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Policies and Administrative Mechanisms for Water Governance in the Socialist Republic of Vietnam

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Policies and Administrative Mechanisms for Water Governance in the Socialist Republic of Vietnam MEKONG PROJECT 4 ON WATER GOVERNANCE Challenge Program for Water and Food Mekong INSTITUTIONAL ARRANGEMENTS: POLICIES AND ADMINISTRATIVE MECHANISMS FOR WATER GOVERNANCE IN THE SOCIALIST REPUBLIC OF VIETNAM Le Duc Nam 1, Bui Tuan Hai 1, Dao Trong Tu 1, Sokhem Pech 2 1Centre for Sustainable Water Resources and Development and Climate Change Adaptation, Vietnam 2Mekong Program on Water Environment and Resilience July 2013 TABLE OF CONTENTS LIST OF TABLES iii LIST OF FIGURES iii LIST OF APPENDIXE iii LIST OF ACRONYMS iv ACKNOWLEDGEMENT v 1.0 INTRODUCTION TO MEKONG WATER GOVERNANCE 1 2.0 WATER GOVERNANCE IN VIETNAM 2 2.1 WATER STORAGE INFRASTRUCTURE 2 2.2 STATUS OF HYDROPOWER DEVELOPMENT 4 3.0 ADMINISTRATIVE AND LEGISLATIVE FRAMEWORKS 6 3.1 LEGISLATIVE DEVELOPMENT RELATING TO HYDROPOWER AND ITS IMPACTS 6 3.2 SUMMARY OF RELEVANT LAWS, REGULATIONS, POLICIES AND PLANS 10 CONSTITUTIONAL PROVISIONS - WATER OWNERSHIP 10 LAW ON WATER RESOURCES 10 LAW ON ENVIRONMENTAL PROTECTION 2005 11 LAW ON LAND 12 LAW ON FISHERIES 12 LAW ON FOREST PROTECTION AND DEVELOPMENT . 13 INVESTMENT LAW 13 ELECTRICITY LAW 13 VIETNAM ’S NATIONAL POWER DEVELOPMENT PLANNING 13 4.0 INSTITUTIONS AND ACTORS 20 4.1 MULTI-LATERAL AGENCIES (ADB, WORLD BANK) 18 4.2 PRIVATE DEVELOPERS/SECTOR 18 4.3 STATE ACTORS 19 4.4 FUNCTIONAL ANALYSIS OF RELEVANT AGENCIES 21 4.4.1 MINISTRIES AND NATIONAL -LEVEL AGENCIES 21 4.4.2 OTHER RELEVANT INSTITUTIONS 31 PROVINCIAL -LEVEL AGENCIES 35 4.4.3 ADMINISTRATIVE (D ECISION MAKING AND POLICY DEVELOPMENT ) PROCESSES 38 4.5 CRITICAL ANALYSIS OF LEGAL AND ADMINISTRATIVE SYSTEMS RELATED TO WATER RESOURCE DEVELOPMENT AND THEIR OUTCOMES 39 4.5.1 ORGANIZATIONAL CAPACITY 39 4.5.2 HUMAN RESOURCES AND CAPACITY 42 4.5.3 FINANCIAL RESOURCES 43 4.5.4 TECHNOLOGICAL RESOURCES 46 5.0 NON-STATE ACTORS 47 5.1 EXTERNAL INFLUENCES IN IMPLEMENTING NATIONAL LAWS AND POLICIES 48 5.2 SOCIAL ACTIVISM 48 6.0 CONCLUSION AND RECOMMENDATION FOR FURTHER FOLLOW-UP 48 7.0 REFERENCES 50 LIST OF TABLES Table 1: Estimated water demand in Vietnam in the years 2010, 2020 (in billion cubic meters) 3 Table 2: Hydropower plants in the main river basins in Vietnam 4 Table 3: Key natural resources policy instruments relevant to Water, Hydropower Development and Livelihood in the Study site 15 Table 4: Investment in hydropower development, VND (Billion) 19 Table 5: Ministries involved in water management and their functions and responsibilities 34 Table 6: Investment budget under management by MARD (2002-2007) (Unit: billion VND) 44 LIST OF FIGURES Figure 1: Water resources management arrangement in Vietnam 20 Figure 2: Organizational chart of Electricity Vietnam 31 Figure 3: Organizational structure for the committee of ethnic minorities 34 Figure 4: Hydraulic works management system 37 Figure 5: Cycle of processes in decision-making and policy development 38 LIST OF APPENDIXES Appendix 1: List of hydropower projects operating in 2011-2020 51 Appendix 2: Proposed hydropower projects operating in 2021-2030 55 Appendix 3: List of medium and small hydropower projects 58 LIST OF ACRONYMS Acronym Description ADB Asian Development Bank AFD Agenda Francaise de Development CIDA Canadian International Development Agency CC Climate Change CPC/DPC Commune People’s Committee/ District People’s Committee DARD Provincial Department of Agriculture and Rural Development DANIDA Danish International Development Agency DoNRE Provincial Department of Natural Resources and Environment DWRM Department of Water Resources Management (MoNRE) DWR Directorate of Water Resources ( MARD) DoPI Provincial Department of Planning and Investment DoF Provincial Department of Finance DoST Provincial Department of Science & Technology DoTI Department of Trade and Industry EVN Electricity of Vietnam GOV Government of Vietnam GDP Gross Domestic Product GWP Global Water Partnership ICID International Commission on Irrigation & Drainage ICOLD International Commission on Large Dams IDMC Irrigation & Drainage Management Companies I&D Irrigation and Drainage IMC Irrigation& Drainage Company IWRM Integrated Water Resources Management IWRP Institute of Water Resources Planning JICA Japanese International Cooperation Agency JIBIC Japanese Bank for International Cooperation FAO Food & Agriculture Organization LWR Law on Water Resources MARD Ministry of Agriculture & Rural Development MOC Ministry of Construction MOET Ministry of Education and Training MOF Ministry of Finance MOH Ministry of Health MOTI Ministry of Trade & Industry MoNRE Ministry of Natural Resources and Environment MoT Ministry of Transport MoST Ministry of Science and Technology MPI Ministry of Planning and Investment MOLISA