Key lessons challenges and opportunity in project implementation
Project on Market-Oriented Agro-forestry to Reduce Poverty in Quang Nam Province, Vietnam “Improving gardens and support systems to reduce poverty” By: ES Guiang Presented during the TPR on 25 February 2011, Tam Ky City, Quang Nam Province, Viet Nam
The Sites in Quang Nam Province: Six out of more than 200 communes in two out of 16 districts Six communes in two districts, Quang Nam Province Phu Ninh Dist •Tam Loc Tien Phuoc Dist •TienHa,Tien Cam • Tien Son •Tien Phong • Tien Tho
Project Objectives Development objectives (vision)1. Contribute to Quang Nam’s efforts to reduce poverty2. Help conserve natural resources by supporting sustainable and high quality Market-Oriented Agro-Forestry (MOAF) Systems Specific objectivesWith 6 communes:Improve and/or develop 1,500 ha of market-driven gardensStrengthen enterprise-oriented coops and groupsPilot viable micro-finance with village groupsWith province and 2 districts:• Strengthen extension delivery system•Develop market research information system
Implementation Strategy: Collaborative Approach OUTPUTS Garden owners, 1,500 ha gardens entrepreneurs Rural enterprises Microfinance Model PROJECT with Strengthened extension delivery 6 communes, system 2 Districts, Provincial DARD Market Research Information System
Accomplishments as of 15 February 2011 Outputs 3-Year Targets Achieved as of 15 Feb 2011 % of Targets & Remarks1. Developed or 125% - mostly improvementimproved home 1,500 1,916 of home gardens with 20-50and forest high value and market-gardens in ha oriented seedlings2. Target coop and Strengthened the informal grouping of Did not meet target toStrengthened similar groups nursery cooperators and six strengthen Cam Ha &coop and group strengthened commune savings groups but not Cam Women’s Group after initialenterprises Ha, Women’s and Farmers Groups efforts failed3. Piloted micro- Microfinance Organized six savings-oriented Microfinance approachfinance with piloted microfinance groups; two are linked piloted but needs more timegroups with repayments of 4 enterprise loans to strengthen capacities4. Extension Decentralized implementation of Adopted a decentralizedStrengthened delivery system agroforestry plans with downloaded approach with downloadedextension strengthened funds strengthened communes’ funds to strengthendelivery system delivery system and highlighted the communes’ implementation need for district ag office client- to respond to their garden oriented support owner constituents5. Developed MRIS prototype Prototype developed and under Needs more time for pilotingMRIS with the developed review for piloting with six communes, and determining next stepsprovince districts, and province before provincial adoption
What have we learned with the Italian Government’s grant of US $ 2.8 million?What have we learned from the processes and approaches toachieve the targets and outputs?
Key Lessons1. With support and guidance, most forest and home garden owners will develop or improve their gardens in response to market opportunities. Relevant training, cross visits, and initial inputs of high quality and market-oriented planting materials are the key.2. With downloaded funds and technical guidance to implement jointly prepared and approved agroforestry plans, communes are better positioned to respond to their garden owner-constituents.3. The cost center approach with downloaded funds provides flexibility for communes to adjust implementation activities to fit reality. A good model for the government’s ongoing Tam Nong Program
Key Lessons4. About 60-80% of the communes’ downloaded funds for agroforestry implementation was spent for initial inputs of high value seedlings and fertilizer. The project simply responded to the great need to improve value chain at the production stage of agroforestry system. There was less interest for improving agroforestry value chain at the support or post harvest stages.5. Investments for improving support enterprises and systems for agroforestry development – nurseries, microfinance to improve HH financial assets, and delivery of market information and extension- take intentional, coordinated, and considerable efforts. Projects like GCP 027 & 035 could only point the way and test some approaches but not establish such support systems.
Key Lessons6. Agroforestry could reduce poverty in Quang Nam by assisting garden owners reduce the number of species from 10-15/ha to 4-5/ha of market-oriented species or apply thinning/pruning and enrichment planting. 200 banana plants inter-planted with jackfruits and citrus (which yield in 3-4 years) could generate a gross revenue of least VND 15 million in nine months even at farm gate price of VND 50,000 per bunch and suckers sold at VND 7-10,000 each A six year old Acacia hybrid planted at 1.5 by 2 m can be harvested in six years (in Tien Ha) could generate a gross revenue of at least VND 40-45 million per ha. This could be more if sold as saw timber in year 10 or 12. Gardens with well-managed black pepper vines inter-planted with green tea and other species or a Lansium-based home garden inter- planted with other fruit trees and combined with raising livestock could generate enough income for households.
