Title
Forestland Tourism Use Rules
Law
Denr Administrative Order No. 2004-28
Decision Date
Aug 25, 2004
DENR Administrative Order No. 2004-28 establishes rules for the sustainable use of forestlands for tourism, promoting private sector investment while ensuring equitable access and environmental protection through a structured Forest Landuse Agreement for Tourism Purposes.
forestlands
tourism
administrative order

Policy, objectives, and key definitions

  • The State policy is to promote, encourage, and develop tourism as a major national activity that fosters and supports private sector investment and initiative (Section 1.1).

  • Government must allow qualified persons to occupy, develop, utilize, and sustainably manage forestlands for tourism purposes to support sustainable development and equitable access (Section 1.1).

  • The Order aims to develop forestlands into productive uses consistent with sustainable development (Section 1.3.1).

  • The Order seeks to provide economic opportunities to local communities and other stakeholders (Section 1.3.2).

  • The Order ensures an equitable share for the government from forestland tourism use (Section 1.3.3).

  • The Order optimizes forestland use through sustainable management while ensuring continuous beneficial uses and services without impairing environmental and economic values (Section 1.3.4).

  • The Order defines Bathing Establishment as high recreational value water-body areas for swimming, surfing, snorkeling, and similar activities (Section 2.1).

  • The Order defines Campsite as a forestland area for camping and other outdoor recreation (Section 2.2).

  • The Order defines Ecotourism as sustainable tourism in a natural landscape and cultural heritage area that fosters community participation, protection and management of natural resources, culture and indigenous knowledge, environmental education and ethics, and economic benefits (Section 2.3).

  • The Order defines Entry Fee as the amount offered by the bidder for the privilege of entering into a Forest Land Use Agreement for Tourism (Section 2.4).

  • The Order defines Environmental Compliance Certificate (ECC) as the DENR/Environmental Management Bureau-issued certification that the project will not cause significant negative environmental impact, that the EIA System requirements were complied with, and that the proponent is committed to implement approved environmental management and mitigation measures (Section 2.5).

  • The Order defines Forestlands as lands of the public domain comprising public forest, permanent forest or forest reserves, and forest reservations (Section 2.6).

  • The Order defines Government Share as the amount payable by the forestland user as the share of the government in the use of forestland (Section 2.7).

  • The Order defines Initial Environmental Examination (IEE) as the environmental impact and mitigation/enhancement document required for projects/undertakings located in an Environmentally Critical Area (Section 2.8).

  • The Order defines Other Tourism Purposes (OTP) as leisure or recreational uses of forestland other than those enumerated under Sections 4.1 to 4.4 (Section 2.9).

  • The Order defines Protected Areas by reference to areas set aside under the NIPAS Act for unique physical/biological significance and protected against destructive human exploitation (Section 2.10).

  • The Order defines Forest Landuse Agreement for Tourism Purposes (FLAgT) as a contract between DENR and a natural or juridical person authorizing the holder to occupy, manage, and develop, subject to government share, forestlands of the public domain for tourism purposes, including listed special forest land uses, for a period of 25 years renewable for the same period by mutual agreement (Section 2.11).

  • The Order defines Zonal Value as the value of a land parcel determined by the Department of Finance/Bureau of Internal Revenue (BIR) (Section 2.12).

Coverage and areas for tourism use

  • The rules apply to use of forestlands for tourism purposes (Section 1.2).

  • The Order encourages Community-Based Ecotourism, but forestland use for that purpose is governed by separate guidelines rather than these rules (Section 1.2).

  • FLAgT may cover all forestlands found suitable and available for FLAgT pursuant to Section 9, subject to vested rights, licenses/leases, permits, or other tenurial instruments (Section 3).

  • Areas with vested rights, permits, or other tenurial instruments may be made available for FLAgT only upon issuance of a waiver of right by the holder and compliance with required processes (Section 3).

  • Where the area is covered by Certificate of Ancestral Domain/Land Claim/Title (CADC/CALC/CADT/CALT), FLAgT availability requires free and prior informed consent (FPIC) and certification of precondition (Section 3).

  • For areas covered by NIPAS, FLAgT availability requires fulfillment of appropriate requirements and conformity with protected area policies (Section 3).

