incineratethe wastes, even if such methods are unsanitary;

� collection services are unreliable, usually due to in-sufficient stock of necessary equipment and poormaintenance of existing equipment; and

19 Other areas where mining has potentially serious environmental implications areseveral sites in Ratanakiri province.

37

� a general lack of public awareness of the need forproper waste disposal, particularly in urban areas.(UNDP 1996).Solid Waste Disposal: Three principal methods are

used to dispose of solid wastes: they are either dumped inmunicipal landfills, openly burned, or indiscriminatelydumped, usually into a body of water where they are even-tually washed away by the tide, or dumped on vacant lowlying land. The most prevalent practice is the traditionalpractice of indiscriminate dumping, which has resulted innegative environmental impacts including pollutive smokeand fumes, contaminated wastes, and leachate, which con-taminates drinking and groundwater and agricultural landand produces methane, a greenhouse gas (UNDP 1996).

Recycling of Solid Wastes: Vientiane is the only urban areawhere recycling has been adopted as a commercial venture.Local markets in secondary towns are not highly developedand volumes of waste generated are neither sufficiently largeto warrant transport costs nor interest foreign buyers ofrecycled wastes in Thailand and Viet Nam.

Sanitation and healthAn estimated 50 percent of the Lao PDR’s population offive million live below the poverty line. Infant and under-five mortality rates (IMR and U5MR) have declined by 10percent from 1990 to 1995, but the country’s child survivalindicators are still among the lowest in Southeast Asia.Maternal mortality ratio (MMR), estimated at 650 per100,000 live births in 1990, is one of the highest in theregion. Total fertility rate is very high, and birth spacingadvice services underdeveloped. Thirty-five percent of theLao PDR’s child-bearing women suffer from anemia, andthe problem is exacerbated by complications from malariawhich strikes one million people each year, causing as manyas 28,000 deaths. Although only 157 cases of HIV havebeen reported as of 1996, an increase of 24 percent has beennoted over the previous year (UNICEF 1997).

UNICEF reports 50 percent of the population lacksafe water and 65 percent have no access to adequate sani-tation facilities. Poor environmental sanitation and theunsafe disposal of human and solid waste contribute tothe high incidence of malaria, diarrhoeal diseases anddengue fever. In addition, difficult access to safe and cleanwater places a major additional work burden on womenand girls who must fetch water for household needs.

The far-reaching socioeconomic reforms of the “NewEconomic Mechanism,” launched in 1986, expanded eco-nomic opportunities for the population at-large, but alsoexposed vulnerable groups, especially ethnic minorities, thepoor, women, girls, and young children, to greater securityrisks. Key health and social statistics are presented on Table 15.

Thailand

Air qualityResidents and visitors to Bangkok Metropolitan Region,the country’s capital and leading city, are exposed daily tolevels of air pollution that exceed World Health Organi-zation standards of safety. On a positive note, Thailandhas instituted mitigating measures gradually since 1990,and their effects are beginning to be realized. Since theintroduction of unleaded gasoline in 1992, for example,average curbside concentrations of lead in Bangkok havebeen reduced tenfold, from 1.5 micrograms per cubic meter(ug/m3) in 1991 to 0.12 ug/m3 today. A 1994 World Bankstudy estimates a 20 percent reduction in lead concentra-tions to result in health benefits worth between $300 millionand $1.5 billion in money terms. Such benefits have beenmore than realized (World Bank Thailand 1994).

Carbon monoxide (CO) levels have declined overthe last decade despite an exponential increase in the num-ber of vehicles. The one- and eight-hour average concen-

Table 15: Key Health and Social Statistics

Factor Data

Population density 19.4 persons/sq km

Population density inVientiane municipality 135 persons/sq km

Population growth rate 2.76 percent/annum(1998 est.)

Fertility rate 5.66 children permother (1998 est.)

Life expectancy at birth 53.7 yearsInfant mortality rate(per 1,000 live births) 101

Under 5 mortality rate(per 1,000 live births) 140

Mean years of schooling 2.9 years

Adult literacy rate 43 percent

Access to safe water 39 percent(percent of population)

Physicians(per 1,000 people) 0.2

Hospital beds(per 1,000 people) 2.6

Sources: ADB, Lao PDR Country Assistance Strategy, 1999; UNICEF,1999; & World Bank Development Indicators, 1999



tration of curbside ambient CO now rarely exceeds, in lessthan one percent of observations, Pollution Control De-partment (PCD) standards. Fleet modernization, enforce-ment of emissions standards, less traffic congestion onaccount of more roads and highways, and fuel quality im-provements, including requirements for oxygenates in gaso-line, have cumulatively contributed to realizing these gains.

Despite these efforts, Bangkok’s air pollution levelsremain serious. Particulates and ozone are particularlyproblematic. Annual mean total suspended particulates(TSP) at curbside averaged 480 ug/m3 from 1988 to 1997,exceeding the annual average standard set by PCD of330 ug/m3. In 1997, TSP levels at non-curbside moni-toring sites averaged 120 ug/m3 while frequency in whichdaily TSP standards are exceeded is over 70 percent atcurbside locations and only 2 percent at non-curbsidesites. Total suspended particulates are generated largely(40 percent each) by diesel-fueled vehicles and by roaddust, with the remainder from industry and other sources.A 1994 World Bank study on the urban environment es-timates a 20 percent reduction in the concentration ofsuspended particulates could generate annual health ben-efits worth between $400 million and $1.6 billion in mon-etary terms (World Bank 1994).

Particulates of less than 2 microns are of special con-cern because of their ability to penetrate and remain deeplylodged in the human lungs; average particle levels of lessthan 10 microns diameter (PM10) at curbside sites haverisen steadily since 1992. In 1997, the daily PCD stan-dards for PM10 of 120 ug/m3 were exceeded 21 percent ofthe time at curbside monitors and 13 percent of the timeat non-curbside sites.

Policies and programs. Four government de-partments—the PCD, the National Energy Policy Of-fice (NEPO), the Land Transport Department (LTD),and the Bangkok Metropolitan Administration(BMA)—are involved in addressing Bangkok’s air pol-lution problem. Current programs include:� the construction of new roads and mass transit sys-

tems, and improvements in traffic management suchas measures allowing reversible lanes, parking restric-tions, enforcement of traffic laws, flexible working hoursand requirement of catalytic converter for cars;

� improvements in fuel quality such as unleaded, oxy-genates and gasoline reformulation, reduction of sul-fur content, and reformulation of diesel and lowsmoke lube oil;

� improvements in emissions standards for new andin-use motor vehicles;

� improvement of vehicle inspection and maintenancesystems and roadside inspection;

� fuel switching for private cars and tuk-tuks; and� control of dust on the road and from construction

activities.Though air pollution is generally not yet a serious

problem in urban areas outside of Bangkok, the PCDhas nevertheless established a nationwide air pollutionmonitoring system focused on 10 key provinces.

Mae Moh is the site of a 13-mw power plant com-plex where large quantities of sulfur lignite are minedand burned at Thailand’s largest single-generatingoperation (2,625 mw). The Mae Moh valley is sur-rounded by low mountains, during winter season atmo-spheric inversion conditions occasionally occur. The mostsevere sulfur dioxide episode in Thailand occurred inMae Moh in 1992, causing widespread damage to crops,livestock, and human health. Following the incident andseveral government reviews, the Electricity GeneratingAuthority of Thailand (EGAT) agreed to install scrub-bers on all industries operating in the area although manyof the units have yet to be completely installed.

In 1995, the maximum standards for sulfur dioxideemissions were exceeded for a total of 66 hours. Corre-sponding figures for 1992, 1993, and 1994 were 27, 31,and 29 hours, respectively. Unlike in previous years whensurges in sulfur dioxide emissions were primarily theresult of weather conditions, their large increases in 1995were attributed mainly to high power production at MaeMoh to compensate for a temporary shutdown of theBang Pakong plant near Bangkok during that time.

An unusual number of deaths from heart failuresand high incidence of chronic respiratory ailments con-tinues to keep Mae Moh in the news. In August 1998,some 400 local villagers were hospitalized for respira-tory problems. Crop damage—and this is not the firstthis has happened—was also reported. Provincial healthofficials monitored local sulfur dioxide levels at 2,200ug/m3 per hour, compared with the acceptable standardof 1,300 ug/m3.

Water qualityStatus. The PCD conducted a nationwide survey ofwater quality in Thailand in 1997. Findings reflect 14percent of surface water resources to be in good condi-tion, suitable for aquatic animals and general human con-sumption; 49 percent are of average condition, safe forgeneral consumption and agricultural uses; the remain-ing 37 percent appear to be of low quality (Channin andJohnson 1997). Daily per capita consumption of waterranges from 50 liters per person in the countryside to250-500 liters in municipalities. Approximately 80 per-cent of water consumed ends up as wastewater, hence

39

domestic wastewater accounts for nearly 60 percent oftotal pollution load. Most of the country’s domesticwastewater is treated by on-site septic systems which havelittle maintenance or control.

Pollution from domestic sewerage is a problemthroughout the country, especially acute in central Thai-land where population concentrations are highest. In ad-dition to anxiety about high levels of coliform bacteria inwater and biological oxygen demand, there is increasingconcern about the rise in ammonium nitrates in surfaceand groundwater, most certainly coming from runoffsources of agricultural fertilizers. Industrial pollution ismost severe in the BMR, especially in the Chao Phrayaand Lower Thachin Rivers. The lower reaches of theChao Phraya passing through Bangkok are always low indissolved oxygen, averaging only 0.8 micrograms per li-ter (mg/l) compared with 5 mg/l which is the level suit-able for consumption. The Tachin river estuary to thewest of BMR is also significantly polluted, with averagedissolved oxygen concentration of only about 0.5 mg/l.Indications are that groundwater quality is deterioratingalthough very limited actual monitoring has been conducted.

Deforestation, land development and reservoirs havealtered the hydrology of major rivers in Thailand, gener-ally exacerbating flow patterns and increasing runoff andsediment loads. Livestock raising, primarily of pig andpoultry, and fish farming operations are expanding, in-troducing large new BOD into surface waterways. In-creased agricultural and industrial activities are beginningto affect groundwater. In many areas including tourismzones such as Pattaya, the incidence of waterborne dis-eases is on the rise. There is widespread anecdotal evi-dence that many tourists are shying away from some ofthe most popular tourist beaches in the area because ofconcern over coliform bacteria and other pollutants.

Policies and programs. While Bangkok hasa rudimentary sewer system, it was only in the 1990s thatthe city began constructing central wastewater collectionand treatment systems. This has finally gained sufficientpriority that, even with the economic crisis, the Govern-ment of Thailand committed $550 million for wastewa-ter collection and treatment systems in the BangkokMetropolitan Area in 1998. Similar investments are un-der consideration for secondary cities and towns. Approxi-mately 10 percent of municipalities nationwide currentlyhave wastewater treatment facilities, another 30 percenthave water treatment plants under construction, and 60percent have no wastewater treatment systems underway.Almost everywhere, sewers combine with stormwaterdrainage, meaning annual overflows occur during flood-ing or heavy downpours.

Interagency cooperation remains weak and cost-recovery policies for wastewater collection and treatmentand user charges are poorly designed, if at all imple-mented. As a result, existing facilities are often not main-tained, or worse, not operated at all because of lack offunds.The Bangkok Post in 1998 reported that 25 of 26wastewater treatments are not operating because of lackof operation and maintenance funds. Cost recovery foroperation and maintenance remain serious constraints.

Solid and hazardous wastesStatus. Bangkok alone accounts for nearly one quarterof the 33,000 tons of solid waste generated daily (13 mil-lion tons a year) nationwide. Municipalities and sanitarydistricts generate a slightly greater amount, with the re-maining half coming from rural areas and villages. Justbefore the recession, in 1996, estimates were that per capitageneration of wastes was increasing by as much as 5 per-cent per year. For the year 2020, estimates of nationwidewaste fall between 41,000 and 75,000 tons/days roughly adoubling of today’s levels.

In Bangkok, collection efficiency has increased from80 percent to over 95 percent in recent years. Bangkok iscurrently able to recycle 20 percent of its solid waste,nearly 35 percent are recyclable material of commercialvalue but which are just being thrown away.20 However,in secondary towns and cities collection, levels are gener-ally well under 80 percent and recycling and reuse pro-grams are mainly through scavenging.

Medical waste from hospitals and clinics are alsocause for concern. In Bangkok, at least 80 tons of medi-cal waste are generated daily but BMA can properlyhandle only 20 tons/day for collection by special collec-tion vehicles or for incineration. Hospitals and clinics inother cities generally dispose their wastes as municipalrefuse.

Policies and programs. Bangkok and otherkey municipalities are giving garbage collection moreimportance, and this is evident in improvements in col-lection infrastructure and efficiency. Safe disposal never-theless remains a major problem. In addition to householdgarbage, 1.5 million tons of industrial hazardous wasteand 4,000 tons of health care waste were generated byBangkok alone in 1995. No sanitary landfills are yet op-erating, wastes are disposed of in open dumps or land-fills. Bangkok has two engineered landfills that processabout half the waste generated, other cities do not haveany landfills at all. The tourist city of Phuket constructedan incinerator but has discontinued its operation because

20 Dr. Hansa Sanguannoi, personal communication.



of high operating and maintenance costs. (But the Gov-ernment, it has been reported, is stepping in to financethe operating costs of an incinerator.)

Chiang Mai, second largest city and tourist center innorthern Thailand, has for the past decade faced increas-ingly serious waste disposal problems. The city’s wastedisposal site was filled beyond capacity in the early 1990sand faced with the most common garbage site problem:the not-in-my-backyard (NIMBY) syndrome. No com-munity within reasonable distance was willing to host anew alternative dump site or landfill. The city has gonethrough several embarrassing periods of noncollection,in which wastes have festered on the streets for weeks at atime, causing considerable public nuisance and discour-aging tourism.

A government-constructed but privately-operatedhazardous waste treatment center was opened on the west-ern half of Samut Prakarn in 1988, but it cannot processsolvents containing wastes. In the meantime, the secondof a nationwide series of waste treatment centers longplanned by DIW in Rayong Province has yet to open.Both DIW and the PCD have pilot programs underwayto encourage industry to adopt pollution prevention prin-ciples that will substantially reduce both hazardous andsolid wastes. Most hazardous wastes are currently notbeing segregated from household or municipal wastestreams and pose an increasingly worrisome threat to sur-face and groundwater supplies. Responsibility for collec-tion and disposal of solid wastes, by law and tradition, restsin the local governments. Sewerage and wastewater treat-ment are, in contrast, functions of the central government.

The National Solid Waste Management Sector Plan,funded by ADB and completed in 1997 (PCD 1998a)provides a framework for establishing or upgrading wastecollection, recycling and disposal facilities nationwide.The Overseas Economic Cooperation Fund (OECF)has offered support to both Bangkok and the central Gov-ernment, but such assistance appears to be limited toOECF’s current funding through the Environment Fund.Solid waste management is included under the WorldBank’s planned urban environmental loan program forBangkok, but senior environment officials are confidentthat the Government’s present efforts are adequate for thenear term, and are more likely to seek international fundingto address air and water quality issues (PCD 1998a).

In 1997, the PCD completed a solid waste manage-ment policy and planning report which sets guidelinesfor establishing preventive systems and action plans. Thepolicy document recommends, among others, the settingof standard criteria and methods of solid waste reduction,

support for clean technology, investment promotion, andeducation and training to implement pollution preven-tion and control. The policy also includes developingthe role and strengthening the capacity of local govern-ments, private organizations and other sectors in envi-ronmental quality management, and recommending theestablishment of an environmental auditing and report-ing system. The Government has set as targets a 15 per-cent recycling of wastes, collection efficiency of 90percent, promotion of private sector investment in wastemanagement, the introduction of a “buy back” schemefor some packaging materials, and the application of the“Polluter Pays Principle.”

Outside of Bangkok, local solid waste managementplanning programs are becoming an increasing focus ofannual provincial environmental planning processeswhich could lead to funding for infrastructure from theGovernment’s Environment Fund. A US Trade Devel-opment Agency (TDA) feasibility study was conductedduring 1999 to develop waste management programsand facilities in the Thai western provinces of Rachburi,Petchburi, and Kanchanaburi. The program was initi-ated several years ago with the expectation of arriving atregionwide solutions. It appears that the TDA study willhave to focus on province-by-province programs as someprovinces appear unwilling to accept responsibility fordisposal of solid waste from other provinces or areas(Nisakom, Kositra, personal communication).

Viet Nam

Viet Nam is dominated by the four large cities: Ho ChiMinh City (HCMC), Hanoi, Hai Phong, and Da Nang.The division is a result of the Government’s policy ofdesignating three areas of the country as industrial de-velopment zones, to receive the lion’s share of foreigninvestment. Identified industrial development zones are:(i) Hanoi/Hai Phong/Quang Ninh, (ii) Quang Nam/Da Nang, and (iii) HCMC/Ba Ria-Vung Tau/Dong Nai.This land use allocation has created high migration ratesto these cities, which have attained urbanization rates ofabout 7 percent. The projected urban share of the popu-lation is expected to grow by 2,000 to about 24 million.This population and economic trend is giving rise to anumber of significant environmental issues.

Prolonged war effort and government investmentpolicies were largely directed to industry and agricul-ture, leaving urban infrastructure a low priority. This hasresulted in rapidly deteriorating living conditions in cit-ies with issues discussed below as main features.

41

Water supply and sanitationInvestment in water supply and sanitation has been se-verely financially constrained in Viet Nam. Quality ofurban water supply is generally poor, as a consequence ofthe discharge of untreated or partially treated wastes aswell as domestic liquid wastes. In Hanoi, there is virtu-ally no domestic or industrial liquid waste treatment,and—as the city holds a relatively large industrial base—industrial wastes are a significant source of water pollu-tion. The National Environment Agency (NEA)estimates industrial wastewater discharges in HCMCto account for 20-30 percent of the total flows in VietNam’s river systems, with major industrial contributionto water pollution coming from the oil refining, chemi-cal, and food processing industries. Only 100 urban cen-ters have piped water systems that deliver water to 47percent of the urban population (1995). The remainingurban inhabitants use water from unprotected and mostlikely polluted shallow wells and the mortality andmorbidity profile can be linked to waterborne diseases.Water pollution-related diseases are among the leadingsources of morbidity, especially among children.

GroundwaterThe quality of groundwater is generally good, except forelevated levels of iron and manganese in some areas, andseawater intrusion in coastal regions. At present, only 15percent of exploitable groundwater reserves have beentapped, as surface water is generally plentiful and inex-pensive. However, water demand is increasing in areaslike Dong Nai, where surface water shortages are experi-enced.

Contamination of groundwater in urban areas, par-ticularly in Hanoi, is becoming increasingly a criticalissue, as virtually the entire population depends ongroundwater for drinking and household use. There arealso signs in Hanoi of high concentration of fecal con-tamination in water wells. Monitoring for toxic metalsand other hazardous chemicals has been undertaken to alimited degree to assess impacts from industrial dis-charges.

For large segments of the population access to sew-erage systems is largely nonexistent in the cities and mosturban centers are served by various forms of open drain-age such as ditches and street gutters. Maintenance ofexisting systems has not kept pace with the increasinginflux of population. In addition, no city as yet has anoperating plant for wastewater treatment of domestic sew-erage in Viet Nam. This constitutes a major health haz-ard during periods of storm and flooding, when coliform

and fecal pollutants from human wastes are easily spreadthrough contaminated floodwaters. It is estimated thatwastewater discharge from households and commercialestablishments is about 500,000 m3 per day. About 46percent of the household wastes is discharged into septictanks, and the remaining 54 percent is discharged un-treated.

Air pollution is a burgeoning environmental prob-lem in urban areas due to the combined emissions fromboth industrial and mobile sources. In Hanoi and HaiPhong, coal is the principal fuel for industrial boilers,cooking, and space heating in the winter months. Air pol-lution control devices are nonexistent in industrial facili-ties, which have aged, low-efficiency boilers. Due to rapidurban expansion, industrial estates that were previouslylocated outside population centers are now within cityzones and pose a serious threat to human health. Com-pounding the poor air quality is the profusion of low-efficiency two-stroke motorcycles and poorly maintainedvehicles that run on leaded gasoline, generating high am-bient levels of particulates, lead sulfur dioxide, and car-bon monoxide. Air pollution is further exacerbated byincreasing traffic congestion, reducing traffic speeds andincreasing emissions per km traveled.

Solid wasteLess than half of the solid waste generated in Hanoi andHCMC is collected; the remaining uncollected waste isdisposed of in lakes, streams, and vacant lots. The currentdisposal sites are not designed as sanitary landfills, arenot properly sited or managed, and are expected to ex-ceed their capacity in the near term. There are twocomposting plants with limited capacity, capable of re-ceiving only about 3 percent of the 1,500 tons generatedin HCMC (1995).

Industrial/hazardous wasteThe industry sector in Viet Nam has become larger andmore diverse with the reunification of the country. Basedon government projections, industry will be four timeslarger by 2010, and most of the output will be from newindustrial facilities. Foreign investment is increasing sig-nificantly; for example, 1996 figures show an increase of23 percent over 1995. Viet Nam now has three majoreconomic zones: north (Hanoi, Hai Phong, and QuangNinh provinces), south (HCMC, Dong Nai, Vung Tau,and Ba Ria); and central (Quang Nam and Da Nang).The industry sector can be roughly divided into heavyindustrial facilities (mostly located in the north) and aheterogeneous and medium-scale light industry sector



concentrated in the south. The large-scale heavy indus-tries are state enterprises that generally employ ineffi-cient technology and rely entirely on government supportfor capital investment, though these are isolated from in-ternational market forces.

The industry sector in Viet Nam is characterized by(i) obsolescent technology, resulting in inefficient use ofraw materials with concomitant pollution; (ii) absence ofeffective pollution control facilities; (iii) industrial zonesimproperly planned; and (iv) improper siting.

Hazardous wasteIn a recent ADB study related to hazardous waste man-agement, it was estimated that 275,000 tons of hazardouswaste are generated in the country, 30 percent emanate inthe north, 10 percent in the central area, and 60 percent inthe south. If industrial growth continues as envisaged bythe Government, total quantity of hazardous wastes mayincrease to more than 1 million tons annually by 2010.The relative proportions of waste generated between theregions is not expected to change significantly.

ADB’s study indicates that generally no segregationof wastes or systematic treatment or disposal of hazard-ous wastes, either at regionally based treatment facilitiesor at the production site, takes place. The general per-ception in Viet Nam is that hazardous waste manage-ment is not a major problem. A low level of understandingas to what constitutes hazardous waste also results in poorunderstanding of how much is currently being produced.

