Title
Executive Order on Industrial Tree Plantations
Law
Executive Order No. 725
Decision Date
Sep 9, 1981
Ferdinand E. Marcos mandates the establishment of Industrial Tree Plantations to accelerate reforestation efforts, enhance ecological balance, and ensure a sustainable wood supply by facilitating timber license holders' compliance with reforestation programs and lease agreements.
A

Identification and Delimitation of ITP Areas

  • Minister of Natural Resources through Bureau of Forest Development (BFD) to accelerate identifying suitable areas within timber concessions.
  • Timber license holders given six months to either:
    • Apply for ITP lease agreement (up to 30% of TLA area),
    • Implement approved 7-year reforestation plan, or
    • Both.
  • Submission and immediate implementation of a new 7-year reforestation program required.

Formation and Responsibilities of ITP Corporations

  • Timber license holders may form corporations with investors for ITP development.
  • License holder must ensure development per lease agreement.
  • Failure to develop leads to forfeiture and license revocation.

Failure to Comply and Third-party Involvement

  • Non-compliance within time frame constitutes waiver of priority option.
  • Such areas made available to third parties including cooperatives.
  • Summary suspension and revocation of licenses and export permits for reforestation program violations.

Reforestation Species Requirements

  • Timber licensees must plant dipterocarp, premium, and fast-growing species according to reforestation programs.

Definition of "Inadequately Stocked Areas"

  • Lands with less than 20 dipterocarp or endangered species trees per hectare, with trees not exceeding 20 cm diameter at breast height.
  • Prohibits cutting of such species without proper authorization.

Area Contiguity and Composition of ITP

  • ITP areas must be contiguous; can include patches of adequately stocked areas.
  • Adequately stocked areas capped at 30% of total ITP area.
  • At least 5% must be reserved as permanent wilderness.
  • Remaining adequately stocked area serves as buffer with regulated harvesting.

Segregation of ITP Areas

  • Identified suitable areas segregated from timber concessions upon issuance of ITP lease agreements.

ITP Development Outside Timber Concessions

  • Areas outside concessions also available for ITP development to interested parties.

ITP Lease Agreement Terms and Compensation

  • Lease terms set at 25 years, renewable once for another 25 years if compliant.
  • Lessee entitled to fair compensation for standing trees and improvements.
  • Compensation formulas specified; infrastructure valued at market value.
  • Subsequent lessees reimburse government for prior compensations.

Government Participation and Financial Assistance

  • National Development Company (NDC) may have equity in ITP corporations.
  • Government representatives included as non-voting board members.
  • Government financing institutions to provide long-term, low-interest loans.

Employee Status and Labor Benefits

  • ITP workers classified as agricultural workers entitled to labor protections and benefits.

Rules and Regulations for Implementation

  • Ministry of Natural Resources to promulgate rules in consultation with relevant agencies within 60 days.

Application Approval and Execution of Lease Agreement

  • BFD to approve/reject ITP applications within 120 days.
  • Lease agreement to be executed within 30 days of approval.
  • Development must begin within one year.
  • Minister of Natural Resources may vary lease terms with agreement, aligned with the Executive Order's intent.

Amendments and Effectivity

  • Existing issuances inconsistent with this order are amended accordingly.
  • Executive Order takes immediate effect.

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