  • FLAgT forms and allowable area maximums are fixed as follows (Section 4):

    • Bathing Establishment: 24 (maximum units/area as reflected in the Order’s table)
    • Camp Site: 5
    • Ecotourism: 24
    • Hotel Site (inclusive of related resort facilities): 10
    • Other Tourism Purposes (OTP): 10

  • If a tourism project needs to cover a larger area than the maximums to accommodate required landscape features, the larger area is approved by the Secretary (Section 4).

FLAgT duration and qualified applicants

  • Each FLAgT has a maximum duration of 25 years, renewable for the same period (Section 5).
  • Qualified applicants include a Filipino citizen of legal age (Section 6.1).
  • Qualified applicants also include a juridical person (including associations, corporations, cooperatives, and partnerships) whose at least sixty percent (60%) of the capital is owned by Filipino citizens, whether private or public, and duly created/registered under Philippine laws, and who is financially capable to develop the applied area for tourism purposes (Section 6.2).

Award through bidding and application

  • Suitable areas for FLAgT are awarded through competitive bidding (Section 7).

  • Conversion of existing special use permits in forestlands to FLAgT is governed by Section 13 (Section 7).

  • The process begins with invitation to pre-qualify to bid:

    • Prospective bidders are invited to pre-qualify through public announcement in two (2) newspapers of general circulation for two (2) consecutive weeks and through the DENR and DOT websites (Section 12.1).
    • The notice must be posted at DENR Regional, Provincial, and Community Offices, including DOT Offices concerned (Section 12.1).
    • The notice must specify the location and technical description of the area (Section 12.1).

  • Prequalification submission requirements:

    • Requirements under Section 8 must be submitted in five (5) copies to the DENR Regional Executive Director (RED) concerned not later than the deadline in the invitation (Section 12.2).

  • Document evaluation and capital proof:

    • The FLAgT Bids and Awards Committee (FLAgTC) numbers pages, records date/time receipt, and within 10 working days from the prequalification deadline evaluates completeness of requirements under Section 8 and the Indicative Development Plan cum financing under Section 8.2 (Section 12.3).
    • Prospective bidders must show proof of available capital to undertake development activities in the Indicative Plan, supplemented by proof of available credit line and a certificate of undertaking stating that the amount will be used only for development of the subject area (Section 12.3).

  • Prequalification outcomes:

    • If requirements are met, the application is stamped “PREQUALIFIED” and parties are informed within five (5) days after approval, requiring submission of the bid proposal on the specified date and place (Section 12.4).
    • If requirements are not met, the application is stamped “DISQUALIFIED”, and applicants are informed in writing within five (5) days, stating the grounds (Section 12.4).

  • Bid receiving and opening:

    • Bid proposals in the form of the entry fee offered are submitted to the FLAgTC within the period and per regulations and are stamped with date/time receipt by the Secretariat’s record officer (Section 12.5).
    • The Chairman opens sealed bids publicly at the stated place/time/date, attended by bidders or authorized representatives (Section 12.5).
    • Each page of the bid proposal and attachments is consecutively numbered and initialed by FLAgTC members (Section 12.5).
    • After opening, an abstract of bids is prepared and signed by committee members and the resident auditor (or representative), with supporting papers and proceedings attached (Section 12.5).

  • Award basis:

    • The area is awarded to the bidder offering the highest entry fee, as prescribed by the rules (Section 12.6).
    • If there are two or more equal bids, another sealed bidding is conducted among those who submitted equal bids (Section 12.6).

  • Notice of award and nullification:

    • The RED issues a Notice of Award to the winning bidder (Section 12.7).
    • If the awardee refuses or fails to comply with requirements in the Notice of Award within the period prescribed under Section 12.11, the award is nullified and the bidder’s bond is forfeited in favor of the Government (Section 12.7).
    • If nullification occurs, the second highest complying bidder is considered only if the offer is at least 75% of the highest bid offer and not lower than the minimum entry fee; the same rule applies sequentially to the third highest bidder and so on (Section 12.7).

  • Minimum entry fee schedule:

    • 0.5 ha. and below: P 25,000.00 (Section 12.8(a))
    • 0.51 ha. to 0.99 ha.: 50,000.00 (Section 12.8(b))
    • 1.0 ha. to 5.0 has.: 100,000.00 (Section 12.8(c))
    • over 5.0 has.: 150,000.00 (Section 12.8(d))

  • Timing of notices:

    • The Notice of Award is given within three (3) working days after bidding; losing bidder(s) are informed within the same period (Section 12.9).

