Nghe An accelerates ERPA fund disbursement to avoid impacts on livelihoods

Determined to speed up disbursement progress

On September 23, 2025, the Ministry of Agriculture and Environment issued Official Letter No. 7045/BNNMT-LNKL, requesting the Chairman of the Nghe An Provincial People’s Committee to strengthen leadership and accelerate the disbursement of ERPA funds across the province. In line with Decree No. 107/2022/NĐ-CP, as of December 18, 2024, the Ministry had allocated a total of VND 355.59 billion to the Nghe An Provincial Forest Protection and Development Fund for ERPA implementation. An additional VND 37.07 billion is expected to be added from the transfer of one million supplementary tons of CO₂, as approved under Resolution No. 261/NQ-CP dated August 29, 2025.

However, according to a report from the Nghe An Provincial Forest Protection and Development Fund, by mid-September 2025, only VND 305.71 billion had been disbursed - equivalent to 85.81% of the plan approved by the Provincial People’s Committee and 85.97% of the allocated amount. Notably, forest owners who are organizations had prepared financial plans totaling VND 205.77 billion (100% of the approved plan), yet only VND 73.12 billion - just 36% - had actually been disbursed.

Delays in preparing, approving, and disbursing financial plans not only reduce the effectiveness of Decree No. 107/2022 but also directly impact the income, livelihoods, and financial capacity for implementing silvicultural measures of forest owners, commune-level People’s Committees, and forest management organizations. Prolonged delays could lead to public frustration, erode community trust, and hinder efforts to protect and develop forests sustainably as well as to meet emission reduction commitments.

Accelerating disbursement progress

In light of the situation, the Ministry of Agriculture and Environment has requested the Nghe An Provincial People’s Committee to direct the implementation of several specific tasks promptly.

First, the Provincial Forest Protection and Development Fund must urgently disburse the full amount of ERPA funds already allocated to forest owners, commune-level People’s Committees, and forest management organizations in accordance with the 2025 financial plan, ensuring no capital backlog remains in the Fund. The disbursement must be completed by October 15, 2025.

Second, the Fund is required to immediately develop a 2025 - 2026 financial plan and submit it to the Provincial People’s Committee for approval, covering both the remaining balance and the additional VND 37.07 billion expected to be allocated. The disbursement and payments must be finalized by December 31, 2025.

Forest owners, commune-level People’s Committees, and forest management organizations have been assigned the responsibility to disburse funds in line with the approved plans promptly. At the same time, they must prepare and approve design documents and cost estimates for implementing silvicultural measures linked to ERPA revenues, in compliance with Circular No. 29/2018/TT-BNNPTNT and Circular No. 17/2022/TT-BNNPTNT. This ensures transparency and allows ERPA funds to be used effectively for practical activities such as forest planting and restoration, forest fire prevention and control, improving local livelihoods, and strengthening community forest management capacity.

The Ministry has also requested the Provincial People’s Committee to review, clarify, and hold accountable any collectives or individuals responsible for delays that affect the implementation progress of the Decree or the rights of forest owners. This measure is intended to reinforce discipline and accountability in fund disbursement and public resource management. Immediately after receiving the Ministry’s Official Letter, the Nghe An Provincial People’s Committee assigned the Department of Agriculture and Environment to take the lead, in coordination with relevant departments, sectors, localities, and units, to organize implementation and advise the provincial authorities on appropriate solutions - demonstrating the province’s strong commitment to resolving bottlenecks.

Forest management organizations must expedite the completion of documents and procedures, ensure the legal validity of cost estimates, designs, and payment contracts, and maintain transparency in payment progress to local communities to enhance social oversight. Commune-level People’s Committees should closely coordinate with the Fund and forest owners, mobilize local resources, verify beneficiary lists, and monitor the use of funds to prevent losses and inefficiency.

In addition, communication and training activities should be strengthened for forest owners, commune officials, and village leaders on the ERPA mechanism, financial planning procedures, disbursement processes, and eligible silvicultural measures for fund utilization. These efforts will help shorten the time needed for documentation, improve the effectiveness of ERPA fund use, and ensure that expenditures align closely with intended objectives.

Mr. Nguyen Danh Hung, Deputy Director of the Nghe An Department of Agriculture and Environment, stated: “In terms of progress, compared with the national average, I can affirm that Nghe An is not lagging behind. However, following the Ministry’s and the province’s directives, we will continue to instruct all relevant parties to complete the disbursement as scheduled, ensuring that forest owners, especially individuals and local residents, are not affected or disadvantaged by delays in the ERPA project.”

It can be said that accelerating the ERPA disbursement in Nghe An is an urgent task requiring coordinated action from the Provincial Fund, forest owners, commune-level People’s Committees, and technical agencies. Completing payments on time not only safeguards the legitimate interests of forest owners and communities but also strengthens policy credibility, promotes sustainable forest management and development, and contributes to realizing the North Central Region’s greenhouse gas emission reduction commitments. With clear guidance from the Ministry and active engagement from the Provincial People’s Committee, Nghe An is expected to complete the disbursement process soon, ensuring that ERPA funds are efficiently utilized for forest protection and the tangible benefit of local people.

* $1 = VND 26.403 - Source: Vietcombank.