In addition, it was noted that industrial wastes, in-cluding hazardous wastes collected by the respective mu-nicipal services companies, are disposed of at poorlyengineered landfill sites together with municipal wastes.Liquid hazardous waste from landfills, leachate, is gen-erally discharged directly into streams or rivers that areused as a source for agricultural/aquacultural purposesor as a drinking water source by the local community.

Energy

Cambodia

Cambodia relies on two primary energy sources: biom-ass for about 85 percent of its total energy requirements,and petroleum products for about 14 percent. Thebalance is accounted for by a single small hydropowerstation (see Table 16). In the mid-1990s annual consump-tion of biomass was placed by the Ministry of Industry,Mines and Energy (MIME) at about 5.9 million tons,of which fuelwood accounts for about 5.5 million tons

and charcoal and other biomass account for the rest. Abouttwo thirds of petroleum products were consumed by trans-port, 26 percent by electricity generation, and the balancewas consumed by households (for lighting mainly in thecountryside, and cooking in urban areas). The number ofstoves using liquefied petroleum gas is believed to beincreasing rapidly in Phnom Penh. Cambodia’s fuel uti-lization efficiency for all fuels is comparatively low byinternational standards. Technical losses in electricity gen-eration and distribution are 50 percent higher than in themore developed countries of Asia. Wood combustionefficiency is low and few biomass waste-utilization tech-nologies are available. No significant effort has beenexerted to reduce energy consumption despite economiclosses and the somewhat less obvious environmental reper-cussions. The high and nondeclining consumption of wood-based energy has been an important contributor to localizeddeforestation and to environmental problems often associ-ated with it. In the case of petroleum-based products andelectricity, the primary environmental concerns are green-house gas emissions and the threat of worsening airpollution in Cambodia’s urban areas. The Energy Effi-ciency Office within the Electricité du Cambodge (EdC)has been relatively ineffective until now.

A National Energy Conservation (NEC) being for-mulated under the World Bank’s initiative to be implementedby MIME with broad participation (MOE, MAFF, EdC,MRD, Ministry of Women’s Affairs) is the first of its kind inCambodia. Its broad objective is to achieve a significantimprovement in energy use practices over a five-year period(1999-2003). Among the more specific objectives are theestablishment of a national energy conservation and effi-ciency office (as an NGO) and improvement of the effec-tiveness of EdC’s Energy Efficiency Office.

Table 16: Structure of Energy Consumption,Cambodia, 1995

Energy ‘000 TOE Percent ofSource Equivalent Total

Wood 1,850 82.2Charcoal 26 1.2Other Biomass and Dung 39 1.7Petroleum Products 317 14.1Fuel Oil 2 0.1Diesel Oil 129 5.7Kerosene 26 1.2Jet Fuel 11 0.5Gasoline 145 6.4Liquefied Petroleum Gas 4 0.2Electricity 20 0.9

Total 2,252 100.0

43

Wood-based and biomass energyThe annual consumption of wood and charcoal for 1995is given in Table 17.

Household consumption accounts for almost all (97percent) of wood-based energy. The pattern of householdconsumption is summarized in Table 18.

Households dominate wood-based energy consump-tion in Cambodia. The environmental impact of fuelwoodand charcoal consumption is believed to be uneven andgreater in areas more densely inhabited (broadly, thesoutheast) as well as those that supply charcoal to PhnomPenh.21

The FAO-funded Cambodia Fuelwood SavingProject, based in Kompong Chnnang province, demon-strated that efficiency improvements of up to 50 percentare attainable through improved design of household orspecialized22 cooking stoves. Some agricultural residues(e.g., rice husks) find a ready market, while the use ofother biomass residues has not been sufficiently explored.More efficient charcoal kilns are being introduced on atrial basis by an NGO, although the scheme is seen bysome as an invitation to increase charcoal productionrather than merely making it less wood-consuming. Takentogether, considerable potential exists in improving theefficiency of fuelwood use. Improved stove efficiencycould become a major positive force in areas such as theTonle Sap, where deforestation is a serious issue. As in

the case of modern energy sources, demand managementcould be an attractive option in wood energy use, i.e., itcould be cheaper to improve the stoves or charcoal kilnsthan expanding capacity (here, establishing and main-taining tree plantations). The question of charcoal pro-duction acquires a special environmental significancewhere it takes place in, or is close to, protected and othervulnerable areas such as the mangrove forests alongCambodia’s shores.

HydropowerHydroelectricity has been in the agenda of national andsubregional planners in Cambodia, but only a single hy-droelectricity installation is operational at present, a 1MW plant in Ochum, Ratanakiri built in 1993; anothertwo (Kirirom I, Prek Thnot) still await rehabilitation(see Table 19).

Pre-feasibility or feasibility studies for hydroelectricinstallations in Cambodia have been made by MRC eversince the latter’s establishment in 1957.23 More recently,MOE has been involved in commenting on the feasibil-ity studies of hydroelectric dams in Phnom Kamchay andPrek Thnot. MOE has expressed particular interest inobtaining funds for a reappraisal of the Sambor hydro-electricity project feasibility study.

Progress in bringing any of these schemes to fruitionhas been affected by a perception that despite hydrologi-cal and engineering appeal, the economics of theseschemes are marginal, especially when compared withthe return on investments in improved energy efficiency.

Table 17: Consumption of Wood and Charcoal,1995

Area Wood Charcoal(million tons) (‘000 tons)

Rural 5.0 8Phnom Penh 0.1 34Other urban 0.4 11

Total 5.6 53

Note: This table does not include “other biomass” sources (agricul-tural residues, etc.).Source: MIME.

Table 18: Household Consumption of WoodEnergy 1995 (wood energy equivalents)

Area Wood Charcoal Total(percent) (percent) (percent)

Rural 84.5 1.1 85.6Phnom Penh 1.7 3.5 5.2Other 7.2 1.0 8.2

Total 93.4 5.6 100.0

Source: MIME.

Table 19: Potential Hydropower Sites in Cambodia

Site Considered Site Consideredby MIME to have Maximum by MIME to have MaximumPotential for Installed Potential for InstalledShort- to Medium Capacity Long Term CapacityTerm Development (MW) Development (MW)

Kirirom I 11.0 Sambor 465Prek Thnot 18.0 Lower Se San 1 900Kamchay 127.5 Lower Se San 2 480Bokor Plateau 28.0 Lower Se San 3 375Stung Battambang II 36.0 Stung Metoeuk 180Western Kirirom 13.0 Lower Russey Chrum 125Stung Piphot 25.0 Cheay Areng 269Stung Atay 110.0

21 The UNDP/USAID/IDRC/CRDI Wood Energy Flow Study of Phnom Penh(1997) documented the pressure on forest resources linked to supplying Phnom Penh.

22 Among specialized uses, home-based agro-processing activities such as palm sugardistillation or fish processing predominate. Palm sugar distillation consumed almost afifth of total fuelwood in Kompong Chnnang. Brick manufacture is among other im-portant fuelwood-using rural or suburban activities.

23 “Review and Assessment of Water Resources for Hydropower” (1991).



approval of hydropower projects. Since early 1977, theDepartment of Development and Promotion of Tech-nology of STEA has also been assigned a role in researchand development, information sharing, and promotionof renewable energy technologies.

Almost all the electricity generated in Lao PDR isfrom hydropower. In 1997, total electricity generationwas 12,18.7 GWh, representing a decrease of 2.4 percentfrom the previous year. Electricity imported totaled 101.6GWh, representing 8 percent of total production; 2 GWhwas imported from Viet Nam to supply Houaphan prov-ince and 99.6 GWh from Thailand to supply the prov-inces of Khammouane, Savannakhet, Bolikhamxay,Bokeo, and Kenthao. Total energy sales in 1997 amountedto 1,144 GWh, of which domestic consumption totaled434 GWh, while exports to Thailand amounted to 710GWh.

There are five hydropower power plants in the LaoPDR (see Table 20). The Theun-Hinboun power plantis an independent power plant of 210 MW built to exportelectricity to Thailand. Two other hydropower plants areexpected to come on line in 1999—Nam Leuk (60 MW)and Houay-Ho (150 MW). Nam Ngum, located nearVientiane and completed in late 1960s, has a total in-stalled capacity of 150 MW and for many years gener-ated most of the Lao PDR foreign earnings viahydropower sales to Thailand. The Xeset power stationcontributes 45 MW to the national grid and generationis mostly in the wet season since Xeset is a “run-of-river”type of facility.

Given the extensive development needs of the LaoPDR and the potential of dams to generate foreign cur-rency, rapid development is tempting. However, difficul-ties in raising the required loans and a plethora of socialand environmental problems beset potential projects.Quick development may upset delicate, natural hydro-logical and ecological balances upon which most Lao-tians depend for their subsistence livelihood. No overall

Also, the escalating cost of “negotiating” with a largenumber of widely dispersed foreign NGOs has funda-mentally changed the economics of hydropower.

Lao PDR

The Lao PDR is endowed with significant indigenousenergy sources. The tributaries of the Mekong Riverwithin the Lao PDR have few large-scale dams and res-ervoirs and hold a tremendous potential for hydropowerdevelopment. The Ministry of Industry and Handicrafts(MIH) estimates the country’s hydropower potential at18,000 MW. This promise of energy prompted the LaoPDR to set a goal 23 dams to be completed by the year2010. The current installed capacity is 217 MW, of which202 MW is based on hydropower, while the remaining15 MW consists of diesel power generated electricity.Nationwide, 16 percent of the households are electrifiedwith urban areas accounting for 90 percent of the electri-fication and about 95 percent of consumption. Domesticenergy consumption is growing rapidly at 8-10 percentannually. Only 7 percent of the total electricity consump-tion takes place outside of Vientiane. At present, about 65percent of the total output is exported to Thailand, earn-ing 25 percent of the country’s foreign exchange.

Energy use in the Lao PDR is dominated by house-hold consumption of traditional fuels, mainly wood andcharcoal. The use of wood as fuel has been a major causeof deforestation and is likely to remain so in the nearterm.

There are major lignite deposits at Hongsa in north-west Lao PDR. These are proven reserves of about 810million tons, of which over 530 million tons are deemedeconomically recoverable. Energy content is estimated at8-10 megajoules per kilogram with a relatively low sulfurcontent of 0.7-1.1 percent.

Electricity sectorMIH is responsible for the energy sector, including theelectricity subsector. Electricity generation is the respon-sibility of Electricite’ du Lao (EdL). EdL is responsiblefor the planning, design, and construction of its own fa-cilities in generation, transmission and distribution, in-cluding both urban and rural electrification. MIHcoordinates with EdL in planning and preparing largeprojects and managing the Government’s interest in jointventure companies run by EdL. The Science, Technol-ogy and Environmental Agency (STEA) in the PrimeMinister’s Office is the main coordinating agency forenvironmental planning and management across all sec-tors and is responsible for the environmental review and

Table 20: Hydropower Plant in Operation

ProductionCapacity in 1997

Name Province (MW) (GWh)

Nam Ngum -1 Vientiane 150 1055Xeset Salavan 45 136Xelabam Champassack 5 23Nam Dong Luang Prabang 1 4Theun-Hinboun Bolikhamxay 210

411 1218

Source: EDL

45

study of water resources has been carried out in the LaoPDR and if development plans are to be sustainable, theymust be based on an extensive knowledge of the currentphysical and sociological characteristics of the localitiesbeing considered for development.

Rural electrificationThe underdeveloped state of rural infrastructure in theLao PDR is a major constraint to rural economic growthand poverty reduction. Only 8 percent of rural Lao house-holds are connected to the electricity grid, compared withover 60 percent in Vientiane. Households which are notconnected to the grid pay high prices for electricity, forexample, electricity from automotive batteries cost at least$2 per kilowatt-hour.

In many cases, rural areas are electrified by extend-ing the electric power grid to the suburbs of urban perim-eters. Rural electrification has, nevertheless, been an elementof all major electrification projects in the past and has beena component of the five main electrification projects:(i) Vientiane Plain Rural Electrification 1986-1990 fundedby ADB; (ii) Nam Ngum-Luang Power Transmission com-pleted in 1997 funded by ADB; (iii) Southern ProvincesElectrification completed in 1993 funded by World Bank;(iv) Provincial Grid Integration an ongoing World Bankproject; and (v) Southern Provinces Rural Electrification(SPRE), also an ongoing World Bank project. As part ofthe SPRE loan, the World Bank has included a modest($610,000) off-grid electrification component. Through thiscomponent, technical assistance is being provided to EdLto design and implement diesel, solar photovoltaic, and mi-cro hydropower off-grid electrification.

Due to long distances from sparsely populated andremote areas, connection to the regional grid is difficultto justify on economic grounds and inaccessibility andcosts of fuel hamper use of diesel generators. The terrainand low population density in remote scattered commu-nities makes off-grid electrification through renewablesources an attractive option. Barriers to surmount includebudgetary constraints, lack of experience and qualifiedhuman capacity, and lack of information about technolo-gies. Initiatives are underway to lay the foundation forlarger future investments in this area by JICA, WorldBank, and ADB to meet the Lao PDR’s ambitious develop-ment objective of achieving 25 percent rural electrificationby 2005.

Thailand

The 1990s was a period of declining oil prices and strongeconomic expansion, and Thailand’s use of energy grew

rapidly. Annual commercial energy demand increasedfrom 9.1 percent in 1992 to 12.4 percent in 1993, and thegrowth rate for electricity use was 12.3 percent. As istypical in an industrializing economy, these rates exceededthe economic growth rate, which averaged only 7.6—7.9percent annually during 1992-1994. Peak demand in1994 climbed to over 10,000 MW with reserve of about25 percent at a 75-80 percent load factor, and the demandfor new electricity generation was growing at 1,200—1,500 MW per year.

As the recession took hold in mid-1997, power demandwent flat for the first time in over four decades. January 1998saw a drop in electric consumption of 11.7 percent over theJanuary 1997 level. Average consumption in January 1998was equivalent to 1,031,145 barrels equivalent per day ofcrude oil (BOED). In 1999, Thailand’s commercial con-sumption of raw energy began to rise again: by 2.2 percentin January over January 1998, or 1,053,905 BOED. Thiswas an early signal that the recession had bottomed out.

Policy and programThe National Energy Conservation Program, coordi-nated by the NEPO and implemented largely throughEGAT and the Metropolitan Energy Authority (MEA),has been a considerable success. It aims to reduce grossnational energy consumption by at least 3 percent annu-ally. It was funded at about Bt4 billion annually duringthe Seventh Plan period, and is expected to conserve Bt15billion a year in energy costs.

Viet Nam

Viet Nam has one of the lowest levels of energy con-sumption in the world, although both production and con-sumption of energy are increasing rapidly. Powergeneration, transmission and distribution in Viet Nam,are under the exclusive aegis of Electricity of Viet Nam(EVN), which in turn operates under the umbrella of theMinistry of Industry (MoI). According to the MoI, VietNam’s estimated demand for electricity to the year 2010will grow annually at the rate of 13 to 15 percent corre-sponding to a need of adding 600–800 MW of new powercapacity to be added to the overall grid annually.

Depending upon the area, Viet Nam is facing an in-creasing number of blackouts as demand for electricitysurges beyond the capacity of existing power stations. Pro-viding electricity to the larger cities and industry takes aprecedence over smaller provinces and households in thecountryside. It is expected that shortfalls will increase aslarge block industrial users such as production plants, in-dustrial processing zones and satellite cities come on line.



Hydropower plants which contribute about 64 per-cent of Viet Nam’s total electric supply have been ad-versely affected by the El Nino-induced drought of 1997and early 1998. Industry experts claim that the currentsupply will be severly constrained with the growing popu-lation. In order to help alleviate the hydropower short-age, the state is planning to import energy sources fromnearby Lao PDR and PRC.

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Baird, 1996, personal communication to Claridge.Bangkok Post, “Rise in Use of Raw Energy Indicates Bottoming

Out; Natural Gas Use jumps sharply,” Bangkok, 22 April1999.

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Baseline Survey for Protection of Provincial Raw waterResources in Thailand, 1997.

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A critical problem that needs to be urgently ad-dressed is the deficient underlying transmission net-work. Poor operating substation and distributionequipment is the largest source of wastage with inad-equate power grids accounting for a 20 percent losseach year.

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Draft National Village Forestry Program, Vientiane, March1999.

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Government of Viet Nam, “Biodiversity Action Plan for VietNam,” Hanoi, 1994.

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Commission, “Review and Assessment of Water Resourcesfor Hydropower,” 1991.

Ministry of Agriculture and Forestry, Department of Forestry(MAFF/DOF) Center for Protected Areas and Water-shed Management & ADB, Nam Ngum WatershedManagement Draft Final Report, BCEOM in associationwith SEATEC abd SEMED, 29 February 1999.

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MWR, “Strategy and Action Plan for Mitigating Water Disas-ters in Viet Nam,” 1994.

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Ruzicka I., “Taxation and Policy Reform in Cambodian For-estry,” Technical Report No. 5, Consultant’s report toMAFF under Forest Policy Reform Project, ARD Inc.,Phnom Penh and Burlington, Vermont, 1998.

San, Nguyen Van and Don Gilmour, “Forest RehabilitationPolicy and Practice in Viet Nam,” IUCN, 1999.

Savath, K. and Sanrithy, C., “Environmental Challenges ofTonle Sap,” Paper presented at the Fifth Meeting of theGMS Working Group on the Environment, Kunming,11-12 May 1999.

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Stibig, 1997.Thailand Development Research Institute (TDRI), Natural

Resources Management in Mainland Southeast Asia,Bangkok, Thailand, 1995.

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____________________, “Viet Nam: EnvironmentalProgram and Policy Priorities for a Socialist Economy inTransition,” Report No. 13200-VN, 1995.

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____________________, /FAO/UNDP, Cambodia: ForestPolicy Assessment. 1996.

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Royal Government of Cambodia, “Report on the Tonle SapForum on Provincial Level Planning, Technical Coordina-tion Unit for the Tonle Sap,” Ministry of Environmentand UNESCO, 1996b.

_______________________, “ Forest Crime Monitoringand Reporting,” A joint MAFF and MOE proposal foreffective coordination of activities in the forestry sector,Phnom Penh, 1999.

_______________________, “Management of Fisheries,Coastal Resources and the Coastal Environment in Cam-bodia: Institutional, Legal and Policy Perspectives,” Syn-thesis report by Cambodia Working Group in cooperationwith Wetlands International, Phnom Penh, 1998b.

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RTG, MOSTE, Thailand Country Study on Biodiversity,Bangkok, 1992.

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49

Environmental policies, to be effective, requirecapable public institutions. Enacting comprehensive legislation is of limited value if institutions are incapable of implementing thepolicies and actions that will address priority

environment problems. One of the important functionsof the framework legislation is to define the mandate forenvironmental agencies in relation to other governmentbodies. Because environmental problems cut acrosssectoral boundaries and may involve many differentagencies, clearly delineating institutional arrangementsis crucial for effective implementation.

Institutions generally do not have adequate resources,the needed incentives, and trained staff to carry out envi-ronmental management functions properly. A significantmove has been made by the individual countries, begin-ning in the early 1990s–that of establishing a ministry ora cabinet-level coordinating organization to addressnatural resources and environment management issues.Thus, Viet Nam and Thailand now have their Ministryof Science, Technology and Environment (MOSTE),while Cambodia has its Ministry of Environment(MOE). In the Lao PDR, with the recent approval ofDecree 068/PM (the Environmental Protection Law),the Science, Technology and Environment Agency(STEA), a cabinet-level executive institution, acts as thecoordinating agency on all environment-related issues.

Cambodia

Institutional Framework

Political and socioeconomic contextThe human resource vacuum experienced by Cambodiain the early 1990s has set the stage for the influx of muchtechnical assistance from funding agencies. Thus, anevaluation of the environmental policies enacted and

institutional arrangements made in the 1990s necessarilyreflects also in part upon the performance of the fundingand development agencies.

Environmental considerations occupied a second-ary place early in the decade when the rehabilitation andreconstruction needs of the country took precedence.Nevertheless, the 1994-1995 National Program to Re-habilitate and Develop Cambodia includes optimizingsustainable use of natural resources among its major con-cerns, along with the pursuit of macroeconomic stability,administrative and judicial reform, and other develop-ment objectives. Other planning documents mentionstrengthening the base for a market economy among theshort-term priorities. The emphasis placed on marketopening, however, also led to the uncritical, and harmful,management of natural resources.

The weak revenue base of the state, overstaffed pub-lic service, problems linked to demobilization and rein-tegration of former soldiers into the economy, and limitedtechnical capability of the line agencies have all been eas-ily recognized as major obstacles to economic develop-ment, and, as it turned out, to good environmentalmanagement. The weak revenue base makes natural re-sources a tempting target for revenue raising. Overstaffedand underpaid civil service makes it difficult to profes-sionalize natural resource and environmental manage-ment. The resettlement demands often conflict withenvironmentally sound land use. Added to this is the factthat, after the period of the United Nations TransitionalAuthority in Cambodia (UNTAC), natural resourceswere being used to finance political party war chests ratherthan the government budget.

Institutional structures and linkagesSignificant efforts have been made throughout the de-cade to establish viable environmental institutions. TheMOE was created in 1993. For a brief period it becamethe Secretariat of State for Environment, but it reacquired

CHAPTER 3

Environmental Policies andInstitutional Framework

Environmental Policies and Institutional Framework


its ministerial status in 1996. The MOE operates alongthe principles to which the Government commits itself.These include: the recognition of the links between pov-erty and environmental degradation; commitment to aparticipatory approach to dealing with environmental is-sues; acceptance of the need for an integrated approachto most environmental problems; and the importancegiven to strengthening relevant institutions and to aware-ness building. The MOE has assumed a strengthenedrole in environmental management and conservation inrecent years.

A number of institution-building projects inCambodia have been funded by, among others, the WorldBank, United Nations Educational, Scientific andCultural Organization (UNESCO), European Union(EU), ADB (through two advisory TAs aimed atcreating in-country EIA expertise), MRC, DanishInternational Development Agency (DANIDA), and otherorganizations. Still, institutional weaknesses persist. Theyfall into two broad categories: (i) technical and financialincapacity of the institutions to deal with environmentalissues; and (ii) weak institutional linkages and coordinationbetween MOE and other branches of government and civilsociety.

The first group involves issues like: (i) an overstaffedadministration at the central level coexisting with weakand underfinanced provincial and district counterparts;(ii) the absence of a clear statement of the duties andresponsibilities of the MOE staff and a human resourcedevelopment plan; (iii) a nontransparent system ofrecruitment into the government service and insufficientpolitical support for a radical overhaul of the civilservice; and (iv) continued technical weaknesses in manyareas of environmental management (e.g., monitoring ofindustrial emissions discharges, hazardous waste man-agement, and others).

