EXECUTIVE ORDER NO. 725 September 9, 1981
FACILITING THE ESTABLISHMENT OF INDUSTRIAL TREE PLANTATIONS
WHEREAS, the establishment of Industrial Tree Plantations (ITP) is encouraged as Government policy under P.D. No. 705 and P.D. No. 1559;
WHEREAS, LOI 423 (PROFEM) provides for the establishment of Industrial Tree Plantations as a step to intensify and accelerate Forest Ecosystem Management;
WHEREAS, the establishment of such Industrial Tree Plantations must be facilitated and accelerated in order to hasten the country's reforestation efforts, which shall promote ecological balance and assure an adequate wood supply for our growing population; and
WHEREAS, Timber License Agreement (TLA) areas constitute a major part of the Country's forest lands within which are portions needing revegetation, including open, denuded, brushland, and inadequately stocked areas.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby direct and order that:
Sec. 1. The establishment of Industrial Tree Plantation (ITP) in open, denuded, brushland and inadequately stocked areas is...
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Executive Orders
Faciliting the Establishment of Industrial Tree Plantations
Executive Order No. 725
Summary of Executive Order No. 725
Mandate and Priority:
- The establishment of Industrial Tree Plantations (ITP) in open, denuded, brushland, and inadequately stocked areas is mandated as a priority project of the Government. (Sec. 1)
Implementation and Identification of Areas:
- The Minister of Natural Resources, through the Bureau of Forest Development (BFD), shall accelerate the identification and delimitation of suitable areas within timber concessions for reforestation and conversion into ITP. (Sec. 2)
- Existing timber license holders shall be given 6 months from the promulgation of rules and regulations to:
a) Apply for an ITP lease agreement over areas suitable for growing trees, but not exceeding 30% of the total TLA area; or (Sec. 2a)
b) Undertake implementation of an approved 7-year reforestation plan; or (Sec. 2b)
c) Do both (a) and (b). (Sec. 2)
- Timber license holders shall submit a new 7-year reforestation program to reforest all open, denuded, brushland, and inadequately stocked areas not converted into ITP, with dipterocarp, premium, and/or fast-growing species. (Sec. 2)
ITP Development and Operation:
- Timber license holders may form a new corporation with other investors for the development and operation of the ITP. (Sec. 3)
- If the corporation fails to carry out the ITP development within the specified period, the timber license holder shall lose rights, and the license shall be revoked. (Sec. 3)
Failure to Apply for ITP or Reforestation:
- If timber license holders fail to apply for ITP or undertake an approved 7-year reforestation plan within the provided period, their priority option shall be waived, and such areas shall be made available to third parties, including Regional Cooperatives, without prejudice to cancellation of the TLA. (Sec. 4)
- Failure to comply with the reforestation program shall be sufficient cause for the summary suspension of the timber license, and if the violator is a log exporter, their log export permit shall be revoked until the deficiency is made up within 1 year from the date of notice. (Sec. 4)
Reforestation Requirements:
- Timber licensees shall plant suitable dipterocarp or other premium tree species, as well as fast-growing species, in line with their approved reforestation program. (Sec. 5)
Definition of "Inadequately Stocked Areas":
- "Inadequately stocked areas" refers to forest land with an average per hectare of less than 20 trees of dipterocarp and endangered species with diameters of not more than 20 centimeters at breast height. (Sec. 6)
- All dipterocarp and endangered species in such areas shall not be cut except when authorized by BFD rules and regulations. (Sec. 6)
ITP Area Requirements:
- Areas segregated for ITP development shall be contiguous, and patches of adequately stocked areas may be included if:
a) They do not exceed 30% of the total ITP area; (Sec. 7a)
b) At least 5% of the total ITP area shall be maintained as a permanent wilderness reserve; and (Sec. 7b)
c) The balance of adequately stocked areas shall be used as a buffer zone, with regulated harvesting of mature, overmature, and defective trees. (Sec. 7c)
ITP Lease Agreement:
