Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity
Ministry of Natural Resources and Environment
Department of Planning and Cooperation
Vientiane Capital, 05 October 2015
Natural Resources and Environment Sector Working Group
Sector Report for 2015
I. Sector Overview
 Milestones for FY 2014/2015
The government has issued the decree on the social – economic development plan and the
state budget plan for 2014 – 2015 which assigned Ministry of Natural Resources and
Environment to implement the following tasks:
1. Review the division of labor between central and local level on natural resource and
environment management focusing on human resource and budget allocation in
accordance with the government policy on Sam Sarng – building the province as a
strategic unit, the district as a competent management unit and the village as the
development focal area;
2. Improve relevance sector strategy, policy and legislation mainly national land policy, land
law, forest law, water resource law, national land use master plan, decree on land survey,
decree on land allocation and use, and law on disaster and climate change and update the
decree on compensation and resettlement;
3. Survey and allocate land use and collect land concession project to support the
government revenue collection;
4. Implement national forestry strategy focusing on forest allocation and propose for
adoption(49 protection forest areas and 24 conservation forest areas);
5. Survey and develop geological and mineral maps – scale 1:200,000 in the areas between
Vientiane Capital - Luangphabang and Xayabury–Luangphabang;
6. Apply integrated Water resource management in two priority river basins: Xebangfai and
Xebanghieng and introduce the concept to sub river basin including Sekong, Sedon and
sub basin in the northern part of Lao PDR;
7. Improve and expand hydromet network agro meteorology and aero meteorology and
early warning system;
8. Apply the process for environmental and social impact assessment to all investment
project;
9. Develop sustainable environmental city criteria and promote green clean beautiful urban
development mainly in Vientiane capital, Huaphan and Luangphabang province;
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10. Implement strategy and plan for climate change adaptation and carry out the study on
Climate Finance;
11. Implement international convention and multilateral related to natural resources and
environment sector;
12. Coordinate with concern agencies to develop MDG 7 database;
13. Implement the priority tasks under the MoNRE work plan for 2014 – 2015.
 Key achievements for FY 2014/2015
1. Land Sub-Sector
 Surveyed and completed land allocation plan at village level in 3.700 villages accounted
for 43,2% of the total village number in Lao PDR, and 55 districts which accounted for
37,1% of the total district number in Lao PDR;
 Completed the land right survey for 2,6 million titles accounted for 4,5 million ha and
achieved the issuance of land right certificate to 907,405 land pieces;
 Finalized the draft national land policy in accordance with the government instruction,
land law and instructions on land administration and land costing norm and the decree on
land concession No 135 date 25 may 2009;
 Developed technical guideline for land dispute, land price, land registration and technical
guideline for QGIS and Land Leg and the technical guideline for land management and
land measurement;
 Completed the data input to the land use database.
2. Forest Sub-Sector
 Implemented national forestry strategy focusing on forest allocation and propose for
adoption(49 protection forest areas and 24 conservation forest areas);
 51of 51 Production Forest Areas now have detailed management plans; 15 out of 24
National Protected Areas have management plans; Village forestry working group has
been established under Forest Sub Sector Working Group and working on regulations on
village forest management;
 Counter measures against timber and wildlife illegal trade are improving with enhanced
capacity and better coordination between government agencies, forest law enforcement,
government and trade, Wildlife Enforcement Network structures, and other projects, and
the adoption of new technologies and approaches;
 Completed the finalization of forest law, decree on protection forest and conservation
forest. Developed the decree on reduce emissions from deforestation and forest
degradation committee and develop the guideline for the community base forest
management. In this regards, Forest Law has been drafted and sent to Government
Office for consideration. Prime minister Decree on Conservation Forest was approved
and issued in May 2015;
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Reviewed and re-delineation of the boundaries of the three forest management categories
(ie, state forest land) has commenced, with a pilot in Luang Prabang, and the method for
re-delineation is being developed as is a proposal and budget to conduct in the whole
country;
Implemented the pilot project on carbon credit in protection and conservation forest
areas (jointly with local private sector. The pilot site was selected in Savannakhet and
Saravan province covering 347,000 ha;
Government Office approved start of negotiations between Government of Lao and
Europe Union on Voluntary Partnership Agreement under forest law enforcement,
government and trade in June 2015 and established National Steering Committee for
forest law enforcement, government and trade process in August 2015;
On financing of forestry sector intervention, schemes of various payment for forest
environmental services have been included in the draft Forestry Law and Prime Minister
Decrees on Conservation Forest and Protection Forest; the Environment Protection
Fund is emerging as an important financier for capacity building and field management of
Protection and Conservation Forest complementing well the Forest and Forest Resource
Development Fund;
The terms of reference of the national reducing emissions from deforestation and forest
degradation task force has been approved and 6 technical working groups established
under national reducing emissions from deforestation and forest degradation task force.
