□ Key aspects of the payment by results (PBR) system proposed as a policy project for regional agriculture, forestry, and fisheries
○ Legal background: The National Assembly enacted the "Act on Promotion of Cooperation in Regional Agricultural, Forestry, and Fisheries Development Projects" on December 27, 2022, with the government (the Ministry of Agriculture, Food, and Rural Affairs) enacting the relevant enforcement decree on December 28, 2023.
○ Basic framework: Local governments plan and promote projects through a PBR agreement with private organizations such as cooperatives and measure and evaluate performance for appropriate compensation.
Division | Regional agricultural, forestry, and fisheries development projects | Existing projects for agriculture, forestry, and rural affairs |
Project plannin | Embracing proposals from the private sector and collaborative development | Administrative organization-led planning and development |
Promotion method | Based on public–private partnerships (PPP) | Based on implementation guidelines for agricultural and forestry projects |
Beneficiaries | Selection of agencies for project management or operation | Selection of businesses eligible to undertake and complete the project |
Input resources | The private sector manages the up-front costs and will be compensated in due course. | The government provides funding throughout the project (including pre- and post-project stage financing and self-pay) |
Performance evaluation | The project is evaluated by an independent institution specializing in performance measurement and evaluation. | The project’s performance against a set of targets is evaluated according to project guidelines. |
Key element | Payment by results | Financial execution based on project purpose |
□ Regional agricultural and forestry development project: Local communities’ readiness and navigation strategy
① Designation of a local government department to lead the project and creation of its roadmap and action plans
○ Selection of the department in charge: Dividing the departments of local governments (metropolitan and basic) pursuing regional agricultural and forestry development into a general section (general management) and a business section (project undertaking) to leverage policy support and create a professional structure
○ Enactment of self-governing laws: Enacting self-governing laws (ordinances) to facilitate local government initiatives that promote seamless planning and execution of the project
○ Understanding of community: Operating a case study program to deepen the understanding of public and private communities
② Creative project planning and thorough preparation centered on addressing the problems in agricultural and rural areas
○ Project planning proposal: In accordance with the regulations for the promotion of regional agricultural and forestry development, the project utilizes a problem-solving approach and capitalizes on the private sector’s novel ideas and innovative R&D to formulate action plans that can effectively develop regional agriculture and revitalize rural communities
○ Creation of implementation plans: Implementation plans detail out the project purpose, target, outline, timeline, implementation approach and structure, performance goals, key performance indicators, evaluation methods and period, costs, and financing plan
○ Evaluation criteria: Preconditions for appropriate compensation include clear goal-setting, objective definitions of performance review, and collaboration with an institution specializing in social impact bonds to create PPP plans
③ Establishment of organizations and institutions for project promotion and implementation
○ Establishment of a review committee: As a core organization, the committee is composed of experts in PBR and impact investing
○ Roles of an evaluation institution: To deliver effective and evidence-based performance measurement, the institution is responsible for data collection and management support through its monitoring of the privately undertaken project
○ Preparation of an operating institution: A private project operator must ensure that the PPP plan leads to objective and fair PBR. Additionally, the operator’s financing ability and human resources play an integral role in exploring project opportunities and devising initial plans
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