Question & AnswerQ&A (EXECUTIVE ORDER NO. 278)
The 1987 Constitution places the development or utilization of forestlands and forest resources under the full control and supervision of the State and allows the State to enter into co-production, joint-venture, or production-sharing agreements with Filipino citizens or corporations with at least 60% Filipino ownership.
The Executive Order covers applications for the development or utilization of forestlands and/or forest resources, excluding timber licenses for commercial purposes which are governed by a separate provision in Section 4.
Applications are governed by Presidential Decree No. 705, as amended, other existing forestry laws, orders, issuances, and their implementing rules and regulations, subject to possible modifications by Congress.
Section 3 states that existing and currently recognized forest permits, licenses, and leases issued by the Department of Environment and Natural Resources shall continue in full force and effect under the same terms and conditions originally granted, unless Congress provides otherwise.
The Secretary of the Department of Environment and Natural Resources is authorized to negotiate and enter into such agreements on behalf of the Government with qualified Filipino citizens, corporations, or associations.
At least sixty percent (60%) of the capital of the corporation or association must be owned by Filipino citizens.
Agreements may be for a period not exceeding twenty-five years, renewable for not more than another twenty-five years.
The agreements must include provisions for: (1) Management, technology, and financial services as required; (2) Share of revenue and payment manner; (3) Consultation and arbitration mechanisms; (4) Anti-pollution and environmental protection measures; (5) Restoration and protection of forest; (6) Effective monitoring including periodic inspections; (7) Community development commitments; and (8) Submission and approval of a management and development plan.
Yes, it mandates anti-pollution and environmental protection measures as part of the minimum terms and conditions in agreements.
According to Section 7, if any provision is held unconstitutional, the other provisions shall not be affected.
The Executive Order took effect immediately upon its signing on July 25, 1987.
The Secretary is responsible for promulgating rules and regulations necessary to implement the Executive Order effectively and negotiating/coordinating agreements with eligible Filipino parties.
Section 8 repeals or modifies any laws, decrees, orders, or issuances inconsistent with this Executive Order.