The National Greening Program: Promoting Public -

Private Partnerships in Rehabilitating Philippine

Forests

by

Marlo D. MendozaNational Coordinator, National Greening Program

DENR

Presentation Outline• Background of the Forestry Sector• Executive Order No. 26• Proposed strategies for PPP• Mobilizing the Private Sector -

going beyond 1.5M hectares(small, medium and large scale corporate investors)

• Way forward

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SITUATIONER

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SITUATIONER: The Areas

Land Classification:o Forestland/Timberland

15.9 Mha (52.9%)o Alienable &

Disposable 14.1 Mha (47.1%)

TOTAL: 30.0 Mha (100%)

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o Approximately there are 8 million hectares of forestlands that are unproductive, open, denuded or degraded

SITUATIONER: The Target Areas

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OTHER LAND USES IN THE FOREST ZONE 8 M ha (57%)SITUATIONER: The Target Areas

Wooded Grassland5.0 M Has

(32%)

Built-Up Area0.029 M Has (0.18%)

Cultivated Lands2.88 M Has (18.23%)

GrasslandOther Land, Natural

1.15M Has (7.3%)

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o At an average of 30,000 hectares accomplishment per year… ….it would take 280 years to reforest/ rehabilitate 8 Million hectares.

SITUATIONER: The Areas

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SITUATIONER: The Communities

o Approx. 6 Million families live in the uplands

o Approx. 29.4M cu.m. annual fuelwood consumption amounting to PhP 11.38 B

(Rebugio, 2005)

LEGEND: =>TD (Tropical Depression) stage (up to 63 kph)

=>TS (Tropical Storm) stage (64 to 117 kph)

=>TY (Typhoon) Stage (over 117 kph)

Tropical Cyclone Tracks (2003-2005)

Annual Frequency of Tropical Cyclone Made Landfall/Crossing the Philippines

(1948-2004)

0

50,000

100,000

150,000

200,000

250,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27

area

year

Reforestation by Sector

gov't

Non-gov't

Total

Source: 2006 Philippine Forestry Statistics

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -

10,000

20,000

30,000

40,000

50,000

60,000

19,059

26,484

9,111

6,565

12,436

7,187

4,476

25,024

27,752

52,318

32,382

10- Year Reforestation Per-formance

Area (...

Leading Forest Based Product Imports 2008

Product Value (000 USD, CIF)Paper & articles of paper and paperboard 596,077

Pulp and waste paper 62,948

Lumber 52,019

Plywood and plywood veneered panels 38,662

Forest-based furniture 34,163

Log 18,543

Fiberboard 13,820

Particleboard 13,568

Wood manufactured articles 13,200

Veneer and other wood worked 9,265

TOTAL FOREST PRODUCTS IMPORTS : USD 859.49M

Leading Forest Based Product Exports 2008

Total Forest Products Exports = USD 1.33B

Product Value in 000 USD, FOBWood Based Manufactured Articles 918,241

Forest Based Furniture 154,574

Paper & Articles of Paper and Paperboard 144,422

Pulp and Wastepaper 63,726

Plywood and Plywood Veneered Panels 19,237

Lumber 11,602

Wood Charcoal 8,526

Selected Nontimber Manufactured Articles 7,974

Veneer and Other Wood Works 2,003

Nontimber Forest Products 881

Forestry Sector Problem Tree

Lost of Forest

Resources

Loss of Biodiversity

Loss of watershed

values

Unsustainable Land Uses

Illegal PracticesUncontrolled Land Conversion

Lack of Private Investments

Weak Forest Science Foundation

Weak Intersectoral Participation

Conflicts in PFA RolesUndefined Limits of Forestlands

Weak Policies and Programs

Failures of Philippine Forest Administration in Forest Management

Forest Degradation

Unsustainability of Forest Resources

Why the mission?

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Food SecurityPoverty AlleviationTimber & non-timber products sufficiencyEnvironmental StabilityBiodiversity Conservation Climate Change Mitigation and Adaptation

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The National Greening Program (Executive Order No. 26)

Section 1.Declaration of Policy. It is the policy of the State to pursue sustainable development for poverty reduction, food security, biodiversity conservation, and climate change mitigation and adaptation.

…...