The main concern in the second group is the poordelineation of responsibilities between MOE and theMinistry of Agriculture, Forestry and Fisheries (MAFF)in several aspects of natural resource management (e.g.,protection of wildlife, monitoring of illegal forest activi-ties, regulation of fisheries in the inundated forests of theTonle Sap, division of tasks within different managementclasses of land, etc.).

Complaints about lack of institutional coordinationare common in Cambodia. The source of inefficiency is notthe fact that different agencies look at the same problem butrather that it is not clear who has the final word, anddecisions are often reached without reasoned consensus.

Much better coordination is needed not only amongbut also within the main bodies dealing with environ-

mental problems. For instance, in MOE, only weak linksexist between the Department of Pollution Control andDepartment of EIA Review. Within MAFF, it isunusual for the Department of Forestry and Wildlife(DF&W) to even “compare notes” with agriculture-oriented departments. Several attempts of the last fiveyears to establish internal linkages within MOE andformalize them in job descriptions for each of MOE’sunits need to be resumed and completed.

A notable absentee from the process of environmen-tal policy formulation in Cambodia has been theMinistry of Health. Apart from modest efforts by WHOstaff and a token representation of the Ministry of Healthin the EIA process, no work is conducted locally on thenumerous links between environmental conditions andpublic health.24 Environmental policy in Cambodiacontinues to lack any epidemiological basis.

There are a lot of overlaps in the management ofcomplex problems. Tables 21 and 22 illustrate the extentof overlapping of government functions and legal provi-sions in coastal zone management (RGC 1998b).

In addition to overlaps, institutional responsibilityis not well delineated vertically (i.e., between central,provincial, municipal, and even district levels). Thisproblem is part of a bigger issue of fiscal decentraliza-tion and public administration reform as a whole. In thecase of natural resource management in particular (forests,fisheries, and, in the future, mining), absence of clear (orany) specification of the regulatory and revenue functionsof different levels of administration contributes to the break-down of effective resource management at the local level.

Mechanisms are now being created gradually toachieve a more coordinated approach to environmentaldecision-making. For example, EIA working groups inkey ministries have been created to provide better liaisonwith MOE, and several bodies have been designated toachieve a shared approach to coastal zone management.

Environment and development plansThe First Socioeconomic Development Plan (1996-2000) considers the environmental task an encompass-ing one–that is to “manage, conserve and protectCambodia’s environment and natural resources in anecologically sustainable manner to assist in alleviatingpoverty throughout the nation.”

Six medium-term objectives were identified in 1995,namely, to:� Build the environmental planning and monitoring

capacity of core institutions;

24 There is strong indirect evidence of generally poor understanding in Cambodia ofthe links between sanitation improvement and public health.

51

� Improve forest concession management;� Strengthen protected area management;� Improve the management of the Tonle Sap ecosys-

tem;� Manage coastal zones; and� Reduce urban and industrial pollution.

With only small changes (addition of energy devel-opment and a major narrowing down of urban and indus-trial environmental issues to solid waste management),the same topics are contained in the NEAP, preparedunder World Bank funding, and approved by the Councilof Ministers in December 1997. The NEAP presents afive-year program (1998-2002) to improve environmen-tal management. The first phase of the program (1998-2000) focuses on strengthening the policy and regulatoryframework. The second phase is devoted to the imple-mentation of the NEAP’s priorities. For the Govern-ment of Cambodia, the NEAP provides the strategicframework for improving environmental management.It is complete (since it does not address water resourcesand certain urban and industrial environmental issues)but it is a sound technical basis for the medium term andfor formulating Cambodia’s environment strategy.

Other more specific planning documents are beingdrafted or are under consideration. They include the

National Wetlands Action Plan, Regional BiodiversityAction Plan (with Cambodia included), Strategic Coastaland Marine Environmental Management Plan, and sev-eral others.

Policy Development, Legislation,and Regulation

Environmental policy legislationIn terms of legislation, a government decree on the Cre-ation and Designation of Protected Areas was issued inNovember 1993, largely adopting concepts of protectedareas management from the World Conservation Union(formerly IUCN). It designates 23 areas of fragile andcritical habitats constituting a very large (by internationalcomparison) 19 percent of the total territory. Cambodiais a signatory to all major international conventionsrelating to environment (Biodiversity, Convention onInternational Trade in Endangered Species or CITES,Ramsar, Climate Change), and an active partner inregional environmental projects and programs.

The Law on Environmental Protection and NaturalResource Management (LEPNRM) was enacted in1996. It codifies the State’s obligation to protect theenvironment and ensure sustainable development of

Table 21: Existing and Potential Institutional Overlaps in Coastal Zone Management in Cambodia

ResponsibleDepartment/Office In Fo Fi Ag To Tr Lu Rd En

Industry (In) P CP P P P CP CPForestry (Fo) P CP CP P P CP P CPFisheries (Fi) CP CP CP P CP CP P CPAgriculture (Ag) P CP CP CP CP PTourism (To) P P P CP P CP PTransportation (Tr) P P CP P CPLand Use (Lu) CP CP CP CP CP CP CPRural Development (Rd) P P CP CPEnvironment (En) CP CP CP CP P CP CP CP CP

C = current overlap/conflict, P = potential overlap/conflict.

Table 22. Current and Potential Overlaps Among Legal Provisions In Cambodia’s Coastal Zone Management

Legal Provision FL FiL LEPNRM LL LLM PA

Forest Law (FL) CP CP CPFisheries Law (FiL) CP CP CPLEPNRM CP CPLand Law (LL) P CP CPLLaw on Land Management Utilization and Construction (LLM) CPProtection Areas Decree (PA) CP CP CP

LEPNRM = Law on Environmental Protection and Natural Resource Management.Source: RGC 1998b.



natural resources. It also calls for the assessment of theenvironmental impacts of new investment projects andprovides for public participation in environmentaldecision-making. It extends the MOE oversight toindustrial and urban environmental issues.

Several key pieces of legislation currently await revi-sion, including the much-debated Forest Law, which stillneeds to be complemented by more detailed regulationsand implementing guidelines. Water pollution controland solid waste management subdecrees were promul-gated in 1999, as was the subdecree on environmentalimpact assessment (EIA). The subdecree on the man-agement of protected areas system is expected to be ap-proved later in 1999.

Legal and regulatory issuesEfforts to recreate a legislative framework for environ-mental management in Cambodia, started in 1993 andinterrupted in 1997, have been reasonably successful.However, the translation of the framework into detailedregulations and guidelines has only started and regula-tory gaps still exist.

Experience in Cambodia and elsewhere in Asia sug-gests that mere existence of environmental laws may notbe enough to create a suitable management framework.The laws may be conflicting or unclear, regulationsquickly overtaken by events. Legislative and regulatoryreform requires a long-term and costly commitment thatcalls for coordinated efforts among legislative drafters,subject matter specialists and, preferably, subject matterworking groups.

Regulatory gaps must be closed for the legislativeframework to be functional. Assistance would be par-ticularly needed in the: (i) development of regulatory in-struments and management guidelines for protected andneighboring areas (buffer zones); (ii) formulation of aregulatory framework for the management of hazardouswastes; (iii) review and finalization of regulations regard-ing agricultural materials (especially pesticides); and(iv) development of municipal regulations based on ur-ban environmental subdecrees (on water pollution andsolid waste management).

Human resource developmentThere has been a substantial infusion of funds for humanresource development (HRD) within MOE and other lineministries. A number of ADB technical assistance projectshave delivered training to MOE and other line agency per-sonnel, and helped strengthen MOE’s technical capacity.But until now, such programs have not included an inte-grated HRD plan for MOE, or for MAFF.

There is a pressing need to prepare an HRD planfor MOE—a plan that should complement the country’soverall environment strategy. The plan must have suffi-cient authority to invite coordinated support from fund-ing agencies, particularly for training in regional orcluster-based planning, among other skills.

Environmental Impact AssessmentUntil recently, EIA2 5 in Cambodia was an ad hoc activ-ity with the Council for the Development of Cambodia(CDC) providing environmental (as well as overall)clearance for major investment projects.26 EIA waslargely limited to public sector projects normally financedby organizations whose internal approval proceduresmandated an environmental assessment (ADB, WorldBank, EU, bilateral agencies, etc.). This is beingchanged. The process is now underway for: (i) transfer-ring the responsibility for EIA from CDC to MOE;(ii) transferring the initiative for conducting EIA fromoutside development agencies to Cambodian authori-ties; and (iii) making EIA apply across all new and oldactivities in a systematic manner. The first step is virtu-ally accomplished while the other two still require fur-ther substantial efforts.

Today, the authority for EIA is squarely vested inthe MOE,27 as provided for by the LEPNRM. Thescope of EIA has been extended to all investment projects,proposed or existing. Environment units have been, orare being, created in all ministries having resource man-agement functions (Ministry of Industry, Mines andEnergy; Ministry of Public Works and Transport;MAFF; Ministry of Rural Development; Tourism andHealth). The approach to EIA is expected to be basedincreasingly on formalized links between MOE andthese environment units. The Environmental SteeringCommittee (ESC), with membership from the line min-istries, NGOs, and the Chamber of Commerce, was cre-ated in 1998 to advise MOE on issues relevant to EIA.

ImplementationSector-specific technical EIA guidelines have beendrafted and ambient standards have been recommendedfor air, water, and soils. In June 1999, an EIA subdecree

25 Unless otherwise specified, EIA is used here in a generic sense as all forms of envi-ronmental assessment regardless of the depth of analysis provided.

26 Strictly, the Cambodia Investment Board (within CDC) approves private sectorprojects and CRDB (also within CDC) approves public sector projects. Line minis-tries approve public sector projects not requiring a loan, and local governments approveprojects that are outside the purview of CDC.

27 CDC remains responsible for approving loan-funded projects and despite the trans-fer of responsibility for EIA to MOE, the latter still needs to comply with CDC’sapproval process.

53

needed to implement LEPNRM was issued. A numberof recommendations have also been made regarding en-vironmental data generation and their management.28

The training of MOE and key line agency staff hasbeen taking place since 1995 under two ADB TAs andtwo RETAs, as well as under other foreign-fundedprojects. All of these activities have (to quote from aconsultant’s report) “positioned some 60 government of-ficials at the threshold for implementing the EIA pro-cess, including data management to facilitate the process.”

LimitationsThe EIA process provides important safeguards for en-vironmental management, but it also has limitations. First,EIA procedures are typically far more advanced than thebaseline data upon which the EIA process depends. Poordata lead to unreliable assessment of likely environmen-tal impacts. Second, the EIA process is a static one basedon certifying compliance (or noncompliance) with cer-tain norms. And even if the norms change over time, theprocess contains few incentives for corresponding im-provements in environmental performance (unlike somemarket-based approaches to environmental manage-ment). Third, the process has bypassed major areas ofenvironmental concern (especially in Cambodia) such asland degradation, deforestation, and other issues.

Actions needing supportADB has helped create a framework for EIA within MOE.The new procedures need to be fully absorbed first, and forthis reason, no additional support for EIA is envisaged inthe medium term. Possible areas of support, by ADB andother sources, would be in entrenching the new EIA proce-dures, providing for in-service training, physical buildup ofmonitoring capability, and creation or improvement of en-vironmental databases such as a register of industrial pollut-ers or a pollution discharges database.

Environmental Governance

Government structuresStarting with the UNDP-implemented National Programof Administrative Reform, a number of separate initiativeshave been supported by the international developmentcommunity aimed at creating a viable structure of govern-ment institutions that are responsive to the needs of thepopulation and having the accountability and the ability toevolve. Reform of the civil service and demobilization werealready identified as essential components of improved gov-ernance at the time of UNTAC. However, the slow progressin these areas has affected environmental management.

Personnel structureThe passage of the LEPNRM in 1996 and subsequentdevelopments have consolidated the role and powers ofMOE. Yet, the ministry’s ability to meet this mandate ishamstrung by its “two-speed” personnel structure. Onegroup of staff, mostly those involved in foreign-fundedprojects, are well-paid, motivated, and work full-time.But the rest of the staff, who are low-paid, perform poorlyand merely retain their employment status by showing upfor a part of the day. Without a good human resourcedevelopment plan, it would be difficult to energize MOEand other key government agencies.

Public participationUntil now, most decisions regarding environmental policyin Cambodia have been supported financially and tech-nically by the international community (including inter-national NGOs) but made largely without anyparticipation from the Cambodian public. The publicgets no opportunity, for instance, to express their con-cerns in the environmental assessment of projects. Andprojects are approved with zero transparency to the pub-lic. The local press has to some degree served as the onlyalternative to a more structured dialogue. The 1999subdecree on EIA, which requires that public scrutinynow be made an integral part of the approval process will,hopefully, change things for the better.

NGOs and voluntary organizationsA very large number of NGOs are active in Cambodia(some 100 local and 200 international) and many areinvolved in environment-related activities. Thus theAustralian People for Health, Education and Develop-ment Abroad (APHEDA), Wetlands International, andthe American Friends Service Committee have a majorinvolvement in coastal zone management; CIDSE and adozen others in agricultural development; OXFAM andfour or five others in rural water supply, etc. There arealso nonprofit voluntary organizations and the Buddhistorder through the Khmer Buddhist EducationalAssistance Project or Buddhism and EnvironmentalAwareness Project run by Buddhist laic organizations)that have taken active interest in environmental issues.

To further strengthen this constituency, there is needto: (i) establish better links between NGOs and non-profit voluntary organizations on one hand and provin-cial and district levels of government on the other; and(ii) undertake continuing environmental education and

28 ADB needs to ensure that expressions of need for further EIA support come fromoutside the EIA industry (see Tripartite Meeting of TA 2723 of 28 December 1998).



communication. Both the local media and the foreignpress can be mobilized for purposes of supporting cer-tain environmental causes, educating the public, and pro-moting transparency in environmental issues.

Environment and NaturalResource Data

The scarcity of reliable baseline data on the environ-ment has been a concern since foreign technical assis-tance began in earnest in 1994. Some entities (e.g.,the Food and Agriculture Organization, the UnitedNations Development Programme–CARERE, andthe Japan International Cooperation Agency) havesuccessfully obtained original field data onCambodia’s environmental resources. However, agen-cies that collect data are often unwilling to share theinformation with other entities without compensa-tion29 (SEATEC et al. 1998). There is need to lookfor new ways of generating needed baseline data. Sincethe work involved and the value of such an undertak-ing go beyond the life of any given project, ADB isconsidering the notion of channeling funds to peoplewith more long-term commitment and the needed tech-nical competence, such as graduate students and youngprofessionals. A suitable conduit—probably an edu-cation or research foundation with an interest in envi-ronmental issues—will gather and manage the dataand maintain links between foreign young profession-als and their Cambodian collaborators.

Lao PDR


Despite efforts of the Government to reverse theincreasingly rapid deterioration of natural resources,environmental degradation proceeded unabated in theLao PDR. Weak management capabilities at alllevels of administration, low awareness of the needfor environmental protection among the general popu-lation, and limited funds all contribute to the failureof these efforts. International support has been focusedmostly at the central level. At the provincial anddistrict levels, where more environmental problemsoccur, hardly any institutional support is provided.Government-funded development activities at theprovincial and district levels, meanwhile, do not addressenvironment-friendly development alternatives regularlyand systematically.

Structures and linkagesBecause of the cross-sectoral nature of environmentalissues, various ministries and agencies are involved inenvironmental affairs. The responsibilities of individualagencies, however, are ill-defined, resulting in duplica-tion in some areas and absence of coordination and over-sight of environmental affairs in others.

The government agencies most concerned with en-vironmental protection and natural resource manage-ment include the following:

Agency Responsibility

Science, Technology, Overall coordination;and Environment oversight of environmentalAgency, Office of the affairs; environmentalPrime Minister(STEA) management (setting policy

and regulatory framework;setting standards; monitoringstate of the environment andcompliance with policies andregulations)

Ministry of Agriculture Forest resourceand Forestry (MAF) management; biodiversity

conservation; soil resourcemanagement; water resourcemanagement

Ministry of Industry Industrial environmentand Handicrafts (MIH) management; mineral

resource managementMinistry of Management ofCommunications, communicationTransport, Post and infrastructureConstruction (MCTPC)Ministry of Public Population managementHealth (MPH)Lao Tourism Authority Environmental(LTA) management in connection

with tourism

Legislative mandateWith the recent approval of Decree 068/PM (the Envi-ronmental Protection Law), STENO officially becamethe Science, Technology, and Environment Agency(STEA), and reportedly has been reorganized into threedepartments, three institutes, and the Cabinet Office, asfollows:

29 Growing and unregulated commercialization of government information services,sometimes defended by the “good privatization” rhetoric, is emerging as a majorproblem of governance in developing Asia (especially in the PRC, and also Cambodia).In most cases, payment for data is a poor substitute for institutional reform.

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Department InstituteDepartment of Environmental ResearchEnvironment InstituteDepartment of Science Research InstituteIntellectual Property Technology ResearchRights, Standards Instituteand Metrology Cabinet OfficeDepartment of Scienceand Technology

The operational mandate of STEA is beingexpanded as it nears ministry status. It will then beincreasingly involved in matters of implementationconcerning watershed and other natural resource issues.The traditional role of STEA had been primarily as acoordinating agency, with special emphasis on reviewingEIAs for hydropower development projects and devel-oping a set of environmental assessment standards. WithinSTEA, an Inter-Ministerial Working Group bringstogether officials from various ministries. This group hassuccessfully facilitated communication among mid-leveltechnical officials.

Under the new Environmental Protection Law, it islikely that STEA will have some degree of authority overshifting cultivation, soil erosion, and disasterpreparedness and relief activities. STEA is in the processof developing units for watershed and water resourcematters, and has proposed an expanded approach that willinclude a more varied selection of watersheds exhibitinga broader range of issues. STEA’s enhanced coordinat-ing and facilitating role, its broader environmental man-date that encompasses natural resource management, andthe potential for it to be more involved in the implemen-tation aspects of policy, will require substantial strength-ening of its institutional capacity. Increased investmentin HRD will be required. In the light of the government’slimited fiscal resources, there will likely be increasing de-pendence on private sector personnel to assist with technicaltasks at the field level.

In addition, STEA is eager to translate the newEnvironmental Protection Law into practical guidancefor the technical departments and divisions in theprovinces. To support the need for sound environmentalmanagement capacities at the provincial level, STEA hascreated, on a pilot basis, branch offices attached to theoffices of the governors of six provinces in northern andsouthern Lao PDR. The legal basis, scope of work, andstaffing of these units are underway. However, the facili-ties provided to these units from government resourcesin terms of manpower, office equipment, and transportfacilities have been very modest.

Human Resource Development

The national pool of trained environmental profession-als and technicians is relatively very small, and externalassistance is needed in many cases, both to assist with thedevelopment of the policy framework and to train a coreof professionals and technicians to implement it. The ca-pacity of the government agencies in general to imple-ment environmental policies and programs, and to enforceand monitor compliance with regulations, is still weak.The few individuals in government who have the experi-ence in the management of natural resources are typi-cally overburdened, and they have minimal expertise inthe domestic application of policy analysis skills. Theprivate sector, on the other hand, has not yet developedthe capacity to provide adequate support and assistanceto the Government.

A “Human Resource Needs Assessment for Environmen-tal Management in the Lao PDR and HRD Plan forSTENO,” prepared for UNDP in September 1997, pro-poses a detailed five-year management plan for STEA.The plan identifies the following as areas where STEA’stechnical capabilities and competencies need to be up-graded:� Personnel management� Project management regulations� Formulation and adoption of regulations� Preparation and review of EIA� Monitoring of environmental quality� Enforcement of environmental laws� Public participation� Database management

With the anticipated increase in staff and the level ofactivity following the promulgation of the Environmen-tal Protection Law, the STEA central office will require,in addition, support in the following areas:� Planning, organizing, executing, and

monitoring programs and projects� Defining and delegating tasks� Procurement and contract management� Staff motivation, guidance and leadership

Local government capabilitiesThe thrust towards decentralization has given localofficials greater authority in natural resource manage-ment and environmental protection. The Governmenthas devolved responsibility for national policy imple-mentation to provincial governments, the level at whichimportant economic development decisions are made andimplemented. Gaps remain, however, in the local gov-ernments’ understanding of important environmental



protection issues. There also appears to be little coordi-nation among the agencies responsible for differentaspects of environmental management. Thus, there is needfor a strengthened environment office at the provinciallevel and for extensive environmental training in theprovincial branches of central agencies.

With central government now concentrating on pro-gram management and coordination, provincial and dis-trict offices are left to assume most of the task of servicedelivery. A UNDP report based on meetings with repre-sentatives of six provincial agencies in Savannakhet pointsto the need for training in the following areas at the localgovernment level:� Information management� Program development and management� English language training� Wastewater management and quality control� Public relations and public participation� Use of modern office equipment� Sanitation and solid waste management� Natural resource conservation and management

Recent rural development experiences havepointed to the need for a more horizontal approach inexecuting programs and establishing interdependent,collaborative, and responsive teams across ministries.The rural development committees and offices havedemonstrated the benefits of area-based networkingand area-based management, which is oriented to-wards local priorities. In the case of environmentalprotection, an ecosystem management approach couldbe adopted, with participating agencies pooling al-ready scarce public sector resources and undertakingplanning and implementation with local stakeholdersin an integrated manner.

Training needs in conservationmanagementIn the conservation management of flora and fauna,the Government has recognized the importance of thecountry’s biodiversity resources. It has designatedsome 12-14 percent of the land area as national con-servation forest (National Biodiversity ConservationAreas) and 9 percent as provincial and district pro-tected areas. The Center for Protected Areas and Wa-tershed Management was created in 1994 to establishand manage the protected areas system. An examina-tion of the effectiveness of conservation managementsystems conducted in 1998 also identified current andfuture training needs in the area. The report made thefollowing human resource development recommenda-tions:

� Preparing and using a standardized MAF job description� Initiating an HRD performance evaluation

system� Developing a formal system of career path

planning for MAF� Implementing a program of agriculture-forestry-

conservation extension over a 7-10-year period� Further examining the establishment of a

Participatory Resource Management Institute

Skills requirements in forestryand land useRecently, the Lao-Swedish Forestry Program under-took an assessment of its land use planning/land allo-cation activities to determine skill and resourcerequirements of the methods used. The study revealedthat additional training would be required to developthe following abilities and areas of knowledge:� Ability to communicate effectively with villag-

ers and understand their points of view� Ability to interpret aerial photos and topographic

maps� Knowledge of basic survey measurement tech-

niques� Understanding of various sustainable and unsus-

tainable farming systems� Understanding of government policies, regula-

tions, and objectives� Knowledge of forest classification criteria and

their application� Understanding of socioeconomic and land ten-

ure issues� Basic knowledge of soil conditions

Environmental impact assessmentA World Bank study has pointed out that, based oninternational methodologies and standards, the 1993National Environmental Action Plan provides acomprehensive framework for the EIA process. Al-though a review and approval process has emerged(see Institutional Mechanisms below), deficiencies inEIA procedures still exist, such as the following:� EIAs are initiated by project proponents rather

than by the Government, with the terms of refer-ence for the consultants being prepared by theproponents’ own consultants, thus allowing forbias.

