Ecological Restoration on Barren lands, degraded arable lands, harvested sites and sloped farmland: A Market-based Approach Peking University Sichuan Department of Forestry The Australian National University China National Forest Economic Research and Development Centre April 7, 2010 Chendu, China
Contents Project background Environmental objectives of the Project Project areas The Land-use change tender process
Project background With the aims of speeding up the establishment of ecological barriers on the upper reaches of the Yangtze River, ensuring the ecological security of the Yangtze River Basin and improving the efficiency in using ecological restoration funds, Sichuan province is undertaking a land-use change tender trial in Hongya and Pengzhou countries to encourage ecological restoration on barren lands, degraded arable lands, harvested sites and sloped farmland.
Environmental objectives The ecological forest plantation and restoration project aims at improving the environmental condition and maintaining ecological security along the Yangtze River. Under this project, various ecological restoration models featuring the planting of broadleaf species such as poplar, eucalyptus and arbor and various management options are adopted in order to achieve the following specific environmental objectives: - To enrich biodiversity; - To effectively control soil erosion, preserve water resources, and reduce the amount of silt flowing into the Yangtze River; - To sequester pollutants and improve air quality.
Project areas Wenshan village and Shunhe vilage of Hongya county, Sichuan. Dishui village and Zhongba village of Pengzhou county, Sichuan. Why is it failed in Hongyan village of Pengzhou County?
The Land-use Change Tender Process Process Tenderer Landhoder 1 Expressions of Interest Publicize the bidding trial project 2 Trainning Provide the training to technical staff 3 Site Survey Conduct the survey Register an expression of interest 4 Development of Draft Afforestation and Management Plans Provide technical guidance Make the afforestation and management plan 5 Submission of Bids Submit sealed bids 6 Building biophysical models Predict household level changes 7 Valuation of environmental benefits Conduct CM survey and estimate env. values 8 Bid Assessment Rank the bids and select successful bidders 9 Letter of acceptance and contract Sign contracts and allocate funds Sign contracts and plant trees
Expressions of Interest Landhoder from the project area can register an expression of interest in the villagers' congresses. Zhongba village, Pengzhou county
Expressions of Interest Dishui village, Pengzhou county
Trainning The managers for the implementation of the Land-use Change Tender trial provided training to technical staff whom would help the landholders to prepare the afforestation and management plan. The aim of training is to help technical staff comprehend the tender process and site-specific ecological restoration techniquers.
Trainning Shunhe Village, Hong Ya Country
Site Survey The implementation manager of the tender trial organised site visits for local technical staff. They assessesd the sites and acquired information relating to the slope, soil type and altitude of the sites as well as their distance to river, which helped to predict the biophysical changes used in the CM survey.
Site Survey Zhongba village, Pengzhou county
Site Survey Zhongba village, Pengzhou county
Development of Draft Afforestation and Management Plans the landholder identified the actions they are prepared to undertake and drafted the afforestation and management plan, which formed the basis for the bids.
Submission of Bids Each landholder submitted a sealed bid that nominates the payments being sought by them to undertake the actions outlined in the afforestation and management plan.
Submission of Bids
Bid Assessment All bids were assessed objectively on the basis of the: - estimated change in the on-site and off-site environmental outcomes resulting from the afforestation and management actions and the associated monetary value of the these changes; - bid price. Bids were then ranked on the benefit cost ratio and funds allocated based on best value for money by combining cost with environmental outcomes.
Letter of acceptance successful bidders were notified by letter of acceptance. Note-the letter of acceptance gave clear indication of time and place to sign the contract.
Contract Successful bidders signed a contract based on the previously agreed draft afforestation and management plans. The complete contract included the following components: Management Plans Bids Rights and obligations of each party Installment of payments Breach of contracts
Example of Zhong Ba village Bid price (Yuan) Bid area (Mu)
Example of Zhong Ba village Accumulated funds (Yuan) Bid area (Mu)
SUMMARY TABLE OF THE BIDDING TRIAL RESULTS Number of bidder Number of nominated sites Wenshan, Hongya Shunhe, Hongya Zhongba, Pengzhou Dishui, Pengzhou 79 66 90 68 80 67 93 124 Bid area(mu) 985 330.7 663.2 3226.5 Total bid price (10,000 yuan ) Average bid price(yuan/mu) Successful bid area(mu) Allocated funds (10,000 yuan) 15.02 2.8 14.97 73.76 152.4 84.5 225.7 228.6 985 330.7 663.2 1336 15.02 2.8 14.97 25.03
Wenshan, Hongya Shunhe, Hongya Zhongba, Pengzhou Dishui, Pengzhou Minimum area (mu) Maximum area (mu) Minimum bid price (yuan/mu) Maximum bid price (yuan/mu) 1 0.5 0.5 1 35 30 50 280 126 49.2 20 154 315 210 1500 324
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