Ministry of Labor, Invalid and Society MRC Mekong River Commission PC/PPC People’s Committee/Provincial People’s Committee RBO River Basin Organization RBPMB River Basin Planning Management Board SIDA Swedish International Development Cooperation Agency SEDP Socio-Economic Development Plan TA Technical Assistance UNDP United Nation Development Program VNWP Vietnam Water Partnership VEPF Vietnam Environmental Protection Fund WB World Bank WCD World Commission on Dams WUA Water Users Associations WUO Water Users Organizations WU Water User ACKNOWLEDGEMENT The study on Water Governance in Vietnam is one of the five study outputs prepared for the Mekong Project 4 on Water Governance. This study was financed by the CPWF, and carried out by a team consisting of senior specialists from the Institute of Water Resources Planning, Institute of Energy, and Vietnam National commission on Irrigation and Drainage (VNCID). This report was prepared by Mr. Le Duc Nam (Team leader), Dr. Pham Xuan Su (Institutional specialist), Mr. Bui Tuan Hai (Water resource planning) and Mr. Nguyen Tien Long (Energy specialist). The study team would like to express its sincere gratitude to the Department of Water Resources Management (MoNRE), Institute of Water Resource Planning, VNCID and CEWAREC for their invaluable support. The team is equally grateful to officials of the People’s Committee, DARD, DoNRE, IMC of Kon Tum and Gia Lai provinces, and the Yaly hydropower company for their cooperation and guidance. The team is also thankful to Ms. Himesha Ranamkhaar for her comments on the draft report. 1.0 INTRODUCTION TO MEKONG WATER GOVERNANCE Development of the unexploited hydroelectric potential of the mainstream Mekong River and its tributary systems has become a significant strategic issue in the Greater Mekong Sub-region (GMS). With an estimated hydropower potential of 30,000 MW, dam development in the Mekong River Basin (MRB), will meet a significant portion of the region’s energy demand, which is expected to increase by 7 percent a year over the next 20 years. A strong demand for electricity comes from the rapidly industrializing countries of China, Thailand and Vietnam, and electricity supplied from the hydropower sector is expected to drive growth in industries and national economies in the region. Recognizing the high revenue generating potential of hydropower, countries in the Lower Mekong Basin (LMB) have committed to the development of their vast water resources. Lao PDR itself has signed over 60 Memoranda of Understanding (MOU) for mainstream Mekong and tributary projects. Cambodia has developed a master plan, which plans to generate 5,300 MW of electricity from 14 projects. Vietnam’s Hydropower Master Plan aims to develop 2,500 MW of electricity over the next decade. These countries have oriented their investment regimes to facilitate greater involvement of private sector in the energy industry, in order to augment GDP growth and economic development. During the past decade, private investors in China, Thailand, Vietnam, Malaysia and Russia have also become involved in hydropower plans in the region. The process of building large dams in the MRB, however, is complicated by the highly interdependent linkages that exist between the Mekong River system, and natural resources and livelihoods in the region. Costs and benefits of dam construction on livelihood options, agriculture, fisheries, biodiversity, transportation and other sectors have not been comprehensively evaluated to date. Over 65 million people in the region depend on the Mekong River system and its tributaries for livelihoods, and construction of dams for electricity generation can have a profound and lasting impact on people’s livelihoods and ecosystems. As a result, hydropower development in the MRB has become a subject of heated debate in the region. Water and hydropower decision-making, planning and implementation in the region are considered to be ineffective by many actors. Efforts by regional organizations, such as the Mekong River Commission (MRC), to facilitate dialogue and inform local governments of the likely impacts of dams have had a little impact on patterns of dam development. Water governance refers to the way in which power is organized, shared, and negotiated in society; and interactions and decision-making processes involved in how water resources are to be developed and utilized; and the distribution of benefits and the involuntary risks from doing so. This includes political, administrative, and policy structures, both at the formal and informal levels that are embedded in and influence decision-making and management practices. It also considers the processes of shaping agendas, designs of institutions, and implementation of policies and practices, for day-to-day management of water. In the Mekong Region, inequitable development of water resources has the potential to
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