� The approval of a memorandum of understand-ing (MOU), indicating that proposed projectsconform to national development strategies, isfrequently used to exempt entire projects from

57

certain restrictions (e.g., timber harvesting restric-tions are not imposed on reservoir or roadwayprojects).

� There is no environmental analysis prior to issuanceof an MOU.The Government of the Lao PDR is currently being

assisted by ADB in developing national EIA procedures,guidelines, and regulations, and in further strengtheningSTEA’s capacity for EIA and monitoring. It is also get-ting support from ADB through other technical assis-tance projects in energy and road development, EIAtraining, and environmental monitoring.

PolicyThe environmental policies of the Government are clearlypresented in the Political Report of the Lao People’sRevolutionary Party:

To promote the capacity and potential of the coun-try and the regions alike, our Party continues toimplement the policies of establishing agro-forestryeconomy, closely linking it to industry and services.We will consider agriculture and forestry as funda-mental while focusing on some urgent and poten-tial industrial activities. On the other hand, we willstrongly promote the services sector, correspond-ing to the modern trend.

In materializing the policies of building the infra-structure for these economic sectors, our Party con-siders the socioeconomic development of the re-gions as important, and it continues to encourageit. We will be able to appropriately determine theproduction force for all parts of the country, andexploit the rich natural resources of each region inthe most efficient manner. Simultaneously, effortswill be made to protect and rehabilitate them tobecome the wealthy assets and heritage of the na-tion.The recent promulgation of the Environmental Pro-

tection Law has advanced the implementation of thesepolicies. Environmental protection measures in the formof requirements for EIAs are outlined in Part II, Chap-ter 1, Article 8, of the Law as follows:

1. The Science, Technology and Environment Or-ganization must issue general rules regarding a re-gime and a methodology for environmental impactassessments;Further:2. Sectors related to development projects andactivities related to these sectors must issue rulesregarding a regime and a methodology for environ-

mental impact assessments based upon[overarching] general rules issued by the Science,Technology and Environment Organization;And:3. Before establishing development projects andother activities that are seen to have an impact onthe environment, an environmental impact assess-ment drafted in compliance with [relevant] pre-scribed regulations in clause one and clause two ofthis Article must be submitted to an environmentalmanagement and inspection agency assigned toconsider and issue environmental certificates.The Government’s intention is very clear: The Lao

PDR Government will take the necessary actions to pro-tect the environment and natural resources in the processof economic development.

Further, the Lao Constitution of 1991 states that envi-ronmental protection is the responsibility of everyone, andthat it is against the law to degrade natural resources that arein principle owned by the State. The following laws andpolicy documents have been prepared and adopted by theGovernment subsequent to the promulgation to the Consti-tution, and underwrite the Government’s policy:� National Environment Action Plan, 1993� Forestry Law, 1996� Water Resources Law, 1997� Environmental Protection Law, 1999

Institutional mechanismsProposals for the development of projects are presentedby external (non-Lao PDR) proponents, and are submit-ted directly to the Office for International Cooperation(the OIC; formerly the Committee for Planning andCooperation or CPC), which is responsible for theinterministerial review process. This procedure hasemphasized the authority of the OIC, while de-empha-sizing the regulatory roles of the line ministries. TheForeign Investment Management Council (FIMC) takesresponsibility for the preliminary evaluation of privatesector proposals, and the Department of InternationalEconomic Cooperation evaluates public sector propos-als. Screening of projects remains the responsibility ofthe ministry concerned. STEA participates in theconsultative process by providing general inputs to meet-ings, and retains authority for final approval of EIAs.

Following the evaluation and screening of projects,an MOU is prepared, which indicates that in principle,proposed projects are in agreement with the Government’snational development strategy. The MOU is consideredconfidential, thus severely limiting public participationin the review and evaluation process.



Thailand

Institutional and LegislativeFramework

Basic law and institutionsLike all countries, Thailand has faced environmentalproblems for a long time, mainly natural resource degra-dation and pollution. It was not until 1972, however, afterparticipating in the first United Nations Conference onEnvironment and Development (the Stockholm Confer-ence), that the Thai Government passed the first basicenvironmental law. The Enhancement and Conservationof National Environmental Quality Act (NEQA) cameinto effect in 1975, creating the National EnvironmentBoard (NEB) and the Office of National EnvironmentBoard (ONEB). At that time ONEB was a subcabinetcommittee, chaired by the Deputy Prime Minister.ONEB, as secretariat to NEB, was under the PrimeMinister’s Office. This act was amended in 1978 and1979, and ONEB was transferred to the supervision ofthe Ministry of Science, Technology and Energy.

A markedly new Enhancement and Conservation ofNational Environmental Quality Act was passed in April1992. Under this new law, there are three environmentaldepartments: the Office of Environmental Policy andPlanning (OEPP), Pollution Control Department(PCD) and Department of Environmental Quality Pro-motion (DEQP). With these three new agencies, the func-tions of planning, standard setting and enforcement, andeducation of the public were to be delineated. Reflectingthe new emphasis, the Ministry of Science, Technologyand Energy came to be known as MOSTE.

In 1998, a legal and policy committee of NEB wasassigned to study needed changes in the law, and itsreport was submitted to a Constitution follow-up panelin mid-1999. The revisions provided that: (i) public hear-ings would be mandatory for projects potentially harm-ful to the environment; (ii) individuals would have theright to public information, to be compensated fordamage or injury resulting from pollution, and to lodgecomplaints against polluters; and (iii) MOSTE envi-ronmental officers would be given power to act oncomplaints by imposing penalties or forcing polluters totake corrective action.30

Planning and coordinationIn 1996 the Cabinet approved the National Policy andProspective Plan for the Enhancement and Conserva-tion of National Environmental Quality, 1997-2016. This

20-year plan was mandated in NEQA/92. The Plan setsout general vision-specific goals and includes strategiesto accelerate the rehabilitation of renewable resources aswell as environmental management measures to addressair and water pollution and solid and hazardous wastes.

The Plan will guide the environmental and naturalresource activities to be included under the four five-year plans that will be prepared over the 20-year period.A brief excerpt from the Plan provides the gist of theconclusions reached and the planned approach of theGovernment.

“Previous national development resulted in seriousimpacts to environmental quality and all types ofnatural resources; and what remains are degraded.Moreover, environmental pollution from develop-ment also caused problems for human health. Thecurrent environmental situation is of crisis propor-tion, and difficult to resolve due to rapid popula-tion growth and strong competition for natural re-source utilization. Thus, in subsequent economicand social development, more effective natural re-source management is required, including moresuitable agricultural development and industrialproduction processes that are not harmful to envi-ronmental quality; as well as following multilateralenvironmental agreements and trade accords. Thevision for managing environmental quality includes:

� Natural resources are the resource base for sus-tainable development. Administration of these re-sources for economic development purposes isbased on conservation and social justice.

� Administration and management of environ-mental quality overall are decentralized to be ef-fective, with power being transferred from centraloffices to local institutions. Thus, all governmentagencies, the private sector, NGOs and local levelinstitutions can participate in the formulation ofpolicy and planning, and a monitoring program.

� People have awareness and are willing to worktogether to protect and rehabilitate environmentalquality.’

30 Kanittha Inchukul, “Polluters Face Tough Controls,” Bangkok Post, 14 April.

Provincial environmental planning In accordance with Clause 37 of the NEQA/92, eachprovince is required to prepare a Provincial Environ-mental Action Plan (PEAP) in conformity with theNational Environmental Management Plan outlined byNEB. The PEAP has become the mechanism for a

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province to meet the documentation and budgetary plan-ning requirements for the approval of urban seweragefacilities. The NEQA/92 entrusted OEPP with the re-sponsibility to evaluate the programs proposed in PEAPsand to recommend the annual budgets to be allocatedeach year for these specific programs. OEPP has receivednumerous requests from provinces for funds, action pro-grams or assistance in preparing municipal sewerage sys-tem plans, preparing feasibility studies and detailed designs,and engaging contractors for constructing facilities.

City planningCity planning is carried out by the Department of Town andCountry Planning of the Ministry of Interior. In theory, cityplanning allows objective classification of land and rationalplanning of its use, which serve as guidelines in turn for theplanning, development, and environmental management ofcities. It should also be a primary tool for reducing conflictsin land use. At present, more than 120 city plans have beenprepared, but few cities seriously follow the designated plans.Instead, pressure is often exerted to revise the plan so that itreflects (and accepts) the actual situation. City planning needsto be given greater attention. There should also be publicparticipation and public discussion of the process in orderto make such plans more effective.

Standards and enforcement Under the NEQA, a subcommittee of the Cabinet, NEB,has ultimate responsibility for setting plans, policies, andprograms for the management of the environment andnatural resources. The monthly meetings of NEB arechaired by the Prime Minister or the Deputy Prime Min-ister, and are attended by ministers or their representa-tives. NEB also includes several public (nongovernment)representatives, appointed by the Prime Minister fromthe academe and NGO community. OEPP serves as thesecretariat to NEB.

NEB’s work involves discussing current issues, review-ing and approving EIAs, and adopting regulations proposedby environmental agencies. NEB works through a numberof committees and subcommittees. There are two coordi-nating committees: (i) the Coordinating Committee onIndustrial Environmental Management, which bringstogether the Permanent Secretaries of MOSTE and of theMinistry of Industry; and (ii) the Coordinating Committeeon Agriculture and Natural Resources, which bringstogether the Permanent Secretaries of MOAC.

These two committees encompass the key agencies fornatural resources and environmental management inThailand at a level and manner very conducive to resolvinginteragency conflicts and promoting interagency collaboration.

Environmental Impact AssessmentFormal consideration of the possible environmental im-pacts of a proposed project or activity was initiated inThailand in 1981, under the authority of NEQA/75.NEQA/75 and the current NEQA/92 designated thetypes and sizes of projects or activities for which a formalEIA would be required. This EIA must ultimately bereviewed and cleared by NEB. The OEPP sets specificguidelines for EIA, and maintains a registry of firms thatmeet the basic qualifications for conducting EIAs. Theproponent of a development project is responsible forpreparing and submitting the EIA. It then goes to OEPP,which also conducts a technical panel review process. Themembers of the panel include recognized experts fromthe academe and the private sector. After the panel re-view, OEPP forwards the assessment, with the corre-sponding recommended action, to NEB for finalclearance.

From June 1992, when the NEQA/92 was firstimplemented, through December 1994, EIA reports for782 projects were submitted. Of these, 406 (52 percent)needed revision; the other reports were accepted.

There is widespread dissatisfaction, both inside andoutside of OEPP and NEB, with the current system.Primary complaints concern the inadequate informationand quality of the EIA, and the lack of public participa-tion in the process. If one compares the current EIA situ-ation in Thailand with that of the United States (whereformal EIA was first implemented in the late 1960s) orother Western countries, a fundamental conceptual dif-ference would be noted. Although EIA was initially re-garded as an additional regulatory burden on companies,in most of the West it quickly proved to be of consider-able value to the proponent agency or company. Costlymistakes in siting or design have been avoided frequentlyenough that most major companies in the industrializedcountries have integrated a reasonable degree of EIA(and social impact assessment also) into their facility de-sign process from the earliest stage. EIA to them hasbecome an effective planning tool, rather than just an-other bureaucratic requirement. This evolution has notyet taken place in Thailand.

Viet Nam

National Environment Plan

Environmental concerns have received increasingrecognition in Viet Nam since 1984, when the VietNamese Government formulated a National Conserva-



tion Strategy. In 1991, with the support of the SwedishGovernment, the UNDP, and the United Nations Envi-ronment Programme (UNEP), Viet Nam drew up its10-year National Plan for Environment and SustainableDevelopment (NPESD) for 1991-2000.

The NPESD recognizes that sustainable develop-ment cannot be achieved without striking a balance be-tween natural resources, population and economic growth.NPESD priorities center on developing appropriate or-ganizational structures, integrating environmental poli-cies and legislation for different sectors, and managementprograms. The action plan for the first five years gives thehighest priorities to: (i) the establishment of a scienceenvironmental authority; (ii) population control pro-grams; (iii) watershed management (including refores-tation, soil erosion control, problem soil management,and stabilization of shifting agriculture); (iv) agriculturaland industrial pollution control; and (v) estuary protec-tion. For the second five years (1996-2000), watershedmanagement and population control programs are giventop priorities, along with other important areas, includ-ing protection of coral reefs, wetlands and inland waters.Following the adoption of a new constitution in April1992, Viet Nam has rapidly progressed towards reform-ing its legal and institutional framework. Although muchneeds to be done at this stage, Viet Nam now has its frame-work law in place, and institutional capacity is being im-proved. With the support from the Global EnvironmentFacility of the World Bank, Viet Nam has prepared abiodiversity action plan.

One obvious advantage Viet Nam has is its abundantand qualified human resource. Viet Nam’s universitieshave been an important source of experts on various natu-ral resource and environment-related issues. There is alsoa network of professional science and technology asso-ciations, which are linked both to the universities and theGovernment and provide advice to the latter.


Since the early 1980s, but more particularly in the 1990s,there have been a number of key institutional and policyreforms relating to Viet Nam’s environment and naturalresources. Policy reforms in environmental protectionand land and water resources have been successful, butreforms in the forestry and fisheries sectors have beenless effective.

The responsibility for environment-related concernsis vested mainly in six central government agencies:� Ministry of Science, Technology and Environment

(MOSTE)

� Ministry Agriculture and Rural Development(MARD)

� Ministry of Fisheries (MOFI)� National Centre for Science and Technology

(NCST)� Ministry of Education and Training (MOET)� Ministry of Planning and Investment (MPI)

MOSTEThe establishment of MOSTE in 1992 was provided forby the NPESD. One of its first initiatives was to set up theNational Environmental Agency (NEA) as an executivedepartment. Following the launching of NEA, local gov-ernment arms of MOSTE, called DOSTE, were estab-lished in all 61 provinces, and from 1995, environmentmanagement divisions set up in every DOSTE.

NEA is headed by a director general assisted by twodeputies. It has nine divisions: International Relations,EIA, Monitoring, Pollution Control, Inspection, Aware-ness and Training, Database Management, and Policyand Nature Conservation. An important NEA task is tochair the intersectoral Environment Impact AssessmentReview Board. The Nature Conservation Division wasestablished in 1997 to coordinate implementation of theBiodiversity Action Plan. NEA also has responsibilityfor national wetland policy and annual state of the envi-ronment reporting. In 1999, the Government decided toelevate the status of NEA to a general department, post-poning consideration of proposed ministerial status.

MARDUntil 1995, Viet Nam had separate ministries for agri-culture, forestry, water resources and fisheries. The sepa-rate structures meant that policies in one subsector weredeveloped in isolation and usually without considerationof their possible impacts on other subsectors. In late 1995,these separate ministries were amalgamated into theMinistry of Agriculture and Rural Development orMARD, with the Ministry of Fisheries remaining sepa-rate. The level of cross-sectoral integration remains lim-ited. Like MOSTE, MARD functions throughprovincial departments or DARD, with forestry repre-sentation down to district level.

MARD’s Forest Protection Department coordinatesprotected area management under the Government’s1991 Law on Forest Protection, the 1993 Land Law, theLaw on Environmental Protection, and the 1995 Bank(ADB) Assistance Plan (BAP), as well as variousdecrees outlining regulations and penalties. Field man-agement is the responsibility of management boards thatreport to the forest protection boards within each

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province. Management boards have been established for allnational parks and for 32 nature reserves. The Forest Inven-tory and Planning Institute is responsible for addressing thetechnical issues associated with protected area managementsuch as planning, inventory and research.

MOFIThe Ministry of Fisheries (MOFI) and the Institute forFisheries Economics and Planning recently prepared a“Master Plan for Fisheries to Year 2010” with supportfrom DANIDA. The Master Plan outlines projects tosupport MOFI and the fishing industry, to protect theenvironment, and preserve Viet Nam’s fisheries resourcesand other natural resource systems that are affected by thefisheries industry.

MOFI is now preparing new laws and policies pro-moting the principle of sustainable use. Examples of theseare: a national program to control environmentally damag-ing practices associated with aquaculture; a decree for theprotection of fisheries; and a decision on banning illegalfishing methods. MOFI is drafting a new umbrella Law onFisheries aiming to control all activities in the industry.

NCSTThe National Center for Science and Technology(NCST), which services MARD and MOSTE, is alarge independent assembly of 20 separate institutesresponsible for science and technology research anddevelopment. NCST’s members include a number ofimportant environmental research organizations, such as:the Institute of Ecology and Biological Resources, whichis responsible for biodiversity survey and research; Insti-tute of Geography, which is currently coordinating projectson EIAs and systems geographic information funded byofficial development assistance; and the Institute ofOceanography, which is the main research authority formarine and coastal environmental issues.

MOETIn 1998, the Ministry of Education and Training(MOET) adopted a National Policy Statement onEnvironmental Education and a National Strategy forEnvironmental Education. The following year, theGovernment approved a detailed program prepared byMOET together with MOSTE for “incorporatingenvironmental issues into all levels of the national educa-tion system” in response to Party Instruction 36 of 1998.

MPIThe Ministry of Planning and Investment (MPI) isconcerned with economic policy, development planning,

and major projects. It has ultimate control over sectoral andprovincial plans and budgets. Any new policy or institu-tional initiative requires the support of MPI if it is tosucceed. In the provinces, MPI operates through thedepartments of Planning and Investment, which havesimilar authority at that level.

Environmental Policies

There are a number of policies that support environment-related initiatives and define institutional responsibili-ties in the area. In general, the Law on EnvironmentProtection governs the interests of the NEA, includingEIA. Policies on land use, and water and forest resourcesaffect concerns mostly within the purview of MARD.

Environment protection policyThe 1994 Law on Environment Protection, which is thekey environment policy innovation of this decade, providesthe legislative mandate of NEA. The law, and close to 20specific regulations that have followed, introduced a nationalsystem of EIA, a process of annual reporting on the state ofthe environment to the Legislative Assembly, national pol-lution standards, and a comprehensive system for auditingexisting industrial facilities. The law also provides for pre-paring regional environment plans and assessing develop-ment master plans prepared by other arms of government.While the progress in applying EIA and auditing proce-dures has been impressive, challenges remain in bringingthe sectors and local government to fully shoulder their en-vironment responsibilities under the law. Strategic EIAs ofplans and policies, prior to the definition of project propos-als, have not begun and, overall, there are impediments toenforcement.

Land use policyIn 1981, land policy reforms commenced to devolve land-ownership. In 1988, the Government defined the farm house-hold as the autonomous economic production unit andallowed farm households to hold long-term land use rightsto annual cropland for 10-15 years and to forestland forlonger periods. The 1993 Land Law extended the use rightsto 20 years for annual crops and to 50 years for perennialcrops. Rights have been allocated to 86 percent of croplandbut only 9.8 percent of forestland. Most forestland islocated in upland areas with difficult terrain, where custom-ary use rights are common. Problems are beginning toemerge with the accumulation of land in a few hands throughthe market. In the Mekong Delta, for example, 6 percent ofthose who had received allotments are now landless, andanother 10 percent retain plots too small for viable



subsistence production. Lacking access to credit, theywere forced to sell off their land to those who couldafford to invest in seed and equipment.

Water management policyIn 1998, for the first time, the Water Law recognizedthe need for integrated watershed managementbetween and within central, provincial and districtauthorities, and the private sector. The Governmentis developing the institutional framework to imple-ment the Water Law in the Red River Basin with sup-port from the ADB-financed Red River Basin WaterResources Management Project. Similar exercises arebeing planned for Viet Nam’s other major riverbasins.

Forest policyThe Government has promoted forest restoration andreforestation as a national priority since 1956, aiming todevelop nationally significant plantation resources. By theearly 1990s, planting programs had made more progressthan in previous years but the country had advanced little inits efforts to replace natural forest timber with plantationsources. In 1993, the Government launched the “Regreeningthe Barren Hills Program (327),” which identified refores-tation and watershed protection as a primary focus andrecognized the integrated nature of natural resource man-agement. In 1997 the Prime Minister instructed MARDto prepare a plan to “close” all natural forests to logging.The plan significantly reduced natural forest harvesting. In1998, the Government introduced the follow-on to 327—the “Five Million-Hectare Program.”

BIBLIOGRAPHY

Kanittha Inchukul, “Polluters Face Tough Controls,” BangkokPost, 14 April 1999.

Lao People’s Revolutionary Party, Political Report of the PartyCentral Committee to the Sixth Congress of the Lao People’sRevolutionary Party, presented by Comrade KhamthaySiphandone, President of the Lao People’s RevolutionaryParty Central Committee. 1997.

Royal Government of Cambodia, “Management of Fisheries,Coastal Resources and the Coastal Environment inCambodia: Institutional, Legal and Policy Perspectives,”

Synthesis report by Cambodia Working Group in coopera-tion with Wetlands International, Phnom Penh, 1998b.

______________________, “National Environmental ActionPlan 1998-2002,” Ministry of Environment, Phnom Penh. 1998

SEATEC International Ltd. 1998. Institutional Strengthening andExpanding EIA Capacity in Cambodia, Consultant’s draft finalreport under ADB TA No. 2723-CAM.

Whitington, T.P. “Cambodia: Profiles of Environmental Activi-ties and Programs,” Draft consultant’s report, SEATECInternational, Bangkok. 1995.

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The baseline studies of Cambodia, LaoPDR, Thailand, and Viet Nam provide aframework for priority environmental pro-gram and policy initiatives. The strategicdirections are built around core themes. The stra-

tegic framework identifies a smaller number of mutuallyreinforcing themes upon which rest specific projects andprograms. The main themes are weighted towards whatreally matters environmentally in the individual countriesand is based on field visits, review of recent documentation,discussions with government staff and civil society.

The recommendations for priority environmentalprogram and policy initiatives are summarized under the-matic matrices as Stretegic Implementation Plans (SIPs)and are presented in the appendix for each individual coun-try. Each of these action plans constitutes the develop-ment framework for the major environmental subsectors.

