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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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3
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