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NGP Section 2.Coverage. The National Greening Program shall plant some 1.5 Billion trees covering about 1.5 Million hectares for a period of six (6) years from 2011 to 2016, in the following lands in the public domain…

…...

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NGP Coverage AreasLANDS OF THE PUBLIC DOMAINoForestlandsoMangrove and protected areasoAncestral domainsoCivil and military reservationsoUrban areas under the greening plan of the LGUsoInactive and abandoned mine sitesoOther suitable lands

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Target Area Per Year

Year 1: 100,000 hectaresYear 2: 200,000 haYear 3: 300,000 haYear 4: 300,000 haYear 5: 300,000 haYear 6: 300,000 ha

Building up to the total target: 1.5 Million Hectares

1.5 Billion Seedlings

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NGP

CBFM sites to be

prioritized

PLANNING, POLICY & COORDINATION IMPLEMENTATION/OPERATIONS

NGP ORGANIZATIONAL STRUCTUREOFFICE OF THE PRESIDENT

NGP OVERSIGHT COMMITTEE

RDC

PROVINCIAL - LDC

MUNICIPAL - LDC

BARANGAY - LDC

NGP TWG- NCI

RCI - TWG

PCI - TWG

MCI - TWG

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STRATEGIC DIFFERENCES

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NGP: Strategic Differenceso Social mobilization • All students and government employees to individually plant at least 10 seedlings annually• Private sector and civil society’s participation/ Public-Private Partnerships• Peoples’Organizations to maintain and protect established plantations

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NGP: Strategic Differenceso Social mobilizationTOTAL NUMBER OF STUDENTS (2009-2010)• ELEMENTARY 13, 934, 172• HIGH SCHOOL 6, 806, 079Source: DepEd Facts & Figures http://www.deped.go.ph/factsandfigures/default.asp

TOTAL NUMBER OF GOVERNMENT EMPLOYEES 1,475,699Source: Civil Service Commission, Office for Planning and Management Information System (2007),

“2004 Inventory of Government Personnel”, Quezon City, Philippines; 2007.

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NGP: Strategic Differenceso Harmonization of Initiatives

• All tree planting initiatives such as Upland Development Program, Luntiang Pilipinas and similar activities of the government, private sector, LGUs and the civil society shall be harmonized under NGP

Green Philippines

Luntiang Pilipinas

Upland Development

Program

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NGP: Strategic Differenceso Harmonization of Initiatives

• All government institutions, especially DA, DAR,

DENR, DILG, CHED and DepEd shall produce appropriate quality of seedlings annually for the NGP

• Technical assistance shall be provided under the Convergence Initiative

NGP: Strategic Differences

Convergence of Programs with Other Govt Agencies• DSWD

Household coverage as of June 2011: 2,212,048 household

beneficiaries with 417,023 IP households and with 97,321 PWD members

2.3 Million poor households will be covered in the program by end of December 2011

NGP: Strategic Differences

• DSWD For 2012, need to identify and prioritize

as Pantawid Pamilya beneficiaries: 500,000 has. or equiv no. of families

to plant forest trees 60,000 has. or equiv. no. of families

to grow coffee 60,000 has or equiv no. of families to

grow cacao

Convergence of Programs with Other Govt Agencies

NGP: Leveraging Gov’t Funds with the Private Sector

Partners Investment/Equity Total Amount (Php)

Year 1 cost

(Php)

PO Land, labor, organization

DENR Seedlings, plantation maintenance and protection, technical assistance, policy

13,500 8,500

DSWD E- Conditional cash transfer(P1,400/month for 60

months)

84,000 16,800

DOLE Financial grant 20,000 20,000

LGU

Social Entreprene

ur

Market, new funds

Total 117,500 45,300

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NGP: Strategic Differenceso Provision of Incentives• All proceeds from agroforestry plantations, duly

accounted by the DENR, shall accrue to the NGP beneficiary communities

• Beneficiary communities shall be considered priority in the Conditional Cash Transfer (CCT) Program

• Appropriate incentives shall be developed by the Convergence Initiative

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NGP: Strategic Differenceso Maximization of available science and technology • Application of GIS• Optimizing landuse• Ensuring seed & seedling quality

(from SPAs, clonal nurseries,seed orchards)

• Use of organic/microbial Fertilizers (mycorhizal fungi)