Most of the strategies described below wereconceived primarily with ADB in mind. Nevertheless, theconcerns stated and actions suggested are by no means ex-clusive to ADB, and are presented here for the use and ben-efit of the governments concerned and all interestedstakeholders.

CambodiaStrategy for the forestry sectorForestry is taken mainly as a component of broad-basedrural development. Active dialogue needs to be main-tained with the DF&W of MAFF, especially the NationalSecretariat for Forestry Policy Reform (FPR). More activeparticipation is required in implementing the FPR, whichis based on a World Bank-funded review and technicalassessment of the Cambodian forestry situation.

Support should go to activities that dovetail into theFPR framework, extend its principal themes, and favorimplementation of its main recommendations. Effortsshould be made to further develop the framework and thesupport structure for community forestry in Cambodia.Favored interventions include: the integration ofsuitable forestry and tree-growing components intofuture rural development initiatives; and identificationand development of mechanisms that would allow ruralcommunities to share more equitably in the benefits offorest utilization in their own or nearby localities. Someaspects may be undertaken as components of broaderprograms. Thus, inundated forest management may bemade a component of broader-based rural developmentsupport in the Tonle Sap area, and special forms of forestmanagement (e.g., as buffer zones) may be supported aspart of a wider support to protected area management.

Strategy for biodiversity managementBiodiversity conservation in Cambodia is strongly cor-related with the sustainable management of the country’sforests, fisheries, and coastal habitats. Supporting thelatter, therefore, also means supporting the protection ofthe country’s biological heritage.

Conservation and development can be integrated inseveral locations in Cambodia. Integration could startduring resource planning in an area, and it could beenhanced by the targeted provision of infrastructure thatlink conservation areas with the adjoining locations.

The ability to plan conservation and developmentactivities jointly requires good regional (or cluster-based)planning capacity. This may require training in rapidenvironmental appraisal and participatory rural appraisal.Donors could provide assistance in this aspect.

CHAPTER 4

Development Framework forEnvironmental Action

Development Framework for Environmental Action


On the regulatory side, guidelines must be providedregarding protected area planning procedures, the man-agement of the area and the buffer zones, and possible ad-justments of the boundaries of protected areas. Protectedarea boundary delineation, especially the “socialization” ofthe boundaries, is a long and complex process that requireslong-term commitment and sustained funding.

Strategy for supporting soundmanagement of the Tonle Sap areaThe strategy for the management of the Tonle Sap area andsurrounding floodplains rests on four building blocks:1. A policy of gradually improving the system of fisheries

management on the lake, for which much more reliabledata on fish production and revenue generation isneeded. The fisheries sector has just not been closelyscrutinized,31 but the revenue losses from Tonle Sapfishing are substantial in magnitude. The challenge ishow to optimize (rather than simply maximize) incomefrom this renewable resource.

2. Consideration of the interdependence of activities inthe inundated zone and those further afield. The ab-sence of income-earning opportunities in the hinter-lands causes the people there to migrate towards thelake, threatening its ecological balance and productiv-ity. Broad-based rural development and improved mar-ket access in these areas could then deliver a doubledividend, i.e., improved economic status and quality oflife in the hinterlands, and reduced pressure on the TonleSap ecosystem.

3. Recognition of the multiplication of projects assistedby funding agencies around the Tonle Sap area, and theextent to which synergy can be generated among thevarious initiatives around the lake.

4. Greater institutional coherence in the management ofthe Tonle Sap area. The environmental integrity of theTonle Sap area requires coordinated management of itsentire watershed (comprising no less than six provinces).Efforts to create a single multidisciplinary managementauthority for the Tonle Sap area must therefore be con-sidered seriously while building on planning efforts al-ready undertaken (such as the Food and AgricultureOrganization’s Participatory Natural Resource Man-agement Plan, the Mekong River Commission’s De-velopment Plan for Tonle Sap, and the Chaktomuk andthe National Wetlands Action Plan).

Strategy for agricultural chemicals inCambodiaThe indiscriminate use of agricultural chemicals is a se-rious threat to the future of Cambodian agriculture and

the health of the Cambodians. Training components canbe incorporated in rural development projects to gener-ate an understanding of the effects, limitations and risksof pesticide, and agricultural chemicals use among thetarget populations.

Among the more specific priority is in informationdissemination to the farmers and general public on theinherent dangers presented by toxic pesticides, etc.

Strategy for water resource managementThe strategy for the water resource sector could be basedon five main considerations, namely: (i) absence of acomprehensive water resource policy in Cambodia;(ii) need to rapidly strengthen all institutions dealingwith water resource development, particularly the newlycreated Ministry of Water Resources and Meteorology(MOWREM); (iii) growing urgency to address the fi-nancial and management aspects of water resource use;(iv) the potential gains of better coordination among fund-ing agencies and NGOs involved in the sector; and (v)continuing need for improved water supply and sanita-tion measures in Cambodia.

Comprehensive water resourcepolicy. Despite major contributions by MRC, UnitedNations agencies, World Bank, and NGOs towards ad-dressing various aspects of water resource use in Cam-bodia, a comprehensive policy for integrated waterresource management (IWRM) for the country is yet tobe formulated. The urgency of this task reflects a gradualand desirable shift of focus from rehabilitation measuresand from an engineering bias towards concerns with fi-nancial viability and sustainability of water sector devel-opments, both existing and proposed. ADB’s proposedTA on Institutional Support for Water Resource Man-agement could be a vehicle for formulating such a policy.For this policy to have the needed authority, its formula-tion will have to be undertaken jointly by ADB, otherfunding agencies and NGOs, and be closely coordinatedwith the basin-wide Water Utilisation Program beingimplemented by MRC.

Institutional strengthening. The imme-diate priority will be to strengthen MOWREM to placeit in a position where it can truly manage Cambodia’swater resources. Among other things, MOWREMmust be able to adequately plan water resource projects,facilitate and oversee their implementation, and moni-tor and evaluate project and program performance.There is a need to assess the human resource develop-

31 The 1987 Law on Fisheries Management and Administration (Fisheries Law)requires a review and possible redrafting.

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ment demands and other requirements for MOWREMand other relevant agencies of the Government to per-form their tasks. The institutional arrangements in thewater sector, in particular the respective roles ofMOWREM, MAFF and the Ministry of Environment(MOE), require further clarification and operating guide-lines. Support will be needed for measures aimed at improv-ing the governance of the sector, such as amending the WaterLaw, and drafting relevant subdecrees and operating guide-lines for MOWREM and municipal authorities.

Financial and management aspects. Af-ter a period of physical rehabilitation, and in the face ofreduced assistance from funding agencies, Cambodia isbeginning to grapple with the task of sustaining the op-erations of its irrigation and water supply systems. Assis-tance will be needed in introducing and developingmeasures for more sustainable operation of irrigation andwater-related municipal facilities, for improving the func-tioning of existing facilities, and generating the neededknow-how for raising the operational efficiency and fi-nancial sustainability of existing projects. New projectscould include suitable expertise-creating components orreplicable improvements in the facilities’ financial man-agement. Some water agencies may also have to be re-structured as utilities, and procedures developed for costsharing in multipurpose water resource schemes.

Coordination among funding agenciesand NGOs. The need for coordination is particularlystrong in the case of MRC, given its long associationwith the region and its expertise in the basin-wideplanning and monitoring of water use. With the basin-wide mandate of MRC and its partners’ hydrological andmonitoring expertise, aspects of water resource use thatare driven by national considerations (e.g., institutionalreadiness of line agencies, financial and management ar-rangements for the operation of facilities, etc.) can begiven more emphasis.

Support for improved water supply and sani-tation projects. Support for water supply and sanita-tion in Cambodia should be more closely aligned withthe overall emphasis on rural development and povertyreduction. The experience and implementation networkof existing official programs (such as the CambodianResettlement and Reintegration Program and theUNICEF) and NGOs (CARE and others) will be veryuseful in the implementation of these projects.

Strategy for coastal area managementSupport for coastal management needs to be extended ingeographical scope to cover the whole of the coastal regionof Cambodia. There are three good reasons for doing this:

� A sound strategy for coastal zone development, in-cluding prefeasibility studies of specific interven-tions, has already been produced by earlier projectsassisted by ADB. Thus, a good technical basis al-ready exists to build upon.32

� Coastal zones, being a subset of rural areas, also suf-fer from social problems like those faced by inlandcommunities (e.g., seasonal shortage of certain foods,lack of water during the dry season, poor or nonex-istent social infrastructure, etc.).

� Coastal zone management offers good prospects forcreating development and environmental synergiesso often missing in foreign assistance. For instance,good opportunities exist for combining the creationof a sound management framework with private sec-tor investment in ecotourism, which is also a goodway of attracting private investors. Infrastructure de-velopment to create more attractive conditions forprivate investment can also strengthen environmen-tal management.The support strategy for coastal areas will also in-

volve: safeguarding the productivity of Cambodiancoastal waters by bringing about the speedy resolution ofjurisdictional problems surrounding access toCambodia’s coastal fishing grounds; institutionalstrengthening of MOE, especially its provincial and dis-trict levels; improving the regulation of coastal aquacul-ture and salt-mining; creating new mechanisms to reinvestsome of the profits of coastal commercial activities intoenvironmental management and conservation; and evalu-ating the applicability of additional environmental safe-guards such as performance guarantee bonds.

Strategy for sustainable energydevelopmentWhile recent initiatives that bring energy conservationcloser to the forefront of the sector’s development wouldbe supported, assistance needs to shift towards rural en-ergy use, in support of the broad emphasis on rural devel-opment.

Wood-based energy plays an important role inCambodia, and may be included as a component ofbroader rural development projects. This will be so inthose cases where superior economic efficiency of suchcomponents over improvements of stove efficiency canbe demonstrated or where fuelwood plantations promiseto have important secondary positive environmental im-pacts (such as soil stabilization). The overall emphasis

32 The output of ADB’s RETAs will be the Cambodia Coastal and Marine ProtectedArea Plan rather than a master plan (or master plans) for coastal zone development thatwould need to go beyond protected areas.



will be on wood energy efficiency rather than on expan-sion of fuelwood supply.

Hydroelectricity development will be approachedwith a view to both the environmental opportunities aswell as drawbacks of hydroelectricity schemes.33 Hydro-electric projects in Cambodia are considered insufficientlyprofitable economically, with a possible exception ofschemes (such as Kirirom) that have a potential tobecome a focus of watershed-wide conservation. Mini-hydroelectric projects are considered suitable for moun-tainous rural areas where such projects could either forma core of broader rural development projects, or becomethe basis of a sector project.

Strategy for urban environmentalinterventionsUrban development is not regarded as a source of envi-ronmental problems but a major opportunity to diversifythe country’s economy and to develop human resources.Environmental concerns should not stop urban develop-ment; they must make it better informed. Well-selectedurban activities are expected to balance the rural-orientedthrust of the overall strategy of environmental assistancefor Cambodia. The overall objective must be to ensurethat public reforms keep pace with private urban activi-ties to avoid unnecessary escalation of the cost of futureurban improvement.

Following are the main highlights of the recom-mended strategy for urban development in Cambodia:� Urban reforms need to be undertaken, starting with

a clear delineation of responsibility for urban envi-ronmental tasks among MIME, MPWT, MOE,the Phnom Penh and Sihanoukville municipalities,the provincial governments, and the private sector.In each of the public organizations mentioned, insti-tutional introspection must be done, and a missionstatement formulated and linked with the strategyformulation and job description of the different unitsof the organization. Other reforms include: (i)strengthened functioning of urban land markets (landregistration, dispute resolution, identification of con-ditions where public intervention in the land mar-kets may be appropriate, etc.); and (ii) enactment ofland use and tenure regulations that embody appro-priate public health and environmental safeguards.

� Phnom Penh will continue to dominate urban in-vestments and claim the greatest share of policy at-tention. However, in the medium term, the strategyshould favor urban centers outside Phnom Penh,34

especially where this complements other proposedactivities. Examples of such complementarity might

be an improvement of Sihanoukville urban serviceslinked to the creation of a mixed management envi-ronmental zone in the city’s vicinity, a private sectorecotourism investment along the coastal areas, andestablishment of urban centers coinciding with roadimprovement projects.

� The model of low-cost urban environmental im-provement pioneered in Phnom Penh by CARE andthe Australian Agency for International Develop-ment (AusAID) may be adopted and possibly ex-tended to provincial towns in line with decentraliza-tion. The unmet human resource development needsat the provincial town level is well recognized. Thetraining of provincial staff in urban environmentalmanagement will be a suitable component of futureinfrastructure investments in provincial towns.

� In drainage improvement, phyto-remediation needsto be given more serious consideration.

� The concept of multiple use management areas maybe appropriate to apply to the mangrove and beachareas around Sihanoukville or to those amongPhnom Penh’s outlying areas that are vital for watersupply or drainage functions.

� Cost recovery in urban environmental services iscentral to lasting improvement of the quality of lifein Cambodia’s towns. The initiatives giving greaterdegree of autonomy to Phnom Penh andSihanoukville water supply companies, as well asreforms in water tariffs and sewerage charges, shouldbe continued and extended to other suitable urbanareas and urban services. Such initiatives will pref-erably be linked to continuing efforts at the reformof the system of municipal finance and fiscal decen-tralization in general.

Strategy for institutional supportThe key to improving institutional coordination ingeneral, and in the environment sector in particular, isnot necessarily to eliminate overlaps but to improvethe quality of decisions emerging from overlappingsituations. This is achieved by enhancing thefunctioning of coordinating bodies or mechanisms where

33The reader is referred to the 1998 evaluation of ADB-supported hydroelectric in-stallation by theOperations Evaluation Office.

34Although disaggregated human development index (HDI) scores are unavailablefor towns other than Phnom Penh and Sihanoukville (PP-SV), the evidence points tomajor differences in HDI scores between the provinces and PP-SV (RGC 1997a). Itis a safe presumption that provincial urban centers lag significantly behind PP-SV. Thedisparity is, of course, greater still for rural areas and it is this—plus the fact that some80 percent of Cambodians live in rural areas—that provides a solid justification for theoverall emphasis in ADB’s operational strategy on rural development. Nevertheless, adynamic case can be made for improving provincial towns as a means of developingmarket outlets for rural areas.

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they exist or by creating new ones where they do not,35 andwhere poor coordination is identified as a major problem.In the area of urban environmental improvement, this maynecessitate establishing urban development and environmen-tal improvement coordination committees. Better localcoordination demands better coordination also among fund-ing and development agencies. Without it, scarce adminis-trative talent is diverted to selected technical areas or selectedprograms of agencies temporarily benefiting from them atthe cost of greater generalized inefficiency.

Institutional strengthening, particularly in the moni-toring and assessment of the health impacts of environmen-tal change, is one of the priorities for Cambodia. So is humanresource development (HRD). Local skills in regional (orcluster-based) planning, as in combining conservation anddevelopment skills, must be developed. ADB’s StrategicEnvironmental Framework for the Greater Mekong Sub-region can provide foundations on which further training inregional planning can build.

There is also a need to take a fresh look at the process ofgenerating original and up-to-date environmental data.There are continuing weaknesses in this area, and novel waysof generating such information must be considered.

Environmental management in Cambodia needs to bebetter informed and guided by a knowledge of economics,economics data and economics instruments, as indicated byan initial assessment of scope for market-based instrumentsand training.

Lao PDRStrategy for improved forest resourcesExpansion of reforestation efforts. AnIndustrial Tree Plantations Loan Project could be consid-ered to ensure that some government resources are allo-cated for reforestation. The extension should include anemphasis on: (i) planting native fast-growing treespecies and fast-growing tree species with nitrogen-fixingproperties (e.g., Acacia spp.); (ii) training of villagers toestablish nurseries for native tree species; (iii) and supportfor other tree propagation and agroforestry activities to gen-erate income from nonwood-based forestry activities.

Carbon sequestering. There is a need to sup-port the examination of innovative approaches to forest con-servation in the Lao PDR context, which would be linkedto multilateral environmental agreements andinternational conventions and protocols. Developingcarbon sinks could be linked to conserving the remainingnatural forests and establishing (afforestation) orreforesting degraded forests by intensifying ongoingefforts. Joint implementation for a carbon sequestration

project could provide a vehicle for a forest conservationproject.

Regulatory framework.The policy of the Gov-ernment on village forestry management, with individualfarmers as key economic units, is conducive to developingan enhanced role for community-based forestry manage-ment plans. The plans developed in a participatory mannerthrough the World Bank/Finnida-assisted Forest Manage-ment and Conservation Project have not been totally suc-cessful, mainly because of the desire of provincial authoritiesto meet quotas allocated to them by the MAF. Although theGovernment has recently enacted a forestry law that is gen-erally satisfactory, the law’s implementing regulations arenot yet in effect. There is need to initiate and support effortsto facilitate and expedite the drafting of these regulations.The phased implementation of sustainable forest manage-ment regulations would contribute to improved forest re-source management. Funds should also be made availablefor the implementation of the “Forestry Vision 2020” strat-egies and measures for sustainable forest management thatthe Department of Forestry (DOF) has prepared.

Strategy for improved biodiversitymanagementBiodiversity and ecotourism. An option for lo-cal and national income generation. In view of the outstand-ing natural beauty and cultural diversity of the Lao PDR,ecotourism development should be considered a highpriority income-generating option. Ecotourism can poten-tially demonstrate direct economic benefits from thenational protected areas system—biodiversity and landscapeconservation.

Tourist arrivals have increased exponentially over thepast decade, reaching 465,000 in 1997, of which about115,000 were tourists with an average stay time of five days.Since 1998, the Government has been implementing a ma-jor “Visit Lao Year” campaign. A recent survey found thatfor 70 percent of a sample of visitors, “natural attrac-tions” were a key motive for visiting the country. Visitorscould visit, especially, the Lao PDR’s NationalBiodiversity Conservation Areas (NBCAs) to see theforests, the wildlife and other landscape features (such as thelimestoneformations, caves and underground rivers ofKhammouane). However, at present, opportunities to wit-ness the wildlife and engage in nature activities are extremelylimited.

Consideration should therefore be given to assist-ing the Government and the private sector in developingappropriate forms of tourism within or adjacent the

35 As well as abolishing those that have proven ineffective.



NBCAs. Three levels of NBCA-focused ecotourism canbe identified: (i) village-based initiatives (e.g., elephanttreks, overnight stays and interpretation of lifestyles,non-timber forest products collection methods, etc.);(ii) small-scale local enterprises (e.g., small touristlodges); and (iii) the Lao PDR’s corporate sector (e.g.,BPKP’s tourism arm, which needs guidance in develop-ing and promoting nature tourism products). The nextfew years are critical to tourism development in the LaoPDR, and steps must be taken now to make sure thattourism will be beneficial to all from the local to thenational level.

Ecotourism promotion program. DOFand LTA need to be assisted in designing and initiating anature-based tourism program in villages located nearconservation forests. The program will be characterizedby the following:� Objective: To promote income generation from alter-

native, nonforest-based sources to contribute topoverty reduction in rural communities.

� Strategy: Developing appropriate, low-impact yetcommercially viable forms of tourism that supportthe conservation and management of protectedareas in the Lao PDR. The International Unionfor the Conservation of Nature (IUCN) hasdeveloped a project concept for an ecotourismstrategy to assist the Government, the privatesector and rural communities in this regard. Thecentral level strategy will be developing policyand cooperative linkages between MAF, the NTAand the private sector to increase professionalismand develop an understanding of how tourism caneither support or undermine conservationobjectives, and have positive or negative impactson rural communities. The field-level strategy willbe providing advice and possibly a modest line ofcredit to a small number of selected pilot projects.These would be carefully selected at the village,microentrepreneur, and corporate levels. A keycriterion in every case would be the potential tocontribute to protected area management and buildcommunity support. Phou Khao Khouay would beone NBCA to target because it is the most visitedand accessible at present, but several other candidatesites could be suggested. A project focused on NBCAslike the proposed Dong Khanthung, in Champassak,could help protect Eld’s Deer and contribute to pos-sible World Heritage status for the area.

� Key output: Successful field projects at the end of afive-year program would be the key output. In theprocess, significant progress at policy level should

have been made towards a sustainable and environ-mentally benign tourism industry in the Lao PDR.Youth wildlife awareness program.

Students and young people should be mobilized througha combination of education and enforcement of wildliferegulations. One of the objectives would be to stem in-ternational trade that contributes to the ongoing declineof wildlife in the Lao PDR.

Economic biodiversity developmentprogram. This program will support the propagation ofindigenous trees, medicinal plants, herbs, spices, wildlife,and fish among villagers living near conservation forests.The objectives would include: providing an opportunityfor alternative income generation; producing and supply-ing natural products to local and regional (PRC, Thailand,Viet Nam) markets; and ensuring the continued propaga-tion of genetically pure (natural) products, which, atpresent, are sourced only from natural forests.

Strategy for improved land use planningThe strategy proposed for improving land use planningand land management will contribute to stabilizing theeconomy and sustaining economic growth. It promotesagricultural productivity, food security, and more appro-priate forest management techniques for environmentalsustainability. In principle, the strategy continues activi-ties initiated by the World Bank/GEF and the SwedishInternational Development Agency, and is endorsed bykey international NGOs working in the sector.

Sustainable natural resource manage-ment program. This program will address shiftingcultivation through the development and promotion ofviable alternatives for agricultural income generation,linked to increased agriculture productivity. Carefullyplanned resource management regimes will be set inplace to ensure that activities are sustainable and thatcritical conservation values are not compromised overthe long term.

Sustainable land stewardship. Thisprogram should be designed with two objectives: tofoster environmental awareness among Lao farmers andland occupants by emphasizing their responsibilities asstewards of land and caretakers or temporary custodiansfor future generations; and to support village food securitythrough agroforestry development. An environmentalawareness campaign would be complemented by farmertraining and outreach programs. Village-level demonstra-tion plots at schools or temples would be established topromote agroforestry systems, mixed farming (includingfish, livestock, crops, and fruit trees), and growing of indig-enous and nitrogen-fixing species of fast-growing trees

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(Anthocephalus indicus, Alstonia scholaris, Leucaena spp., andAcacia spp.) to meet village fuel and timber needs.

Strategy for improved urbanenvironmental managementVisitor services tax. Innovative methods need tobe developed to generate income from tourism for thepurpose of allocating funds to provincial and/or munici-pal level administrative bodies. Income would be ear-marked to offset the costs of operating urbanenvironmental management facilities and maintainingpublic services.

