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Bacolod City, Philippines Wednesday, January 18, 2006
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Cancellation of forestry
contracts ordered

The Department of Environment and Natural Resources has sought the cancellation of the forestry contracts of erring holders in eight regions.

Secretary Michael Defensor said in a press release that he issued separate orders to regional directors in Regions 1, 4, 5, 6, 7, 8, 9 and Caraga, directing them to issue orders canceling all existing Industrial Forest Management Agreements, Industrial Tree Plantation Lease Agreements, Socialized Industrial Forest Management Agreements and Community-based Forest Management Agreements in their respective regions.

Defensor, however, said that holders, whose suspension of timber harvesting operations have been lifted will be exempted from the cancellation order, including those that have passed the validation.

Last December, cancelled were 276 various forestry contracts, including 233 CBFMAs, 37 IFMAs, and six ITPLAs. CBFMA is a renewable 25-year tenurial agreement issued by the DENR to a participating people's organization to enable its members to enjoy tenurial security and incentives to develop, utilize and manage specific portions of forestlands as forest managers.

IFMA is also a renewable production-sharing contract entered into by and between the DENR and a qualified applicant wherein the DENR grants to the latter the exclusive right to develop, manage, protect and utilize a specified area of forestland and forest resource for a period of 25 years.

ITPLA is an agreement entered into by and between the then Ministry of Natural Resources and qualified applicants for the establishment of tree crops primarily to supply the raw material requirements of existing or proposed wood processing and energy-generating plants and other related industries and for exports.

Defensor said he ordered the cancellations because of the non-compliance and violation of the terms and conditions of the agreements by the holders.

He said some of the holders had failed to submit their Comprehensive Development and Management Plan or had failed to comply with the terms and conditions set in their approved CDMPs. Others had failed to pay rentals and other required fees.

Defensor said that any motion for reconsideration or appeal shall be forwarded to his office.

The regional directors were directed to implement Defensor's order within 15 days after receipt.*

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