Lessons Learned7. Just like other projects, the ultimate value of a six-year “piloting’ efforts depends on local initiatives to move towards replication and scaling up with some of the best practices generated especially under current or planned government’s programs i.e. Tam Nong.8. Despite the limited opportunities to “transfer” cash to farmer-participants, a mechanism for setting up savings-oriented microfinance groups worked because savings were linked with 50% project matching fund and tied up the repayments of enterprise loans as part of the saving group’s capital build up amount.
Opportunities and ChallengesA. Moving ahead with replicating or scaling up market-oriented agroforestry systems at the production stage and linking this with Quang Nam’s advancing tourism industry, increasing urbanization and industrialization, and expanding local economies as a result of spillovers of Danang City as a growing metropolis.
Opportunities and ChallengesB. Focusing on moving up the value chain of market- oriented agroforestry especially in consolidating small producers for commune-level raw material sorting and quality control, organized transporting system, high value processing, and marketing of selected products that are considered to be Quang Nam’s competitive products – black pepper, lumber from mini-sawmills, other products from small diameter pulpwood, cinnamon, banana, and meat products from native chicken and cattle.C. Planning and implementing a district-level decentralized system for assisting garden owners to improve the marker-orientation of their gardens with responsive and strengthened extension and market information service delivery system.
Opportunities and ChallengesD. A province or a district-led initiative in partnership with the private sector and donors to further strengthen support enterprises for market-oriented agroforestry system in Quang Nam especially for: Pump-priming privately-owned nursery enterprises that will raise high value planting materials for garden owners Savings-oriented (not credit-oriented) microfinance at the village and commune levels to help build up household financial assets and reduce their vulnerabilities to disasters and market failures
Recommendations: Moving Forward with 6-month extension (July-Dec 2010)1. Help the communes complete the implementation of their agroforestry plans up to June 2011.2. After June 2011, strengthen capacities of six savings groups to manage their savings/relending operations and leveraging other funds (public and private) to expand their relending program for household enterprises and for financing garden improvements.3. Move up the value chain of agroforestry by: Linking the savings group with the establishment of enterprises (setting up buying station of H/F garden products in Tien Cam; household processing of banana fruits and doing consolidated quality control and marketing) Consolidated commune-level trading, quality control, initial processing, branding, and marketing of Tien Phuoc black pepper.
Recommendations ...• Support Tien Phuoc and/or Phu Ninh with the province to plan, finance, and initially implement the replication and scaling up of market-oriented home and forest gardens under the Tam Nong Program. Activities may include piloting the MRIS with the province and training of extension workers, partnership with Agribank/Policy Bank to help align lending towards home and forest gardens improvement to increase local demand for high value planting materials.• Support Tien Phuoc’s initiative to organize and facilitate the mini-sawmill operators’ efforts to re-tool, improve quality and efficiency, diversify product mix that meets furniture makers needs
Recommendation: Re-Align Remaining Funds with Additional SupportGCP/VIE/035/ITA Project - Revised 3-Year Total Project Budget up to 30 June 2011 Revised Total Project Revised Total Budget after Project with Budget Item Re- Budget Proposed Increase (+) or Proposed Jan Original Alignment in Status as of Budget up to decrease (-) in 2011 Re- Project Total July 2010 31 Dec 2010 30 June 2011 budget item alignment1. Sa l a ri e s Profe s s i ona l 459,999 464,368 116,227 15,165 101,062 363,306(Pa re nt)2. Sa l a ri e s Ge ne ra l 99,999 149,297 38,486 24,000 14,486 134,811Se rvi ce s (Pa re nt)3. Cons ul ta nts (Pa re nt) 54,000 15,500 15,500 42,000 -26,500 42,0004. Contra cts (Pa re nt) 250,000 186,313 117,575 112,998 4,577 181,7365. Loca l l y contra cte d 0 43,810 11,714 8,410 3,304 40,506l a bour (pa re nt)6. Tra ve l (pa re nt) 58,251 51,039 8,111 35,500 -27,389 78,4287. Tra i ni ng (pa re nt) 39,999 62,005 3,787 15,256 -11,469 73,4748. Expe nda bl e 0 2,113 -692 0 -692 2,805Procure me nt (pa re nt)9. Non-e xpe nda bl e 20,000 17,073 -6,171 0 -6,171 23,244procure me nt (pa re nt)10. Te chni ca l s e rvi ce s 36,999 29,826 24,666 24,666 0 29,826s upport (pa re nt)11. Ge ne ra l ope ra ti ng 42,699 40,603 -28,977 22,231 -51,208 91,811e xpe ns e s (pa re nt)12. Support cos t (pa re nt) 138,054 138,052 39,028 39,028 0 138,052 Total 1,200,000 1,199,999 339,254 339,254 0 1,199,999