Urban master plans. A program could be de-veloped to prepare urban master plans for Vientiane andsecondary towns

Vientiane urban transport modernizationThe following project ideas could be considered: (i) thepotential for upgrading urban transport systems—first forVientiane and later for other secondary towns; and (ii) thepotential of leveraging grant funds (Global EnvironmentFacility or GEF) for introducing a sustainable public trans-port system utilizing hydropower-generated electric power,which offers national, local, and global environmental ben-efits, and for harnessing renewable energy to reduce ruralpoverty by providing opportunities for alternative livelihoodschemes that ease pressure on biodiversity.

Institutional capacity strengtheningprogram. Support will be needed to upgrade thefacilities and strengthen the research and environmentalmonitoring and training capacities of the EnvironmentalManagement Unit of the National University of LaoPDR (NUOL). The Unit could be assisted in: (i) estab-lishing an institutional focus for environmental studieswithin the university; (ii) improving, in the long term,the capacity and ability of NUOL to undertake appliedresearch and produce candidates for the environment andnatural resource management sectors in the Lao PDR;(iii) developing the ability to provide short-term coursesthat would lead to the certification of individuals as envi-ronmental specialists, particularly in the aspects of pre-paring of EIAs, monitoring air and water quality, abatingnoise pollution, managing toxic and hazardous sub-stances, and solid waste management. The initial targetgroup of the program would be Lao individuals who workwith private sector firms that provide consulting and tech-nical services to international projects and programs. Theobjective is to upgrade the expertise of domestic privatesector personnel, so that eventually, the Government canengage private firms to undertake environmental moni-toring and technical analyses (e.g., chemical and biologi-

cal). The program would also allow public officials to becertified as specialists in one or more environmental man-agement and protection areas.

Natural resource management unit(NRMU). Support also needs to be provided to up-grade the facilities and strengthen the research and natu-ral resource management capacities of the Forestry Schoolat NUOL. The school will provide an institutionalfocus for natural resource and environmental studieswithin the university, and eventually contribute to LaoPDR’s research and specialized manpower capabilitieson the subject. District, provincial, and central govern-ment staff responsible for protected area managementwould be the initial targets. The Forestry School wouldwork closely with the Center for Protected Areas andWatershed Management at DOF to establish a nationalagriculture-forestry-conservation extension program thatwould include a Participatory Resource ManagementProgram.

Decentralized environmental manage-ment program. This program would help enhancethe role of provincial environment offices in environmen-tal planning and policy implementation. This would en-able local authorities to implement policies andregulations in support of recently promulgated naturalresource and environmental management laws (ForestLaw, October 1996; Water Resources Law, March 1997;Environmental Protection Law, April 1999). Linkageswould be established from these provincial offices to theSTEA central office to allow for more comprehensiveevaluation of sustainable development options and pro-mote coordination between the national, provincial, anddistrict levels of government.

Ecosystem management pilot projects.Pilot projects could be designed and implemented at theprovincial level using an ecosystem management ap-proach. Green areas adjacent to urban areas (Vientiane,Savannakhet, Pakse, Luang Prabang) could be used aspilot sites. Agencies and stakeholders concerned couldundertake the integrated planning operation and man-agement of the biosphere for nature-based tourism, rec-reation, and forestry and wildlife research. The NRMUof NUOL could conduct integrated training to developcontacts and professional relationships among govern-ment staff from a cross-section of participating agencies.

ThailandThe proposed Environmental Sector Strategy forThailand uses a relatively broad but selective definitionof environment, encompassing both natural resources and



environmental quality issues. The definition includesenergy resources and energy conservation, but not powergeneration and transmission. It also includes industrialsafety and natural disasters, but not issues such as ozone-depleting substances and global climate change.

In Thailand, development has been largely resource-based, and problems accompanying economic growthhave extensively affected environmental quality. In thefuture, higher costs of resource extraction or substitu-tion, the cost of environmental rehabilitation, and the costof losses in health and well-being due to environmentalhazards will add to the national budget for development.

The environment strategy for Thailand will be guidedby the following objectives: (i) reducing poverty and im-proving the quality of life; (ii) structural adjustment; and(iii) strengthening competitiveness to promote efficient,regionally balanced and sustainable growth. The povertyreduction objective will focus on the northeast, northern,and southern regions of the country.

The strategic implementation plan proposes threestrategic approaches corresponding to the following or-ganizing themes:� River basins: resource management and rehabilita-

tion for sustainable agriculture� Regional and municipal environmental management

capacity� Industrial efficiency and cleaner production for strength-

ening business management and competitivenessEach of these approaches are discussed below.

Environmental financing mechanismsThe Global Environment Facility (GEF) is a potentialsource of support for protected area management, ifThailand ratifies the Biodiversity Convention. Jointimplementation could also be viewed as a mechanism foraddressing natural resource issues through carbon seques-tration programs. Current funding of protected areas iswoefully inadequate. Staff and facilities at parks and sanc-tuaries are insufficient to cope with new and pressingmatters like agricultural encroachment, let alone poach-ing. Revenues from park visits currently flow to thegovernment’s central revenues. ADB and other agenciesshould coordinate with donors and with the Ministry ofAgriculture and Cooperatives (MOAC) concerning fi-nancing mechanisms for protected area management.

Concerning environmental monitoring and report-ing, ADB and other involved agencies should considersupporting a benchmark environmental reference work,both for its own value and for institutional strengthening.Despite considerable efforts by various MOSTE agen-cies, there is no comprehensive compendium of the envi-

ronmental situation and programs for Thailand. TheThailand Environmental Profile prepared by ThailandDevelopment Resource Institute once satisfied that need,but is now nearly 15 years old. Funds should be madeavailable for an appropriate Thai institution to under-take a thorough update of this profile. Doing so wouldbenefit everyone interested in Thailand’s environmentalsituation and the evolution of environmental manage-ment efforts. It would also be a useful exercise in capac-ity building. The effort could be done on a continuingbasis for improved environmental data gathering and re-porting on the part of government agencies.

River basins: Sustainable resourcemanagement and rehabilitationA river basin approach is the most promising way toorganize agriculture-based rural development inThailand. It unifies water resource management, soilerosion, land use, forestry, protected area management,and community-based activities.

Although donor-assisted watershed projects havebeen underway in Thailand for nearly three decades, theassociated problems have worsened in every river basin.Nevertheless, a comprehensive approach to land tenure,agricultural systems, agro-forestry and community for-estry for livelihood development and poverty reduction,and effective protection of parks and reserved forests—all integrated through planning and management of wa-ter and soil resources on a watershed basis—is the besthope for sustaining Thailand’s agricultural development.While these are still formidable problems, the newConstitution’s emphasis on decentralization and partici-pation, gradual progress on land tenure issues, andgradual strengthening of MOAC agencies, otherdepartments, and commmunity organizations andNGOs give reason for some degree of optimism. Be-sides, non-implementation of the programs can lead onlyto continuing deforestation, soil degradation and sedi-mentation, and further disruptions and declines in thehydrological cycle.

Near term: 2000-2002. A plannedproject preparatory technical assistance (PPTA) in2000 will build upon the Agriculture Sector ProgramLoan of 1999 to support comprehensive developmentplanning for selected river basins in the north, north-west, and southern regions, leading to a program loanin 2002. The Government and ADB have agreed toinclude the Ping, Mun, and Klong Thatapao Riverbasins in this feasibility study.

In addition, opportunities for physical infrastruc-ture and economic development in the north and

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northeast regions will be identified. These can pro-vide the basis for action plans for joint investmentswith the Government.

Medium term: 2003-2005. The planned2002 River Basin Development program loan shouldbe used to lay the basis for collaborating with the Gov-ernment and other funding agencies for a concertedeffort on land restoration and water resource conser-vation in the northeast. Unless there are clear syner-gies or outstanding benefits to be derived fromcontinued work in the south and north, it may be nec-essary to concentrate available resources for a seriouscampaign to reclaim the northeast region alone.

Intensified and expanded activities for restoration ofdegraded land and soils should be given high priorityconsideration in the medium term—particularly inNortheast Thailand, which has large areas that are be-coming desert. This is a regional problem for all the cen-tral Mekong region. A concentrated effort on landrestoration in the northeast will be a logical outgrowth ofnear- and medium- term river basin activities.

Degradation and depletion of coastal resources arethe other major challenges of natural resource use, withprofound implications for livelihoods, foreign exchangeearnings from shrimp and fish, and tourism. Again, ifThailand ratifies the Biodiversity Convention, donorscould assist in tapping GEF resources to strengthen pro-tection of Thailand’s marine parks. For now, ADB’s lim-ited resources are properly being concentrated on river basinmanagement. Of the three basins targeted for this work,only Klong Thatapao flows into the sea. But it does so at apoint on the Upper South’s coast that encompasses a fullrange of coastal resource management and fishery issues. Soit will be possible to use this entry to explore the topic, pos-sibly laying the foundation for an expanded and more inten-sive loan effort in the medium or longer term.

Regional and municipal environmentalmanagement capacityADB and many other donors have long been supportingwater supply and sanitation projects in Thailand. InSamut Prakarn, ADB has a very substantial investmentunderway to establish a modern sewerage and treatmentsystem for the single most difficult and highest prioritydistrict outside Bangkok. This and other sources of assis-tance are providing the policy basis for effective cost re-covery for wastewater treatment projects. Policy reformon cost recovery, linked to planned efforts to strengthenthe ability of municipalities to mobilize financial andmanagerial resources for local environmental manage-ment, will be a further major contribution in this area.

The Pollution Control Department (PCD) has beenpreparing regional and national strategies for improvedmanagement of solid and hazardous wastes over the pastseveral years, with assistance from ADB. This is part of theeffort to build the Government’s managerial and technicalcapacity to address solid waste management problems.

Near term: 2000-2002. Two complemen-tary projects are planned for 2000: one is to build capac-ity in all areas of urban governance, the second focuses oncapacity building for regional environmental manage-ment. This second project will have two main compo-nents: (i) promoting community awareness andparticipation in selecting environmentally sensitive de-velopments and implementing cost recovery mechanisms;and (ii) building capacity in provincial and regional en-vironmental offices. Building on these two initiatives, aPPTA is planned in 2001 for the Provincial Urban En-vironmental Management project. This would providean opportunity for working with the Government on long-term policy reform, including decentralization and par-ticipation.

Medium term: 2003-2005. As the Gov-ernment is assisted in creating environmental planningand operational capacity at local levels, possibilities arisefor strengthening either or both the Ministry of Interior’sInstitute for Government Administration and Local De-velopment and MOSTE’s Environmental Research andTraining Center. It may be appropriate to privatize orconvert these training institutes into state enterprises.Doing so might ensure higher quality programs and lowerlong-term costs for these valuable institutions.

Industrial efficiency and cleaner productionfor strengthening business managementand competitivenessConsiderable donor interest has evolved around conceptsof cleaner production and waste minimization since theearly 1990s. It is an area that allows for interaction di-rectly with the private business sector, and showcases goodbusiness opportunities for bilateral donors. ADB has be-gun initiatives in this area, through the Samut PrakarnWastewater Management project, which is expected tobe underway by the end of 1999. If successful in SamutPrakarn, a similar-sized effort can be all that is needed togear the program up to the national level.

Viet NamAll elements of ADB’s program in Viet Nam need tocontribute to the sustainable use of resources and themaintenance of environmental quality. Yet, there are a



number of fields that offer special opportunities toexplore and test the application of sustainable devel-opment principles. Since the present ADB strategyrests on the development and upgrading of agricul-tural and resource extracting/processing sectors as theengine of growth, future socioeconomic conditions inthe rural economy of the Central Region will be stronglyinfluenced by:� the levels of production and consumption of natural

resources,� the economic activities that promote or destabilize

these conditions, and� the mechanisms adopted to ensure the sustainable

management of these resources.

CriteriaA number of criteria help in targeting special ADB sup-port to test and demonstrate sustainable development ap-proaches. The first three criteria are of fundamentalimportance, while the others relate more to the suitabil-ity or nature of ADB’s role in tackling them.

In order of priority, ADB’s investment needs to bechanneled to those environment fields where:� there is a clear threat of serious deterioration in

natural resource stocks;� natural resource or environmental concerns have re-

ceived high priority for action by government (suchas sustainable forest management);

� there are gaps or a lack of emphasis in existing donorsupport;

� there is an opportunity for linking different compo-nents of ADB’s support program to optimize devel-opment impact;

� there are opportunities for partnership with otherdevelopment organizations, with NGOs and withthe private sector (such as in integrated waterresource management);

� ADB has a comparative advantage (such as inregional and transboundary concerns); and

� ADB pipeline investments can act as an appropriatevehicle for demonstration.

Three priority environmental themes inADB’s environment programApplying these criteria to the current situation in VietNam leads to the definition of four broad fields of equalpriority for ADB support to special sustainabledevelopment initiatives:� Sustainable forest management, focussing on

natural forests, protected areas and buffer zonemanagement,

� Sustainable water resource management, focussingon integrated basin wide planning, water quality, andenergy conservation and sustainable development,

� Biodiversity resource conservation and sustainable use,focussing on the highest priority biodiversity regions,

Central economic regionDeveloping systems for sustainable management of natu-ral resources requires a long-term commitment to theaffected communities and local governments. To generatethe necessary level of commitment, there is need to: (i) setclear priorities for action; (ii) concentrate and link loanswithin the donor’s portfolio; and (iii) target geographicareas. These will have multiplier effects and greater devel-opment impact. The terrestrial biodiversity regions of high-est priority for conservation action fall within the centralregion of the country. One of the highest priority marinebiodiversity regions falls offshore from the central region.This is also the geographic region suffering the highestlevels of natural forest loss. Wise management of waterresources is a critical factor for economic and social devel-opment in the region, but its quality, availability, and reten-tion are diminishing. For these reasons, the central regionis the main target for the sustainable development (SD)demonstration initiatives proposed in this paper.

Demonstration initiatives linked withpipeline loansIn this section, eight sustainable development demon-stration initiatives linked with ADB’s existing 2000-2002TA and loan portfolio are introduced according to therelevant economic sector.� Economic goal: Water resource development in the

central region� SD Initiative: Sustainable forest management and

biodiversity conservation associated with hydro-power developmentThis SD initiative will be directly linked to the Se

San III Hydropower Development Project (2000) withthe objectives of (i) safeguarding the watershed associ-ated with the reservoir and (ii) developing sustainablelivelihoods for affected minorities based on forest andbiodiversity resources.

The hydropower project loan will include comple-mentary measures for mitigating the immediate envi-ronmental impacts of the development and some assistanceto the affected minority groups. It is not envisaged as a fullbasin management intervention. Yet, the hydropower loanwill contribute to wider SD objectives in the watershed byimplementing mitigation measures necessary to ensurelong-term viability of the hydropower project.

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The SD initiative would be a stand-alone project withthe bulk of funding coming from bilateral sources in theform of parallel or joint financing, with a small part of theloan also being labeled for the purpose.

Two other loans will feed in complementary compo-nents in 2002—those relating to sustainable forest man-agement and water resource development in the centralprovinces.

The Se San River basin has important remainingnatural forest and biodiversity resources under immedi-ate threat. The sustainable forestry management loanshould include a component that focuses on sustainableforest management pilot areas covering critical systemsin the basin. Also, the potential for linked sustainableforest management pilot areas on the Cambodian side ofthe Se San River basin should be explored.

The loan for central provinces water resources de-velopment needs to be carefully linked with this SD ini-tiative by tackling the broader institutional and capacitybuilding issues relating to integrated natural resourcemanagement of the Se San River basin and its regionalimplications as a tributary joining the Mekong River inCambodia. The integrated management of Se San Riverbasin is treated as the fourth SD initiative.� Economic goal: Rural development and poverty re-

duction in the Central Region� SD initiative: Sustainable buffer zone and protected

areas management associated with rural developmentin poor regionsThe goal of this initiative is to develop selected buffer

zones into important protected areas in the Central Re-gion and to work with poor communities in the sustain-able use and wise management of those areas. Thisinitiative would be associated with two loans—those forsustainable forestry management and Central Regionpoverty reduction.

The project would reinforce measures for the con-servation of Viet Nam’s highest priority biodiversity andnatural forest resources. It would do so by raising thestandard of living of communities using those resourcesand increasing their interest and potential role in theirsustainable management. Poverty reduction requires along-term commitment on the part of the target commu-nities. ADB will seek to establish a partnership with anappropriate international NGO in this project.

Funding will come principally from the forestry softloan scheduled to come on line in 2002. Key componentssupporting the generation of sustainable livelihoods, in-cluding credit schemes and training, would be built intothe Central Region poverty reduction loan. Bilateralcofinancing would be arranged to cover the NGO

inputs. A range of community development and basicneeds infrastructure within the buffer zones would becovered through the poverty reduction loan.

Provinces with protected areas and buffer zones ofparticular interest are Dac Lac, Kon Tum, Quang Nam,and Quang Binh—all with major parks bordering theLao PDR or Cambodia.� Economic goal: Coastal resource development and

poverty reduction in the Central Region.� SD initiative: Mangrove conservation associated with

aquaculture development in poor coastal communitiesThe objective of this SD initiative is the sustainable

use and rehabilitation of mangrove systems, alongsideaquaculture development, as key strategies for sustain-able livelihoods in poor coastal communities. This ini-tiative would fall within the poverty reduction loan forthe Central Region if suitable areas for mangrove reha-bilitation can be identified as part of an integrated ap-proach to community development. Also, complementarycomponents would be built into the forest loan. PPTAsare scheduled for both loans in the year 2000.

More than 7,000 hectares of mangrove forests havebeen replanted from Ha Tinh Province to the northernborder of the Central Region by Vietnamese institutionsand communities, with help from international NGOslike Japanese Red Cross, OXFAM UK, and Save theChildren Fund. Ha Tinh Province suffers from signifi-cant outmigration of the poor and would be an appropri-ate target for this project.

Most mangrove forests have been cleared from ThuaThien Hue down to Binh Thuan Province for shrimp farm-ing or destroyed by typhoons. Land suitable for replantingis limited because embankment work to prevent saline in-trusion has altered tidal dynamics. This is especially true forthe Lang Co and Tam Giang-Cau Hai areas of Thua ThienHue Province. Yet, there is potential for mangrove rehabili-tation and sustainable use initiatives in Binh Dinh and PhuYen provinces and in northern Khanh Hoa Province. Man-groves in these areas are not distributed along the coastlinebut concentrated in river estuaries.

This project would seek to implement ADB’s policyon strategic partnering by forming a long-term relation-ship with an international NGO with special experienceand expertise of relevance to the local area. Bilateralcofinancing would be sought to cover the NGO techni-cal input.� Economic goal: Water resource development in the

Central Region� SD initiative: Sustainable natural resource manage-

ment and biodiversity conservation associated withthe development of water services



ADB support in the water sector has been focused onwater service delivery in urban water supply, irrigationand drainage, and flood protection. With the introduc-tion of the Water Law in 1998, ADB is shifting its atten-tion to include assistance in integrated basin-wideplanning and management of natural resources.

This SD initiative is concerned with integratedbasin-wide management and is associated with theCentral Province’s water resources development loan. Itwould take the form of a demonstration project for estab-lishing a river basin organization for the Se San Riverbasin, then the preparation and implementation of an in-tegrated basin-wide management plan. The plan wouldemphasize the conservation and sustainable use of natu-ral resources in the basin and demonstrate the role ofprotected areas in the sustainable management of water-sheds, including critical biodiversity resources.

The initiative would build capacity in the Se SanRiver Basin Organization and key related agencies suchas the DPIs, DOSTEs, and DFPs in Kon Tum and GiaLai provinces. Particularly important will be the estab-lishment of working linkages between the two provincesin basin-wide management activities, between sectorswithin each province, and between relevant districtgovernments.

The project provides the broader policy and institu-tional context for the more focused SD initiative, whichgives concentrated attention to the Se San III watershed,the joint natural resource management regimes with thelocal minority communities, and the detailed technicalaspects of rehabilitation and livelihood developmentbased on sustainable use of local resources.� Economic goal: Transport development in the

Central Region� SD initiative: Environmental assessment and

integrated resource planning associated with thedevelopment of transport networks in rural areasThe objective of this initiative is to strengthen the

capacity of the DOSTEs, DPIs and local transport au-thorities of four provinces in joint environmental plan-ning and assessment relating to the development of linkingtransport corridors and networks. The target area wouldbe the neighboring provinces of Quang Tri, Tha Thien-Hue, Quang Nam, and Kon Tum. Participating agencieswould be supported in preparing a joint transport strat-egy that emphasizes the sustainable use of resources andsocial and environmental effects.

Fifty DOSTEs and most DPIs throughout Viet Namhave received little or no consistent official developmentassistance (10 currently receive support from theSwedish Environmental Management Assistance Project

and the Viet Nam-Canadian Environment CooperationProject). Most sectoral ministries and provinces,particularly in the Central Region, have little progressin building effective environment units, and are not clearyet about their responsibilities in this field. Working linksbetween the DOSTEs, DPIs, and sectoral agencies inintegrated resource planning and environmental assess-ment need to be developed. The Ministry of Transport isone of the few sectors that have progressed in establish-ing an environment unit and environmental planning andassessment procedures.

The project would use the transport sector todemonstrate and encourage interprovincial cooperationbetween local planning and environment agencies, byway of sharing of expertise and information and devel-oping procedures for undertaking joint environmentalplanning and assessment in cases where developmentinitiatives cross provincial boundaries. Grouping agen-cies that fall within a target area covering more than oneprovince is a good approach to integrated resourcemanagement when capacity and resources are limited.Also, it reinforces the Government’s strategy of creatingregional nodes for environmental monitoring andassessment.

Funding for the project would come from a compo-nent of the provincial roads improvement loan, a two-year technical assistance grant from ADB, and staffconsultancies.� Economic goal: Industrial and urban development� SD initiative: Energy conservation associated with

industrial zonesThe objective here is to demonstrate the economic

benefits of implementing an energy conservation strat-egy for a prominent industrial zone in Ho Chi MinhCity or Hanoi. The Thuong Dinh industrial zone inHanoi, for example, has some 40 large factories and 800small and medium enterprises, and faces major environ-mental and energy management challenges. Alternatively,a zone in the central economic development region couldbe targeted. GEF funding would be sought for the projectwith a cofinancing component coming from a TA grant.

An important strategy for improving the economicefficiency in industry is energy conservation. By 2000,industry is expected to consume 47 percent of energyproduced in the country. The Master Plan for EnergyConservation and Efficiency (1998) estimates thatstraightforward short-term, low-cost improvements inindustry would lead to 15 percent savings in energy witha payback within the first year of implementation. Long-term measures in most branches of the larger SOEs wouldlead to 25-50 percent savings. The average efficiency of

75

old boilers, for example, could be improved from 50 upto 90 percent. Similar levels of savings are possible forsmall- and medium-scale enterprises. There are oppor-tunities for further improving economic efficienciesthrough collective energy conservation measures withinindustrial zones. Other savings could be gained in powerproduction, transmission, and distribution.