Emission Reduction Program Idea Note has been drafted and submitted to the Carbon
Fund of Forest Carbon Partnership Facilities (if selected in Oct 2015, Emission reduction
Program Document will be developed for results-based payment). Prime Minister Decree
on reducing emissions from deforestation and forest degradation projects has been
drafted and will be consulted with a wide range of stakeholders for finalization.
3. Environment and Climate Change Sub-Sector
 Applied the process for environmental and social impact assessment to all investment
project;
 Developed sustainable environmental city criteria and promote green clean beautiful
urban development mainly in Vientiane capital, Huaphan and Luangphabang province;
 Implemented strategy and plan for climate change adaptation and carry out the study on
Climate Finance;
 Improved relevance sector strategy, policy and legislation mainly national land policy, land
law, forest law, water resource law, national land use master plan, decree on land survey,
decree on land allocation and use, and law on disaster and climate change and update the
decree on compensation and resettlement;
 Finalized the MDG 7 completion report;
 Finalized the decree on strategic environment assessment;
 Developed and adopted integrated spatial for 7 provinces;
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Implemented Policy, Regulatory, and Organizational Constructs in Educational and
Environmental Development project on environmental education and awareness in
Khammuan, Houaphan, Xayabury and Bolikhamxai;
Developed the project proposal for wet land management into RAMSAR
sites(Sechamphone and BeungkhiatNgo);
Developed the concept green clean beautiful urban development;
Completed the establishment of environmental monitoring and management unit in 17
districts.
4. Water Resource and Disaster Management Sub-Sector
 Applied integrated Water resource management in two priority river basins: Xebangfai
and Xebanghieng and introduced the concept to sub river basin including Sekong, Sedon
and sub basin in the northern part of Lao PDR;
 Improved and expanded hydromet network agro meteorology and aero meteorology and
early warning system;
 Improved relevant sector strategy, policy and legislation mainly national land policy, land
law, forest law, water resource law, national land use master plan, decree on land survey,
decree on land allocation and use, and law on disaster and climate change and update the
decree on compensation and resettlement;
 Updated the law on Water and Water Resources and finalizing the guideline on integrated
water resource management, develop the draft on meteorology and hydrology;
 Completed the survey and land demarcation for learning center for integrated water
resource management in Vangvieng district;
 Implemented the hydromet network improvement nationwide including 18 meteo
stations and 8 hydrology stations;
 Established disaster prevention and control committee at provincial and district level in
priority risk areas.
5. Geology and Mineral Sub-Sector
 Surveyed and developed geological and mineral maps – scale 1:200,000 in the areas
between Vientiane Capital - Luangphabang and Xayabury – Luangphabang;
 Improved relevance sector strategy, policy and legislation mainly national land policy, land
law, forest law, water resource law, national land use master plan, decree on land survey,
decree on land allocation and use, and law on disaster and climate change and update the
decree on compensation and resettlement;
 Surveyed and developed map 1:200,000 in the area between Vientane capital and
Luangphabang and the area between Luangphabang and Xayabury province;
 Implemented the government order No 13 date 11 June 2012 on the review of mineral
concession agreement;
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Continued capacity building of staff of organizations involved and responsible for the
state management of the mining sector;
Improvement of mining legislation and mining licensing system by the establishment of
regulations, checklist and guidelines focusing on sustainable mining and to increase the
economic and social benefits from mining;
Establishment and Implementation of a functioning mine inspection system with
frequent mine inspections according to international standard.
Improvement of dialog structures with stakeholders of the mineral sector (mining
companies, civil society, donors) and cooperation with other mining related ministries and
institutions;
In response to the increasing number of grievances as well as a wide spread perception of
disadvantageous fiscal terms for government, the administration introduced a moratorium
on issuance of new mining licenses from 2012 to 2015 and assessed the existing mine
companies. Until 5/2015 23 Licenses have been revoked;
Achieved Inspection Checklists - of Metal Mines approved; Checklist for preparation and
evaluation of feasibility studies approved; Guideline for preparation and evaluation of
feasibility studies approved; Review of the regulation on granting licenses for processing
plants smelters and refineries approved; Review on regulation buying/selling mining
products approved.
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II.