- Land identified as suitable for ITP establishment shall be segregated from the timber concessions after the corresponding ITP Lease Agreement (Annex "A") is issued over such areas. (Sec. 8)
- Areas outside forest concessions found suitable for ITP development shall likewise be made available to interested parties. (Sec. 9)
- The ITP Lease Agreement shall have a term of 25 years, automatically renewable for another 25 years if the lessee complies with the terms and conditions. (Sec. 10)
- Upon expiration of the lease, the lessee shall be entitled to fair compensation for standing trees and improvements, determined by a mutually acceptable third-party appraiser. (Sec. 10)
- Subsequent lessees shall reimburse the Government for the compensation paid to the previous lessee. (Sec. 10)
Government Participation and Assistance:
- The National Development Company (NDC) may participate in the equity of the new ITP Corporation in joint venture with the ITP lessee. (Sec. 11)
- The Minister of Natural Resources and the Director of BFD shall sit as non-voting ex officio members in the Board of Directors of the new corporation to ensure compliance with forest conservation policies and objectives. (Sec. 11)
- The NDC, Development Bank of the Philippines, Central Bank, and other government financing institutions shall extend assistance to ITP projects in obtaining long-term and low-interest loans. (Sec. 11)
Employee Benefits:
- Employees of the lessee working in the ITP shall be considered agricultural workers entitled to benefits provided by the Ministry of Labor for that category. (Sec. 12)
Rules and Regulations:
- The Ministry of Natural Resources, in consultation with the Ministry of Industry and the private wood industry sector, shall promulgate the necessary rules, regulations, and guidelines to effectively implement this Executive Order within 60 days from the date hereof. (Sec. 13)
Application and Approval Process:
- Within 120 days, the BFD shall either approve or reject the application for ITP. (Sec. 14)
- If approved, the Ministry of Natural Resources and the applicant shall execute an ITP Lease Agreement (Annex "A") within 30 days from the date of approval. (Sec. 14)
- The Minister of Natural Resources may vary the terms and conditions of the ITP Lease Agreement if necessary and if the lessor and lessee are agreeable, provided that the new terms and conditions are within the intent of this Executive Order. (Sec. 14)
- The lessee shall start plantation development within 1 year from the date of execution of the ITP Lease Agreement. (Sec. 14)
Inconsistent Issuances:
- All existing Executive Orders, Letters of Instruction, Administrative Orders, Rules and Regulations, and other issuances inconsistent with this Executive Order are hereby amended or modified accordingly. (Sec. 15)
Effectivity:
- This Executive Order shall take effect immediately. (Sec. 16)
Mandate and Priority:
- The establishment of Industrial Tree Plantations (ITP) in open, denuded, brushland, and inadequately stocked areas is mandated as a priority project of the Government. (Sec. 1)
Implementation and Identification of Areas:
- The Minister of Natural Resources, through the Bureau of Forest Development (BFD), shall accelerate the identification and delimitation of suitable areas within timber concessions for reforestation and conversion into ITP. (Sec. 2)
- Existing timber license holders shall be given 6 months from the promulgation of rules and regulations to:
a) Apply for an ITP lease agreement over areas suitable for growing trees, but not exceeding 30% of the total TLA area; or (Sec. 2a)
b) Undertake implementation of an approved 7-year reforestation plan; or (Sec. 2b)
c) Do both (a) and (b). (Sec. 2)
- Timber license holders shall submit a new 7-year reforestation program to reforest all open, denuded, brushland, and inadequately stocked areas not converted into ITP, with dipterocarp, premium, and/or fast-growing species. (Sec. 2)
ITP Development and Operation:
- Timber license holders may form a new corporation with other investors for the development and operation of the ITP. (Sec. 3)
- If the corporation fails to carry out the ITP development within the specified period, the timber license holder shall lose rights, and the license shall be revoked. (Sec. 3)
Failure to Apply for ITP or Reforestation:
