Question & AnswerQ&A (DENR ADMINISTRATIVE ORDER NO. 2004-59)
The basic policy is to sustainably manage and provide equitable access to forestlands and forest resources, granting security of tenure to qualified persons through appropriate forest land use management agreements.
The objectives are to develop forestlands for sustainable productive uses, provide equitable economic opportunities to communities and stakeholders, generate additional government revenue, and optimize sustainable management of forestlands.
A FLAg is a contract authorizing a person to temporarily occupy, manage, and develop public forestland for specific uses, for a period of 25 years renewable for the same period, in consideration of a government share.
Forestlands suitable and available pursuant to the Order, excluding protected areas and lands with vested rights or existing permits, may be covered by FLAg. Areas covered by ancestral domain require free and prior informed consent (FPIC).
A FLAg has a minimum duration of 25 years, renewable for another 25 years upon mutual agreement.
Qualified applicants include Filipino citizens of legal age and entities such as associations, corporations, cooperatives, or partnerships with at least 60% Filipino ownership that are financially capable to develop the area applied for.
Areas are awarded through competitive bidding following public invitations, submission and evaluation of prequalification documents, public bid opening, and awarding to the highest bidder, subject to compliance with the minimum entry fee and requirements.
The minimum entry fee shall not be lower than 5% of the most recent zonal value of the area as determined by the BIR.
The FLAg holder must submit a Comprehensive Development and Management Plan (CDMP) outlining how the area will be developed.
Grounds for suspension include failure to pay administrative dues after notices, failure to protect the area, failure to report private transactions affecting the area, encroachment, allowing others to use the area, or using the area for unauthorized purposes.
Cancellation grounds include violation of terms, fraud in obtaining the privilege, abandonment, failure to introduce improvements, national interest requiring cancellation with compensation, and repeated violations.
Right-of-Way is confined to the contract area, width limited to 20 meters for power or telecom lines, road right-of-ways limited to the road size, prior clearance and compensation requirements, and permits for tree cutting which require replanting.
Yes, provided the permit holder has satisfactorily complied with the terms and conditions of the permit as evaluated by DENR.
All non-removable or permanent improvements and structures shall accrue to the government after expiration or non-renewal.
Surcharges of 8.33% monthly for late payment or 100% penalty for one year apply for failure to pay within the prescribed period.