Overview of FY 2014/2015 Sector Performance
Sector Outputs and activities
Improve implementation of
Environment and Social Impact
legislation
Strengthen DDMCC in its
capacity to implement climate
change mitigation/adaptation
programs
Progress
 In the process on developing
the Decree on Compensation
and Resettlement for project
affected people from
investment projects and
activities.
 Completed the technical
meeting and meeting with
Department of Law, Ministry
of Justice. They principally
agree and now in a process of
issuing an approving letter for
DESIA to submit to
Government Office.
 DDMCC submitted letter to
the Climate Change Fund
Secretariat in order to inform
that UNDP is a partner. The
development detail will be
revised with UNDP.
 DPC is coordinating the study
on the development of
roadmap for the accession of
Climate Finance with the
support from GIZ
Challenge and measures
Key messages to inform
discussions during the HL RTM
 Complete GCF Readiness
Program
 Number of new climate related
fund accessed
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Increase the deployment of
teachers and health staff,
especially to remote areas
Complete the forest law and its
regulations
Ensure adequate baseline data
on forest cover, state and
change to set up target
 Revision of curricula, including NAPA projects implemented with
component on curriculum
the development of livelihood
skills (FNS, agriculture, natural development, awareness raising,
capacity building
resource management
adaptation
 Development of environment
curriculum for formal and nonformal education
 Final draft of FL approved by  National Land policy not approved; Additional dialogue between GOL
MOJ and sent to GOV Office
to be submitted to NA in late 2015 and development partners on the
for consideration
 Not enough capacity to implement National Land Policy and related
draft laws including Forestry Law
 PM Decree on conservation
laws and regulations; Capacity
before the NA deliberation is
Forest issued in May 2015
development through project
assistance and development of PES essential to ensure more equitable
 Indicator: Forest law and main
and environment friendly
schemes including REDD+
regulations approved
 Conflicts and gaps between related development of resource sector.
laws and regulations; conflicts and
gaps being identified through
development of forestry legality
compendium. Development of
Timber Legality Definition and
Timber Legality Assurance System
advances under FLEGT VPA
negotiations.
FCA 2015 on going. Final
Forest quality including wildlife and  Regular monitoring of forest area
results to be reported to NA in
NTFP not measured;
and quality is a prerequisite
late 2015
1. National Forest Inventory (field
for policy review and
Indicator: Forest cover known
survey) planned in 2016-2017
formulation
2. National Biodiversity Strategy
 Establishment of a formal
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and Action Plan to be revised
soon.
Improve enforcement of
policies against illegal
activities as defined under the
Forestry Law and Wildlife
and Aquatic Law
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Establish and improve
implementation of mining
legislation and mining
licensing.
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Strengthening of DOFI
capacity is on-going
including equipment,
vehicles, new reporting
system and so on.
 Inter-agency cooperation
between Lao WEN
institutions such as DOFI,
Police, Army and Customs
agreed.
 Development of Timber
Legality Definition and
 Timber Legality Assurance
System advances under
FLEGT VPA negotiations.
 Indicator: Finalized cases of
illegal activity are reported to
FSSWG by DOFI
 Enforcement in Lao PDR”
was presented at FSSWG
meeting on Sep 4th.
More the 10 legal documents are
in preparation or in line to be
approved.
Only a fraction of illegal activities
identified and addressed; further
strengthening of DOFI and
cooperation with other concerned
agencies necessary
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dialogue forum on REDD+
establishment between GOL
and development partners either
under FSSWG
Illegal logging and wildlife
hunting is still rife and the
country is losing precious
natural assets.
GOL’s strong commitment to
address illegal logging and
wildlife hunting/trade including
adherence to laws,
strengthening cooperation
between concerned agencies
and disclosure of main cases is
essential for ensuring donor
support (to be revised or
developed based on the DOFI
report)
Implementation and enforcement of
the legislation especially on province
level.
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
Environment and Social
Impact legislation
Unclear and overlapping tasks and
duties of government authorities in
the mineral sector to grant licenses,
concessions and approvals and
proliferation of administrative
requirements and inter-ministerial
committee oversight.
Realignment of assigned
responsibilities and duties in the
mineral sector between related
ministries (Ministry of Energy and
Mines, MEM, Ministry of Natural
Resources and Environment,
MONRE, Ministry of Planning and
Investment, MPI and Ministry of
Public Transportation, MPT)
aiming to have one leading
governance authority responsible
for the state management of the
mining activities (licensing, mining
contracts, mining operations,
supervision, inspection, mine
closure etc.).
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