The energy sector strategy, currently under develop-ment with ADB support, will focus on supporting elec-tricity sector reforms to ensure long-term economic andfinancial sustainability. The strategy gives top priority tosector restructuring and technical improvement. Energyconservation has not been included as a key aspect of thestrategy. For these reasons, this SD initiative has beenidentified as an industry/environment sector project.

ADB would seek an NGO partnership in this initia-tive. Two partners would be appropriate: the AustralianInternational Institute for Energy Conservation, whichis the technical advisor on the GEF Promotion ofElectricity Energy Efficiency Project in Thailand, andthe Dutch Association for Energy Development andPlanning, which is the technical advisor to MOSTE inits energy conservation and efficiency program.� Economic goal: Industrial and urban development

and water resource management� SD initiative: Hazardous waste management

associated with industrial and urban developmentIn 1998, ADB worked with MOI and MOSTE in

undertaking a national survey of hazardous wastes andthe findings reinforced the urgency for action in this field.The survey found that the toxic intensity of industrialwastes in Viet Nam is increasing and a systematic pro-gram of hazardous waste treatment is urgently needed.

In the same year, some 300,000 tons of hazardouswastes were generated, which received little or no treat-ment. Hazardous solid wastes are usually dumped on land,along with other solid wastes; hazardous liquid wastesare discharged directly into streams and rivers that aredownstream sources of drinking water and irrigation. Thesurvey estimated that the quantity of hazardous wastes islikely to increase to 1 million tons per year over the nextdecade, with significant implications for the economy ifthey remain untreated. The health costs alone could riseto more than 1 percent of GDP. Minimization measuresat little or no cost could reduce waste generation by up to40 percent.

The survey led to the preparation of a National Strat-egy for Hazardous Waste Management. The objectiveof this SD initiative is to support the Government in imple-menting this strategy in a major waste-generatingsector(s)—for example, the chemicals industry. The

project would emphasize: (i) demonstration in waste mini-mization and recycling, technology and training; and(ii) the preparation of detailed design and performancespecifications for proposed waste management systems.

The project could be developed through an ADBPPTA grant to be followed by a loan.� Socioeconomic goal: Education and training for

sustainable development� SD initiative: Sustainable development principles

and practice as a theme in the training of upper second-ary school teachers and in the secondary schoolcurriculumADB support in the education subsector aims at the

secondary level and will include teacher training. Inaddition, ADB will assist in reforming the vocational andtechnical education system.

The Government of Viet Nam has adopted “sustain-able development with equity” as the overarching policyof its development program. Yet, there is little consensuson what this means in practice.

No systematic approach has been taken to integratethe SD principles and approaches in lower or uppersecondary school curricula. Some innovation to textbooksand other teaching materials has occurred to increase cov-erage of environmental issues, but this has not beenevaluated.

The objective of this initiative is, therefore, todevelop comprehensive curricula and materials for teach-ing SD principles and approaches in the Upper Second-ary School Development project. To achieve this, thepipeline loans for upper secondary school education(2002) and for vocational and technical training (2003)must have strong components that address the principlesand practice of SD.

The PPTA for upper secondary education is plannedfor the year 2000, with a loan following in 2002. Adopt-ing the SD theme in this TA is supportive of the 1998Party Instruction to the Ministry of Education andTraining (MOET) and MOSTE to prepare a detailedprogram for “incorporating environmental issues into alllevels of the national educational system.” The PPTA wouldneed to include: (i) a thorough review of existing uppersecondary school curricula and materials for coverage ofSD themes; (ii) the definition of a framework for the devel-opment of SD curricula and materials; (iii) an assessment ofthe training needs for teachers in applying the curricula; and(iv) the determination of a program of piloting, evaluatingand revising the curricula and materials, prior to nationalapplication.

Similarly, the Vocational and Technical EducationPPTA planned for 2001 needs to adopt the SD theme so



that a succeeding loan component builds capacity and skillsin priority SD fields, for example, in extension services.

New initiativesOver the past decade, the National Plan for Environmentand Sustainable Development 1991-2000 has provided anofficial policy framework for reform. The Environment Planfor the decade (2001-2010) is under preparation. Also, in aparallel exercise, the Biodiversity Action Plan is currentlybeing revised to address the next decade. ADB is committedto supporting the implementation of these two key policyand planning frameworks. The precise nature of the SDinitiatives beyond 2002 will need to be drawn from theagenda for action set out in these plans.

For the first two years of the new decade, the four mainthemes of ADB’s SD initiative build on the program of TAsand loans in the pipeline. In the years from 2003 to 2005,there will be continued efforts to seek opportunities for enrichingthe assistance program through special SD initiatives.

The focus on the conservation and sustainable use ofwater and forests will be maintained. These two resourcesprovide the crucial linking ingredients to the other themes,and overall, to a sustainable economy through the mainte-nance of its natural resource base. Support will be strength-ened for the protection, rehabilitation, and sustainable useof upland forests for their biodiversity, watershed protec-tion and other economic values. In keeping with the agreedfocus on the Central Region, provinces that warrant closeattention as priority areas for biodiversity and watershedconservation include Nghe An, Ha Tihh, Thua-ThienHue, Kon Tum, Dac Lac and Lam Dong. The keyobjectives would be to assist in implementing actionplans for selected regions, including an emphasis onthe development of buffer zones surrounding pro-tected areas.

A critical new area for investment will be marineprotected areas and associated integrated coastal zonemanagement.

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Activities and Programs,” Draft consultant’s report.SEATEC International, Bangkok.

Van Zalinge, N.P. 1997. Fishery Needs in the Lower MekongBasin from a Cambodian Perspective, Contribution to theNational Fisheries Workshop, Vientiane, Lao PDR, 19-21March 1997.

81

Key Proposed Responsible Status ofIssue Program/Action Agency Donor Actions

Appendix

APPENDIX

Strategic ImplementationPlans for Action

The recommendations for priority environmen-tal program and policy initiatives are summarized forCambodia, Lao PDR, Thailand, and Viet Nam asStrategic Implementation Plans (SIPs). Each of theaction plans constitutes the development frameworkfor the major environmental subsectors. The SIPssummarize four priority programs: What needs to bedone; What are the proposed activities; Who shoulddo them; and What has been done so far (status ofdonor assistance).

� Key Issues: These identify what needs to be done inorder to achieve the environmental program objec-tives.

� Proposed Program/Action: Project and technicalassistance interventions are proposed.

� Responsible Agencies: are listed without determin-ing specific institutional roles and responsibilities.

� Status: identifies which donor agencies have com-pleted or are involved in assistance projects relatedto the program component.

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Appendix

Cambodia

Strategic Implementation Plan

85


Appendix

Cambodia’s Strategic Implementation Plan

Forestry

Forestry and development: Support to community forestry: Ministry of World Bank:Risk of deforestration posed Involves the development Environment (MOE); Forestry Sector Reformby liberalizing economy of the framework for community Ministry of Agriculture, Project; 1996-1998

forestry, integration of tree Forestry and Fisheries UNDP/FAO:growing into rural development (MAFF) Establishment of ainitiatives, and identification of Forestry Resourcesmechanisms to allow rural Inventory Process;communities to share equitably 1995-1998;in benefits of forest utilization. $0.822

Support to special forms of IDRC: Participatoryforest management, such as Management ofbuffer zones, as part of Mangrove Forestprotected area management. Resource

Biodiversity

Biodiversity conservation: Improvement of regional or MOE WWF: Nature ConservationLack of financial and cluster-based planning and Protected Areastechnical capability to capacity through training. Management in Cambodia;manage and preserve 1998; $0.020protected areas Formulation and implemen-

tation of a human resourcedevelopment plan for MOE.

Provision of guidelines onplanning procedures, protectedarea management anddelineation of area boundaries.

Natural resource Improvement of resource MAFF DANIDA/MRC: Inventorymanagement: management in the Tonle Sap and Management ofInadequate system area: Involves improvement of Cambodian Wetlands;of fisheries planning, management, and 1997; $1.8 millionmanagement, threat to coordination functions;environmental integrity development of income-earning FAO/Belgium:of fishery resources opportunities in the hinterlands Participatory Natural

to prevent the people from Resource Managementcrowding around the lake; in the Tonle Sap Regionand creation of a multi- (Phases I,II,III); 1994disciplinary managementauthority for Tonle Sap. UNESCO, EU: Support

for the TechnicalCoordination Unit forthe Tonle Sap;1996-1998; $1.0 million

MRC/Denmark: Fresh WaterCapture Fisheries;1994-1997; $2.3 million



Agricultural chemicals: Management of the use of MAFF, MOHIndiscriminate use of agro-chemicals and pesticides:agricultural chemicals Involves creation of regulatoryand pesticides, posing framework and operatingthreat on agricultural practices for safe use ofresources and agro-chemicals and trainingpeople’s health target groups on effects

and risks of pesticide andagricultural chemicals use.

Creation of framework andguidelines for hazardous wastemanagement.

Water Resources

Water resource policy: Formulation of the policy ADB, other donors,Comprehensive policy through ADB’s Institutional NGOsfor integrated water Support for Water Resourceresource management Management.lacking

Water resource Capacity building at MOWREM MOWREMmanagement: Need for for planning, facilitation and MAFFenhanced capabilities, overseeing, and monitoring and MOEfinancial resources, and evaluation of water resourcebetter coordination projects.among agencies inthe sector Amendment of Water Law and

drafting of relevant subdecreesand operating guidelines forMOWREM and municipalauthorities.

Introduction of financiallysustainable means of operatingirrigation and water-relatedfacilities.

Water supply, sanitation, Improved management of Municipal PPTA 2280: Urbanand irrigation municipal water supply and governments Water Supply and

sewerage services. Sanitation, later renamedUrban Environmental

Rehabilitation and development Improvement; 1995;of irrigation facilities. $600,000 - JSF

Coastal Areas

Coastal zone management: Poverty reduction and MOE DANIDA: Capacity BuildingSocial problems facing environmental protection in Environmentalcoastal communities, programs in the coastal Management of therequiring intervention zone. Cambodian Coastal Zone;for coastal development 1997; $0.814 millionand for seeking productive Ecotourism developmentinvestments in these areas involving the private sector.


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Infrastructure development IDRC: Participatoryto create attractive conditions Management offor investment. Mangrove Forest

Resources: 1995-1999;$0.350 million

Improvement of regulations SIDA/ICLARM: Management of Fisheries,governing coastal aquaculture, Coastal Resources andsalt-mining, and other coastal the Coastal Environmentcommercial activities. in Cambodia

ADB RETA Nos. 5552 and5712: Coastaland Marine EnvironmentalManagement in the SouthChina Sea

Non-core Themes

Industiral pollution control Development of a frame- MIMEwork for the environmentalmanagement of the miningindustry.

Urban development Improvement of urban Provincial and citysanitation and management governmentsin provincial cities.

Urban reforms, including thedelineation of urbanenvironmental tasks amonginvolved agencies,strengthening of urban landmarket functions, andenactment of land use andtenure regulations thatconsider health andenvironmental safeguards.

Energy development Support for rural energy use, MIMEe.g., addressing the demandfor work-based energy.

ADB = Asian Development Bank; DANIDA = Danish International Development Agency; FAO = Food and Agriculture Organization; ICLARM =International Center for Living Aquatic Resources Management; IDRC = International Development Research Center; JSF = Japan Special Fund;MAFF = Ministry of Agriculture, Forestry and Fisheries; MIME = Ministry of Industry, Mines and Energy; MOE = Ministry of Environment; MOWREM= Ministry of Water Resources and Meteorology; MRC = Mekong River Commission; NGO = nongovernment organization; PPTA = project/programpreparatory technical assistance; RETA = regional technical assistance; SIDA = Swedish International Development Authority; EU = European Union;UNDP = United Nations Development Programme; UNESCO = United Nations Educational, Scientific, and Cultural Organization; WWF = World WideFund for Nature.


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Lao PDR


91


Appendix

Lao PDR’s Strategic Implementation Plan

Forestry

Deforestation: Expanding Development of land use and Department Donor: Finnidacommercial exploitation management plans in of Forestryof forests; plans for consultation with villagers to Satus: Ongoing (09/00)additional hydroelectric guide forest concessionaires infacilities; foreign demand logging operations. Component: Forestfor wild animals; domestic Managementdemand for nontimber Development of village forestryforest products for food systems and national guide- Value: WB/IDA-Loan-and traditional medicine; lines for sustainable forest US$6.3 millionand growing population management.

Finnida Grant:Improvement of villagers’ and US$1.13 millionforestry staff’s ability to managethe forests through extensivetraining.

Allocation of forestland tovillagers and promotion ofsustainable village-based-forest management.

Improvement of villagers’ livingstandards in pilot areas throughvillage forestry and villagedevelopment projects.

Development of policy andlegal framework for sustainableforest management.

Logging: No systematic Extension of the ongoing Department Donor: ADBplanning, inventories; expansion of reforestation of Forestryno regeneration; efforts (Lao-ADB Forest Status: Ongoing - Industrialoverexploitation by legal Plantation Project). Tree Plantations Loan Projectand illegal operators; (Loan No. 1295[SF])forests located inside Examination of innovativeprotected areas; setting approaches to conservation Component: pilot plantations,of quotas not transparent linked to multilateral environ- project management supportand criteria not disclosed; mental agreements and inter-logging sites selected with national conventions and Value: US$10.9 millionlittle or no consideration protocols, particularly thefor sustainability development of carbon sinks

or carbon sequestering.

Forest management: Implementation of “Forestry DepartmentPolicy on village forestry Vision 2020” strategies and of Forestrymanagement with farmers measures for sustainableas a key economy unit, forest management.conducive to enhancedcommunity role; plans Facilitation and expedition of Departmentdeveloped but not the drafting of implementing of Forestrysuccessful; implementing forestry regulations; phasedregulations for forestry implementation of sustainablelaw not yet in effect forest management regulations

to improve forest resourcemanagement.




Resource management: Development and implemen- Department Donor: WB, GEFGovernment policy and tation of sustainable forest of Forestryregulations difficult to management and biodiversity Status: Ongoing (09/00)enforce; decentralization conservation systems in pilotto provincial governments areas in cooperation with Component: Integratedand the semi-autonomous forest conservation authorities, conservation and develop-operations of regional villagers and other stakeholders. ment process (ICDP or ICADmilitary development process)companies make commu- Improvement of villagers’ andcation of policy and forestry staff’s ability to manage Value: US$5 million - GEFenforcement of regulations the forest through extensive Grantby central authorities training.difficult

Allocation of forestland tovillagers and promotion ofsustainable village-basedforest management.

Improvement of villagers’living standards in pilot areasthrough village forestry andvillage development projects.

Development of policy andlegal framework for sustain-able forest management.

Biodiversity and eco- Ecotourism Promotion Program— Department Donor: ADBtourism: Tourist arrivals nature-based tourism program of Forestryincreasing; opportunity for in villages near conservation Status: Tourism projectwildlife watching and forests. Lao Tourism plannednature activities limited Authority

Youth Wildlife Awareness Ministry ofProgram—mobilization of Educationstudents and young peoplethrough education and enforce-ment of wildlife regulations to, Customs Dept.among others, stem inter- Police Dept.national trade.

Economics Biodiversity DepartmentDevelopment Program— of Agriculturepropagation of iindigenoustrees, plants, wildlife and fishamong villagers, nearconservation areas.

Biodiversity

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Land Resource Management

Shifting Cultivation: Sustainable Natural Resources Department of Donor: ADBGovernment restriction Management Program: Forestry Status: Ongoing (02/04)on clearing of forestland Addressing shifting cultivation Component: Shiftingfor shifting agriculture; through the development and Department of Cultivation Stabilizationattempt to resettle promotion of viable Agriculture Value: US$5.6 millionupland farming villages alternatives for agriculturalin lowland locations income generation.where paddy ricecultivation is possible

Upland Development Department of Donor: WB/ IDAForestry Status: Ongoing

Component: DistrictDepartment of Upland DevelopmentAgriculture and Conservation Project

Value: US$2.0 million

Watershed Management Department Donor: Germanyof Forestry Status: Planned

Component: Nam NgumWatershed ManagementValue: US$1.9 million

Donor. ADBStatus: Completed (03/99)Component: Nam NgumWatershed ManagementValue: US$800,000

Urban water supply Nam Papa Lao Donor: ADBdevelopment Status: Ongoing (03/99)

Component: NorthernProvincial Towns WaterSupply and SanitationValue: US$12.649 million(Loan)

Water Resources

Irrigation intensification Vientiane Municipality Donor: ADBDepartment of Status: Ongoing (06/00)Irrigation Component: Vientiane

Integrated UrbanDevelopmentValue: US$17.235 million(Loan)

Urban river erosion control Luang Prabang, Donor: ADBUrban flood control Pakse, Savannakhet, Status: Ongoing (12/02)

Thakhek Municipalities Component: SecondaryTowns Urban DevelopmentValue: US$26.056 million(Loan)



Irrigation management Department of Donor: ADBIrrigation Status: Ongoing (1999)

Component: IrrigationManagement Transfer (PPTA)Value: US$0.650 million

Irrigated agriculture Department of Donor: UNDPtraining Irrigation Status: Ongoing (12/99)

Component: FarmerDepartment of Irrigated Agriculture TrainingAgriculture Value: US$1.751 million

Integrated irrigation and Department of Donor: UNDPecosystem development Irrigation Status: Ongoing (12/00)

Component: Eco-Department of Development andAgriculture Irrigation Project

Value: US$3.575 million(Grant)

National water supply Nam Papa Lao Donor: Belgiumdevelopment plan Rural Water Supply Status: Ongoing

Department Component: National masterplan for water supplydevelopmentValue: US$2.679 million(Grant)

River basin development Department of Donor: GermanyForestry Status: Ongoing (12/02)

Component: ForestDepartment of Cover MonitoringIrrigation Value: US$10.75 million

Water and environment Rural Water Supply Donor: UNICEFsanitation Department Status: Ongoing (12/02)

Component: Support toNam Papa Lao institutional strengthening

and capacity buildingValue: US$5.355 million

Urban Environmental Management

Solid waste management: Visitor Services Tax: Municipal Donor: ADBincreased urbanization, Development of innovative governments Status: Plannedrural to urban migration, methods to generate income Component: Tourismand expanding industrial from tourism for the purpose Development Projectand tourism sectors, that of allocating funds towill lead to exponential provincial and/or municipalincrease in solid waste level administrative bodies.related environmental Income would be earmarked toproblems. offset the costs of operating

urban environmental manage-ment facilities and maintainingpublic services.


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Deteriorating urban Urban Master Plans: Municipal Donor: ADBconditions: Urban areas Development of a program to governments Status: Ongoing (12/02)experiencing population prepare urban master plans Component: Secondarygrowth rates higher than for secondary towns. Towns Urban Developmentthe national average. Value: US$26.056 million

(Loan)Vientiane Urban Transport Department ofModernization: Examination of Communicationspotential for upgrading urbantransport systems in Vientiane Hydropower Officeand secondary towns;examination of potential of Ministry of Industryleveraging grant funds (GlobalEnvironment Facility) for Municipalintroducing sustainable public governmentstransport system utilizinghydropower generated electricpower, assessment of feasibilityof using renewable energy toreduce rural poverty byproviding alternative livelihoodschemes and thereby offsetpressure on biodiversity.

Institutional Capacity and Human Resource Development

Institutional capacity Institutional Capacity STEArequirements: STEA’s Strengthening Program:enhanced coordinating Upgrading of the facilities and NUOLand facilitating role, broader strengthening of the researchenvironmental mandate and environmental monitoringand potential to be more and training capacities of theinvolved in implementation Environmental Managementof policy, require significant Unit at the National Universitystrengthening of institutional of Lao PDR (NUOL).capacity. Due to limitedpublic sector fiscal resources Natural Resources STEAto sustain personnel levels, Management Unit: UpgradingGovernment will be more of the facilities and strengthening NUOLdependent on private sector of the research and naturalto assist with technical tasks resource management of the Department ofat field level. Forestry School at NUOL. Forestry

Decentralization: Local Decentralized Environmental STEA Donor: Germany/GTZofficials have been given Management Program: Provision Status: Proposed (Grant)greater authority for natural of technical and physical Component: Provincialresource management and assistance to provincial environment office inenvironmental protection; environment offices to enhance Luang Prabangthe Government has their role in environmentaldevolved responsibility planning and policy implemen- Donor: Swedenfor national policy tation; strengthening of Component: Provincialimplementation to provincial institutional capacity of local environment offices ingovernments, where authorities to enable them to 3 provincesimportant economic implement policies and enforcedevelopment decisions regulations in support ofare made and implemented; recently promulgated naturalgaps remaining in under- resource environmentalstanding of important management laws.




environmental protectionissues; lack of coordinationamong agencies responsiblefor different aspects ofenvironmental management;need for strengthenedenvironment office at theprovincial level and forextensive environmentaltraining in provincialbranches of central agencies.

Integration: Need for a Ecosystem Management STEAmore horizontal approach in Pilot Projects: Ecosystemthe execution of programs management approach at Department ofand establishment of interprovincial level; green areas Forestrydependent, collaborative, near or adjacent to urbanand responsive teams areas (Vientiane, Savannakhet, Lao Tourismacross ministries; area- Pakse, Luang Prabang) as Authoritybased management pilot sites; planning, operationoriented towards local and management in anpriorities so planning could integrated manner.be more decentralized; thecase of environmental Sustainable Land Stewardshipprotection suggests need Program: Fostering environ-to adopt ecosystem mental awareness amongmanagement approach, farmers and land occupants;with planning and imple- and supporting village foodmentation done in security through agroforestryintegrated manner. development.

ADB = Asian Development Bank; GEF = Global Environment Facility; GTZ = German Agency for Technical Cooperation; ICAD = integrated conservation anddevelopment; IDA = International Development Association; NUOL = National University of the Lao PDR; PPTA = project/program preparatory technicalassistance; SFR = Special Funds resources; STEA = Science, Technology, and Environment Agency (formerly STENO); UNDP = United Nations DevelopmentProgramme; UNICEF = United Nations Children’s Fund (formerly United Nations International Children’s Emergency Fund); WB = World Bank.