  • Preparation and issuance:

    • Within 15 days after payment of the entry fee, a FLAgT with the area’s final map is prepared in the Regional Office and approved by the concerned RED (Section 12.10).

Identification, delimitation, and FLAgT registry

  • CENROs identify suitable and available FLAgT sites within their areas of responsibility using DENR control maps, LGU Comprehensive Land Use Plans, and other relevant secondary references (Section 9.1).

  • CENROs verify that identified areas are not covered by pending applications or by existing forestry tenurial and/or forest use instruments (Section 9.1).

  • Site validation and final determination:

    • Technical descriptions and preliminary maps are forwarded to the RED, which forms a composite team including representatives from the Regional Office, PENRO, CENR, the Regional Office of the Department of Tourism, and the concerned LGU(s) (Section 9.2).
    • The composite team validates on the ground the area’s suitability by biophysical characteristics and the presence/absence of socio-economic considerations that may impede or promote full development, including the presence/absence of valid land claims and forest occupants (Section 9.2).
    • The team consults adjoining communities (Section 9.2).
    • Final outputs include:
      • metes and bounds of the FLAgT area determined by technical description and final map at 1:20,000 scale, geo-referenced to PRS 92;
      • a request for endorsement by the concerned LGU Sanggunian(s);
      • endorsement to the RED for approval of the FLAgT area (Section 9.2).

  • LGU endorsement procedure:

    • If the area falls within one barangay, endorsement is by the Sangguniang Barangay (Section 9.3).
    • If across more than one barangay, endorsement is by the Sangguniang Bayan/Sangguniang Panglunsod or by all concerned Sangguniang Barangays (Section 9.3).
    • If across more than one municipal/city, endorsement is by the Sangguniang Panlalawigan or by all concerned Sangguniang Bayan (Section 9.3).

  • Recording, furnishing, and registry:

    • After RED approval of the site, copies of the map with technical description are furnished to Forest Management Bureau (FMB), the concerned PENRO, and the concerned CENRO for recording in the FLAgT Registry (Section 9.4).
    • The FLAgT Registry is maintained at FMB, the DENR Regional Office, PENRO, and CENRO concerned (Section 9.4).
    • The concerned LGU(s) and the Regional Office of the Department of Tourism are furnished the same map and technical description (Section 9.4).

  • Registry content and public access:

    • DENR establishes a registry of FLAgT areas (Section 10).
    • The registry includes map with technical description, area characterization, documentation of determination/delineation process, and zonal value where available (Section 10).
    • The registry is made available through DENR and DOT websites, public notices posted at DENR Regional, PENRO, CENRO offices, provincial/city/municipal/barangay offices, and DOT offices concerned (Section 10).

Terms, ECC, bonds, and mandatory conditions

  • Within 6 months from FLAgT issuance, the holder must delineate and mark boundaries of the FLAgT area and zones on the ground, subject to DENR verification, and must preserve monuments and other landmarks (including corners and outlines) (Section 14.1).

  • Within 3 months from FLAgT issuance, the holder must submit a Site Management Plan (SMP) for protection of the environment and conservation of natural resources, accompanied by a performance bond determined based on procedures for special forest land uses (Section 14.2).

  • Before conducting any activity, the holder must secure the required ECC and other necessary permits (Section 14.3).

  • The holder must utilize the area only for the purpose granted; if the area is used for purposes other than those approved, such use requires prior approval of the Secretary or duly authorized representative (Section 14.4).

  • Tree cutting within the FLAgT area is subject to prior clearance by DENR under existing rules (Section 14.4 as continued).

  • The holder must:

    • strictly adopt ecological solid waste management and comply with the Clean Water Act provisions (Section 14.5);
    • protect all biodiversity in the area, especially unique, rare, and endangered flora and fauna identified under existing laws/rules (Section 14.6).

  • The holder must inform the RED (or duly authorized representative) of changes in management, ownership, or capital stock, or transfer of a majority of shares as provided for in PD 705, as amended (Section 14.7).

  • The holder must surrender the agreement to the RED (or duly authorized representative) if it will not be renewed upon expiration, if the holder no longer interests itself in the area, or in case of cancellation, immediately after cancellation takes effect (Section 14.8).

  • On death of an individual FLAgT holder, an heir may apply for transfer of the FLAgT within 90 days from death (Section 14.9).

