Question & AnswerQ&A (EXECUTIVE ORDER NO. 725)
The main government policy promoted by EXECUTIVE ORDER NO. 725 is the establishment of Industrial Tree Plantations (ITP) as mandated for immediate implementation to intensify reforestation efforts and promote ecological balance and adequate wood supply.
The Minister of Natural Resources, through the Bureau of Forest Development (BFD), with the assistance of licensees, is responsible for accelerating the identification and delimitation of suitable areas within timber concessions for reforestation and conversion into industrial tree plantations.
Existing timber license holders have six months from the promulgation of the implementing rules to: (a) apply for an ITP lease agreement over suitable areas not exceeding 30% of their total TLA area; (b) undertake implementation of an approved 7-year reforestation plan; or (c) do both.
If a timber license holder fails both to apply for an ITP and to implement a reforestation plan, the priority option is deemed waived, and the areas will be made available to third parties or cooperatives for ITP applications, and it may lead to cancellation of the Timber License Agreement (TLA).
An 'inadequately stocked area' refers to forest land with existing timber containing an average of less than 20 trees per hectare of dipterocarp and endangered species with diameters not more than 20 centimeters at breast height, where cutting is only allowed when authorized by the BFD's rules and regulations.
Adequately stocked patches may be included in an ITP area if (A) they do not exceed 30% of the total ITP area; (B) at least 5% of the ITP area is set aside as a permanent wilderness reserve; and (C) the rest serves as a buffer zone where harvesting is regulated.
The term of the ITP Lease Agreement is 25 years, automatically renewable for another 25 years if the lessee complies with all terms, conditions, and existing laws.
Upon lease expiration, the lessee is entitled to fair compensation for standing trees and other improvements introduced on the land, based on a mutually agreed third-party appraisal, including permanent infrastructure valued at fair market value.
Failure to comply with reforestation programs may result in summary suspension of the timber license and revocation of the log export permit, which will remain until deficiencies are remedied within one year after notice.
Employees working in an ITP by nature of their work are considered agricultural workers and entitled to benefits under the Ministry of Labor's provisions for agricultural workers.