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Thailand


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Appendix

Thailand’s Strategic Implementation Plan

Forests

Logging Near term: 2000-2002 RFDContinued illegal logging, andillegal imports of logs fromneighboring countries, areissues of administrative willand capacity within RFD.ADB’s planned FY2000TA for Restructuring of MOAC,together with ongoing workunder the 1999 AgricultureSector Loan, should contributesubstantially to creating theframework and climate withinMOAC for such changes.Logging is also likely to be anissue under the plannedWatershed activities.

Encroachment Near term: 2000-2002 RFD EU: DeutscheJICA, EU, and Sweden Welthungerhilfehave substantial activities Communitycurrently underway, Agroforestry Projectalmost exclusively focused on in UbonNortheast Thailand. Currently EO.77million;known pipeline activities will be 1996-1998finished in year 2000. This is,however, likely to remain an RFD,MOAC JICA: Research &area of bilateral donor Training ininterest. Again the ADB Reafforestationis developing programs to Project (follow-up)address this issue through 1997-1999planned Watershedactivities. MOAC JICA: MOAC

Reforestation &Extension Projectin NE Thailand

Kasetsart University JICA: Research Projectfor HigherUtilization of Forestryand AgriculturalPlant Materials inThailand, 1996-2001



Fires No known donor activities RFD Sweden: ForestryFire is a natural event factor Organizationin much of Thailand’s forest. DevelopmentThe issue is closely partly related SK2.4 millionto RFD’s capacity, but even 1997-2000more to encroachmentand human use(including burning for agriculturalclearing). Again, ADB plannedprograms for Watershed shouldaddress this issue.

Biodiversity

Deforestation See measures suggested under MOAC,RFD,ALRO, DANCED:FORESTRY; additional actions: NGOs 1. Management of the

Western ForestWetland Conversion Near and Medium Term: 2000-2002, Complex;

2003-2005 DK 14.8 million; 1995-1998Global Environment Fund (GEF) 2. Buffer Zone Mgt.is a potential source of support In the Western Forestfor protected area management Complex;if Thailand ratifies Biodiversity DK19.0 millionConvention. If and when that 1999-onwardsoccurs, ADB should movequickly to support one or moreGEF investments.

Destructuve Fishing Funding of protected RFD EU: Sustainableareas is woefully inadequate. Management of PhuStaff and facilities at parks and Khieo Wildlife Sanctuarysanctuaries are insufficient to through Communitycope with new agricultural Participationencroachment, let alone poaching. EC E6.0 million; RTG E6.2Revenues from park tourism million, 1999-2005currently flow to the Government’scentral revenues. ADB should, TEI Netherlands: Buffer Zonein the context of work under the Management of Phu KhieoAgriculture Loan, coordinate with Wildlife Sanctuaryother donors and with MOAC DG3.1 million, 1994-2000concerning financing mechanisms.

Poaching Also, protected area management, TEI, ITTO Netherlands: Buffer Zoneinvolving the relevant parks and Management of Kengreserves, should be explicitly Krachan Wildlifeincorporated into the Sanctuaryplanned PPTA for River Basin Wetlands International EU: CommunityDevelopment in North, Northeast, and Prince of Songkla Participation in Forestand South Regions. University Management and

Rehabilitation inSouthern ThailandE0.90 million1996-1999


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Tenure Issues Secure landownership and DOL Australia & World Bank:demarcation of lands is the Land Titling Projectstarting point of stewardship Phase IIIand sound agricultural practices. Australia: A$24.3 millionWorld Bank and Australia have 1984-1997led comprehensive land tenure Australia: A$7.9 millionprogram since 1994. There does World Bank: US$118 millionnot appear to to be any need for 1998-1999ADB to intervene, beyondaspects of reorganization andimplementation that are sure

Land Conversion to arise during the AgricultureSector Loan, and the plannedWatershed activities.

Erosion-poor farming Near term: 2000-2002 MOAC DANCED: Sustainablepractices DANCED, JICA, and OECF Agricultural Development Project

currently have relevant DK25.4 millionprograms underway. ADB’s Phase 1: 1990-2000Agricultural Sector Loan Phase 2: 2001-2001will complement these efforts.Soil erosion issues are alsointegral to the plannedWatershed activities.

Loss of nutrients Medium term: 2003-2005 MOAC, ALRO OECF: Project forIntensified and expanded Revitalization of theactivities for restoration of Deteriorateddegraded land and soils Environment in the Landshould be given high priority Reform Areas throughconsideration in the medium Integrated Agriculturalterm—particularly in Northeast Development; JY3.6Thailand, which has large areas billion; 1998that are becoming desert. Thisis a regional problem, for all DLD, MOAC JICA: Land and Waterthe central Mekong region. A Conservation Centerconcentrated attack on land Project in the East ofrestoration in the Northeast Thailandwill be a logical outgrowth of 1993-1999near and medium Watershedactivities.

Watersheds

Land tenure issues, See discussion under SOILS.particular for hill tribes

Poor land management See discussion under MOAC JICA: TA to MOAC agenciesand planning and BIODIVERSITY. including aid coordination andprotected area policy, irrigation, land reform andmanagement forestry. Ongoing long-term TA.




Near term: 2000-2002A planned PPTA in year 2000 willbuild upon the Agriculture SectorProgram Loan (ASPL) of 1999 tosupport comprehensive developmentplanning for selected river basins inthe north, northwest and southernregions, leading to a program loanin 2002. The Government and ADBhave agreed to include thePing, Mun and Klong ThatapaoRiver basins in this PPTA.

In addition, an ADTA planned forYear 2000 is to identifyopportunities for physicalinfrastructure and economicdevelopment opportunities in theNorth and Northeast. This in turnis intended to provide the basisfor a cluster of “action plan” jointinvestments between the Government

Loss of vegetation and Although donor-assistedsoil erosion from Watershed projects have been RFD DANCED Nan Watershedencroachment on underway in Thailand for nearly Managementuplands three decades, the associated Project; DK 19.1 million;

problems have worsened in RFD 1995-1999every river basin. Neverthelessa comprehensive approach toland tenure, agricultural HADF EU: Community Basedsystems, agro-forestry and Management incommunity forestry for livelihoods Watershed areas E0.22and poverty reduction, and to million; 1996-1998effective protection of parks and PDA EU: Communityreserved forests, all integrated Development forthrough planning and management Conservation of Pa Taemof water and soil resources on a EC E0.36 millionrivershed basis, is the best hope PDA E0.36 millionfor sustaining Thailand’s Completed 1998development. While these arestill formidable problems, thenew Constitution’s emphasis ondecentralization and participation,the gradual progress on landtenure issues, and the gradualstrengthening of MOAC agenices,other concerned departments,and community organizations andNGOs, not to mention theability to build on all previous andcurrent projects in this area, givereason for some degree of optimism.On the other hand, the alternativeto undertaking and succeeding inthese programs is furtherdeforestation, soil degradation andsedimentation, and furtherdisruptions and declines in thehydrological cycle.


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and ADB. It will be important tomaintain good communication andlinkage between these two TAactivities so that they—and theloans that they are expected tolead to—reinforce one another.

Medium term: 2003-2005The planned Year 2002 RiverBasin Development loanprogram should be used tolay the basis for collaboratingwith the Government and otherdonors for a concerted attackon land restoration and waterresource conservation use in theNortheast. Unless there areclear synergies or outstandingbenefits likely from continuedwork in the South and North,it may be necessary toconcentrate available resourcesfor a serious campaign toreclaim the Northeast alone.

Water

Irrigation See discussion and suggestions RID EU: MOAC/RIDunder Watersheds. Northeast Water

Management & SystemDomestic use Improvement Project

ECE 29.0 million;RTG E18.5 million1990-1998

Industrial use MOAC, RID JICA: Study on the KokIn-Nan Water DiversionProject; Study costs1997-1999

Groundwater mining MOAC, RID JICA Study on Integrated Planfor FloodMitigation in the ChaoPhraya River Basin;Study costs; 1996-1999

Coasts and Fisheries

Water pollution Degradation and depletion of DOF DANCED: Coastalcoastal resources are the other Resources

Destructive fishing practices major challenges of natural resource Management Project;use, with profound implications Under identification

Agricultural effluents/runoff for livelihoods, foreign exchangeearnings from shrimp and fish, DOF/MOAC EU: Study for Definition of

Mangrove loss and for tourism. Again, if a DecisionThailand ratifies the Biodiversity Support System forConvention, ADB should quickly Coastal Areaassist in tapping GEF resources Management into strengthen protection of Thailand




Thailand’s marine parks. But for E0.38 million; 1998now, ADB’s limited resources are,properly, being concentrated on DOF/MOAC EU: Eco-systemriver basin management. Of the Protection in Adangthree basins targeted by the Archipelago; E1.09Government and ADB for this million; 1997-1999work, only Klong Thatapao flows DOF EU: Coastal Managementinto the sea. But it does so at a Projectpoint on the Upper South’s coast Under identificationthat encompasses a full range ofcoastal resources managementand fisheries issue. So it will bepossible to use this entry toexplore the topic, possibly layingthe foundation for an expandedand more intensive loan effort inthe medium or longer term.

Energy Resources

Depletion of limited fossil Although economically important, DTEC Canada: Project forfuel resources ADB has neither the resources sustainable energy

nor the particular comparative developmentadvantage to undertake a serious Canada; C$0.5 millioneffort in this area within the near RTG: C$0.27 millionor medium term. ADB does have 1995-1999an important role to play, however,

Limit of hydro sites in seeing that trade in power Bangchak Petroleum WB: Clean fuels andand energy resources by Thailand Environmentaland its neighbors is done at Improvement Projectrealistic pricing, and with US$90 millionappropriate safeguards for Effective 1996protection of the environment.This can best be done throughregional TA.

Air Quality

Motor vehicles There are three fundamental PCD Sweden Air Qualityair quality issues. First and Management

Industry & power generation foremost, is the regular SK4.96 millionunhealthy exposure to air pollution 1996-2000

Construction of more than 15 percent ofThailand’s population in the PTT JICA: Automotive Fuel

Garbage burning Bangkok Metropolitan Region. Research forThis is being addressed, at Environmentalleast within the Bangkok Improvementmunicipal area, through 1996-2000a proposed project of theWorld Bank to the city EGAT OECF: Flue Gasadministration. Desulfurization Plant for

Mae Moh Power Plants8-11; JY15.9 billion1993-2001

BMA World BankPCD ADB: Samut Prakarn

WastewaterManagement (loan)US$150 million1996-2001

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Domestic sewage ADB, like many other donors, PCD ADB Strengtheninghas a long history of support to National Financingwater supply and sanitation and Cost Recoveryprojects in Thailand. In Samut Policies for thePrakarn, ADB has a very Wastewater Managementsubstantial investment underway Sector; ADB US$565,000to establish a modern sewerage RTG:US$385,000and treatment system for the 1997-1998single most difficult and highestpriority district outside of PCD Denmark: Samut PrakarnBangkok itself. Together with Wastewaterthis investment in infrastructure, Management Project:ADB’s TA to the Government, Strengthening ofcomplemented by somewhat Regulatory and Costparallel TA from DANCED, is Recovery Mechanismsproviding the policy basis for DKr10.7 millioneffective cost recovery for 1997-1999wastewater treatment projects.Policy reform on cost recovery,linked to planned efforts tostrengthen the ability ofmunicipalities to mobilize

Agricultural runoff financial and managerial resources PWD JICA: Master Plan Studyfor local environmental management, on Utilization of Sludgewill be a further major contribution PWD and Reclaimed Waterin this area. in Bangkok

Study Costs; 1998-1999

Capital for municipal waste PWDwater infrastructure is JICA: Training Center forcurrently available from Sewage WorksThailand’s own Environment 1995-2000Fund. While this mechanism isstill cumbersome, it should be Sweden: Chiang Maifeasible now to assist in Sewage Plant (loan)construction. See SK22.0 millionINSTITUTIONALSTRENGTHENING.

Industry See INDUSTRIAL MANAGEMENT. DIW JICA: The Industrial WaterTechnology Institute1998-2000

Reduced water flows See WATERSHEDS.

Solid and Hazardous Wastes

Households Over the past several years, ADB PCD ADB Capacity Buidlinghas provided TA assist the for Waste ManagementPollution Control Department (PCD) Program Administrationto prepare regional and national (ADTA) $0.30 millionstrategies for improved From 1997management of solid andhazardous wastes. A principalreason for this TA has been toprovide the foundation and buildgovernment capacity to undertake




the maximum extent possiblecovering local costs from theThai Environment Fund. Insofaras the Fund itself may needreform and replenishment tomeet such needs on an ongoingbasis to municipal governments,there is time to work out abalanced mechanism for doing so.

Industry The industrial side of the solid Phitsanulok Municipal Germany/GTZ: Solid Wasteand hazardous wastes issues is Office Management Programme forbeing addressed directly in the PhitsanulokSamut Prakarn Cleaner DM3.5 millionProduction component, and is 1999-2000discussed further underINDUSTRIAL MANAGEMENT.

Energy Efficiency

Economic growth This is an area where the PEA Germany/GTZ: EnergyGovernment itself has adopted Efficiency Promotionan aggressive program, and Project (Phase I & II)continues to apply it with DM7.8 million

Poor management considerable success. 1993-1999

Industrial Management

Efficiency Considerable donor interest has PCD ADB Samut Prakarnevolved around concepts of cleaner Wastewater Managementproduction (CP) and waste Cleaner Productionminimization (WM) since the early Component1990s. It is an area that allows for (of SP Wastewaterinteraction directly with the private Project Loan)business sector, and provides good US$7 million; 1999-2002


a concerted program in solidwaste management outside ofBangkok, with support from aplanned 2001 project loan.This effort parallel’s ADB’saccomplishments with theSamut Prakarn WastewaterManagement Project—it aimsto move the Government aheadin a critical environmental areathrough a combination of policychanges aimed at cost recovery,and a project effort substantialenough to test the policyinnovations while developingmanagerial and technical capacity,in addition to making a significantcontribution to address theproblem. As with the wastewatersubsector, however, it would bereasonable to review the plannedloan with a view to minimizingforeign exchange costs, and to

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Accidents & fires and opportunities to showcase business TEI EU: Participatoryoccupational safety opportunities for bilateral donors. Approach to

ADB has, however, already Environmentalestablished an important niche in Management and Clean-this area, through current regional up in Samut PrakarnTA and through the Samut Prakarn E0.99 millionWastewater Management loan, Completed 1998which contains a CPcomponent that, at IFCT OECF: EnvironmentUS$7 million, is larger than any Protection Promotionother waste minimization effort in Program (2 loans)Thailand to date. Although delayed JY8.0 billionby more than a year, this Samut 1993-2003Prakarn program is expected tobe underway by the end of CY DIW GTZ: Environmental1999. If successful in Samut Advisory Assistance forPrakarn, a similar sized effort industry DM14.14 millionshould be all that is needed to 1991-2001gear the program up to thenational level. NICE JICA: Project on

Strengthening of theNational Institute forthe Improvement ofWorking Conditions andEnvironment; 1997-2002

Construction NESDB GTZ DisasterManagement for theTransportation ofHazardous SubstancesDM3.2 million1997-2000

NIDA Belgium: RUCAInternational BusinessAdministration andstudies for relocation ofindustries from Bangkokto NE ThailandBF22.7 million1993-1998

IEAT OECF: Human ResourceDevelopment Centersfor Industries ProjectJY2.6 billion; 1998(approved)

FTI US AEP: CleanTechnology forEnvironmentalManagement Program1996-2001

Pesticides Control of pesticide MOAC GTZ : Biological Controlcan be achieved through better of Rodent Pestsenforcement and cleaner DM3.9 millionproduction initiatives. The FAO’s 1993-2001



regional headquarters for MOAC GTZ: Appropriateliaison with the pesticides Regulatory Measures andindustry is in Bangkok. At Policy Reform forthe farm level, the GTZ Pesticide Risk Reductionprograms are already DM4 million; 1997-1999making a substantialcontribution.

Poor upland use The Klong Thatapao River CRI JICA Study onbasin was at the heart of Environmental PlanningThailand’s worst ever natural Management Survey fordisaster, triggered by Typhoon Arsenic ContaminatedGay in 1988. The planned work Area of Nakhon Sl

Development of flood plains with that watershed, including Thammarat Provincethe coastal area at the mouth Study Costs; 1998-2000of the river, will necessarilyreview the experience ofrecovery from that episode,and address at least theprincipal underlying factorsthat make for a severenatural disaster in Thailand.


Regional and Urban Planning

Lack of capacity See WATERSHEDS. NESDB Belgium: EIA of theSouthern Seaboard

Lack of public involvement DevelopmentProgramme; BF30 millionCompleted 1997

MOI CIDA: Natural Resourcesand EnvironmentalManagement ProjectC$10.0 million1992-1999

MOI GTZ: Decentralization ofPhysical and UrbanDevelopment PlanDM5.38 million1994-1999

MOI GTZ: UrbanEnvironmentalManagement ProjectDM1.0 million; 1997-2000

MOI JICA: The Development ofthe Method of UrbanDevelopment in Thailand1999-2003

Strengthening Institutional Capacity

Training and manpower Near term: 2000-2002 DEQP JICA: The Project ondevelopment Two complementary TA projects Environmental Research

are planned for Year 2000; one and Training Center

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is to build capacity in all areasof urban governance, the secondTA is to have two main components:(1) to develop communityawareness and participation inthe selection of environmentallysensitive developments andimplementing cost recoverymechanisms; and (2) to buildcapacity in provincial andregional environmental offices.Building on these two initiatives, aPPTA is planned in 2001 for theProvincial Urban EnvironmentalManagement project. This wouldprovide ADB with opportunity towork with the Government onlong-term policy reform,including decentralization andparticipation.Medium term: 2003-2005As ADB assists the Governmentto create environmental planningand operational capacity at locallevels, possibilities exist for strengtheningat either or both the Ministry ofInterior’s Institute for GovernmentAdministration and LocalDevelopment (IGALD) andMOSTE’s Environmental Researchand Training Center (ERTC). It maybe appropriate to privatize orconvert these training institutesinto state enterprises. Doing somight ensure higher qualityprograms and lower long-termcosts for these valuableinstitutions.

Basic environmental data Near term: 2000-2002and information Despite considerable efforts by

various MOSTE agencies, there isno comprehensive compendium ofcurrent details of environmentalsituation and programs forThailand. The ThailandEnvironmental Profile, which oncesatisfied that need, is now nearly15 years old. Funds should bemade available for an appropriateThai institution to undertake athorough update of the Profile.Doing so would benefit everyoneinterested in Thailand’senvironmental situation, andthe evolution of environmentalmanagement efforts. It would also



be a useful exercise in capacitybuilding. The effort could be usedas the basis for improvedenvironmental data gathering andreporting for the government agencieson a continuing basis.

Environment Fund Near term: 2000-2002The Thai Environment Fund, begunin 1992 with an additional B10million allocation from theGovernment, plus revenue fromthe Oil Tax and a supplement of$150 million from OECF, was setup as a multipurpose mechanismto support efforts of NGOs, privatesector, and public sectorenvironmental infrastructure. Mostof the fund, to date, has gone tothis last category. Although OECFappears certain to replenish thefund with an additional $150million-$300


million by September 2000, aconcerted effort by donors workingwith the Government could enable thefund to be overhauled and revitalized.This can be explored through dialoguewith the Government and fellowdonors. Other co-financingmechanisms, such as a small and mediumenterprise environmental window throughIndustrial Finance Corporation of Thailandshould also be considered.

Other major activities, underway or planned

World Bank: GSBSocial Investment Program (SIP), incorporating the Social Investment Fund$300 millionEffective 1998

World BankNatural Resources Management ProjectUnder identification5 to 8 years from 2000

Asian Development Bank: MOACAgriculture Sector Program Loan$300 millionFrom 1999

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Viet Nam


113


Appendix

Viet Nam’s Strategic Implementation Plan

Forestry

Water resource Sustainable forest Provincial DOSTEs, ADB: Se San Hydrodevelopment: management and DARD and DPIs Development ProjectNeed to safeguard the conservation associated withwatershed and develop biodiversity hydropowersustainable livelihoods development on the Se Sanfor minorities living in River in the Central Regionthe area

Rural development and Sustainable buffer zone and Provincial DOSTEs, WWF, Netherlands, GTZpoverty reduction: Need protected areas management and DARDs and DANIDAto provide sustainable associated with rurallivelihoods to poor development in poor regions, NEA proposing tocommunities and at the specifically Dac Lac, Kon prepare biodiversitysame time sensitize Tum, Quang Nam and plan for centraland involve them in the Quang Bink highlandswise use and managementof natural resources

Water Resource

Water services Near Term: 2000-2002 Provincial DPIs, ADB: Central regionaldepartment Sustainable natural resource DOSTEs and DFPs in water resources

management and biodiversity Kon Tum and Gai Lai development projectconservation associated withthe development of waterservices at the Se San River

Biodiversity

Education and training for Sustainable development MOET DANIDA’s NRMEPPsustainable development: principles and practices asNeed to make the a theme in the training ofGovernment’s policy of upper secondary school“sustainable development teachers and in thewith equity” internalized development of the(See also issues and secondary school curriculum.programs under forest,water, coastal and urbanand industry themes)

Coastal/Marine Resources

Coastal resource Mangrove conservation Provincial DOSTEs, OXFAM, Save thedevelopment and poverty associated with aquaculture DARDs, and fisheries Children, Red Crossreduction: Need to development in poor coastal departmentsrehabilitate mangrove communities in Ha Tinh ADB: Poverty reductionsystems, promote and other central coastal and forest projectsaquaculture development, provincesand provide sustainablelivelihoods in poor coastalcommunities



Marine protection Establishment of a national MOFI, selectedsystem of identifying and provincial fisheriesmanaging marine protected departmentareas in the country

Planning and management DOSTEs and selected World Bank/IUCN: Honof marine protected areas fisheries departments Mun GEF projectin highest prioritybiodiversity regions IUCN/UNDP/GEF: North

Tonkin Archipelagoproposed project

Urban/Industrial Development

Transport Development Environmental assessment DOSTEs, DPIs, ADB: Central Region roadsand integrated resource intersectoral improvement projectplanning associated with the structuresdevelopment of transportnetworks in rural areas

Energy: Need to Energy conservation strategy Dong Dai District MPI/UNDP: Environmentdemonstrate economic associated with industrial people’s committee and Investment projectbenefits of energy zonesconservation

MOSTE: EnergyConservationProject

ADB: Power TransmissionProject

Waste management: Hazardous waste management HCMC and Hanoi HCMC: EnvironmentalNeed to address associated with industrial and urban DOSTEs Management Projectincreasing toxic developmentintensity of industrialwastes

Viet Nam’s Strategic Implementation Plan