Photos: UPLB-Biotech

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NGP: Strategic Differenceso Cont…..• Fire control and management• Establishment of Seed Production Areas and Orchard Gardens• Seed storage facilities• Extension officers • Transparency, accountability, participation

promoted• Third party M&E

Photos: UPLB-Biotech

Source : www.kidlat.pagasa.dost.gov.ph

Planting Schedule Based on Climate Map

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PROMOTING PUBLIC–PRIVATE PARTNERSHIPS

Conditions for Private Sector Participation

Clear investment zones –FLUP process must be transparent and participatory

Simplified procedures for investing that reduce transaction costs

Stable policy environment which guarantees the right to harvest or benefit from investment◦ Secured land tenure ◦ De-regulated policy especially in

harvesting planted trees◦ Harmonized policies with LGUs, NCIP,

NGAs

Conditions for Private Sector Participation

Support infrastructures

◦ Most forestlands are not accessible and product transport a problem

◦ Access to long-term cheap credit◦ Access to diversified markets

Development of Guidelines for the Investment Portfolio Approach to reduce Transaction Costs

Development of a unified tenure system – Proposal: Forest Plantation Management Agreement

Adoption of Special Forest Economic Zone Concept

Utilization of Third Party Auditors/Certifiers ◦ Monitoring compliance to SFM using Criteria and

Indicators◦ Securing Resource Utilization Permits

Initiatives to Promote Investments

Objectives

• To encourage public-private forestry investments through reduction of transaction costs by undertaking preparatory work relative to completing documentary requirements and securing necessary permits and clearances

• To develop investment portfolio package options for private investors on potential forestry enterprises (industrial tree plantations, agroforestry, ecotourism , etc.)

Investment Portfolio Approach

Objectives

• To ensure forestry projects are in accordance with national and LGU plans (CLUP,FLUP)

• To allow synergy and convergence of government agencies’ programs

Investment Portfolio Approach

Existing vis-a-vis Investment Portfolio Approach in Public-Private Partnership

Existing Approach Investment Portfolio Approach

The DENR’s role is limited on site identification and provision of technical assistance in mapping and planning.

• The DENR with concerned agencies and stakeholders to undertake all the preparatory activities and secure pre-requisite requirements• Identification of sites,

survey, planning and development of investment portfolio packages (plans)

• Issuance of permits, contracts, agreements, FPIC, ECC and other documents related to the identified forestry enterprise.

• Third-party MAR

The work on securing permits, contracts, agreements , FPIC, ECC and related documents lies on the would be private investor

The formulation of development plans is the responsibility of the would be private investors.

Monitoring by DENR

Objectives

• To provide more flexibility to the developer of the forest land to take advantage of market opportunities and optimize revenues

• To avoid conflicting policies e.g. government share, land development options

Development of a Unified Tenure System: Forest Plantation Management Agreement

Differences Between Existing & Unified Tenure System

Existing Tenure Instruments Unified Tenure

IFMA, SIFMA, UAF where development of land is limited to specific guidelines per tenure instrument;

Mode of land development depends on the investor, following certain social, envt’l and economic parameters and zoning done by DENR

Harmonized fees and government share

Simpler to administer and monitor

Current Tenure Instruments have its own schedule of fees and government share

Complicated to administer and monitor

Advantages: encourage investments (micro to medium scale), address social equity issue, provide economies of scale, ease of ensuring compliance e.g. production of certified forest products, reduced transaction costs, secure investments over long term

Size: At least 100,000 hectares FLUP-CLUP process undertaken which is

transparent and participatory Near/Accessible to International Sea Port

Special Forest Economic Zone Concept for Micro and Medium sized

Investors

Locators have to adhere to Forest Certification System requirements

Basic Support Infrastructures to be provided: roads, communication facilities, utilities, security

Existing tenure instruments to be respected; new ones issued

Locators are those with less than 5,000has; above 5,000has should locate outside the special forest economic zone

Special Forest Economic Zone Concept for Micro and Medium sized

Investors…cont.

To complement the National Gov’t Initiative…

Private Investments

CSR of Private Companies

Payment for Ecosystems/Environmental Services

Challenge: Non-traditional and Innovative Approaches Needed to Expand the NGP

Thank you for Your Kind Attention