- If timber license holders fail to apply for ITP or undertake an approved 7-year reforestation plan within the provided period, their priority option shall be waived, and such areas shall be made available to third parties, including Regional Cooperatives, without prejudice to cancellation of the TLA. (Sec. 4)
- Failure to comply with the reforestation program shall be sufficient cause for the summary suspension of the timber license, and if the violator is a log exporter, their log export permit shall be revoked until the deficiency is made up within 1 year from the date of notice. (Sec. 4)
Reforestation Requirements:
- Timber licensees shall plant suitable dipterocarp or other premium tree species, as well as fast-growing species, in line with their approved reforestation program. (Sec. 5)
Definition of "Inadequately Stocked Areas":
- "Inadequately stocked areas" refers to forest land with an average per hectare of less than 20 trees of dipterocarp and endangered species with diameters of not more than 20 centimeters at breast height. (Sec. 6)
- All dipterocarp and endangered species in such areas shall not be cut except when authorized by BFD rules and regulations. (Sec. 6)
ITP Area Requirements:
- Areas segregated for ITP development shall be contiguous, and patches of adequately stocked areas may be included if:
a) They do not exceed 30% of the total ITP area; (Sec. 7a)
b) At least 5% of the total ITP area shall be maintained as a permanent wilderness reserve; and (Sec. 7b)
c) The balance of adequately stocked areas shall be used as a buffer zone, with regulated harvesting of mature, overmature, and defective trees. (Sec. 7c)
ITP Lease Agreement:
- Land identified as suitable for ITP establishment shall be segregated from the timber concessions after the corresponding ITP Lease Agreement (Annex "A") is issued over such areas. (Sec. 8)
- Areas outside forest concessions found suitable for ITP development shall likewise be made available to interested parties. (Sec. 9)
- The ITP Lease Agreement shall have a term of 25 years, automatically renewable for another 25 years if the lessee complies with the terms and conditions. (Sec. 10)
- Upon expiration of the lease, the lessee shall be entitled to fair compensation for standing trees and improvements, determined by a mutually acceptable third-party appraiser. (Sec. 10)
- Subsequent lessees shall reimburse the Government for the compensation paid to the previous lessee. (Sec. 10)
Government Participation and Assistance:
- The National Development Company (NDC) may participate in the equity of the new ITP Corporation in joint venture with the ITP lessee. (Sec. 11)
- The Minister of Natural Resources and the Director of BFD shall sit as non-voting ex officio members in the Board of Directors of the new corporation to ensure compliance with forest conservation policies and objectives. (Sec. 11)
- The NDC, Development Bank of the Philippines, Central Bank, and other government financing institutions shall extend assistance to ITP projects in obtaining long-term and low-interest loans. (Sec. 11)
Employee Benefits:
- Employees of the lessee working in the ITP shall be considered agricultural workers entitled to benefits provided by the Ministry of Labor for that category. (Sec. 12)
Rules and Regulations:
- The Ministry of Natural Resources, in consultation with the Ministry of Industry and the private wood industry sector, shall promulgate the necessary rules, regulations, and guidelines to effectively implement this Executive Order within 60 days from the date hereof. (Sec. 13)
Application and Approval Process:
- Within 120 days, the BFD shall either approve or reject the application for ITP. (Sec. 14)
- If approved, the Ministry of Natural Resources and the applicant shall execute an ITP Lease Agreement (Annex "A") within 30 days from the date of approval. (Sec. 14)
- The Minister of Natural Resources may vary the terms and conditions of the ITP Lease Agreement if necessary and if the lessor and lessee are agreeable, provided that the new terms and conditions are within the intent of this Executive Order. (Sec. 14)
- The lessee shall start plantation development within 1 year from the date of execution of the ITP Lease Agreement. (Sec. 14)
Inconsistent Issuances:
- All existing Executive Orders, Letters of Instruction, Administrative Orders, Rules and Regulations, and other issuances inconsistent with this Executive Order are hereby amended or modified accordingly. (Sec. 15)
Effectivity:
- This Executive Order shall take effect immediately. (Sec. 16)