Definitions and Key Terms
- Industrial Forest Management Agreement (IFMA): Contractual agreement for managing DENR land for industrial forestry.
- IFMA Holder: Qualified entity entering into an IFMA.
- IFMA Area: Defined DENR jurisdiction land under an IFMA.
- Industrial Forest Plantation (IFP): Land planted mainly with timber-producing and some non-timber species.
- Residual Production Forest: Disturbed Dipterocarp forest with certain basal area and tree specs.
- Protection Forest: Forests legally protected against timber utilization.
- Brushland & Open and Denuded Land: Land covered with shrubs or depleted of natural cover respectively.
- Basal Area: Metric for tree cross-sectional area.
- FOB Market Price: Log price benchmark.
- DENR and related offices and officials defined.
IFMA Area Classification and Coverage
- Type I: Areas without Residual Production Forest, used for plantation establishment.
- Type II: Areas with Residual Production Forest needing sustainable management.
- IFMAs cover DENR lands excluding protected areas and vested rights.
- Minimum IFMA size: 500 hectares; maximum: 40,000 hectares, with exceptions.
Area Identification and Community Notification
- DENR Regional Executives identify, validate, and demarcate areas suitable for IFMA.
- Local communities dependent on proposed IFMA areas must be notified and given opportunities to object.
- Objections considered, possibly leading to area adjustments or special conditions.
- Resource inventory and management plans must describe vegetation, terrain, yields, communities, guidelines, and environmental impacts.
- DENR monitors inventory accuracy through remeasurement procedures.
- Registers of available IFMA areas maintained and publicly posted.
Applicant Qualifications and IFMA Assignment
- Applicants: Filipino citizens or Filipino-controlled corporations/associations.
- Prior performance proof required for former license holders.
- Assignment:
- Type I areas allocated to first qualified applicant or through bidding if government plantations exist.
- Type II areas assigned via public bidding based on performance bond.
- Timber License Agreement holders may convert to IFMA by negotiation.
Performance Bond Requirements
- IFMA holders with Residual Production Forest must post performance bonds.
- Bond value determined by bidding or negotiation using a formula correlating standing timber volume and FOB prices.
- Surety bonds provided by DENR-accredited insurance companies, renewing and complying with conditions.
IFMA Bidding and Award Process
- Public notices for prequalification invite applicants.
- Prequalification requires documentation on legal capacity, financials, technical ability, and prior records.
- Screening by committees at Central and Regional levels.
- Bids submitted with bond; at least two bidders required.
- Award to highest bidder or negotiable bidder if only one qualified.
- Awards require compliance within 30 days or bond forfeiture.
IFMA Preparation and Approval
- IFMA documents include management plans and area maps.
- Approval authorities vary by IFMA size (Regional, Undersecretary, Secretary).
Terms and Conditions of IFMA
- Duration: 25 years, renewable for 25, compliance required.
- Obligations include boundary marking, submission and adherence to development and management plans.
- Plans cover plantation development, residual forest management, community benefit sharing, environmental protection.
- Resource inventories every 10 years for natural forests.
- Aerial imagery required for large areas.
- Plantations established progressively with timelines; limited conversion to agriculture allowed.
- Degraded residual forests to be rehabilitated by various methods.
- Control of non-timber product harvesting and cooperation in forest fire protection.
- Annual reporting mandatory.
- ILMA Holders to facilitate community relations, maintain access, consult on ancestral land claims.
- Restrictions on tree cutting near water, roads, and protected forests.
- Conservation of unique/endangered species enforced.
Additional Responsibilities for Combined IFMA (Type II)
- Maintain performance bonds for natural forest areas.
- Manage forests according to relevant laws.
- May establish rattan plantations in residual forest not slated for harvest.
- Harvest naturally grown trees sustainably per management plans.
DENR's Roles and Obligations
- No changes to IFMA area boundaries after establishment.
- Provide pertinent land, resource, and community data to IFMA holders.
- Assist IFMA holders in community agreements.
Compensation and Warranties
- IFMA holders compensated for permanent improvements upon expiration, termination, or area reduction.
- Compensation also for retracted harvesting rights in residual forest.
- Appraisal of compensation by joint committee.
- Amendments require mutual consent.
- Breach notices and 30-day remedy periods.
- Unresolved disputes referred to arbitration (RA 876).
Transfer and Encumbrance
- Transfer or sale allowed after 3 years with compliance, approval, and community consultation.
- Encumbrances on IFMA rights require Secretary approval.
Incentives
- Interplanting secondary crops allowed.
- Ownership rights to planted trees and crops.
- No export restrictions on plantation forest products, except indigenous logs/lumber.
- Plantation products exempt from forest charges.
- Land rental and investment incentives apply.
Monitoring and Enforcement
- DENR and local offices maintain documents and maps.
- Annual accomplishment reports by IFMA holders.
- Audits for compliance.
- Suspension and cancellation procedures for violations including default, failure to comply, illegal logging.
- Cancellation effective after appeal period.
- Forfeiture of improvements upon cancellation.
- Performance bond may be called for willful violations or assessed damages.
Transitional Provisions and Effectivity
- Evaluation and conversion of Industrial Tree Plantation Lease Agreements (ITPLA) to IFMA mandated.
- Non-compliant ITPLA holders required to convert or face cancellation.
- Existing IFMAs remain valid unless amended.
- Repeals inconsistent regulations.
- This Order effective 15 days after publication.