  • The FLAgT does not authorize obstruction of free navigation or interference with passage of people along streams/creeks/rivers or coastal/marine areas adjoining or flowing through the area, does not prohibit passage along banks, and does not impede tidal flow to and from swamps’ interior (Section 14.10).

Monitoring, reports, and government share payments

  • DENR must ensure compliance through monitoring and evaluation activities (Section 15).

  • The RED must provide PENRO and CENRO (including the FMB) copies of approved FLAgTs with maps and SMP for all FLAgTs issued (Section 15.1).

  • The FLAgT holder must submit an annual report on compliance with the approved SMP (Section 15.2).

  • The Regional Composite Team (including PENRO, CENRO, RTD for Forestry, RTD for PAWCZM, and RD-EMB) must conduct annual monitoring and evaluation and submit monitoring reports to the Regional Executive Director and the FMB Director, and the FMB must submit an annual report to the Secretary (Section 15.3).

  • The DENR Central Office may validate annual accomplishment reports submitted by the FLAgT holder and validated by the Regional Composite Team, if warranted (Section 15.4).

  • Government share computation and payment obligations:

    • Government share is 5% of the most recent zonal value of the commercial zone within the barangay, or the nearest and adjacent barangay within the municipality (Section 16).
    • A revaluation is undertaken every 5 years thereafter (Section 16).
    • Government share is paid within 30 days upon issuance of the FLAgT and annually thereafter within the same month the FLAgT was issued (Section 16).
    • Late payment triggers surcharges of 8.33% monthly for late payment or 100% for one (1) year if within that period (Section 16).

Suspension, cancellation, and transfer rules

  • The RED may suspend or cancel a FLAgT for violation of the FLAgT terms/conditions and specified causes (Section 17).

  • Suspension causes:

    • Failure to settle administrative dues, including government share, after three (3) consecutive notices, after they become due and demandable (Section 17.1.1).
    • Failure to provide necessary protection of the area (Section 17.1.2).
    • Occupation by the FLAgT holder of an area greater than or other than the area covered by the management agreement (Section 17.1.3).
    • Allowing unauthorized persons to use the area or using the area for purposes other than specified in the management agreement (Section 17.1.4).

  • Cancellation causes:

    • Privilege obtained through fraud, misrepresentation, or omission of material facts existing at the time of filing the application (Section 17.2.1).
    • Abandonment of the area or failure to exercise the privilege granted within six (6) months from issuance of the FLAgT without justifiable cause (Section 17.2.2).
    • Failure to introduce improvement/development within the prescribed period indicated in the comprehensive development/management plan (Section 17.2.3).
    • Repeated violations of the provisions of Section 17.1 (Section 17.2.4).

  • Transfer of FLAgT rights:

    • A FLAgT holder may transfer, exchange, sell, or convey the FLAgT or rights therein or assets used therewith if authorized by the Secretary, subject to conditions (Section 18).
    • The FLAgT must have existed for at least three (3) years (Section 18.1).
    • The holder must have faithfully complied with all FLAgT terms/conditions, including implementation of the SMP (Section 18.2).
    • The transferee must have all qualifications and none of the disqualifications to hold a FLAgT area (Section 18.3).
    • The transferee must assume all obligations/responsibilities of the transferor specified in FLAgT, SMP, and ECC (Section 18.4).

Conversion, exemptions, and general clauses

  • Conversion of existing special land use permits:

    • Existing Special Land Use Permits may be converted to FLAgT if the holder shows satisfactory performance based on DENR’s monitoring and evaluation system and has complied with permit terms and conditions (Section 13).

  • Transitory bidding exemptions:

    • Existing permit/lease holders may be exempted from bidding if they pay other incidental fees including application fee, cash performance bond, and government share (Section 19.1).
    • Exempted applicants include:
      • holders of existing Special Land Use Permits/Leases who opt for conversion to FLAgT (Section 19.1.1);
      • those with pending applications for a DENR permit/lease for tourism-related special land uses at the time of effectivity of the Order (Section 19.1.2);
      • existing permittees/lessees applying for expansion of existing projects (Section 19.1.3).

  • Repeal clause:

    • All existing rules, regulations, circulars, instructions, memoranda, or parts thereof inconsistent with the Order are repealed or amended accordingly (Section 20).

  • Separability:

    • If any part of the Order is declared unconstitutional or invalid, the remaining parts continue in full force and effect (Section 21).

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